In the Utility Maximising Model, Consumer Preferences Are Assumed to Be

question 127

Multiple Choice

In the utility maximising model, consumer preferences are assumed to be transitive.What does this mean?

• A)That consumers prefer more of a good to less
• B)That consumers have the freedom to change their preferences from time to time
• C)That consumers have preferences that are relatively consistent in the time period under consideration
• D)That consumers go through cycles in their consumption behaviour

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Definitions:

Posttest

An evaluation of advertisements after the ad campaign is launched by a sample of targeted consumers.

Objective-and-Task Method

A budgeting approach where the budget is set based on the cost of specific tasks or objectives that must be accomplished to achieve marketing goals.

Percentage-of-Sales Method

A budgeting technique for marketing or advertising that bases the budget on a fixed percentage of the sales revenue.

Affordable Method

A promotion-mix budgeting strategy in which firms set their promotion budget based on what they believe they can afford.