According to Cognitive Dissonance Theory, Making an Important Decision Is

question 95

Essay

According to cognitive dissonance theory, making an important decision is likely to arouse considerable dissonance. Let's say you were in the market to buy a new car. You are torn between buying a compact model-fuel-efficient, inexpensive and reliable-and a foreign sports car, which would be fast, flashy and impressive. Applying the theory of cognitive dissonance, describe what kinds of information you would seek (e.g., what kinds of ads or other information you would attend to) and what your attitudes would be (e.g., about fuel-efficiency, cost, safety, performance, etc.) (a) before making your decision, and (b) after deciding to buy the sports car. Explain the reasoning behind your response, using relevant research examples to support your arguments.

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Definitions:

Perpetual Inventory System

An accounting method that records inventory purchases or sales immediately through the use of computerized point-of-sale systems and enterprise asset management software.

FIFO Inventory

An inventory valuation method that assumes goods are sold in the order in which they were acquired, with the oldest inventory items sold first.

Inventory Balance

The total value of all the goods that a company has in stock at any given time.

Periodic Inventory System

An accounting method where inventory levels and the cost of goods sold are determined at the end of the accounting period.