Some high-end retailers place their most expensive products right in the entryway of the store, where consumers will see them first, and place their more popular, better-selling items further back. Which of the following would most likely be used by a behavioral economist as a justification for this strategy? A behavioral economist would disagree with the store's strategy. The store is using lower-priced options to drive down price expectations and make later, higher-priced options appear more expensive in comparison. The store is using higher-priced options to drive up price expectations and make later, lower-priced options appear less expensive in comparison. The store is using lower-priced options to drive up price expectations and make later, higher-priced options appear less expensive in comparison.

Some high-end retailers place their most expensive products right in the entryway of the store, where consumers will see them first, and place their more popular, better-selling items further back. Which of the following would most likely be used by a behavioral economist as a justification for this strategy? A behavioral economist would disagree with the store's strategy. The store is using lower-priced options to drive down price expectations and make later, higher-priced options appear more expensive in comparison. The store is using higher-priced options to drive up price expectations and make later, lower-priced options appear less expensive in comparison. The store is using lower-priced options to drive up price expectations and make later, higher-priced options appear less expensive in comparison.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter10: Consumer Choice Theory

Section: Chapter Questions

Problem 9P

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