Which of the Following Statements About the Consideration Set Is

question 24

Multiple Choice

Which of the following statements about the consideration set is false?

• A)If a brand is not in the consideration set, it will not be purchased.
• B)As the number of brands in consideration set increase, the chances of our brand being selected decrease.
• C)A consideration is always at least 2 brands.
• D)Brands in the consideration set can come from point-of-sale.
• E)One way to increase choice of my brand being selected is to control the entrance of competitors' brands into the consideration set.

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Definitions:

Competitive Industries

Industries characterized by many firms competing for market share, leading to innovation and efficient resource allocation.

Production Costs

Expenses incurred during the process of creating a good or service, including labor, raw materials, and overhead costs.

Decreasing-Cost Industry

An industry in which expansion through the entry of firms lowers the prices that firms in the industry must pay for resources and therefore decreases their production costs.

Long-Run Supply Curve

As it applies to macroeconomics, a supply curve for which price, but not real output, changes when the demand curves shifts; a vertical supply curve that implies fully flexible prices.