Final answer:
Consumers often use price-based heuristics as a way to make quick decisions when frequently purchasing familiar products. This decision-making shortcut substitutes complex evaluations with more straightforward judgments based on the price of a product.
Step-by-step explanation:
When consumers purchase familiar products frequently, they sometimes resort to price-based heuristics. This is a type of cognitive shortcut where simple, practical rules are used in decision-making instead of more complex methods.
Price-based heuristics involve making purchasing decisions based on the price of the product as the main guiding factor, often because it is the most easily quantifiable aspect and it provides a sense of cognitive ease. We engage with these mental shortcuts when the effort required to make a fully informed decision seems greater than the perceived benefit.
The use of heuristics is an example of substitution in decision-making, where a complex question is substituted with a simpler one. For instance, evaluating the true value of a car is a complex matter that requires research, so a consumer might substitute this extensive appraisal with readily observable indicators such as price or a familiar brand.
Although heuristics allow for quicker decision-making, they do not always result in the best rational decisions due to the influence of various cognitive biases.
Therefore, the correct answer is B) price-based heuristics.