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:

Organizational Buyers

Organizational Buyers are entities like companies, governments, and institutions that purchase goods or services for use in production processes, for resale, or for operational needs.

Services

Economic activities that provide intangible benefits or fulfill the needs of consumers, such as consulting, banking, or repair.

Intangible Items

Items that cannot be touched or physically measured, such as services, digital products, or intellectual property.

Physical Objects

Material things that can be seen and touched.