Promotional Efforts Designed to Reduce the Risk to Consumers for Using

question 192

Multiple Choice

Promotional efforts designed to reduce the risk to consumers for using a product for the first time seek to

• A) stimulate demand.
• B) encourage product trial.
• C) create awareness.
• D) combat competitive promotional efforts.
• E) retain loyal customers.

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Definitions:

Utility Maximization

The principle that individuals or firms seek to allocate their resources in a manner that maximizes their satisfaction or utility.

Money Income

Money income is the total amount of money earnings received by an individual or household, including wages, salaries, benefits, and investment income, before any deductions.

Marginal Utility

The additional satisfaction or utility a consumer receives from consuming one additional unit of a good or service.

Consumer Equilibrium

occurs when a consumer has allocated their resources in such a way that maximizes their utility, given their budget constraint.