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fgiga [73]
2 years ago
11

As Markel drives buy a local restaurant, he realizes that he hasn’t eaten all day and is famished. He stops at the restaurant, a

nd without referring to the menu, orders a burger because that’s what he typically buys at this particular restaurant. This scenario suggests that:
1. low-involvement decisions may sometimes enable consumers to skip steps in the consumer decision making process.
2. Markel would have probably made a different food choice had he not been famished.
3. some people may skip steps in the consumer decision making process, particularly for high-involvement decisions.
4. all purchase decisions go through the six steps of the consumer decision making process.
5. Markel’s hunger caused him to experience cognitive dissonance.
Business
1 answer:
DochEvi [55]2 years ago
3 0

Answer:

1. low- involvement decisions may sometimes enable consumers to skip steps in the consumer decision making process.

Explanation:

Consumer decision making process includes all the steps between consumer's generation of needs/wants and final purchase of the product.

The process comprises of below mentioned 5 stages:

  1. Need recognition : whereby a need is generated
  2. Search for information so as to identify products satisfying such needs
  3. Evaluation of all available alternatives i.e assessment of all available products satisfying a need and selecting the best alternative.
  4. Purchases , the stage wherein the consumer buys the selected product.
  5. Post purchase evaluation, i.e the stage when consumer evaluates whether he made the right purchase decision.

In the given case, the consumer realized that he hadn't eaten at all during the day and thus instantly stopped at a restaurant, made a regular purchase of a burger without caring for the menu or set of other available alternatives.

Here, the investment decision related to a meal, being a low cost decision and occurring in a famished state. So consumers while making such low cost decisions may not find going through the menu and spending much time in deciding as worthwhile and in short will likely skip steps in the consumer decision making process.

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Johnson Enterprises intends to make a dividend payment of $3.25 per share next year. After this dividend payment, the firm is co
vladimir1956 [14]

Answer:

I would be willing to pay $ 32.83  for each share of Johnson Enterprises

Explanation:

The price per share= next year dividend/required rate of return-growth rate

next year dividend is $3.25

required rate of return is 15%

dividend growth rate in perpetuity is 5.1%

share price=$3.25/(15%-5.1%)

share price =$3.25/9.9%

share price=$3.25/0.099

share price=$ 32.83  

The share can be sold today for $ 32.83  ,which is the present value of dividends payable in perpetuity(forever)

6 0
2 years ago
The country of Lessidinia has a tax system identical to that of the United States. Suppose someone in Lessidinia bought a parcel
kati45 [8]

Answer:

after tax real rate of capital gain = - 30%

so correct option is B. -30 percent

Explanation:

given data

bought land = 20,000 foci

price Index = 100

sold land = 100,000 foci

price index = 600

tax rate = 20 percent

to find out

Compute the taxes on the nominal gain and the change in the real value of the land and after-tax real rate of capital gain

solution

first we get here tax on nominal gains that is express as

tax on nominal gains = tax rate × gain

tax on nominal gains = 20% × ( 100,000 - 20,000 )

tax on nominal gains = 16000 foci

and

Real gain is here as

Real gain = sold land - price index ( bought land )

Real gain = $100,000 - 6 ( 20000)

Real gain = - $20000 foci

and

now after tax real rate of capital gain will be here as

after tax real rate of capital gain = (Real gain - tax on nominal gains ) ÷ ( sold land - real gain )   × 100

after tax real rate of capital gain = \frac{-20000-16000}{120000}  × 100

after tax real rate of capital gain = - 30%

so correct option is B. -30 percent

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g "At the end of the current year, the owners' equity in Barclay Bakery is $260,000. During the year, the assets of the business
rewona [7]

Answer:

$205,000

Explanation:

Let us assume Owners' equity at the beginning be X

So, the Increase in Owners' equity is $260,000 - X

As we know that

Accounting equation is

Total assets = Total liabilities + total stockholder equity

So,

Total Increase in Assets = Total Increase in Liabilities + Increase in Owners' equity

$134,000 = $79,000 + $260,000 - X

$134,000 = $339,000 - X

So, the X =

= $339,000 - $134,000

= $205,000

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