__________ maintains that consumers frame their decision alternatives in terms of gains and losses according to a value function. Consumers are generally loss-averse.
A) Decision framing
B) Choice architecture
C) Prospective theory
D) Mental accounting
E) Decision heuristics

Question

Quizplus · Accepted Answer

The theory described in the statement is Prospective theory, which suggests that consumers weigh their options based on potential gains or losses according to a specific value function. Additionally, it suggests that consumers are generally more averse to losses than they are attracted to potential gains. Therefore, the best answer is C.

__________ Maintains That Consumers Frame Their Decision Alternatives in Terms