US Employees Who Formerly Wanted to Defer Part of Their

question 59

Multiple Choice

U.S. employees who formerly wanted to defer part of their compensation to a 401(k) retirement plan typically had to lower their take-home pay as they "opted in" to the plan. Now companies are being encouraged to enroll their employees in the 401(k) plan automatically while allowing them to choose to raise their take-home pay by "opting-out" of the 401(k) plan. Under the "opting out" rather than "opt-in" system, enrollments in 401(k) plans soared. This best illustrates the impact of

• A) overconfidence.
• B) a process simulation.
• C) framing.
• D) belief perseverance.

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Definitions:

Marketing Mix

The combination of factors that can be controlled by a company to influence consumers to purchase its products, typically categorized into four principal parts: product, price, place, and promotion.

Logistics

The detailed coordination of a complex operation involving many people, facilities, or supplies, in the organization and implementation of a scaleable and adaptable supply chain.

Tying Arrangement

A sales technique where a seller requires a buyer to purchase additional, often unrelated, items as a condition of buying a desired product.

Distributor

An intermediary in the distribution channel that buys products from manufacturers and then sells them to retailers or directly to the consumers.