Question:
Statement: “Nudge theory” is the theory that by shaping the environment, also known as the choice architecture, one can influence the likelihood that one option is chosen over another by individuals, without adding any significant incentives or disincentives for any option. For example, a retail store may place its more expensive items at eye-level, and cheaper items at a lower shelf. Perhaps the most frequently mentioned example of nudge theory is the setting of defaults, which are pre-set courses of action that take effect if nothing is specified by the decision-maker. Which of the following facts, if true, best supports the above statements?
I. If a default option is provided, decision-makers are likely to choose that option.
II. Consumers in a retail store are likely to choose items that are placed at eye level rather than items which are placed on a lower shelf.
Choose the most appropriate answer.
Statement: “Nudge theory” is the theory that by shaping the environment, also known as the choice architecture, one can influence the likelihood that one option is chosen over another by individuals, without adding any significant incentives or disincentives for any option. For example, a retail store may place its more expensive items at eye-level, and cheaper items at a lower shelf. Perhaps the most frequently mentioned example of nudge theory is the setting of defaults, which are pre-set courses of action that take effect if nothing is specified by the decision-maker. Which of the following facts, if true, best supports the above statements?
I. If a default option is provided, decision-makers are likely to choose that option.
II. Consumers in a retail store are likely to choose items that are placed at eye level rather than items which are placed on a lower shelf.
Choose the most appropriate answer.
I. If a default option is provided, decision-makers are likely to choose that option.
II. Consumers in a retail store are likely to choose items that are placed at eye level rather than items which are placed on a lower shelf.
Choose the most appropriate answer.
Updated On: Aug 4, 2024
- Only I.
- Only II.
- Both I and II.
- None of the above.
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The Correct Option is C
Solution and Explanation
The correct option is (C): Both I and II.
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