All categories

3 years ago

The type of decision making a consumer uses for a product does not necessarily remain constant.why?

Business

1 answer:

Vlada [557]3 years ago

5 0

Answer:

See explanation below.

Explanation:

Human wants and needs are dynamic and insatiable. With that in mind, a customer's decision making regarding particular products and services will keep on changing.

This can be due to diverse reasons which include:

- Change is customer's tastes or preferences: customers may experience income level changes, and this will also affect their tastes and preferences for particular products and services.

- Changes in trends: people's needs tend to change with the changes in trends and what is currently in vogue.

- Technology advancements: changes in technology will affect a consumer's decision making process, for example, if a new phone with new capabilities is produced, consumers will want to purchase the product because of its technical aspects.

- Economic factors like inflation, rise or fall in income level, unemployment, recession, etc can affect a consumer's decision making process.

You might be interested in

Corey receives some utility from consuming a frozen dinner (an inferior good) but would much rather purchase healthier food (a n

Korolek [52]

Answer:

The effect that causes Corey's quantity demanded of a frozen dinner to increase is known as income effect

Explanation:

Income effect refers to the change in consumption pattern or in the amount of the good consumed as a result of changes in the consumer's utility and purchasing power. Income effect can be positive or negative.

Here, Corey derives some utility from consuming a frozen dinner (an inferior good). Therefore, as the price increases, the income effect will induce Corey (the consumer) to purchase more.

8 0

4 years ago

The value of the consumer price index (CPI) is best described as the:______

Ivenika [448]

Answer:

Option A.

Current year prices to base year prices, holding the market basket content constant

Explanation:

In simpler terms the Consumer price index a value used in measuring inflation in an economy. It is a value that measures the weighted average of a basket of consumer goods and services such as food and transportation, healthcare etc. They are used to assess price changes associated with the cost of living in a particular society.

The formula for calculating The Consumer Price index is given as

CPI= (Cost of Market Basket in Base Year / Cost of Market Basket in Given Year ) ×100

This makes the correct answer option A.

8 0

4 years ago

Read 2 more answers

Which step of the personal selling process did sam engage in when, early in his career, he made in-person cold calls with profes

irina1246 [14]

The personal selling process includes the following steps: prospecting, pre-approach, approach, presentation, meeting objections, closing the sale, and follow-up
When Sam early in his career made in-person cold calls with professors on various campuses he engage the first step (prospecting) of the personal selling process.
While prospecting the sales representative has contact with many people who are potentially buyers.

5 0

4 years ago

A customer reached out via Twitter via Direct Message to your company, looking for support with a complex issue. A co-worker was

Anastaziya [24]

Answer:

Hootsuite inbox

Explanation:

If a co-worker was already trying to help the client then he is probably using Hootsuite inbox. It is a common tool used by companies to communicate with clients all over the world. The Hootsuite inbox has three different aspects; one is to communicate with the clients, the second one is to see the complete list and filter. It helps to manage contacts, clients and customers.

8 0

3 years ago

Suppose your boss has asked you to analyze two mutually exclusive projects - Project A and Project B. Both projects require the

svp [43]

Answer:

b. No, the NPV calculation will take into account not only the project's cash inflows but also the timing of cash inflows and outflows. Consequently, Project B could have a larger NPV than Project A, even though Project A has larger cash inflows.

Explanation:

The net present value is the present value of after tax cash flows from an investment less the amount invested.

An example:

Suppose there are two projects with a cash outlay of $500.

The cash flow for project A :

Cash flow from year 1 to 3 =$0

Cash flow from year 4 to 7 =$ 500

WACC = 10%

Using a financial calculator, the NPV =$690.78

The cash flow for project B

Cash flow for year one and two =$300

Cash flow for year three = $100

Cash flow for year four and five =$500

WACC = 10%

using a financial calculator, the NPV = $747.76

From this example, even though the cash flow from project A is higher than the cash flow from project B, project B's NPV is higher.

I hope my answer helps you.

7 0

3 years ago

The type of decision making a consumer uses for a product does not necessarily remain constant.why?​

The type of decision making a consumer uses for a product does not necessarily remain constant.why?