Week Eight

Question 1

What factors influence whether people choose to make purchases?

Answer 1

• Anticipating reward/something of value
• Integrating value and cost
• Anticipating loss and regulation of behaviour

Question 2

Does price or product primacy influence whether people purchase a utilitarian product?

Answer 2

People are more willing to purchase a utilitarian product if price is presented before product

Question 3

Sunk cost effect

Answer 3

“A greater tendency to continue an endeavor once an investment in money, effort, or time has been made.” (Arkes & Blumer, 1985)

Question 4

Is there a sunk cost effect for time?

Answer 4

• There is no sunk-cost effect for time
• Mental accounting for time and money are dissimilar