Several Companies, Some of Them Operating Through the Internet, Offer

question 62

Multiple Choice

Several companies, some of them operating through the Internet, offer "paycheck advances." Consumers are encouraged to take out a loan against a paycheck they expect to receive in the near future. These short-term loans with high-interest rates, and high penalties for late payments, are often marketed to consumers who do not have traditional bank accounts. These companies could most easily be criticized for which of the following?

• A)shoddy products
• B)poorly serving disadvantaged consumers
• C)high-pressure selling
• D)high advertising and promotion costs
• E)excessive markups

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Definitions:

Observational Study

A research method that involves observing subjects in their natural environment without manipulating any variables.

Normative Study

An investigation or research aimed at understanding what is considered normal or typical behavior or characteristics in a specific population.

Consumer Behavior

The study of how individual consumers, groups, or organizations select, buy, use, and dispose goods, services, ideas, or experiences to satisfy their needs and desires.

Experimental Study

A research methodology that involves the manipulation of variables to observe and measure their effects on a subject group.