Economist Dr. Sato hypothesizes that consumer responses to small price changes are driven less by rational utility calculations than by "reference points" — the prices consumers expect or have recently seen — challenging classical models that treat decisions as fully rational.
Which finding, if true, would most strongly support Dr. Sato's hypothesis?
- A
Some retailers change prices frequently.
- Bcheck_circle
Consumers were significantly more likely to purchase the same product at 14.99' than at $9.99 framed without any reference price, even though the actual price and product were identical.
- C
Most products have prices ending in odd numbers.
- D
Consumers tend to spend more during sales.
Explanation
A holds price and product constant, varying only the reference framing — and it changes behavior, supporting Sato's reference-point hypothesis against rational models. B, C, and D do not isolate the framing.