__________Help(s)explain How Consumers Rely on Opinions or Testimonials from People

question 68

Multiple Choice

__________help(s) explain how consumers rely on opinions or testimonials from people they consider similar to themselves,rather than on objective product information.

• A) Equity theory 
• B) Reference groups 
• C) Maslow's theory 
• D) Brand loyalty

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Definitions:

Groupthink

A psychological phenomenon that occurs within a group of people when the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Interpersonal Relationships

Associations between two or more people that can vary in intensity and intimacy and can be found in various contexts.

Marginal-cost Pricing

The strategy of setting the price of a product equal to or slightly above the additional cost of producing one more unit of that product.

Average-cost Pricing

Average-cost pricing is a pricing strategy where the price is set based on the average cost of production, including fixed and variable costs, plus a markup.