Research has shown that consumers feel discontented and unhappy given too many choices. Consumers therefore should make what kind of decisions when it comes to evaluating alternatives?
A) limited capacity
B) limited rationality
C) bounded rationality
D) bounded capacity

Question

Quizplus · Accepted Answer

Bounded rationality refers to the idea that consumers have limitations in processing all the available information and choices they face. Therefore, they must make decisions that are based on their preferences, values, and limited cognitive resources. This means that they should evaluate alternatives based on a limited set of relevant criteria and simplify the decision-making process as much as possible. A) limited capacity and D) bounded capacity refer to limitations in cognitive resources and are not specific to decision-making. B) limited rationality suggests that consumers do not always make rational decisions, but this is not specific to the issue of too many choices.

Research Has Shown That Consumers Feel Discontented and Unhappy Given