Aronson Reports the Results of an Experiment in Which People

question 25

Multiple Choice

Aronson reports the results of an experiment in which people who were asked to insulate their homes were given information either about how much money they would save, if they insulated, or lose, if they didn't insulate. Based on results of this study, if you were trying to sell insulation, you would be wise to:

• A) emphasize how much is saved by insulating.
• B) emphasize how much is lost by not insulating.
• C) emphasize both savings and losses, based on the halo effect.
• D) emphasize neither savings or losses, since money is not something people are reluctant to discuss.

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Definitions:

Treasury Shares

Shares of stock that were issued and later repurchased by the issuing company, reducing the amount of outstanding stock on the open market.