Asked by Walter Clark on May 07, 2024

verifed

Verified

When William decides which airline to use to fly from Baltimore to San Diego, he considers the price, number of stops, and frequent-flyer miles he will earn. However, earning frequent-flyer miles is the most important factor for him. Is William using a compensatory or noncompensatory decision rule? Explain your reasoning.

Frequent-Flyer Miles

Loyalty program points awarded by airlines to passengers who travel with them, which can be redeemed for flight discounts, upgrades, or other rewards.

Noncompensatory Decision

A decision-making process in which options are evaluated in a way that one attribute cannot make up for a disadvantage in another.

Compensatory Decision

A decision-making process where the consumer evaluates the positive and negative attributes of each alternative and makes a trade-off to arrive at a decision.

  • Distinguish between compensatory and non-compensatory decision rules.
verifed

Verified Answer

AM
Aleyna MelekMay 10, 2024
Final Answer :
William is using a compensatory decision rule because he is weighing the alternatives, but one factor outweighs the others.