If a Consumer Has a Low-Performance Expectation for a Product

question 35

Multiple Choice

If a consumer has a low-performance expectation for a product and after use performance is perceived to be better than expected, this consumer will be:

• A) non-satisfied.
• B) satisfied.
• C) dissatisfied.
• D) unsatisfied.

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Definitions:

Contribution Format

A financial statement layout that separates fixed costs from variable costs to highlight the contribution margin of a business.

Absorption Costing

A financial tracking method that brings together all costs of production—direct materials, direct labor, and all overhead, both variable and fixed—inclusion in the price of a product.

Variable Costing

An accounting method that includes only variable production costs (materials, labor, and overhead) in product costs.

Net Incomes

The total earnings of a company after all expenses and taxes have been deducted from revenues, indicating profitability over a specific period.