Differences in Tastes and Preferences

question 56

Multiple Choice

Differences in tastes and preferences:

• A) increase pressures for cost reductions.
• B) do not affect service-based firms.
• C) increase pressures for local responsiveness.
• D) reduce pressures from the host government.
• E) significantly decrease R&D costs of a company.

---

Definitions:

Brand Loyalty

A consumer's preference to buy a particular brand’s product over others, often reflected in repeated purchases.

Economic Efficiency

A condition in which resources are distributed to optimize the production of goods and services while minimizing costs.

Brand Loyalty

The tendency of consumers to continuously purchase one brand's products over competing ones.

Substitute Products

Goods and services that can be used in place of each other based on their utility and functional qualities.