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OG Much research has been devoted to investigating

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OG Much research has been devoted to investigating

Post Thu Jul 27, 2017 7:47 pm
Elapsed Time: 00:00
  • Lap #[LAPCOUNT] ([LAPTIME])
    Much research has been devoted to investigating
    what motivates consumers to try new products.
    Previous consumer research suggests that both the
    price of a new product and the way it is advertised
    affect consumers’ perceptions of the product’s
    performance risk (the possibility that the product will
    not function as consumers expect and/or will not
    provide the desired benefits). Some of this research
    has concluded that a relatively high price will reduce
    a consumer’s perception of the performance risk
    associated with purchasing a particular product,
    while other studies have reported that price has little
    or no effect on perceived performance risk. These
    conflicting findings may simply be due to the nature
    of product advertisements: a recent study indicates
    that the presentation of an advertised message has a
    marked effect on the relationship between price and
    perceived performance risk.
    Researchers have identified consumers’ perception
    of the credibility of the source of an advertised
    message-i.e., the manufacturer-as another factor
    affecting perceived performance risk: one study
    found that the greater the source credibility, the lower
    the consumer’s perception of the risk of purchasing
    an advertised new product. However, past research
    suggests that the relationship between source
    credibility and perceived performance risk may be
    more complex: source credibility may interact with
    price in a subtle way to affect consumers’ judgments
    of the performance risk associated with an advertised
    product.

    415) According to the passage, the studies referred to in line 12 reported which of the following about the effect of price on consumers’ perception of the performance risk associated with a new product?
    A. Although most consumers regard price as an important factor, their perception of the performance risk associated with a new product is ultimately determined by the manufacturer’s reputation.
    B. Price interacts with the presentation of an advertised message to affect perceived performance risk.
    C. Price does not significantly affect consumers’ perception of the performance risk associated with a new product.
    D. Consumers tend to regard price as more important than the manufacturer’s credibility when they are buying from that manufacturer for the first time.
    E. Consumers are generally less concerned about a new product’s performance risk when that product is relatively expensive.

    416) The “past research” mentioned in line 25 suggests which of the following about perceived performance risk?
    A. The more expensive a new product is, the more likely consumers may be to credit advertised claims about that product.
    B. The more familiar consumers are with a particular manufacturer, the more willing they may be to assume some risk in the purchase of a new product being advertised by that manufacturer.
    C. Consumers’ perception of the performance risk associated with a new product being advertised may be influenced by an interplay between the product’s price and the manufacturer’s credibility.
    D. Consumers may be more likely to believe that a product will function as it is advertised to do when they have bought products from a particular manufacturer before.
    E. The price of a particular advertised product may have less impact than the manufacturer’s credibility on consumers’ assessment of the performance risk associated with that product.

    417) The passage is primarily concerned with
    A. challenging the implications of previous research into why consumers try new products
    B. suggesting new marketing strategies for attracting consumers to new products
    C. reconciling two different views about the effect of price on consumers’ willingness to try new products
    D. describing a new approach to researching why consumers try new products
    E. discussing certain findings regarding why consumers try new products

    418) Which of the following, if true, would most tend to weaken the conclusions drawn from “some of this research” (see line 8)?
    A. In a subsequent study, consumers who were asked to evaluate new products with relatively low prices had the same perception of the products’ performance risk as did consumers who were shown the same products priced more expensively.
    B. In a subsequent study, the quality of the advertising for the products that consumers perceived as having a lower performance risk was relatively high, while the quality of the advertising for the products that consumers perceived as having a higher performance risk was relatively poor.
    C. In a subsequent study, the products that consumers perceived as having a lower performance risk were priced higher than the highest priced products in the previous research.
    D. None of the consumers involved in this research had ever before bought products from the manufacturers involved in the research.
    E. Researchers found that the higher the source credibility for a product, the more consumers were willing to pay for it.

    Q415: C
    Q416: C
    Q417: E
    Q418: A

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