When Consumers Associate a Brand with a Certain Level of Quality

question 98

Multiple Choice

When consumers associate a brand with a certain level of quality and familiar attributes,allowing consumers to make quick decisions,the brand

• A) establishes novelty.
• B) is the only one the consumer will consider.
• C) reduces delivery costs.
• D) facilitates purchasing.
• E) creates brand dilution.

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Definitions:

Premium Amortization

The gradual reduction of the premium paid above the face value of a bond, allocated over the life of the bond.

Bond Premium

The difference between the selling price of a bond and the bond’s face value when the bond is sold for more than par.

Effective-Interest Amortization

A method of amortizing a bond discount or bond premium that reflects the effective interest rate a company pays bondholders over the life of a bond.

Coupon Interest Rate

The annual interest rate paid by a bond expressed as a percentage of its face value.