Which Consumer Theory Proposes That Consumers Use Expectations as a Benchmark

question 67

Multiple Choice

Which consumer theory proposes that consumers use expectations as a benchmark against which performance perceptions are judged and this comparison is a primary basis for satisfaction/dissatisfaction?

• A) attribution theory
• B) expectancy/disconfirmation theory
• C) input/output theory
• D) equity theory
• E) social comparison theory

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Definitions:

Subjective Value

The individual and personal valuation of a good or service rather than its market value, based on personal preferences, needs, or satisfaction derived.

Equilibrium

A balance between market demand and supply that results in steady prices.

Budget Line

A budget line represents all combinations of goods and services that a consumer may purchase given current prices and income levels.

Marginal Rate of Substitution

How quickly a person agrees to trade one product for a different one to preserve their overall happiness.