Scenario 7.1 Use the Following to Answer the Questions

question 44

Multiple Choice

Scenario 7.1
Use the following to answer the questions.
Consumers use information from many sources when making purchasing decisions, including information from friends and family members. One of the most dissatisfying consumer experiences is with auto repair. Aware of this, Karla has asked several of her friends and family members where they have their cars repaired, since she has been experiencing a problem with her car starting when the weather is cold. Karla has heard that Skola's Auto Repair has reasonable prices, but it can be difficult to get an appointment. However, one of her friends, Steve, had a very poor experience with Skola's. Once he complained to them, they fixed the situation and now he prefers their auto shop over others.
-Refer to Scenario 7.1. The type of problem solving that consumers use to select an auto repair shop would normally be

• A)intensive problem solving.
• B)extended problem solving.
• C)routinized response behavior.
• D)selective problem solving.
• E)limited problem solving.

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Definitions:

Marginal Cost

The expense associated with creating an extra unit of a product or service.

Marginal Benefit

The further satisfaction or value an individual gains from consuming an extra unit of a certain product or service.

Optimal Quantity

The amount of a good or service that achieves the best balance between cost and benefit.

Sunk Cost

Expenses that have already been incurred and cannot be recovered, which should not influence current or future business decisions.