Question
Some high-end retailers place their most expensive products right in the entryway of the store, where consumers will see them first, and place their more
Some high-end retailers place their most expensive products right in the entryway of the store, where consumers will see them first, and place their more popular, better-selling items further back.
Which of the following would most likely be used by a behavioral economist as a justification for this strategy?
1. The store is using lower-priced options to drive down price expectations and make later, higher-priced options appear more expensive in comparison.
2. A behavioral economist would disagree with the store's strategy.
3. The store is using lower-priced options to drive up price expectations and make later, higher-priced options appear less expensive in comparison.
4. The store is using higher-priced options to drive up price expectations and make later, lower-priced options appear less expensive in comparison.
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