Suppose That 1983 Is the Base Year for the Consumer

question 3

Multiple Choice

Suppose that 1983 is the base year for the Consumer Price Index (CPI) and in 2014 the CPI was 220.What does this "220" mean?

• A)What cost $100 in 1983 on average cost 2.20 times as much in 2014.
• B)What cost $100 in 1983 on average cost $220 more in 2014.
• C)What cost $100 in 1983 on average cost 0.22 times as much in 2014 (that is,it cost $22 in 2014).
• D)What cost $100 in 1983 on average cost $22 more in 2014.

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Definitions:

Salient Attributes

Key features or characteristics of a product or service that are most important to the consumer and influence their purchasing decision.

Symbols

Objects, characters, figures, or colors used to represent abstract concepts, ideas, or phenomena.

Segmentation Process

The practice of dividing a market into distinct groups of buyers with different needs, characteristics, or behavior, who might require separate products or marketing strategies.

Segmenting Markets

The practice of dividing a broad target market into subsets of consumers with common needs or characteristics and then designing and implementing strategies to target them.