Nora Is Deciding Whether to Purchase Brand Name Sneakers or a Store

question 67

Multiple Choice

Nora is deciding whether to purchase brand name sneakers or a store brand. She has purchased other shoes with the same brand name in the past but was only marginally satisfied. In this situation, Nora is likely to purchase the store brand sneakers because they offer

• A) more brand awareness.
• B) higher degrees of brand loyalty.
• C) greater perceived value.
• D) a better brand image.
• E) more product line depth.
• Since Nora's past experience with name brands has been marginal, she might prefer to buy the store brand, which is probably less expensive and might therefore provide better value.

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Definitions:

Profitability

The capability of a business to generate earnings greater than its expenses over a specific period, resulting in a profit.

Liabilities To Stockholders' Equity

Liabilities to Stockholders' Equity ratio indicates the financial leverage of a company, comparing the total liabilities to the total stockholders' equity to assess financial health.

Profitability

A measure of how much profit a business generates compared to its size, sales, or assets.

Debt

Debt is an amount of money borrowed by one party from another, which is expected to be paid back with interest.