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Consumers Often Infer the Level of Demand for Brands in a Product

question 39

True/False

Consumers often infer the level of demand for brands in a product cluster from the cluster size, such that a larger cluster size implies more demand.

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Definitions:

APS

Average Propensity to Save, the proportion of total income that is saved by a household or economy.

Saving

The act of setting aside a portion of income for future use, typically in a bank account or other secure investment.

Disposable Income

Resources meant for household spending and saving once income tax obligations are settled.

APC

The average propensity to consume, which is the fraction of total income that is spent on consumption as opposed to being saved.

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