What is mental accounting and how does it impact consumer

Assignment Help Operation Management

Reference no: EM132003488

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.

Reference no: EM132003488

Questions Cloud

Evaluate the product as an innovation : Evaluate the product as an innovation as it is perceived by the intended market. Discuss also major product problems and resistances based on the preceding.

Were the processes successful : Groups may be both a boon (for example, they statistically outperform individuals) and a bane (for example, they take too long) of decision making.

Future toward efficiency and quality of care : Data capture is the wave of the future toward efficiency and quality of care. What are your thoughts on safeguards, privacy, and of course accuracy

Personal action plan for areas they are not performing : If I have monitored a person and given a personal action plan for areas they are not performing (and they are still failing) what else can I do to support them?

What is mental accounting and how does it impact consumer : As a marketer, how might you frame certain decisions to benefit from the disparities that arise in one's cognitive accounting?

What is the decision-making process management : What is the decision-making process management uses to develop viable courses of action to a variety of management situations?

What ethical issues arise with the use of information system : Information is data that is framed in a specific context. In this sense, information is contextual data that has a level of inherent value.

What are the concepts debt-equity funding : What are the concepts Debt and/or Equity Funding? What are the benefits of each? What are the challenges?

What are the long term benefits for the manager : When a group becomes a team, what are the long term benefits for the manager, the employees themselves and for the organization as a whole?

User Account

All Pages