Two Major Types of Heuristics That Have Major Implications for Consumer

question 37

Multiple Choice

Two major types of heuristics that have major implications for consumer behavior are

• A) attribute and brand processing.
• B) central and peripheral processing.
• C) conjunctive and subjunctive judgments.
• D) representativeness and availability.
• E) additive and subtractive differentials.

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Definitions:

Perfect Substitutes

Goods or services that can be used in place of each other with no loss of utility to the consumer.

Perfect Complements

Two goods for which the Marginal Rate of Substitution (MRS) is zero or infinite; the indifference curves are shaped as right angles.

Good X

A generic term often used in economic models to represent a specific product or commodity in the market.

Market Baskets

A collection of goods and services used as a standard way of tracking the cost of living or inflation over time.