What Term Is Used to Describe Compliance with an Initial

question 107

Multiple Choice

What term is used to describe compliance with an initial small request followed by compliance with a larger request?

• A) risky shift
• B) foot-in-the-door effect
• C) door-in-the-face effect
• D) polarization phenomenon

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Definitions:

Permanent Income Hypothesis

A theory suggesting that people's consumption choices are based on their long-term income expectations rather than their current income.

Induced Consumption

Consumer spending that increases as disposable income rises, and decreases as disposable income falls, unrelated to the level of interest rates.

Wealth Effect

The change in spending that accompanies a change in perceived wealth, typically when home values or investment portfolios increase.

Induced Consumption

Describes consumer spending that increases when income increases and decreases when income decreases, directly related to the level of disposable income.