Assignment 2: Expected Value and Consumer Choices
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:
Write a 3–5-page paper in Word format. Apply APA standards to citation of sources. Use the following file naming convention: LastnameFirstInitial_M4_A2.doc.
By Wednesday, February 19, 2014, deliver your assignment to the M4: Assignment 2 Dropbox.
| Assignment 2 Grading Criteria |
Maximum Points |
|
Examined the concept of mental accounting and how it impacts consumer decision making. |
20 |
|
Adequately described how a company can take advantage of consumers’ mental accounting, providing appropriate examples. |
24 |
|
As a marketer, explained how certain decisions might be framed to benefit from the disparities that arise in one’s cognitive accounting. As a consumer, explained how to avoid the pitfalls posed by the inequalities of one’s cognitive accounting. |
36 |
|
Wrote in a clear, concise, and organized manner; demonstrated ethical scholarship in accurate representation and attribution of sources; displayed accurate spelling, grammar, and punctuation. |
20 |
| Total: |
100 |
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