CH.12

Question 1

Consumer Confidence

Answer 1

Consumer’s beliefs about what the future holds. Predicts savings rate and consumption rate.

Question 2

Social Class

Answer 2

Overall rank of people in society determined by:
Income, education, Occupational prestige

Question 3

Social Mobility

Answer 3

Passage of individuals from one social class to another. Horizontal, downward and upward mobility.

Question 4

What typically leads to social mobility?

Answer 4

Marriage

Question 5

Conspicuous Consumption

Answer 5

Buying expensive items to display wealth, income and social class (status signaling).

Question 6

Brand Prominance (quiet or loud signals)

Answer 6

Is not a function of wealth but a functions of need for status.

Question 7

Health halo effect can lead to over or underconsumption?

Answer 7

Overconsumption

Question 8

Why are drink portions so large?

Answer 8

Food industry: low variable cost, high fixed cost

Question 9

Partition cues

Answer 9

can help make a consumer reduce consumption