Which of the following statements BEST reflects the concept of bounded rationality?
A) Most consumers make irrational purchasing decisions.
B) The rise of online communications technologies means that almost anyone can acquire near perfect information about brands and product categories.
C) Buyers are always looking for shortcuts to minimise the time and effort involved in making purchase decisions.
D) Most people make decisions with limited information and have a limited ability to collect and process information.
E) Buyers make the best possible decisions with the limited information they have.

Question

Quizplus · Accepted Answer

Bounded rationality is the idea that people make decisions with limited information and cognitive limitations, which can result in suboptimal choices. Option A is a blanket statement that does not necessarily relate to bounded rationality. Option B is not necessarily related to the concept of bounded rationality. Option C is related to the desire of consumers to use heuristics to simplify decision making, but does not capture the cognitive limitations part of bounded rationality. Option E comes close to the correct answer, but does not explicitly mention the cognitive limitations aspect of bounded rationality. Therefore, option D is the best choice as it accurately reflects the idea of limited information and cognitive limitations.

Which of the Following Statements BEST Reflects the Concept of Bounded