Behavioral Economists Suggest That Brand Loyalty, Which Can Be a Source

question 203

Multiple Choice

Behavioral economists suggest that brand loyalty, which can be a source of monopoly power for the producer, may be explained by consumers' tendency to have the

• A)anchoring effect.
• B)mental accounting effect.
• C)status quo bias.
• D)confirmation bias.

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Definitions:

Operating Budgets

Detailed projections of income and expenses associated with the day-to-day operations of a business for a specific period, usually one year.

Allocate Resources

The process of distributing available resources, such as funds, materials, and labor, to specific tasks, projects, or departments within an organization.

Labour

The human effort, both physical and mental, used in the production process.

Fixed Budget

A budget that remains constant, regardless of changes in business activity levels.