Which of the Following Statements About Brand Loyalty Is Most

question 289

Multiple Choice

Which of the following statements about brand loyalty is most accurate?

• A)Learning has little affect on brand loyalty because most habits are instinctual.
• B)Brand loyalty eliminates perceived risk associated with spontaneous purchases.
• C)The incidence of brand loyalty is steadily rising in North America.
• D)Brand loyalty results from the positive reinforcement of previous actions.
• E)The best way to enhance brand loyalty is by branding all new products with the same brand name.

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Definitions:

Price Elasticity

A measure indicating the extent to which the demand for a merchandise changes following a price adjustment.

Short Run

A period in economics during which at least one input is fixed and cannot be changed by the firm.

Long Run

A period in which all factors of production and costs are variable and companies can enter or exit an industry.

Demand

The quantity of a product or service that consumers are willing and able to purchase at various price levels at a given time.