LA Diversified Inc. recently paid its annual dividend of $3. Dividends have consistently grown at a rate of 3.8%. The stock has
1 answer:
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Answer:
<u>less risk</u>
Explanation:
Note: <u>The question appears to be incomplete. Another similar question has been attached for reference purpose and the answer provided herein is based upon that</u>.
It is common consumer behavior of sticking to a brand name despite another lower cost option providing the same base or constituent. Particularly in case of necessities, the law of demand i.e lower price higher demand fails as consumer would prefer being exposed to lesser risk no matter whatever be the cost.
In the given case, the consumer i.e Cole prefers going with a brand name as it provides him with a higher degree of assurance as the brand has a certain reputation attached to it which the other generic option lacks.
Secondly owing to his familiarity with the drug and it's past usage experience, he has developed brand loyalty apparently.
Thus, Cole's decision is attributable to <u>less risk.</u>
