Beth and Dave Are Selling Their Home Through a Realtor

question 26

Multiple Choice

Beth and Dave are selling their home through a realtor.The realtor's commission is 3 percent of the closing price,so the realtor should want a high selling price.However,when the first offer came in 20 percent below asking price,the realtor pushed Beth and Dave to accept.They declined because they felt the realtor just wanted to move on to the next sale.Beth and Dave used ______ to make their decision.

• A) the optimization principle
• B) the iceberg principle
• C) synergy
• D) empathy
• E) intuition

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Definitions:

Customer Retention

Strategies and actions taken by a company to keep its customers doing business with it over time, thus reducing customer defections or churn.

Comcast

An American telecommunications conglomerate that is one of the largest broadcasting and cable television companies in the world, offering services such as video, high-speed internet, and phone over its cable networks.

Moral Hazard

A situation in policy and economics where one party is more inclined to take risks because the negative consequences of those risks will be borne, at least in part, by others.

Pre-contractual Problem

Issues that arise before a contract is finalized, often related to information asymmetry or negotiating terms.