Question 13Art galleries sometimes encourage customersto take paintings home and try them out for a while, offering to give a fullrefund if the customer subsequently wishes to return them. The stores areobviously counting on most customers holding onto the piece of art. Which biasbest explains why, even if we were uncertain about the item when we saw it inthe gallery, we are much more likely to keep it once we’ve displayed it athome?1 pointAvailability Heuristic Loss AversionDisposition Effect Mental Accounting House Money Effect Endowment Effect Anchoring

In the material on Framing, you were invited to respond totwo lotteries. They are replicated here.Which of the following biases and errors could explain why somerespondents to these two lotteries may apparently “flip their preferences”? Please select all that apply.1 point Risk aversion over gains Loss Aversion Risk seeking overlosses Mental Accounting Endowment Effect

Which cognitive bias occurs when consumers use observable factors as proxies to evaluate the quality of services with credence characteristics? Priming Effect Recency Bias Availability Heuristic Halo Effect

Many consumers shrink from buying either the highest- orlowest-priced item among a group of similar items, seeming to prefer somethingin between. For example, retailer Williams-Sonoma Inc. was able to increasesales of its $275 bread machine by adding a second, slightly larger model toits catalogue at a price of just over $400. And Xerox Corp. at one time boostedsales of its high-volume copier to large corporations by introducing ahigher-priced model with a few extra bells and whistles. Which one of the following biases best explains this effect?1 pointAnchoringDispositionEffect Availability Heuristic HouseMoney Effect Framing StatusQuo Bias

Question 2Many consumers shrink from buying either the highest- orlowest-priced item among a group of similar items, seeming to prefer somethingin between. For example, retailer Williams-Sonoma Inc. was able to increasesales of its $275 bread machine by adding a second, slightly larger model toits catalogue at a price of just over $400. And Xerox Corp. at one time boostedsales of its high-volume copier to large corporations by introducing ahigher-priced model with a few extra bells and whistles. Which one of the following biases best explains this effect?1 point StatusQuo BiasDispositionEffect Framing Anchoring Availability Heuristic HouseMoney Effect

Question 2Many consumers shrink from buying either the highest- orlowest-priced item among a group of similar items, seeming to prefer somethingin between. For example, retailer Williams-Sonoma Inc. was able to increasesales of its $275 bread machine by adding a second, slightly larger model toits catalogue at a price of just over $400. And Xerox Corp. at one time boostedsales of its high-volume copier to large corporations by introducing ahigher-priced model with a few extra bells and whistles. Which one of the following biases best explains this effect?1 pointAnchoringDispositionEffect Availability Heuristic HouseMoney Effect Framing StatusQuo Bias