Lecture 8

Question 1

Product Primacy

Answer 1

A consumer is presented the
product before the price
* Product first
* Process reward first

Question 2

Price Primacy

Answer 2

A consumer is presented the
price before the product
* Price first
* Process cost first

Question 3

What factors influence whether people choose to make purchases?

Answer 3

• Anticipating reward/something of value
• Integrating value and cost
• Anticipating loss and regulation of behavior

Question 4

Nucleus Accumbens (Nacc) function:

Answer 4

• Start to process preference/reward
  related to pleasure, anticipation of gains

Question 5

Medial Prefrontal Cortex
(MFPC)

Answer 5

• Process preference
• Start to process cost

executive function, integration of gains and losses

Question 6

Insula

Answer 6

• Process preference
• Start to process cost
• Activation related to
  decision not to purchase
• related to decision-making, emotional/social regulation, anticipation of loss

Question 7

Question:
Does price or product primacy influence whether people purchase a utilitarian product?

Answer 7

People are more willing to purchase a utilitarian product if price is presented before product

Question 8

Sunk cost effects

Answer 8

“A greater tendency to continue an endeavor once an investment in money, effort or time has been made. “

Question 9

Is there a sunk cost effect for time?

Answer 9

• There is no sunk-cost effect for time
• Mental accounting for time and money are
  dissimilar