The ________ Hierarchy of Effects Assumes the Consumer Does Not

question 90

Multiple Choice

The ________ hierarchy of effects assumes the consumer does not initially have a strong preference for one brand over another. Instead, a consumer acts on the basis of limited knowledge and then forms an evaluation only after the product has been purchased or used.

• A) experiential
• B) habitual
• C) low-involvement
• D) standard learning

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Definitions:

Consumer Surplus

The gap between the price consumers are prepared to pay for a product or service and the actual amount they spend, indicating the value gained by consumers.

Quantity Supplied

The total amount of a good or service that producers are willing and able to sell at a particular price point, within a specific time period.

Linear

A term used to describe relations or functions that graph as straight lines, representing constant rates of change.

Mutually Beneficial Trades

Exchanges between parties that improve the welfare of all involved, typically occurring in markets where buyers and sellers agree on terms that leave them both better off.