The Tendency for Consumers to Like Things, Including Products, Simply

question 30

Multiple Choice

The tendency for consumers to like things, including products, simply because they are more familiar to them is called the:

• A) mere exposure effect.
• B) novelty wear-out effect.
• C) barrier-to-entry effect.
• D) preference consistency effect.

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Definitions:

Nonoperating Assets

Nonoperating assets are assets that are not essential to the primary business operations and may include investments, unused land, or other assets held for future use.

Operating Assets

Assets used by a business in its day-to-day operations to generate revenue, such as machinery, buildings, and inventory.

Return On Investment

A measure used to evaluate the efficiency of an investment or compare the efficiencies of several different investments, calculated as net profit divided by the cost of the investment.

Return On Investment Ratio

A financial metric used to evaluate the efficiency of an investment, calculated by dividing the net profit by the original capital cost of the investment.