When Planning Marketing Strategies During Times of Inflation,marketers Must Be

question 14

Multiple Choice

When planning marketing strategies during times of inflation,marketers must be aware that inflation causes consumers to do which of the following?

• A)put more money into savings accounts because prices are too high
• B)consume more meals away from home
• C)buy in small quantities until inflation is over
• D)decrease their brand loyalty to products they have traditionally used

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Definitions:

External Economies of Scale

Cost advantages that a firm obtains due to the expansion of the industry in which it operates, but not due to its own expansion.

Industry Size

A measure of the total production or the total number of participants in a particular industry or market.

Short-Run Losses

Temporary financial deficits that a firm may face due to operating costs exceeding total revenue in the short term.

Zero Economic Profit

A situation where a firm's total revenue is exactly equal to its total costs, including both explicit and implicit costs.