Which of the Following Occurs When a Customer Learns That

question 29

Multiple Choice

Which of the following occurs when a customer learns that two products are different even though the packages of both products look similar?

• A) extinction
• B) brand equity
• C) stimulus generalization
• D) stimulus discrimination

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Definitions:

Fixed Expenses

Costs that do not vary with the level of production or sales, such as rent, salaries, or utilities.

Profit

The financial gain achieved when the revenues generated from business activities exceed the expenses, costs, and taxes needed to sustain those activities.

Margin Of Safety

The extent to which sales can decline before a business reaches its breakeven point.

Variable Expenses

Costs that change in proportion to the level of production or sales activities.