Name:

Course: BSRTCS

Activity 2: Behavioral Economics

1. How do you think consumers respond to risk and uncertainty?

Some costumers do seem to act different when buying a product, some will either be encourage on
buying a certain product that works well like lotion because it is brand new, good quality, very good for
the skin and has a very good responses from other customers who bought it despite the product having
a high price. There are also those who are very hesitant on buying newly released products like new
clothes, despite looking cool it has a price that even some customers will have second thoughts on
buying it or not.

2. How are you going to use your chosen framing to your retail store in order to attract
customers?

To attract my customers, I guess I will be using Attribute framing. My example is when selling burgers
that is “Buy One Take One” as my way of selling burgers instead of giving price sales on my burgers
because the customers like to buy 2 burgers in only one price like 60 pesos as to reducing the price and
only getting one burger for the customers which is a bit undesirable for some people.

3. How can retailers show their empathy (assigned empathy to your group) to the consumers?

Cognitive Empathy. Because it gives a retailer a chance to imagine what it might be like to be in the
position of the other person that is their customers. If the retailer tries to sell their products and their
target customers does not seem to like it or just not appealing to them, the retailer must put themselves
in the customer’s position to learn as to why they are not buying the product that the retailer is selling.

 Share an experience when you had a difficulty purchasing a product. How do you feel? And what did
you do?