Many Store Brands Use Packaging and Labeling That Is Similar

question 27

Multiple Choice

Many store brands use packaging and labeling that is similar to the more expensive national brand. The hope is that the look-alike package will elicit a similar response in consumers that encourages them to purchase the cheaper store brand. This is an example of _____.

• A) stimulus discrimination
• B) stimulus generalization
• C) stimulus confusion
• D) stimulus similarity
• E) stimulus deception

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Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its current assets.

Cash Ratio

A liquidity metric that measures a company's ability to pay off its short-term liabilities with its cash and cash equivalents alone.

Price-Earnings Ratio

The price-earnings ratio (P/E ratio) measures a company's current share price relative to its per-share earnings, used by investors to evaluate the valuation and potential for future earnings growth of a stock.

Earnings Per Share

A company's profit divided by its number of common outstanding shares, serving as an indicator of the company’s profitability.