Two Bottles of Body Wash Sit Side-By-Side in a Grocery

question 435

Multiple Choice

Two bottles of body wash sit side-by-side in a grocery store: Olay (a brand name) sells for $6.00, while Up and Up (not a brand name) sells for $3.00. Even defenders of brand names would have to admit that

• A)no rational consumer would spend twice as much for Olay as she would for Up and Up.
• B)the side-by-side presence of these two body washes conveys no useful information to consumers.
• C)Olay has no incentive to maintain the quality of its product just because of the Olay brand name.
• D)None of the above is correct.

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Definitions:

Asymmetrical

Lacking symmetry; having parts that fail to correspond to one another in shape, size, or arrangement.

Average

A statistical measure representing the central or typical value in a set of data, commonly calculated as the sum of the values divided by the number of values.

Mere-exposure Effect

A psychological phenomenon where people tend to develop a preference for things merely because they are familiar with them.

Proximity

The physical or psychological closeness or distance between people, objects, or concepts, affecting relationships and interactions.