Economics, 3rd Edition

Questions

1 

To what extent should we assume 

that consumers can accurately 

estimate the potential gains and 

losses of a purchase decision 

(i.e. the utility)? How does your 

answer to this question affect 

your view of the SEM?

2 

Think of a purchase you have 

made in recent months after 

which you experienced guilt. 

Explain why you felt guilty and 

whether such feelings can be 

accounted for in the SEM.

3 

If research suggests that con-

sumer behaviour is far more 

complex than the SEM suggests, 

does that mean the SEM is of no 

value and study of it ought to be