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Scenario 7.1
Use the following to answer the questions.
Consumers use information from many sources when making purchasing decisions,including information from friends and family members.One of the most dissatisfying consumer experiences is with auto repair.Aware of this,Kate has asked several of her friends and family members where they have their cars repaired,since she has experienced a problem starting her car when the weather is cold.Kate has heard that Skola's Auto Repair has reasonable prices,but it can be difficult to get an appointment.Steve,one of Kate's friends,had a very poor experience with Skola's.However,once he complained to them,they fixed the situation and now he prefers their auto repair shop over others.
-Refer to Scenario 7.1.Positive feelings generated by satisfaction with Skola's response will become part of Steve's
Inferior Good
A type of good for which demand decreases as the income of consumers increases, opposite to normal goods.
Airline Travel
The process of transporting passengers and cargo by aircraft from one location to another.
Normal Good
A type of good for which demand increases as the income of individuals increases, reflecting a direct relationship between income and demand.
Demand Curve
A graph showing the relationship between the price of a good or service and the quantity of it that consumers are willing to purchase at various prices.
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