The Premise of the Hierarchy of Effects Model Is That

question 49

Multiple Choice

The premise of the hierarchy of effects model is that consumers move through a sequence of steps in the process of making a purchase decision."Doing" corresponds to the stages of

• A)awareness and knowledge
• B)knowledge and liking
• C)preference,conviction and purchase
• D)conviction and purchase

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Definitions:

Macaulay Duration

A measure of the weighted average time until a fixed income asset's cash flows are received, used to assess interest rate risk.

Yield

The earnings generated and realized on an investment over a particular period, expressed as a percentage of the investment’s cost, its current market value, or its face value.

Modified Duration

A measure of the sensitivity of a bond's price to changes in interest rates, adjusting for the bond's yield to maturity.

Modified Duration

A measure that estimates the price sensitivity of a bond or bond portfolio to interest rate changes, adjusting for the changing yield to maturity.