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Behavioral Economics & Heuristics Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. When using framing to understand consumer behavior, which is considered to be an observation method?

Question 2 2. In the context of understanding consumer behavior for marketing purposes, which of the following is an example of testing?

Question 3 3. In the context of consumer behavior, what is framing?

Question 4 4. A concept that states that people will choose things that give them the most benefit at the lowest cost is known as what?

Question 5 5. What is the name of the tactic used to get the consumer to make a larger purchase after a smaller one?

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Question 6 6. What is the name for the refer a friend technique?

Question 7 7. What information can be included when using reference points?

Question 8 8. Which is used by marketing companies as a reference point?

Question 9 9. John, who is having a bad day, decides to get a haircut and hates it. However, John visits the same barber later in the month when he is in a better mood and loves the same hairstyle. Which consumer bias is this an example of?

Question 10 10. Which type of consumer bias involves news being relayed at a later date?

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Question 11 11. What is bias?

Question 12 12. David owns a spa and advertises it on a website. To boost his advertising, he logs on under the guise of someone else and gives his spa excellent reviews. What type of consumer bias is this an example of?

Question 13 13. What is a heuristic?

Question 14 14. You've been watching television and see multiple commercials for a particular fast-food chain. Now that you're out to eat, you've decided to select that fast-food chain. Which heuristic does this represent?

Question 15 15. The familiarity heuristic relies on which of these when making a decision?

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Question 16 16. If you have good, positive thoughts about a brand's product or service, you're more likely to feel good about purchasing from that brand. What heuristic does this represent?

Question 17 17. How do corporations use bounded rationality with products that consumers do research before purchasing, such as cars?

Question 18 18. How do corporations get the brand name to replace the product name, such as referring to tissues as Kleenex or cotton swabs as Q-tips?

Question 19 19. Who introduced the theory of bounded rationality?

Question 20 20. What is bounded rationality?

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Question 21 21. With respect to pricing models, which best defines 'anchoring'?

Question 22 22. Which of the following is NOT a reason that a restaurant would utilize anchoring and adjustment pricing methodologies?

Question 23 23. Which best explains why stores and manufacturers encourage customers (through anchoring and adjustment pricing methodologies) to buy many items, including multiples, in one purchase?

Question 24 24. With respect to pricing models, adjustments to anchors are best described as:

Question 25 25. If historically the ice cream market has seen high demand in the summer months, and this summer is predicted to be hotter than previous summers, what do you expect will be the effect on the market?

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Question 26 26. Quantitative Behavioral Finance takes what into account when predicting stock valuation? Choose the best answer.

Question 27 27. Customers in the toy market are upset at the large numbers of toys being made in China. There is a movement this Christmas to buy toys only made in the USA. Your products are all made in the US. How can quantitative behavioral finance be used to capitalize on the market? Choose the best answer.

Question 28 28. Which of the following can predict sales?

Question 29 29. Which of the following are two methods that marketers can get information to research to help understand consumer behavior?

Question 30 30. What is a cognitive reference point?

Behavioral Economics & Heuristics Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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