Which Term Refers to the Ways in Which Consumers Use

question 39

Multiple Choice

Which term refers to the ways in which consumers use the behaviours and attitudes of reference groups to gain knowledge for their own decisions?

• A) utilitarian influence
• B) informational influence
• C) conformational influence
• D) cognitive influence

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Definitions:

MPS

Marginal Propensity to Save, which is the portion of additional income that a household saves rather than consumes.

APS

Assumes "APS" refers to "Average Propensity to Save," which is the proportion of total income or output that is saved rather than spent on consumption.

Induced Consumption

Refers to the portion of consumer spending that increases or decreases in response to changes in income.

Disposable Income

The pot of funds households have at their disposal for saving and spending, post-income tax.