Reference no: EM131847361

Question: Extraneous characteristics of the choice situation can influence our selections, even though they wouldn't if we were totally rational decision makers. Create two versions of this scenario (alternate the text you see in parentheses as directed) and ask a separate group of people to respond to each: You are lying on the beach on a hot day. All you have to drink is ice water. For the past hour you have been thinking about how much you would enjoy a nice cold bottle of your favorite brand of beer. A companion gets up to go make a phone call and offers to bring back a beer from the only nearby place where beer is sold (either a fancy resort hotel or a small, run-down grocery store, depending on the version you're given).

He says that the beer might be expensive and so asks how much you are willing to pay for it. What price do you tell him? When researchers gave both versions of this question to respondents, they found that the median price participants who read the fancy-resort version gave was $2.65, but those who got the grocery-store version were only willing to pay $1.50. In both versions, the consumption act is the same, the beer is the same, and they don't consume any "atmosphere" because they drink the beer on the beach.124 How do these results compare to yours?