which of the following best explains impulse purchases? course hero

by Wilford Auer 5 min read

How does neoclassical theory explain impulse buying?

Neoclassical theory suggests that to the extent impulse buying occurs, it is infrequent and does not affect the ability of economic models to predict behavior. Placement of goods in grocery and other retail stores is often done with the objective of encouraging impulse buying. Heuristics generally help people make fewer errors in their decisions.

Which systems regularly use both heuristics and conscious calculations?

Both systems regularly use both heuristics and conscious calculations, and both are equally important in decision making. C. System 1 uses heuristics, system 2 is more calculating, and system 2 regularly overcomes system 1's heuristics to make decisions.

What is the role of heuristics in the placement of goods?

Placement of goods in grocery and other retail stores is often done with the objective of encouraging impulse buying. Heuristics generally help people make fewer errors in their decisions. Heuristics generally help people make faster decisions. Heuristics generally help people to make decisions faster, but also to make more errors.

What is self concept?

Self-concept refers to the totality of thoughts and feelings that an individual has about him- or herself.

What is traffic follower?

Traffic Followers, a group promoting road safety, has a strict code of sanctioning members found in violation of the traffic rules. In some cases, nonconformity can result in expulsion from the group. This is an example of a group exercising _____ power over its members.

What is an early adopter consumer?

Early adopter consumers are generally young and well-educated.

Is the consumer likely to develop cognitive responses to the message?

In the peripheral route, the consumer is unlikely to develop cognitive responses to the message.

Which system uses heuristics?

D. System 1 uses heuristics, system 2 is more calculating, and most decisions are made by system 1. D. System 1 uses heuristics, system 2 is more calculating, and most decisions are made by system 1. Buck carefully plans out an early morning exercise routine to lose weight and get fit.

What is the difference between behavioral economics and neoclassical economics?

A. Neoclassical economics believes that government should play a minimal role in the economy, while behavioral economics calls for a more active role for government. B. Neoclassical economics assumes that people are rational in their decision making, while behavioral economics believes people make systematic errors. C.

Can you generalize about the relationship between the price of bananas and the quantity purchased?

D. one cannot generalize about the relationship between the price of bananas and the quantity purchased.