In the Hierarchy of Effects Model, to Obtain Brand Loyalty

question 171

Multiple Choice

In the hierarchy of effects model, to obtain brand loyalty:

• A)all six steps must be present.
• B)knowledge and preference is essential, the other steps are not.
• C)liking, preference, and conviction are essential, the other steps are not.
• D)awareness, knowledge, and conviction are essential, the other steps are not.

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Definitions:

Market Failure

Market failure occurs when the allocation of goods and services by a free market is not efficient, often leading to a net social welfare loss.

Economic Efficiency

A situation in which resources are used in a way that maximizes the production of goods and services at the lowest cost.

Ideal Economic Efficiency

A situation in which resources are allocated in a way that maximizes the net benefit to society.

Market Failure

Refers to a situation where the allocation of goods and services by a free market is not efficient, often leading to negative externalities.