Suppose that Dairy Barn Foods produces a regular sour cream with 10 grams of fat per serving and a "low fat" sour cream with only 5 grams of fat per serving (assume that this is still considered a lot of fat to consume per serving). According to prospect theory, how should Dairy Barn promote its "low fat" sour cream?

A. It should make no mention of fat content, either in absolute terms or relative to its regular sour cream.

B. It should advertise that the "low fat" sour cream has only "half the fat" of the regular sour cream.

C. It should advertise that the "low fat" sour cream has only 5 grams of fat per serving.

D. It won't matter what strategy Dairy Barn uses, as consumers are sufficiently informed as to not be affected by the advertising

Question

Social Studies

Jaydon Schmitt

14 October, 22:01

Suppose that Dairy Barn Foods produces a regular sour cream with 10 grams of fat per serving and a "low fat" sour cream with only 5 grams of fat per serving (assume that this is still considered a lot of fat to consume per serving). According to prospect theory, how should Dairy Barn promote its "low fat" sour cream?

A. It should make no mention of fat content, either in absolute terms or relative to its regular sour cream.

B. It should advertise that the "low fat" sour cream has only "half the fat" of the regular sour cream.

C. It should advertise that the "low fat" sour cream has only 5 grams of fat per serving.

D. It won't matter what strategy Dairy Barn uses, as consumers are sufficiently informed as to not be affected by the advertising

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Answers (1)

Know the Answer?

Cora Lindsey · Answer 1

C. It should advertise that the "low fat" sour cream has only 5 grams of fat per serving

Explanation:

According to the prospect theory, the risk of making a decision is stated