Assignment 2: Expected Value and Consumer Choices
Consumers’ choices are prey to subtle discrepancies that arise in cognitive accounting. Learning how and when you are prey to these discrepancies is an important step in improving your decision making.
As the readings for this module demonstrate, people value gains and losses differently under different scenarios. For example, contestants in a game show might choose a guaranteed $10 prize over a 50 percent chance of winning $20 despite the fact that the expected values are the same.
Using the readings for this module, the Argosy University online library resources, and the Internet, address the following:
What is mental accounting and how does it impact consumer decision making?
How might a company take advantage of consumers’ mental accounting? Give examples.
As a marketer, how might you frame certain decisions to benefit from the disparities that arise in one’s cognitive accounting?
As a consumer, how would you avoid the pitfalls posed by the inequalities of one’s cognitive accounting?
Write a 3–5-page paper in Word format. Apply APA standards to citation of sources. Use the following file naming convention: LastnameFirstInitial_M4_A2.doc.
By Week 4, Day 7, deliver your assignment to the M4: Assignment 2 Dropbox.
Assignment 2 Grading Criteria
Examined the concept of mental accounting and how it impacts consumer decision making.
Adequately described how a company can take advantage of consumers’ mental accounting, providing appropriate examples.
As a marketer, explained how certain decisions might be framed to benefit from the disparities that arise in one’s cognitive accounting. As a consumer, explained how to avoid the pitfalls posed by the inequalities of one’s cognitive accounting.
Wrote in a clear, concise, and organized manner; demonstrated ethical scholarship in accurate representation and attribution of sources; displayed accurate spelling, grammar, and punctuation.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more