Some Marketers Offer Consumers Making a Relatively Expensive Purchase, the Option

question 86

Multiple Choice

Some marketers offer consumers making a relatively expensive purchase, the option of buying a second, related item for a marginal additional fee. For example, a fashion boutique is offering cashmere coats for sale at $500 each. However, for an additional $25 buyers can also obtain a matching scarf. The uptake rates on such offers is generally good because it is believed that consumers prefer to absorb the cost of the second item into a single purchase, rather than process the cost of the second item separately. This phenomenon is BEST explained by which of the following concepts from behavioural economics?

• A) Segregated losses
• B) Integrated losses
• C) Segregated gains
• D) Integrated gains
• E) none of the above

Know the appropriate stages and circumstances under which a company should seek specific types of investors.

Understand the regulatory and strategic considerations in making a public offering versus private placements.

Identify the characteristics and motivations of different types of investors such as angel investors, venture capitalists, and mezzanine investors.

Comprehend the importance and roles of informal investors in the funding ecosystem.

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Definitions:

Sensation Seeking Scale

A psychological assessment tool designed to measure an individual's propensity for seeking varied, novel, complex, and intense sensations and experiences.

College Students

Individuals enrolled in an institution of higher education aiming to achieve degrees or certificates.

Significantly Higher

A term used in statistical analysis to indicate a result or value that is much greater than others, often beyond the level of random chance.

Sensation Seeking

The trait of seeking varied, novel, complex, and intense sensations and experiences, often involving taking physical, social, legal, and financial risks.