How Would Declining Consumer Confidence and Sentiment Most Likely Affect

question 22

Multiple Choice

How would declining consumer confidence and sentiment most likely affect sports brands?

• A)Consumers will have higher disposable incomes and will invest in discretionary purchases,such as sports event tickets.
• B)Businesses will postpone making investment decisions in sports-related advertising and sponsorships.
• C)Ticket sales will decline,and businesses will be more reluctant to invest in sponsorships.
• D)Consumers will have less money to spend on utilitarian goods and services.

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Definitions:

Variable Cost

Costs that vary directly with the level of production or sales volume, such as materials and labor, in contrast to fixed costs which remain constant regardless of production level.

Transfer Price

The price charged for goods or services transferred between departments or subsidiaries within the same company.

Opportunity Cost

The price paid for not choosing the subsequent optimal alternative during decision-making.

Lost Contribution Margin

The profit forgone by not manufacturing or selling a product, represented by the contribution margin that would have been earned on each unit.