Opportunity Cost Is the Difference Between the Benefits and the Costs

question 8

True/False

Opportunity cost is the difference between the benefits and the costs of a choice.

Appreciate the psychological aspects influencing consumer decisions, such as heuristics and decision rules.

Understand the concept of ethnocentrism and its impact on consumer preferences and behavior.

Comprehend what decision-making heuristics are and identify three common heuristics utilized in consumer decision-making.

Evaluate how a product's country of origin can influence consumer purchase decisions.

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Definitions:

Human Behavior

Human behavior encompasses the range of actions and mannerisms exhibited by humans in conjunction with their environment, life experiences, and culture, influenced by emotions, attitudes, ethics, and genetics.

Classical Conditioning

An educational process that happens by linking a naturally occurring stimulus with one that occurs in the environment.

Little Albert

An early 20th-century experiment in classical conditioning by John Watson and Rosalie Rayner, demonstrating how emotional responses can be conditioned in humans.

John B. Watson

An American psychologist who founded behaviorism, emphasizing the study of observable behavior and rejecting introspection.