Health clubs typically experience an increase in one-year memberships in January, but many new customers cancel their memberships before the end of the year.Which of the following is the best explanation for this behavior?
A)Some health club members suffer minor injuries that prevent them from working out.
B)Some people are overly optimistic about their future behavior.
C)Some people fail to treat their membership fees as sunk costs.
D)Some members receive utility from activities they believe are popular.

Question

Quizplus · Accepted Answer

Many people make New Year's resolutions to exercise more and join a gym as part of this goal. However, after a few weeks or months, they may lose motivation or find it difficult to maintain their new habit, leading them to cancel their memberships. This behavior is related to the tendency of some individuals to be overly optimistic about their future behavior, assuming that they will have more time, energy, or motivation to work out than they actually do.

Health Clubs Typically Experience an Increase in One-Year Memberships in January