When Larina Started College,she Was Certain That She Would Never

question 367

Multiple Choice

When Larina started college,she was certain that she would never use illegal drugs.By the end of her freshman year,however,Larina had used an illegal drug on three different occasions.Larina's experience best illustrates

• A) the availability heuristic.
• B) confirmation bias.
• C) overconfidence.
• D) the framing effect.

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Definitions:

Cannibalization

The detrimental impact on sales of a product due to the introduction of a similar product by the same company.

Tiffany/Walmart Strategy

A business approach that contrasts high-end, premium products and services (Tiffany) with low-cost, high-volume goods (Walmart), targeting different market segments.

High-End Segments

Market segments composed of consumers who purchase luxury or premium products and services.

Low-End Segments

Market segments that target price-sensitive consumers by offering products with fewer features or lower quality at a reduced price.