16 Questions
What is the purpose of giving prospects a higher price according to the text?
To anchor prospective customers towards higher price expectations
Why is the use of a wide range of prices recommended?
To meet relevant competitors in the sales process
How does anchoring relate to prospect theory?
Anchoring forms a reference point for individuals
Why are anchors difficult to displace once placed?
Because gains from updating information may be perceived as insufficient
What phenomenon has been documented in a number of studies according to the text?
Endowment effect
Which set of authors conducted experimental tests on the Endowment Effect and Coase Theorem?
Daniel Kahneman, Jack L. Knetsch, and Richard H. Thaler
In which journal did Fader publish his work on 'Modeling Loss Aversion and Reference Dependence Effects on Brand Choice'?
Marketing Science
Who authored the paper 'Psychological Aspects of Price: An Empirical Test of Order and Range Effects'?
Paula Bennett, Mike Brennan, and Zane Kearns
What is one of the main differences between lunch crowds and dinner crowds according to the text?
Dinner crowds seek and receive more benefits from the restaurant experience.
How do seasonal factors contribute to price segmentation according to the text?
They allow for raising prices during peak seasons to capture profits and reducing prices during off-peak periods.
How do gift-giving seasons impact customers' price sensitivity based on the text?
Customers show less price sensitivity during gift-giving seasons than other times.
What opportunity do time-based segmentation hedges provide for suppliers according to the text?
To shift price-sensitive customers to off-peak periods.
Why do business schools tend to compare the cost of tuition with future earnings of people with MBAs?
To influence students' willingness to enroll by showing a potential return on investment.
In course design, are professors usually price-sensitive when selecting textbooks?
No, professors typically prioritize quality and relevance over price when choosing textbooks.
Which psychological effect relates to prospect theory by influencing how individuals perceive prices?
Anchoring
How does the comparison set effect play a role in the decision-making process regarding price sensitivity?
It influences individuals to compare prices with similar products in the market.
Test your knowledge on the endowment effect, market anomalies, loss aversion, and reference dependence effects based on key studies by Fader, Knetsch, List, and Kahneman. Explore concepts related to brand choice, indifference curves, and market experience.
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