Behavioral economist richard thaler has studied several examples of how businesses make use of inconsistencies in consumerdecision-making. which of the following is an example of this? an example of businesses taking advantage of inconsistencies in consumer decision-making is

a. one hotel, such as marriott, attracting customers from another hotel, such as hilton hotels, by advertising thatmarriott's "add-ons" are more fairly priced than hilton's.
b. photographers requiring consumers to pay to develop every picture on a role of film even for pictures the consumer doesn't like or that are fuzzy.
c. banks increasing the price of a checking account and removing other costs to consumers such as atm fees, returned checkcharges, and minimum balance fees.
d. office supply stores requiring consumers to purchase"add-ons," such as an ink cartridge, at the same time that consumers purchase a "base good," such as a printer.
e. credit card companies not allowing stores to charge a fee to consumers if they pay with a credit card but allowing stores to provide a discount to consumers if they pay in cash.

An instance where sellers should work to keep relationships with customers is when they instance where selllars should work to keep relationships with customers is when they feel that the product

Onsider the following subscription behavior information from genie, a web site that provides tools for constructing a family tree (ancestor search). subscriptions cost $9.99 per month, but you are charged for the entire year at the time of purchase. there is a one-year minimum term when you sign up for the service. once purchased, subscriptions are set to renew automatically unless the subscriber cancels them. when a membership renews, it renews for a one-year term and again you are charged for the entire year. there are no variable costs associated with providing this service to an individual customer, but genie does engage in customer relationship activities that they believe will increase customer retention. these customer relationship activities cost genie about $10 per year per customer. based on a sample of 1000 customers that joined genie five years ago, near the time when the company was founded, they were able to determine how many of those customers remained subscribers in the second year, third year etc. based on this information, genie calculated the average annual retention rate to be 20%. genie uses an annual discount rate of 8%. a. last year, genie spent $10,000 placing advertisements on google. genie management believes that these advertisements were responsible for about 300 new subscribers. would you recommend to genie management that they purchase more google ads? b. suppose a newly-introduced loyalty program increases the number of customers that remained to 30%. does this new data change your answer to 9.a? c. do you have any hesitations or concerns about making recommendations to management based on your above estimate of customer lifetime value?

You meet that special person and get married. amazingly your spouse has exactly the same income you do 47,810. if your tax status is now married filing jointly what is your tax liability