Expected value and consumer choices

Assignment Help Operation Management

Reference no: EM132169466

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.

As the readings for this module demonstrate, 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.

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?

Write a 3–5-page paper in Word format.

Reference no: EM132169466

Questions Cloud

Outsourcing contract for the departments of health : In December 1999, IBM-GSA was one of three tenderers for the IT outsourcing contract for the Departments of Health,

Companies might benefit from such design approach : What companies might benefit from such a design approach? Suppose you are a manager of a small start-up firm with a limited budget.

The most critical steps to successful marketing : Market research is one of the most critical steps to successful marketing.

If morality is simply expression of feeling : If morality is simply an expression of "feeling," is there any such thing as moral responsibility?

Expected value and consumer choices : Expected Value and Consumer Choices. Consumers’ choices are prey to subtle discrepancies that arise in cognitive accounting

Consider the systematic decision-making processes : Consider the systematic decision-making processes of your own organization.

The alignment concept and complementary concepts : Examine the implications of (mis)alignment for organizational performance, and explore the relationship between the alignment concept and complementary concepts

Management is essential to organizational functionality : Please Provide External and Internal Environment table for Deere & Company. Discuss how project management is essential to organizational functionality.

Analysis to assess marketing environment for FERRERO : Your group have to conduct a macro environment analysis and micro environment analysis to assess the marketing environment for FERRERO.

User Account

All Pages