A Buying Situation Can Involve Comparing the Costs and Benefits

question 58

Multiple Choice

A buying situation can involve comparing the costs and benefits of substitute items-such as real sugar to the sugar substitute Splenda, which, although more expensive than sugar, is purchased by many consumers because it contains no calories. This situation involves the consumer considering

• A)a marginal analysis.
• B)a profit equation.
• C)a break-even analysis.
• D)price elasticity of demand.
• E)a reference value.

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Definitions:

Hedonic Relevance

The significance or relevance of an event or object based on the pleasure or pain it can produce.

Emotionally Desirable

Attributes or situations that are appealing or sought after due to the positive emotions they elicit.

Discounting Principle

A concept in social psychology that suggests when there are multiple possible causes for a behavior, less significance is given to any single cause.

Correspondent Inference

An inference about a person's disposition or character based on observed behavior, especially when the behavior is freely chosen.