Consumers' choices are prey to subtle discrepancies that arise in cognitive accounting. Learning how and when you are prey to these discrepancies is an important step in improving your decision-making.
People value gains and losses differently under different scenarios. For example, contestants in a game show might choose a guaranteed $10 prize over a 50 percent chance of winning $20 despite the fact that the expected values are the same.
Respond to the following:
• As a marketer, how might you frame certain decisions to benefit from the disparities that arise in one's cognitive accounting?
• As a consumer, how would you avoid the pitfalls posed by the inequalities of one's cognitive accounting?
Write your initial response in 300-500 words. Apply APA standards to citations of 2 different sources.