Solved

In a Sluggish Economy,consumers Will Buy Even the Most Modest

question 163

Multiple Choice

In a sluggish economy,consumers will buy even the most modest of products with the same discretion once shown only to big-ticket items,like computers,airfares,and designer clothes.The results are a growing popularity of cheaper private-label products and the likelihood that price wars among consumer goods could lead to the same kind of consolidation that occurred in the airline and electronics industries.Moreover,analysts say changing buying habits will force premium brand marketers to lower their prices to protect their positions.These companies may also upgrade products to distinguish them from private labels and promote their brands more aggressively than ever.
One analyst says that consumers are forcing product innovation.Products have to be sold on merit.As a result,there will be fewer brands of significance,but the significant brands will be stronger.Brand loyalty is believed to exist only when,or if,value is provided.How do the significant brands compete? One analyst says that a combination of sensible pricing and innovation with a strong brand name can stabilize market share.Reformulated or repackaged products are typical examples of innovative attempts to solidify market share.
-Refer to Consumer Buying Habits.Changing consumer buying habits will force premium brand marketers to lower their prices to protect their positions (maintain the same revenue) .What does this suggest about demand for premium products?

Definitions:

Indirect Reports

Communication that relays information or statements not through direct quotations but by paraphrase or summary, often used to report speech.

Three-Step Writing Process

A methodology involving planning, writing, and completing a document or communication effort.

Planning Writing

Planning writing involves organizing thoughts, ideas, and information before starting to write, to ensure clarity and coherence in the text.

Completing Projects

The act of finishing tasks or assignments by effectively planning, executing, and finalizing all required steps.