Question 1
Les just bought a megaphone of root beer. As he drinks from the giant cup, he eventually becomes full. One of his friend's comments, "If you don't stop drinking that stuff, you will get sick." Les replies, "Hey, I bought it, and I am not going to waste one drop of it." Les's behavior best illustrates ________.
◦ hyperopia
◦ loss aversion
◦ risk positioning
◦ the sunk-cost fallacy
Question 2
A consumer can recognize problems as either an opportunity or a need. How should promotions differ between those emphasizing opportunities and those emphasizing needs?
◦ Promotions emphasizing needs should increase the ideal state, while opportunity promotions should attempt to decrease the ideal state.
◦ Promotions emphasizing opportunities should attempt to increase the ideal state, while promotions emphasizing needs should give locations where the products can be purchased.
◦ Promotions emphasizing needs should decrease the ideal state, while promotions emphasizing opportunities should provide buying locations.
◦ Promotions emphasizing needs should attempt to increase a consumer's ideal state, while promotions emphasizing opportunities should simply give locations where the products can be found for purchase.
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