Question 18 Prospect theory implies that consumers are motivated by a. The actua

Question

Question 18

Prospect theory implies that consumers are motivated by

a.

The actual price level

b.

The distance of the price from the reference price

c.

All of the above

d.

None of the above

4 points

Question 20

Large amusement parks charge entrance fees rather than fee per ride because

a.

Customers are more sensitive to paying a fee per ride

b.

Customers are less sensitive to paying a fee per ride

c.

Customers view paying per ride as a smaller cost

d.

None of the above

a.

The actual price level

b.

The distance of the price from the reference price

c.

All of the above

d.

None of the above

Explanation / Answer

18.

The distance of the price from the reference price

because if the price is lesser than the reference of benchmark price , people see it as winning scenrio and buy the goods.

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