Many Young, Working Couples Choose to Have Just One Kid

question 71

Multiple Choice

Many young, working couples choose to have just one kid or none at all. These couples hardly have any responsibilities like saving up for children's education or securing children's future. This leaves them with more than enough money to spend on luxury goods. Most of them enjoy high spending power and splurge on a lot of luxurious goods. In this scenario, which of the following is a trend that is most likely to influence the consumer behavior?

• A) Declining birthrates
• B) Declining consumer affluence
• C) Increasing life expectancy
• D) Increasing population

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Definitions:

Pricing Strategy

The approach businesses use to set the prices of their products or services, which can influence demand, profitability, and market positioning.

Initial Price

The starting or original cost of a product or service when it is first offered for sale.

Price-sensitive

Referring to the degree to which the demand for a product or service is affected by changes in its price.

Penetration Pricing

A pricing strategy where the price of a new product is set artificially low in order to gain market share quickly.