Question

Wayne and Tammy are looking at buying a new house. They have decided that price is the most important factor and will not look at homes that cost more than $300,000. In making their decision, Wayne and Tammy are using _________.

a. Heuristics
b. Elimination by aspects
c. Additive strategy
d. Reasoning

Answer 1

Wayne and Tammy are employing 'elimination by aspects' by setting a strict price limit on their house purchase, which allows them to quickly filter out options that do not meet this particular criterion.

Step-by-step explanation:

Wayne and Tammy are using a decision-making process called elimination by aspects when they decide not to look at homes costing more than $300,000. This approach involves eliminating options that do not meet certain criteria before considering other factors. By setting a strict price limit, they are excluding houses beyond their budget and focusing only on those within their price range.

The concept of elimination by aspects is a practical application of consumer choice analysis. It illustrates how buyers may simplify complex decisions such as house purchasing by setting strict boundaries to filter options quickly and efficiently. This strategy is different from heuristics, which involve cognitive shortcuts, or an additive strategy, which weighs all factors comprehensively and sums them up for a final decision.