When a New Product Is Very Different from Products That

question 51

True/False

When a new product is very different from products that are currently available,consumers avoid relying on existing category knowledge to guide their expectations and attitudes toward the new product.

Understand the basic concepts of self-attribution and explanatory styles.

Recognize the self-serving bias and its effects on personal and situational attributions.

Identify internal versus external causes in the attribution process.

Understand the impact of pessimistic and optimistic explanatory styles on individual psychology.

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Definitions:

Default Risk Premiums

Default risk premiums are additional returns that investors require to compensate for the risk that a borrower might fail to make the required payments on their debt.

Treasury Bond

A long-term, interest-bearing security issued by the U.S. government, with a maturity period typically exceeding 10 years.

Lucent Technologies

A former telecommunications company that was once a part of AT&T before being spun off and eventually merged with Alcatel SA to create Alcatel-Lucent.

Exxon

A multinational oil and gas corporation that is one of the world's largest publicly traded energy providers and chemical manufacturers.