TEXT B A scientist who does
research in economic psychology and who wants to predict the way in which
consumers will spend their money must study consumer behavior. He must obtain
data both on resources of consumers and on the motives that lend to encourage or
discourage money spending. If an economist were asked which of
three groups borrow most—people with rising incomes, stable incomes or declining
incomes—he would probable answer: those with declining incomes. Actually, in the
years 1947～1950, the answer was: people with rising incomes. People with
declining incomes were next and people with stable incomes borrowed the least.
This shows us that traditional assumptions about earning and spending are not
always reliable. Another traditional assumption is that if people who have money
expect prices to go up, they will postpone buying. But research surveys have
shown that this is not always true. The expectations of price increases may not
stimulate buying. One typical attitude was expressed by the wife of a mechanic
in an interview at a time of rising prices, "In a few months," she said, "we’ll
have to pay more for meat and milk; we’ll have less to spend on other things."
Her family had been planning to buy a new car but they postponed this purchase.
Furthermore, the rise in prices that bas already taken place may be resented and
buyer’s resistance may be evoked. This is shown by the following typical
comment: "I just don’t pay these prices; they are too high." The
investigations mentioned above were carried out in America. Investigations
conducted at the same time in Great Britain, however, yielded results that were
more in agreement with traditional assumptions about saving and spending
patterns. The condition most conducive to spending appears to be price
stability. If prices have been stable and people consider that they are
reasonable, they are likely to buy. Thus, it appears that the common business
policy of maintaining stable prices is based on a correct understanding of
consumer psychology. The results of the investigations shows that ______.
A．consumers will spend their money quickly if they expect prices to increase B．the pricing policy should be based on a correct understanding of consumer psychology C．remaining stable prices is a correct business policy D．price increase always stimulate people to hasten to buy things