Last year Fiona had a yard sale.She marked the prices of items very reasonably,and she refused to reduce them when people tried to "deal." This year she had another yard sale,but this time she marked the prices of items quite high,and then reduced them by 50% or more when people asked to "deal." Fiona was surprised to find that she made much more money this year.When she asks you why this might have happened,you explain how judgments can be affected by
A) absolute thresholds.
B) sensory adaptation.
C) contrast effects.
D) subliminal comparitors.

Question

Quizplus · Accepted Answer

The phenomenon of contrast effects can explain why Fiona made more money this year by first marking the prices high and then reducing them. Contrast effects occur when the perception of an object or experience is influenced by a comparison with a recently encountered object or experience. In this case, by marking the prices high initially, Fiona may have influenced buyers' perceptions of the value of the items, making the reduced prices appear like a better deal in contrast.

Last Year Fiona Had a Yard Sale