Describe Equity Theory

question 17

Essay

Describe equity theory. What are the three general possibilities that can result from the comparison of the ratio of outcomes and inputs to the ratio of some comparison other? Describe a situation when you experienced a sense of inequity, and relate your response to that situation.

Recognize the consequences of setting unrealistic consumer expectations.

Identify the types of social influence on consumer decisions.

Develop strategies to manage customer expectations and enhance satisfaction postpurchase.

Differentiate between impulse buying and habitual decision making.

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Definitions:

Heavy Advertising Campaign

A strategic marketing effort that involves a significant increase in advertising volume and intensity to promote a product, service, or brand.

Chi-squared Goodness-of-fit Test

A statistical test used to determine if observed data fits an expected distribution.

Expected Frequencies

The anticipated count of occurrences across different categories or intervals, based on a probability model.

Observed Frequencies

The actual number of occurrences or instances recorded in categorized data.