Adding a Bonus Item (Such as a Free Pair of Socks

question 184

Multiple Choice

Adding a bonus item (such as a free pair of socks with the purchase of a pair of shoes) can lead to more sales than an equivalent small reduction in price due to a behavioral trait called

• A) sunk cost fallacy.
• B) overvaluing the present more than the future.
• C) altruism.
• D) framing bias.

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Definitions:

Change Model

A framework or approach used to understand, implement, and manage change within organizations or individuals.

Unfreezing

The first step in Lewin’s change model, in which individuals are encouraged to discard old behaviors by shaking up the equilibrium state that maintains the status quo.

Organization Development

is a systematic practice aimed at improving organizational effectiveness and employee well-being through planned interventions in the organization's processes.

Intervention

The action taken to become involved in a situation in order to help alter the outcome or improve the circumstances.