Book Exam - Consumer Behavior

1- Based on what you learned in Thinking, Fast & Slow, what are the main differences
between System 1 and System 2? What are some examples of tasks managed by each
system?
2- What is Priming Effect? How does associative memory work and how is it influenced by
the Priming Effect? What are some examples? (Hint: Review chapter 4)
3- A) What is Cognitive Ease? B) What factors positively influence cognitive ease? And C)
how can the concept of Cognitive Ease be used to create a persuasive message? (Hint:
review chapter 5)
4- What is the Law of Small Numbers? What is the “Bias of Confidence over Doubt”? How
are the two related? (Hint: review chapter 10)
5- What is the Anchoring Effect? How does the Anchoring Effect influence system 1 and
system 2? Provide examples (Hint: review chapter 11)
6- What is Conjunction Fallacy? Provide examples (Hint: review chapter 15)
7- What is Regression to the Mean Effect? Provide examples (Hint: review chapter 17)
8- What is the Illusion of Understanding? What is the idea behind WYSIATI? What is
Illusion of Inevitability? What is the Illusion of Certainty? How are these related? (Hint:
review chapter 19)
9- What is the illusion of validity? What is the illusion of Skill? What is the illusion of
Stock-Picking Skill? How are these related? (Hint: review chapter 20)
10- Which one is more reliable, human judgment and intuition or equations and formulas?
Why? (Hint: review chapter 21)
11- What is the Endowment Effect? Why does it exist (what are the psychological
underpinning of Endowment Effect; hint: prospect theory)? Provide examples (Hint:
review chapter 27)
12- How do rare events impact people’s judgments? Provide examples (Hint: review chapter
30)
13- What is Mental Accounting? Provide examples (Hint: review chapter 32)
14- What is the Framing Effect and how does it influence consumer decisions making
processes? (Hint: review chapter 34)
15- What is the difference between the experiencing self and the remembering self? How do
peak-end events influence the experiencing and remembering selves? (Hint: review
chapter 37)