By Investing in Alternatives That Are Higher on the Investment

question 107

Multiple Choice

By investing in alternatives that are higher on the investment pyramid,one is exposed to ____ risk to his or her capital and ____ risk of loss.

• A)increasing; increasing
• B)increasing; decreasing
• C)decreasing; decreasing
• D)decreasing; increasing

---

Definitions:

Purchase Decisions

The process by which consumers identify needs or desires, gather information, evaluate alternatives, make the buying choice, and reflect on the satisfaction with the purchase.

Consumer Decision-Making Process

The stages a consumer goes through, from identifying a need to post-purchase evaluation, in choosing a product or service.

Hierarchy Of Effects Model

A marketing model that outlines the sequential steps consumers typically go through, from awareness of a product to purchase decision.

Product Awareness

The extent to which potential customers recognize or are familiar with a product or brand.