Roger's Meat Market is a chain of retail stores that limits its sales to fresh-cut meats. The stores have been very profitable in northern cities. However, when two stores were opened in the south, both lost money and had to be closed. Roger, the owner, has now concluded that no southern-based store should be opened as it would not be profitable. Which one of the following applies to Roger?
A) Confirmation bias
B) Endowment effect
C) Money illusion
D) Affect heuristic
E) Representativeness heuristic

Question

Quizplus · Accepted Answer

Roger is using the representativeness heuristic, which involves making decisions based on what is most representative or typical. His experience with the two failed stores in the south has led him to believe that all southern stores will fail, without considering other factors that could have contributed to their lack of success (such as location, marketing, or competition).

Roger's Meat Market Is a Chain of Retail Stores That