Questions
MGT355H5 F LEC0101 Term Test 2
Single choice
Which of the following advertisements involve framing a price as a gain foregone?
Options
A.An ad for a bank which offer high yield savings accounts stating, ‘Open an account today and maximize your tax return’
B.A luxury car dealer in a wealthy area, running a radio ad stating, ‘Put your holiday bonus towards that brand new 2023 coupe you always wanted!’
C.An appliance retailer’s ad for a washing machine stating, ‘Buy today and make your first payment in 90 days!’
D.A tax preparation firm advertising that its customers ‘are entitled to receive an instant tax refund’ if they file their taxes with that firm
E.A department store sending out 10%-off coupons for loyalty members on their birthday
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Step-by-Step Analysis
To unpack which advertisement frames a price as a gain foregone, we consider how each option presents the cost or value:
Option 1: 'An ad for a bank which offer high yield savings accounts stating, ‘Open an account today and maximize your tax return’' — This frames the action as a gain (maximizing tax return) rather than emphasizing what you would forgo by not acting. It highlights a positive outcome of taking action now, which is a typical gain-framed message rather than explicitly portraying a price that you would forego.
Option 2: 'A luxury car dealer in a wealthy area......Login to view full explanationLog in for full answers
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