7 Questions
What kind of heuristics is described in the text where individuals anchor themselves to a familiar starting point when making judgments?
Anchor-and-adjustment heuristic
In the classroom auction scenario described, what was one of the anchors used to estimate amounts?
Social security numbers
What did the study participants disproportionately weigh when estimating the population of Bangladesh in the classroom auction?
The last two numbers of their social security number
Which marketing implication involves suggesting to customers to buy more items to save a trip?
Suggestive selling
What is an example of using selective customization to make products attractive, as mentioned in the text?
Offering different packaging styles for different brands
How did the social security number influence people's willingness to pay in the classroom auction?
It made people pay more for high numbers and less for low numbers
Which pricing strategy involves offering 4 items for €2?
'4 for €2' multiple unit pricing
Explore the concepts of uncertainty and irrationality in decision making. Learn how outcomes of choices are not always known and how people tend to select options with the highest utility. Delve into different heuristics such as availability heuristic and common biases in decision making.
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