Asked by Diana Gasparyan on Jul 06, 2024
Verified
Rules of thumb are useful because:
A) they introduce biases in decision making.
B) they help to save time and effort.
C) anchoring can confuse consumers.
D) all of the above
Rules of Thumb
Simple, general principles or guidelines that are used to make decision-making quicker, albeit less precise, often based on practical experience rather than theory.
Decision Making
Decision making is the process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.
Biases
Systematic patterns of deviation from norm or rationality in judgment, where particular feelings or opinions influence decision-making.
- Understand customary biases affecting consumer choices and the anchoring effect in decision-making.
Verified Answer
ZK
Zybrea KnightJul 07, 2024
Final Answer :
B
Explanation :
Rules of thumb, also known as heuristics, help to save time and effort by providing quick decision-making shortcuts. While they can introduce biases, the benefits of increased efficiency and productivity often outweigh the potential drawbacks. Anchoring, a cognitive bias where consumers rely heavily on the first piece of information they receive, is not directly related to the usefulness of rules of thumb.
Learning Objectives
- Understand customary biases affecting consumer choices and the anchoring effect in decision-making.