Question

Danny is interested in purchasing a new car. He sees an ad of a new car model manufactured by Jadeon, which is Danny's favorite car company. Danny's interest in the new model increases when he finds out through the ad that this model is affordable and also has a high engine power. In this scenario, Danny's method of making a judgment about the new car model is an example of _____.

a. mental accounting
b. an anchoring and adjustment process
c. consumer resentment
d. emotional accounting
e. an estimation of likelihood

Answer 1

Answer: Option (B)

Step-by-step explanation:

Anchoring and adjustment process is referred to as the circumstance or anomaly whereby the individual or the organization bases their foremost notion and also reaction on the point of data and information and thus further makes the changes which are driven by the initial point. This heuristic mostly describes the situation under which an individual uses the particular target value as the initial point, referred to as the anchor, and thus subsequently adjusts the data and information till the value is known to reach over time.