Adding a Similar but Inferior Decoy Product to a Product

question 83

Multiple Choice

Adding a similar but inferior decoy product to a product line increases the attractiveness of the other products.This is known as the:

• A)part-list cuing
• B)price-quality heuristic
• C)attraction effect
• D)compromise effect
• E)anchoring-and-adjustment heuristic

---

Definitions:

Liability Estimation

The process of assessing the potential liabilities or debts that a business may incur in the future.

Estimable Liability

A financial obligation or debt that can be accurately estimated and measured for accounting and reporting purposes.

Probable Likelihood

The significant chance or high probability that an event will occur, often used in risk assessment.

Quick Ratio

A liquidity metric that indicates a company's capacity to pay off its short-term liabilities with quick assets (cash, marketable securities, and receivables).