Consumer rationality Study guides, Class notes & Summaries

CEBS GBA2 Terms and Definitions Exam Questions and Answers Bounded Rationality - Answer-When the consumer is functional only up to a certain point after which his/her choices are constrained or bound by limed knowledge and understanding of the available choices. Free Market Basic Assumption - Answer-Rational consumers will make informed decisions about value, quality, and price Moral Hazzard - Answer-Consumer will spend someone else's money different than their own Transparency on c...

TOPIC 9- GLOBALISATION, MODERNITY AND POSTMODERNITY tmINTRO - correct answer most of the theories examined so far in this chapter can be placed under the heading of modernism. modernist theories are part of the enlightenment project- the idea that society can progress through the use of human reason. rationality and science will enable us to discover true knowledge about the world. with this knowledge, we can progress to a future of freedom and prosperity. modernist theories therefore set out ...

What is the industry term used to describe the sum of prices paid by a business's customers? - Answer-Total Revenues Historically, what concept have hospitality managers chiefly used to calculate their selling prices? - Answer-Costs What is an algebraic equivalent of the formula: Sales = Costs + Profit? - Answer-Profit = Sales - Costs What is the name for the net value achieved by both parties in a business transaction? - AnswerProfit What element is not present in a barter economy? - Ans...

bounded rationality -ANSWER- A set of BOUNDARIES or CONSTRAINTS that tend to complicate the rational decision-making process transaction costs -ANSWER- the expenses of negotiating and executing a deal (the cost of completing a sale/purchase) cost of uncertainty -ANSWER- chance that price of an asset will change; unstable stocks or bonds incomplete contracts -ANSWER- When a consumer or seller is not able to maximize the benefits of a transaction because they are not aware of all the fact...

What is the first bureaucracy known to mankind? correct answer: organized religion What is the second bureaucracy know to man? correct answer: government What are the two main organizations that a person belonged to during Huntering/Gathering era? correct answer: family clan, religious group What is a bureaucracy? correct answer: a complex formal organization What does science and industry demand in a bureaucracy? correct answer: efficiency, predictabilty and rationality What...

What is the term used to identify a management philosophy that places customer gain ahead of short-term revenue maximization in revenue management decision making? - ANSWERScustomer-centric revenue management What is the term used to describe the potential customers to whom a business's marketing activities and messages are directed? - ANSWERSthe target market Understanding the barter system is critical because it helps us understand the concept of - ANSWERSvalue without money A compan...

Basic assumption of free markets - Answer- Rational consumers will make informed decisions about value, quality and price, while producers meeting consumers' demands will be rewarded with market share and profit. Benefits of free markets - Answer- People who do not like their provider or health plan should be able to "vote with their feet" and select other options. The theory is that choice empowers consumers, regulates producers and, under the right conditions, drives efficiency. Ways ...

view that claims phenomenon of globalization was initially driven by the desire of Western economies to exploit their power through MNE's new view that claims globalization is a long-run historical evolution since the dawn of humanity. Says it is nothing new and that it will always exist evolutionary view that claims globalization is swinging from one extreme to another from time to time pendulum investment in, controlling, and managing value-added activities in other co...

Revenue Management Final Verified Solution 2023 What is the term used to identify a management philosophy that places customer gain ahead of short-term revenue maximization in revenue management decision making? - ANS->>customer-centric revenue management What is the term used to describe the potential customers to whom a business's marketing activities and messages are directed? - ANS->>the target market Understanding the barter system is critical because it helps us under...

bounded rationality -ANSWER- A set of BOUNDARIES or CONSTRAINTS that tend to complicate the rational decision-making process transaction costs -ANSWER- the expenses of negotiating and executing a deal (the cost of completing a sale/purchase) cost of uncertainty -ANSWER- chance that price of an asset will change; unstable stocks or bonds incomplete contracts -ANSWER- When a consumer or seller is not able to maximize the benefits of a transaction because they are not aware of all the fact...