Steve Was Initially Happy with His Newly Purchased Personal Computer

question 19

Multiple Choice

Steve was initially happy with his newly purchased personal computer.It had all the features he wanted, including a large monitor and internal memory.But, as he was taking the computer out of the box, Steve noticed an advertisement in the local newspaper showing a similar computer for less than he paid.Suddenly, Steve began to doubt his purchase decision and feel anxious -maybe he had not gotten such a good deal and spent too much money on his purchase.Steve was experiencing:

• A)bounded rationality
• B)the evoked state
• C)cognitive dissonance
• D)the post-purchase depression
• E)a satisfaction paradox

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Definitions:

Moral Hazard

A situation in which one party engages in risky behavior or fails to act in good faith because another party bears the consequences or costs.

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describes an employee in the clothing manufacturing sector who is paid based on the number of pieces or units they produce, rather than receiving an hourly wage.

Extended Warranty

An additional warranty that extends beyond the original manufacturer's warranty, typically for an extra fee.