Sweet Tooth Confectioners May Use the Same Ingredients as Most

question 220

Multiple Choice

Sweet Tooth Confectioners may use the same ingredients as most other producers of chocolate candies and may not even be much better than other well-known brands of chocolate. However, the company wraps its candies in expensive-looking foil and places them in very attractive boxes. It promotes its products in advertisements as "the ultimate in chocolate experience." Sweet Tooth charges a much higher price than most competitors, but sales continue to grow. This success indicates that

• A) consumers always behave in an irrational manner.
• B) there is more to the total product offer than the physical product.
• C) consumers seldom consider price when making a buying decision for goods such as chocolate.
• D) chocolate is best classified as a convenience good.

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Definitions:

Expenses

Costs incurred during business operations to generate revenue, which may include rent, salaries, and materials.

Generate Revenues

The process of earning income through the sale of goods or services provided by a business.

Obligations

Obligations are responsibilities or legal commitments that arise from contracts, laws, or financial agreements, requiring entities to settle debts or perform specific actions.

Liabilities

Future sacrifices of economic benefits that an entity is obliged to make to other entities as a result of past transactions or other past events.