Project 1 Instruction
Overview
Project 1 assesses your understanding of the readings from the book, “Predictably Irrational.”
The purpose of project 1 is to help you learn a list of consumer behavioral paradoxes, realize how they influence consumers’ decision making, understand why consumers sometimes behave irrationally, and perhaps more importantly, know your independent viewpoint concerning the irrationalities of human beings.
Format
The grade of your project is not determined by the length of your responses; instead, it is the quality of your responses.
It is encouraged to use graphs, tables, numbers, and any other creative and relevant elements to support your text response.
Project 1 Contents
Please answer the question with at least one full page. Please use the book and powerpoints.
What is the “Zero Price Effect” (also known as the cost of zero cost)? Can you use an example to demonstrate the quote, “The difference between 2 cents and 1 cent is small, but the difference between 1 cent and zero is huge”.