Which Type of Decision Making Usually Occurs When There Are

question 90

Multiple Choice

Which type of decision making usually occurs when there are relatively low amounts of purchase risk and product involvement?

• A) limited decision making
• B) truncated decision making
• C) experiential decision making
• D) automatic decision making
• E) abbreviated decision making

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Definitions:

Income Effect

The change in an individual's or economy's consumption patterns due to a change in real income.

Substitution Effect

The change in consumption patterns due to a change in the relative prices of goods, holding the consumer's utility level constant.

Income Effect

The modification of income for people or economies and how this adjustment affects their purchasing desires for goods or services.

Inferior Good

A type of good for which demand decreases as the income of the consumer increases, typically because consumers can afford better alternatives.