Some Evidence Suggests That Consumers Place a Higher Value on a Separate

question 90

Multiple Choice

Some evidence suggests that consumers place a higher value on a separate gain such as a cash- back offer, rather than a single gain of the same value, such as a price discount. This phenomenon is BEST explained by which of the following concepts from behavioural economics?

• A) Segregated losses
• B) Segregated gains
• C) Mental accounting
• D) Integrating losses
• E) Integrating gains

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Definitions:

Sample Proportion

The ratio of members in a sample that have a particular attribute to the total number of members in the sample.

Probability Distribution

A description of how the probabilities are distributed over the values of the random variable.

Sample Mean

The average calculated from a sample of data, representing the central point or typical value of the sample.

Population Mean

The average of all the values in a population, representing the central point of a data set.