Describe the effects that normative statements have on consumer expectations and thus the demand for certain goods and services.

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Business

Shaun Hess

8 June, 11:18

Describe the effects that normative statements have on consumer expectations and thus the demand for certain goods and services.

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Reuben Strong · Answer 1

Normative statements shape the way a person feels about a good or service because they show the world the way it should be, rather than how it is. These will increase the quantity demanded of a good or service, if the statement shows the good in a positive light. It will have the opposite effect if the statement is negative.