Question

Joseph Gallo poured two glasses of wine from the same bottle but put a more expensive price tag on one glass than on the other. He let people test both and asked which they wanted; most wanted the more expensive glass, not knowing that both had come from the same bottle. This kind of experiment tells us that:________. a) preferences are given and are not shaped by society. b) people probably want to drink wine for the sense of indulgence it gives them rather than for the taste. c) decision making is costless. d) people never make rational choices.

Answer 1

Answer:

people probably want to drink wine for the sense of indulgence it gives them rather than for the taste.

Explanation:

Joseph Gallo poured two glasses of wine from the same bottle but put a more expensive price tag on one glass than on the other . He let people test both and asked which they wanted  , most wanted the more expensive glass , not knowing that both had come from the same bottle . This kind of experiment tells us that people probably want to drink wine  for the sense of indulgence it gives them rather than for the taste.

Here the consumer have conspicuous consumption .

Conspicuous consumption , is that in which the people purchase the luxuries goods and services only to show other their wealth and their social status. They don't purchase that good or services for their basic purpose but they purchase it for displaying it too other and let people know about their wealth.

Some of examples of con are clothes of designer , luxuries car , heavy and expensive jewellery , big house etc.