Expected Value Is an Important Consideration in a Consumer's Search

question 128

Multiple Choice

Expected value is an important consideration in a consumer's search decision because

• A)the outcome of a particular search is certain.
• B)the consumer may not be able to purchase the good after it is found.
• C)the outcome of a particular search is uncertain.
• D)a rational consumer will continue to search if the expected value is positive.

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Definitions:

Encoding/Decoding

A theory in cultural studies and media analysis that examines the process by which a message is created (encoded) by the sender, transmitted, and then interpreted or decoded by the receiver.

Hypodermic Needle Theory

A communication theory suggesting that media messages are injected directly into the brains of a passive audience, influencing their behaviors and beliefs directly.

Active Audience

The concept that media consumers do not passively accept content but actively interpret and integrate it according to their own cultural backgrounds and experiences.

Decoding

The process of interpreting or making sense of a message or information received.