COFFEE MAKER SCENARIO Jane Was Visiting Her Friend and Was Served a Coffee

question 120

Multiple Choice

COFFEE MAKER SCENARIO
Jane was visiting her friend and was served a coffee drink similar to one she's had at coffee shops like Starbucks and Seattle's Best. Her friend told her that she can make coffee drinks like that with her single-serve pod coffee maker. Jane decided she'd like to buy one because she wanted to enjoy similar coffee drinks at home, but she didn't know much about them. She searched the Internet and went to Bed Bath & Beyond, Sur La Table, Williams Sonoma, and even Walmart. She realized there are several brands of this machine, such as Tassimo, Keurig, Breville, Cuisinart, Bunn, Senseo, and Mr. Coffee. They ranged in price from as low as $20 to several hundreds of dollars, making it difficult for her to decide which one to purchase. She was concerned about paying several hundred dollars for a coffee maker. She did notice that one brand, Tassimo, featured Starbucks coffee while none of the others did, and she ended up purchasing that one for $130 because that's her favorite brand of coffee.
-Refer to Coffee Maker Scenario. Which approach to decision making did Jane use when she searched for information and compared alternatives?

• A) habitual decision making
• B) limited decision making
• C) actual decision making
• D) extended decision making
• E) complete decision making

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Definitions:

Equilibrium Price

The price at which the quantity of a good demanded by consumers balances the quantity supplied by producers, resulting in a stable market condition.

Suppliers

Businesses or individuals that provide goods or services to another entity, often in exchange for monetary compensation.

Surpluses

Occurs when the quantity supplied of a product exceeds the quantity demanded, often leading to a drop in prices.

Price Up

An increase in the cost of goods or services in the market.