Suppose You Value a Special Watch at $100

question 413

Multiple Choice

Suppose you value a special watch at $100. You purchase it for $75. On your way home from class one day, you lose the watch. The store is still selling the same watch, but the price has risen to $85. Assume that losing the watch has not altered how you value it. What should you do?

• A)Pay the $85 to buy the watch.
• B)Wait to see if the watch goes on sale. If the price drops to $75 or less, buy the watch.
• C)Wait to see if the watch goes on sale. If the price drops to $25 or less, buy the watch.
• D)Do not buy the watch.

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Definitions:

Expectancy Theory

A theory that explains the behavioral process of why people choose one behavioral option over others, suggesting that individuals are motivated by an expected outcome.

Cognitive Dissonance

The psychological discomfort experienced by an individual who holds two or more contradictory beliefs, ideas, or values at the same time.

Sales Revenue

Sales revenue is the total amount of money earned from selling goods or services before any costs or expenses are deducted.

Motivational Conflict

A situation where an individual faces competing desires or goals, leading to emotional or psychological tension.