Hardware Store Advertises a ⅜" Black and Decker Power Drill

question 246

Multiple Choice

hardware store advertises a ⅜" Black and Decker Power Drill for $29.95.You enter the store intending to purchase the drill.The salesperson informs you that they are all sold out.She tells you that the "sale" drills were factory seconds and that if you are going to be doing any kind of serious woodworking,you should buy the Model 3309,which sells for $49.99.This scenario has elements of which type of deceptive pricing?

• A) comparable value comparisons
• B) former price comparisons
• C) comparisons with suggested prices
• D) bait and switch
• E) conditional bargains

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Definitions:

Behavioural Economic Theory

An approach combining psychological insights with economic theory to predict and understand human decision-making.

Ideal Goals

Objectives or aims that represent a perfect or most desirable outcome, often used as benchmarks for success or aspiration.

Frugal Heuristics

Cognitive shortcuts or rules of thumb that simplify decision making.

Effective Decision Making

The process of making choices by identifying a decision, gathering information, and assessing alternative resolutions to achieve a goal.