A Product Usually Declines Because of Technological Advances or Environmental

question 73

Multiple Choice

A product usually declines because of technological advances or environmental factors or because

• A) the item is very popular.
• B) the price is too low.
• C) consumers have switched to competing brands.
• D) the price is too high.
• E) no ads or sales incentives have been used.

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Definitions:

Representativeness Heuristic

A mental shortcut people use where the likelihood of an object belonging to a particular category is assessed based on how typical that object is thought to be of the category.

Availability Heuristic

A cognitive bias that causes people to overestimate the likelihood of events based on their ability to recall similar instances.

Escalation Heuristic

A cognitive bias or decision-making process where individuals increase their commitment to a previously taken course of action beyond the level that is justified by the current situation.

Satisficing Heuristic

A decision-making strategy that involves searching through the available alternatives until an acceptability threshold is met, rather than seeking the best possible solution.