Answer to Question 1
c
Answer to Question 2
The two types of biases are ethnocentrism and self-reference criteria in consumer decision-making. Ethnocentrism is the tendency to value and view things from the perspective of one's own culture. A self-reference criterion is the unconscious reference to one's own cultural values, experience, and knowledge as the basis for decisions.
Cross-cultural research into economic conditions provides an understanding of the economic capability of the average consumer. This helps place consumption in the realm of economic realities. Demographic research often shows that the populations of other countries break down very differently on such things as age, education, income, and household size than does the population of the United States. These differences lead to different consumption patterns. Research into local values can help advertisers create messages that do not conflict with values that are different from those held in the advertiser's own culture. Research into custom and ritual does much the same thing. It makes advertisers aware of rituals that express a culture's core values. An analysis of product use and preferences can provide information on such things as a culture's degree of brand loyalty and price sensitivity. It reminds marketers that there is great variance in what products are used from culture to culture.