1.2.1 Flashcards
1
Q
Consumer utitliy
A
Total satisfaction received from consuming a good or service
2
Q
Daniel Kahenman two system model that explains how decisions are made
A
-1st system is based on common sense estimates and emotional responses to the choice made
-2nd system takes longer. Used thoughts and reflections, avoids the errors and bias from the first system
3
Q
Limitations of 2nd system
A
- not always realistic
- significantly longer to decide
Time constraints
4
Q
Administrative man theory
A
- the first alternative that is satisfactory is selected
5
Q
Heuristics
A
Simplicity the decision making process
Shortcuts
