A Child Is Given $4 of Pocket Money to Be

question 15

Multiple Choice

A child is given $4 of pocket money to be spent on either hard candies or chocolates. Chocolates cost 40 cents and hard candies 80 cents each. The marginal utilities derived from each product are as shown in the following table. Based on taste and preference alone, which good does the child prefer?

• A) chocolates
• B) hard candies
• C) The child equally likes chocolates and hard candies.
• D) One cannot tell from the given data.

Differentiate between formal and informal reports, and internal and external reports, and understand their respective utilities.

Understand the concept of sensation and its role in consumer behavior.

Comprehend the process of perception and how it differs from sensation.

Recognize the importance of sensory marketing and its impact on consumer experiences.

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Definitions:

Cognitive Dissonance

A psychological discomfort experienced when holding two or more conflicting thoughts, beliefs, or values at the same time.

American Samples

Research participants or datasets originating from the United States.

Non-Western Cultures

Societies and cultural groups that are not derived from European/Western histories, often emphasizing collective community values.

Position Of Authority

The condition of having the power to make decisions, command respect, or dictate actions within a certain context or organization.