Some Marketers Encourage Consumers to Have Regular Payments for Things

question 40

Multiple Choice

Some marketers encourage consumers to have regular payments for things such as magazine subscriptions or insurance payments charged via monthly payments to a credit card. This is because consumers pay less attention to the monthly charge because it is just one of many charges that appear on a credit card statement. This phenomenon is BEST explained by which of the following concepts from behavioural economics?

• A) Mental accounting
• B) Integrating losses
• C) Segregating losses
• D) Segregating gains
• E) Loss aversion

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Definitions:

Emotional Appeal

A persuasive technique that targets the emotions of the audience in order to elicit a response or influence their opinion.

Financial Success

The achievement of financial goals and objectives, often measured by wealth, income, or the ability to afford desired lifestyles.

Nonessential

Not absolutely necessary or required; can be omitted without affecting the essence or main purpose.

Emotional Appeal

A persuasive technique that targets the audience's feelings and emotions to influence their attitudes or behaviors.