How Do Advertisers Exploit Reference Groups

question 41

Multiple Choice

How do advertisers exploit reference groups?

• A) They offer group deals, so if you purchase the same item as a friend, you both get a discount.
• B) They show images of people whom we hope to be like purchasing and using goods the advertisers are trying to sell.
• C) They offer a discount on purchasing items in bulk, such as a "buy-one-get-one-free" deal.
• D) They offer a trial subscription for free and then charge after the consumer has likely forgotten that they subscribed.

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Definitions:

Market-Oriented Economy

An economic system where business decisions and the direction of production are guided by the fluctuations of market prices.

North Korea

A country in East Asia, known for its authoritarian government, nuclear weapons program, and unique geopolitical challenges.

Socialism

An economic and political system where the means of production, distribution, and exchange are owned or regulated by the community as a whole, aiming for equal wealth distribution.

Private Enterprise System

A private enterprise system is an economic system where businesses are owned and operated by private individuals or companies, with minimal government intervention.