W6A1

Consumers’ choices are prey to subtle discrepancies that arise in cognitive accounting. Learning how and when you are prey to these discrepancies is an important step in improving your decision-making.

People value gains and losses differently under different scenarios. For example, contestants in a game show might choose a guaranteed $10 prize over a 50 percent chance of winning $20 despite the fact that the expected values are the same.

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Respond to the following:
• As a marketer, how might you frame certain decisions to benefit from the disparities that arise in one’s cognitive accounting?
• As a consumer, how would you avoid the pitfalls posed by the inequalities of one’s cognitive accounting?

Write your initial response in 300–500 words. Apply APA standards to citations of 2 different sources.

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