A Consumer Is Deciding Which Television to Purchase and Has

question 66

Essay

A consumer is deciding which television to purchase and has identified the determinant attributes and their importance as well has his beliefs of how the three brands he's considering perform on each attribute. Given the following information, answer the questions that follow.
(a) Assuming a minimum cutoff point of 5, use the conjunctive rule to determine the brand that will be selected. Explain your answer.
(b) Assuming a minimum cutoff point of 9, use the disjunctive rule to determine the brand that will be selected. Explain your answer.
(c) Use the lexicographic rule to determine the brand that will be selected. Explain your answer.
(d) Assuming a minimum cutoff point of 5, use the elimination-by-aspects rule (EBA) to determine the brand that will be selected. Explain your answer.
$\begin{array}{lllll}\text { Attribute } & \text { Importance } & \text { Brand A } & \text { Brand B } & \text { Brand C } \\\text { Picture quality } & 10 & 5 & 10 & 6 \\\text { Low price } & 7 & 8 & 3 & 7 \\\text { Warranty } & 5 & 4 & 4 & 8 \\\text { Service } & 6 & 4 & 6 & 8\end{array}$

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Definitions:

Financial Asset

A financial asset refers to any asset that is cash, a contractual right to receive cash or another financial asset from another entity, or a contractual right to exchange financial instruments with another entity under conditions that are potentially favorable.

Claim

A demand for something as due, often referring to a right to payment or other benefits.

Interest Rate Collar

A financial derivative strategy used to hedge interest rate movements by setting upper and lower limits on interest payments.

Variable Rate Loan

A loan where the interest rate can change over time, based on an underlying benchmark or index.