There Are Several Reasons Why a Consumer Would Be Reluctant

question 181

Multiple Choice

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

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

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Definitions:

Franchises

Business models that allow individuals to operate their own outlets of a larger company, using its brand, processes, and resources.

Company Stores

Retail establishments operated by a company that sells its own products to its employees or the general public, often in a monopolistic or semi-monopolistic market.

Franchising Relationship

A business model that involves a franchisor licensing its know-how, procedures, intellectual property, use of its business model, brand, and rights to sell its branded products and services to a franchisee.

Franchisor

A company that grants the license to third parties for them to operate a business under the franchisor's brand and business model.