A Reference Group Is Characterised by All the Following Except

question 132

Multiple Choice

A reference group is characterised by all the following except that it:

• A) serves as a frame of reference for individuals and their purchase decisions.
• B) places restrictions on group size and membership.
• C) does not require that consumers identify with a tangible group.
• D) helps individuals in forming their attitudes, values and behaviours.

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Definitions:

Cumulative

Describing a total that includes all amounts accumulated over a period of time, often used in the context of dividends that are accrued and paid at a later date.

Nonparticipating

Typically refers to insurance policies or investment plans where the holder does not share in profits or dividends beyond specified benefits.

Par Value

The nominal or face value assigned to a share of stock or a bond by the issuer.

Noncumulative

A type of preferred stock on which dividend payments are not accumulated if they are not declared.