Scenario 5-3 While Grocery Shopping, Tina Selects Items That She Regularly Buys

question 16

Multiple Choice

Scenario 5-3
While grocery shopping, Tina selects items that she regularly buys because she knows they taste good and she has used them for years. However, the usual Kraft cheese that she buys is not available, so she buys a similar brand of cheese that she hasn't tried but has heard of before. Kraft cheese, being a popular brand, has managed to make itself known, and when most of the customers shopping at the store were asked which cheese they bought, most of them stated Kraft almost immediately.
-(Scenario 5-3) Kraft cheese tries to get its customers to buy its cheese more than once.This is an example of _____.

• A) extended problem solving  
• B) low involvement 
• C) conversion 
• D) an accessibility bonus

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Definitions:

Consumer Surplus

The difference between the total amount consumers are willing to pay for a good or service and the actual amount they pay.

Producer Surplus

The difference between the amount producers are willing to sell a good for and the actual amount they receive by selling it at the market price.

Direct Price Discrimination

The practice of charging different prices to different consumers for the same product or service, based on the buyer's willingness to pay.

Low-value Group

A segment of the market or customer base that generates relatively low revenue or profit for a business, often targeted differently in marketing or pricing strategies.