The Three Most Widely Recognized Types of Consumer Decision Making

question 166

Multiple Choice

The three most widely recognized types of consumer decision making are

• A) limited problem solving, extended problem solving, and routinized response behavior.
• B) extended problem solving, enduring problem solving, and situational decision making.
• C) planned problem solving, impulse buying, and limited decision making.
• D) internal problem solving, external problem solving, situational behavior.
• E) responsive behavior, planned behavior, and impulsive decision making.

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Definitions:

Break-even Point

The sales level at which total revenues equate to total costs, resulting in no profit or loss, indicating the minimum sales necessary to cover all expenses.

Fixed Costs

Expenses that do not change with the level of production or sales activity, such as rent, salaries, and insurance premiums.

Unit Contribution Margin

The difference between the selling price per unit and the variable cost per unit, indicating how much each unit sold contributes to fixed costs and profits.

Break-even Point

The production level at which total revenues equals total expenses, resulting in neither profit nor loss.