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RideAnS [48]
3 years ago
7

Considerable research has documented that in many product categories, consumers are unable to distinguish among brands when give

n blind tests (i.e. taste or use of the products without labels). Such products include cigarettes, beer, liquors, and cosmetics. Nonetheless, even when prices are similar, consumers have strong preferences for specific brands of these products. This strong brand preference is characteristic of:
Business
1 answer:
kirill115 [55]3 years ago
5 0

Answer:

brand loyalty

Explanation:

Brand loyalty: The term "brand loyalty" is determined as the propensity of specific consumers to "continuously purchase" a particular brand's products over some other brand's products. However, a specific consumer's behavioral patterns are responsible for demonstrating that he or she will continue to purchase products from the same company that has been fostered a "trusting relationship".

In the question above, the given statement represents brand loyalty.

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________ refers to how people make decisions in a lottery or with uncertainty. People do not generally make expected value decis
allsm [11]

Answer:

The correct answer is c. Prospect theory.

Explanation:

Prospective theory belongs to behavioral economics and stands out as an alternative model to the expected utility theory, since the validity of the rational agent's neoclassical assumption is questioned. This theory was developed by Nobel laureate Daniel Kahneman and his collaborator Amos Tversky in his »Prospect Theory: An Analysis of Decision under Risk” (1979). They used the results obtained from both his own empirical observations, as of several experiments.

Individuals set preferences based on a specific situation and circumstances, rather than in absolute terms. This means that depending on their initial situation, agents will act in one way or another. One of the results of this reasoning leads to behavioral asymmetries between situations of possible losses or gains. Individuals, for example, are generally more risk averse than profit lovers. An endowment effect is also derived from this analysis, since the compensation required by someone to dispose of a good is greater than what they would be willing to pay to acquire it.

4 0
3 years ago
Joey set up a lawn-mowing business in his neighborhood. He currently has 7 customers that want their lawns mowed each week, for
monitta

Answer:

Joey's weekly revenue is $175.

4 0
3 years ago
Use your understanding of the strategic management process to complete the sentences below.
AnnyKZ [126]

A firm’s<u> Strategy </u> is the plan of action that describes resource allocation and activities for dealing with the environment, achieving a competitive advantage, and attaining the organization’s goals.

Explanation:

A firm’s<u> Strategy </u> is the plan of action that describes resource allocation and activities for dealing with the environment, achieving a competitive advantage, and attaining the organization’s goals.

By acquiring a technology company that develops smartphone apps, a video-streaming business hopes to achieve  <u>Synergy </u>, combining its video rights with mobile technology to increase profits.

<u>Element of Competitive Advantage</u>

Drybar, which started in Brentwood, California, in 2010, is a hair salon catering entirely to people with curly or frizzy hair who want their hair straightened. No cuts, perms, or coloring happen here. The store now has over 40 locations-<u>Target Customers</u>

Applewood Seed Co. of Colorado has fifty years of experience growing and supplying native wildflowers, grasses, and herbs to seed distributors, landscapers, golf courses, state highway departments, parks departments, government agencies, garden centers, mining companies, hydroseeders, and reclamation companies. Applewood has both an in-depth horticultural knowledge of native plants and the ability to supply in bulk-<u>Exploit core competencies</u>

A meditation instructor partners with a technology developer to market relaxation apps featuring soothing natural sounds and guided meditation exercises. The tech expert writes the code, and the meditation instructor develops the apps’ content.-<u>Build Synergy</u>

5 0
3 years ago
Brummitt Corp., is evaluating a new 4-year project. The equipment necessary for the project will cost $2,000,000 and can be sold
sergejj [24]

Answer:

The aftertax salvage value of the equipment is $302,964

Explanation:

In order to calculate the aftertax salvage value of the equipment, first we would need to calculate the Book value of the equipment after 4 years as follows:

Book value of the equipment after 4 years = Purchase price *(1-depreciation rate each year)

= $2,000,000*(1-0.2-0.32-0.192-0.1152)

=$345,600

Loss on sale = $281,000-345,600

= 64600

Tax benefit on loss = $64,600*34% = $21,964

Therefore, After tax salvage value = selling price + tax benefit

= $281,000 + $21,964

=$302,964

The aftertax salvage value of the equipment is $302,964

5 0
3 years ago
Read 2 more answers
TRANSACTIONSGave a cash refund of $750 to a customer because of a lost package.Sent a check for $1,050 to the utility company to
victus00 [196]

Answer:

Journal entries

Service Revenue                               Debit         $ 750

Cash                                                   Credit                          $ 750

To record refund to customer for lost package

Utility Expenses                                 Debit          $ 1,050

Cash                                                    Credit                          $ 1,050

To record payment of utility company bill in cash

Accounts Receivable                         Debit         $ 7,800

Service Revenue                                Credit                          $ 7,800

To record receivables for services provided on credit

Equipment                                          Debit          $ 4,600

Cash                                                    Credit                            $ 4,600

To record purchase of equipment for cash

Accounts payable                               Debit          $ 3.500

Cash                                                     Credit                          $ 3,500

To record payment to creditors

Cash                                                     Debit         $ 15,250    

Service revenue                                  Credit                          $ 15,250

To record services provided on cash

Cash                                                      Debit        $ 6,250

Accounts receivables                           Credit                         $ 6,250

To record collections from customers

Cash                                                      Debit        $ 25,000

Capita account Owner                        Credit                           $ 25,000

To record capital contribution from owner

Supplies                                                Debit        $  3,250    

Accounts payable                                 Credit                          $ 3,250

To record purchase of supplies on credit

Rent expense                                        Debit      $ 3,750

Cash                                                       Credit                          $ 3,750

To record payment of monthly rent

Explanation:

8 0
3 years ago
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