Assignment on expected value and consumer choices

Reference no: EM13805109

Assignment: Expected Value and Consumer Choices

Consumers' choices are prey to subtle discrepancies that arise in cognitive accounting. Learning how and when you are prey to these discrepancies is an important step in improving your decision making.

People value gains and losses differently under different scenarios. For example, contestants in a game show might choose a guaranteed $10 prize over a 50 percent chance of winning $20 despite the fact that the expected values are the same.

Using the Internet, address the following:

What is mental accounting and how does it impact consumer decision making?

How might a company take advantage of consumers' mental accounting? Give examples.

As a marketer, how might you frame certain decisions to benefit from the disparities that arise in one's cognitive accounting?

As a consumer, how would you avoid the pitfalls posed by the inequalities of one's cognitive accounting?

Reference no: EM13805109

Questions Cloud

Genome4u is a scientific research project at a large : Genome4U is a scientific research project at a large university in the United States. Genome4U has recently started a large-scale project to sequence the genomes of 100,000 volunteers with a goal of creating a set of publicly accessible databases wit..

What are your independent and dependent variables : Write and post a one paragraph purpose statement for your research project. What are your Independent and Dependent variables

Multiple regression analysis based numericals : If the sum of squares regression is 100 and the sum of squares total is 500. Given that the sum of squares residual (or error) is 400 what is the r-squared value?

Identify the main business processes in your business : Identify the main business processes in your business. What types of business information systems will you need to efficiently run the various business processes of your business

Assignment on expected value and consumer choices : Assignment: Expected Value and Consumer Choices

The literary analysis of antigone : The Literary Analysis of Antigone

Identify the country where the law is enforced : Name the law, describe it as one from the bulleted list, and identify the country where the law is enforced (they may be laws that come from just one country, ie. all American laws is just fine

Determination of a sized design layout : Requires the determination of a sized design layout of an aircraft concept to meet a given mission specification.

Challenger and columbia shuttle disasters : What factors in NASA's culture contributed to the Challenger and Columbia shuttle disasters? Using Schein's "onion model" of culture, is it possible to show how basic assumptions are linked to beliefs and values and then to potentially fateful beh..

User Account

All Pages