A Customer's Decision to Purchase One Product or Group of Products

question 18

Multiple Choice

A customer's decision to purchase one product or group of products over another is primarily a function of:

• A) the convenience of acquiring the product or group of products.
• B) how well that choice will fulfill that person's needs and satisfy his or her wants.
• C) the product's features relative to competing products.
• D) the product's price.
• E) the availability of the product or group of products.

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Definitions:

Competition

The rivalry among businesses to attract customers, increase sales, and gain market share.

Tying Arrangement

A business practice where the sale of one product is conditioned on the purchase of another, often scrutinized for anti-competitive effects.

Exclusive Dealing

refers to a restrictive agreement between supplier and distributor, where the distributor agrees to sell only the supplier's products and not those of competitors.

Discriminatory Pricing

The practice of charging different prices to different consumers for the same product or service, based on factors like race, gender, or geographic location, which is often considered unethical and illegal.