Your Friend Claire Has Just Shared That She Dreams of Owning

question 31

Multiple Choice

Your friend Claire has just shared that she dreams of owning a world-famous Hermes Birkin handbag someday. When you inform her that there is a waiting list for these exclusive handbags, which usually sell for $12,000 and up, she says she's waiting for them to go on sale. What do you know about pricing that would influence how you respond?

• A) High-end, exclusive brands are always expensive, even when they're on sale, so you would discourage her from spending that much money on a handbag.
• B) The high price of this product indicates exceptional quality and prestige, so you would encourage Claire to pay full price for the handbag.
• C) Prices usually drop when demand drops, so you should encourage Claire to wait for those conditions.
• D) Manufacturers of high-end, exclusive brands usually do not allow discounting to protect the prestige of the brand, so you should tell Claire that she probably won't ever see a sale.

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Definitions:

Cognitive Errors

Mistakes in reasoning, evaluating, remembering, or other cognitive processes, often occurring due to holding onto personal biases or irrational beliefs.

Positive Psychology

A branch of psychology that focuses on studying and promoting well-being and happiness.

Human Behaviour

The range of actions and mannerisms exhibited by humans in conjunction with their environment, influenced by culture, attitudes, emotions, and genetics.

Cognitive Psychology

A branch of psychology focused on studying how people perceive, think, understand, and remember information.