There Are Several Reasons Why a Consumer Would Be Reluctant

question 270

Multiple Choice

There are several reasons why a consumer would be reluctant to purchase a new product.One example would be a value barrier.A value barrier occurs when

• A)there is no incentive to change.
• B)there are physical, economic, or social risks.
• C)there are cultural differences.
• D)the financial commitment is too great.
• E)the product is not consistent with existing habits.

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Definitions:

Annual Cost Savings

Financial savings that a company or individual realizes over a one-year period, often as a result of efficiency improvements or cost-cutting measures.

Operating Costs

The expenses associated with the day-to-day functions of a business, excluding the costs of goods sold, such as rent, utilities, and payroll.

Internal Rate of Return

A financial metric used to evaluate the profitability of an investment, representing the interest rate at which the net present value of all cash flows (both positive and negative) from a project or investment equal zero.

Straight-Line Depreciation

An operation for dividing the expense of a solid asset through its functional duration in even yearly sums.