Which of the Following Statements Is True of Decision Framing

question 31

Multiple Choice

Which of the following statements is true of decision framing?

• A) Consumers react more positively when marketers frame the cost of a product as a large one-time expense instead of as a series of small payments.
• B) Consumers are more likely to choose a brand with negatively framed claims about a competitor when elaboration is high than when it is low.
• C) Consumers are more willing to take risks with products when a choice is framed as avoiding a loss than one framed as acquiring a gain.
• D) A product framed in the context of higher-priced options will be judged as being more expensive than one framed in the context of lower-priced options.
• E) When the outcomes are equally positive, sellers feel better about not losing money while buyers feel better about achieving gains.

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Definitions:

Franchisee

The seller of goods or services under a trade name or trademark in a franchise.

Trade Name

The name by which a business is known to the public, differing from its legal name, under which it carries out its business activities.

Franchisor

The party in a franchising agreement that owns the overarching company, trademarks, and products, granting the right to operate a franchise.

Trademark

A distinctive mark, word, design, picture, or arrangement that is used by a producer in conjunction with a product and tends to cause consumers to identify the product with the producer.