Asked by Elise Chiong on May 23, 2024
Verified
High-end retailers spend a lot on architecture, displays, and packaging in order to take advantage of the
A) hindsight bias.
B) confirmation bias.
C) availability heuristic.
D) framing effect.
Framing Effect
The cognitive bias where people react differently to a particular choice depending on how it is presented, such as a loss or gain.
High-End Retailers
Retail outlets that focus on selling premium products and services, often associated with luxury or top-quality items.
Architecture
The art and science of designing and constructing buildings and other physical structures, focusing on aesthetics, functionality, and the spatial experience.
- Develop comprehension of the basic concepts within prospect theory, such as loss aversion and how the framing effect modifies economic behavior.
Verified Answer
MZ
Mayte ZambranoMay 27, 2024
Final Answer :
D
Explanation :
High-end retailers invest in architecture, displays, and packaging to influence how their products are perceived, leveraging the framing effect. This psychological principle suggests that the way information is presented (or "framed") can significantly impact decisions and judgments, making products seem more appealing or valuable.
Learning Objectives
- Develop comprehension of the basic concepts within prospect theory, such as loss aversion and how the framing effect modifies economic behavior.