Question

A grocery store owner places a new item at the front of each aisle every few days. He wants people to think that these items are in front because they are special or on sale. The grocery store owner is trying to use _________ to sell items at the front.

a. prospect theory

b. confirmation bias

c. framing

d. loss aversion

Answer 1

The grocery store manager is clearly playing with the cognitive bias of an individual. The grocery store manager is trying to glorify the positive aspects of the situation by putting new items in the front of each aisle every few days so that people believe that it has to be on a discount. The probability of a customer picking up these items in the front doubles as it focuses on the positive aspect of the situation. In a confirmation bias a person reacts to a situation depending on how it is presented to them, as in a loss or a gain. The grocery owner is here trying to use the framing effect.

Thus, the correct answer is option C.