Salesclerks at an Upscale Department Store Wrap Each Sold Item

question 150

Essay

Salesclerks at an upscale department store wrap each sold item of clothing in tissue paper and put the item in a fancy bag that ties with a bow. The same items can often be found at other department stores at a significantly lower price. Use behavioral economics to explain how this way of packaging items might allow the upscale store to charge a higher price.

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Definitions:

Discarded Alternatives

Options or solutions that are considered and then rejected during a decision-making process.

Selected Alternative

The option that has been chosen after the consideration of various possibilities in a decision-making process.

Emotions Affect

The influence that feelings have on an individual's thinking and behavior.

Evaluating Alternatives

This is the process of systematically assessing different options or courses of action in decision-making to determine the most suitable or optimal choice based on criteria.