Discuss the below:
Q: Itamar Simonson and Amos Tversky documented an experiment with microwave ovens where they described how consumers make their choice of which microwave oven to buy. In the beginning of this experiment, consumers were offered two different microwaves, specifically an Emerson and a Panasonic, priced at $109.99 and $179.99, respectively; both with 35% retail price discount. As a result, 57% of consumers selected the lower priced Emerson microwave. Then, a third Panasonic microwave was offered at $199.99 which reflected only a 10% retail price discount. The experiment showed that after adding a higher-cost microwave, 60% of the consumers chose the Panasonic microwave that cost $179.99, while only 27% of consumers selected the cheapest Emerson microwave at $109.99 (Levine, 2003, p. 104).
Levine, R. (2003). The Power of Persuasion: How We're Bought and Sold. Hoboken, NJ: John Wiley & Sons, Inc
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a. |
Anchoring
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b. |
Status-quo
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c. |
Framing
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d. |
Overconfidence
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e. |
Recallability
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f. |
Sunk Cost
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g. |
Confirming Evidence
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h. |
Prudence
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Levine, R. (2003). The Power of Persuasion: How We're Bought and Sold. Hoboken, NJ: John Wiley & Sons, Inc
|
a. |
Anchoring
|
|
b. |
Status-quo
|
|
c. |
Framing
|
|
d. |
Overconfidence
|
|
e. |
Recallability
|
|
f. |
Sunk Cost
|
|
g. |
Confirming Evidence
|
|
h. |
Prudence
|