When Provided with an Offer of a 10% Discount to Purchase

question 203

Multiple Choice

When provided with an offer of a 10% discount to purchase 10,000 electronic calculators within the next 30 days,Target buys 30,000 instead to take advantage of the price discount.Target will offer the calculator to consumers at a discount during the special sale,but then have additional calculators to sell when the sale is over.This is an example of:

• A) an off-invoice allowance
• B) cross-dock or pedal run allowance
• C) forward buying
• D) diversion

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Definitions:

Decision Avoidance

The act of choosing not to make a decision or taking steps to avoid making a choice.

Certainty Bias

The tendency for individuals to favor information or options that appear more certain or less ambiguous.

Temporal Discounting

The tendency to value immediate rewards more highly than future rewards, leading to decisions that favor short-term gains over long-term benefits.

Omission Bias

The tendency to favor inaction over action, based on the assumption that harm caused by doing nothing is less morally reprehensible than harm caused by acting.