(Consider This)For People That Use Commitment Contracts to Motivate Achievement

question 47

Multiple Choice

(Consider This) For people that use commitment contracts to motivate achievement of a goal,people have the choice of their penalty money (from failing to reach the goal) to go to either charities they like or charities they hate (anti-charities) .From a behavioral economics perspective:

• A) designating an anti-charity should be more effective because loss aversion will provide additional motivation.
• B) designating a charity (versus an anti-charity)should be more effective because it avoids all potential for loss.
• C) it shouldn't matter whether one designates a charity or an anti-charity.
• D) self-interest biases generally keep people from choosing the anti-charity.

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Definitions:

Marketing Activities

Initiatives or actions taken by a company to promote and sell its products or services, including advertising, product design, pricing strategy, and customer engagement.

Distribution Cost

Expenses associated with the process of moving goods from the production point to the final consumer, including transportation, warehousing, and handling fees.

Lowest Cost Carrier

A transportation or shipping company that offers the least expensive rates for freight services while meeting the required delivery criteria.

Place Utility

The value added to products by having them in a location where they are accessible to consumers when needed.