Consumer Behavior Quiz

According to the text, what is the Principle of bounded rationality limited by?

• The cognitive limitations of their minds

• The perceived risk associated with the decision

• The emotional involvement

• The available information

What is the term used to describe the idea that habits start as deliberate choices and transform into automatic behaviors with repetitions?

• Biases

• Instincts

• Habits

• Heuristics

Which part of the brain is activated when we crave something, according to the text?

• Prefrontal cortex

• Limbic system

• Nucleus accumbens

• System 1

What is the term used to describe the process of judging frequency and probability of an event based on how easily we can recall examples of it?

• Availability heuristic

• Representative heuristic

• Halo effect

• Contrast principle

Which principle involves leveraging social norms and peer influence to promote desired behavior?

• Liking

• Authority

• Social Proof

• Reciprocity

What is the term used to describe the process of judging the likelihood that someone belongs to a certain category based on how closely they resemble the typical member of that category?

• Salience bias

• Conjunction fallacy

• Disjunction fallacy

• Representative heuristic

What is the term used to describe the tendency to overestimate our ability to control events and believe we have more influence than we actually do?

• Illusion of control

• Random misunderstanding

• Invisible correlations

• Superstition

Which factor can reduce the pain of paying according to the text?

• Saliency of the payment

• Decoupling

• Timing of the payment

• Fixed-fee or flat rate

What is the term used to describe the inclination to see an event as predictable after it has occurred, despite little basis for predicting it?

• Hindsight bias

• Outcome bias

• Survivorship bias

• Confirmation bias

Which emotion promotes empathy, generosity, and deep situation analysis according to the text?

• Anger

• Fear

• Sadness

• Pain