Which of the Following Is True About Uncertainty Avoidance

question 115

Multiple Choice

Which of the following is true about uncertainty avoidance?

• A) Nations that are low in uncertainty avoidance will be slower to adopt product innovations.
• B) The price-quality relationship is not as strong among cultures with high uncertainty avoidance.
• C) Consumers in high-uncertainty-avoidance cultures are slower to buy products that are perceived to be scarce.
• D) Consumers from low-uncertainty-avoidance cultures demand greater amounts of product information and explanation.
• E) Superstitions and myths play a bigger role among cultures low in uncertainty avoidance.

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Definitions:

Price Rationing

The allocation of limited goods or services using prices, where higher prices curb demand to match the supply.

Focus Group

A small, diverse group of people whose reactions are studied to gauge the response to a specific product, service, or policy.

Total Revenue

The total amount of money received by a firm from selling goods or services before any costs or expenses are deducted.

Rent-Seeking Activity

Economic practices aimed at increasing one's share of existing wealth without creating new value, often through manipulation or exploitation of the political environment.