When Planning Marketing Strategies During Times of Inflation,marketers Must Be

question 65

Multiple Choice

When planning marketing strategies during times of inflation,marketers must be aware that inflation causes consumers to:

• A) purchase more goods and services to support their psychological selves,such as counseling and stress management training
• B) consume more meals away from home
• C) buy in small quantities until inflation is over
• D) decrease their brand loyalty to products they have traditionally used
• E) put more money into savings accounts because prices are too high

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Definitions:

Comparative Advantage

is the economic theory that a country should specialize in producing and exporting goods and services for which it has the lowest opportunity cost.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision.

Marginal Costs

The additional cost incurred when producing one more unit of a particular good or service.

Trading Partner

A country or organization that engages in import or export transactions with another entity, indicating a regular commercial relationship.