Class_08_Entrepreneurship_Case

Class_08_Entrepreneurship_Case - 1. Although this could be...

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1. Although this could be considered an example of limited decision making, I think that extensive decision making best describes the choice to indulge at Ethel’s. Neither I, nor many people I know, would make the decision to eat at Ethel’s while standing in front of the storefront. Ethel’s products are expensive and for many people, will be an infrequent purchase. The cost of $18 for 2 cocoas and 10 pieces of chocolate adds some financial risk when compared to the purchase of similar items from any number of alternate businesses (e.g. convenience store, diner, mall kiosk, etc). Consequently, this perceived financial risk increases consumers’ level of involvement. There is a potential social risk involved with eating at Ethel’s also, which also increases the level of involvement. Within some social circles, eating at Ethel’s may be a positive sign of upward mobility; in other circles, doing so might be negatively viewed as showing off or wasting money. For some health-conscious consumers, such as myself, there may be a psychological risk involved with consuming copious amounts of chocolate. Although many of Ethel’s customers may typically buy inexpensive, mass-produced chocolate, they may occasionally make an exception for Ethel’s on social occasions, thus increasing involvement in the decision. In sum, the multitude of alternatives, high level of involvement and comparatively high cost of eating at Ethel’s are indicative of extensive decision-making. 2.
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Class_08_Entrepreneurship_Case - 1. Although this could be...

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