Question

People are more likely to purchase a consumer ratings magazine that reviews new automobiles before buying a new car than they are to purchase a consumer ratings magazine that reviews pens and pencils before buying a new pen or pencil. Which of the following best explains this behavior?
A.Because the consumer ratings magazine must have a higher price for the issue reviewing pens and pencils.
B.Because the value of the information, in terms of avoiding a mistake on the purchase, is much higher for an automobile than for a pen or pencil, it is more worthwhile to gather this information.
C.Because people generally do not know which products are reviewed by these consumer magazines.
D.None of the above explain this behavior.

Answer 1

Because the value of the information, in terms of avoiding a mistake on the purchase, is much higher for an automobile than for a pen or pencil, it is more worthwhile to gather this information.

Explanation:

A customer rating refers to the rating that the customer gives based on the usage and quality of products. It gives an overall experience of a product by the end-user. It is very important to consult with others who use a particular product before making the purchase decisions.

This is because the user of the product knows the advantages and disadvantages of using that product and he knows whether the purchase of the product is worth it or not. In the given example, the purchase of a pen or a pencil is not that important when compared with the car purchase as the later involves a huge amount of money. Thus, the value of the information, in terms of avoiding a mistake on the purchase, is much higher for an automobile than for a pen or pencil, it is more worthwhile to gather this information.