; Eship - Image A - Behavioral Economics - Fall 2011
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Eship - Image A - Behavioral Economics - Fall 2011

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									                                                   Name: ________________________


                     What is the Image of my Business?
    Part 1: Behavioral Economics: Thinking about Customer Buying Behavior

How to achieve your sail patch:
   Level 1: Complete Part 2: Design Your Business Fair Booth.
   Level 2: Do Part 1: Behavioral Economics Scenarios numbers 1-2 and Lessons
      Learned. Then complete Part 2: Design Your Business Fair Booth.
   Level 3: Do Part 1: Behavioral Economics Scenarios 1-4 and Lessons Learned.
      Then complete Part 2: Design Your Business Fair Booth.

It is the morning of the Children’s Business Fair. You have decided to take a
break from working at your business to explore the other booths and be a
customer for a little while.

You walk around the corner to the end of the row of booths and blink your eyes
– are you seeing double? You shake your head. Nope, there really are two of
every kind of booth: two picture frame booths, two bakery booths, two juice
booths, two macaroni and cheese booths. As you walk closer, however, you
see that the booths, while selling the same thing, do have some significant
differences…

Scenario 1: Juice Booths

Booth A’s table is covered with a nice, clean, sky blue tablecloth. A vase of
brightly-colored wild flowers sits on the corner of the table, and an overflowing
basket of fresh lemons, oranges, apples, strawberries, and grapes is artfully
displayed. Calming classical music plays softly from a cd player hidden
beneath the table. Icy cold, fresh fruit juice is poured into crystal plastic cups
from a large glass pitcher and handed to the customer with a cheery yellow
napkin. As you walk by, the girl behind the booth catches your eye, smiles, and
says hello. Each cup costs $1.50.

Booth B’s table has no tablecloth, no decorations, and no music. Fruit juice
made from a powder mix is served into Styrofoam cups from a big cooler with a
spigot set on the table. The girl at this booth is talking to her friend and doesn’t
look up as you walk by. Each cup costs $0.50.

You have already decided that you want a cup of juice. Which stand do you
buy from?

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Why?
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Scenario 2: Macaroni and Cheese Booths

The two booths selling macaroni and cheese are almost exactly alike. However,
at Booth A, customers choose between three different sizes of bowls of cheesy
macaroni: a small cup is $1, a medium cup is $2, and a large cup is $3.

Booth B only offers cups the size of the medium cups at Stand A, also set at a
price of $2.

It’s getting close to lunchtime, and you’ve already decided macaroni and
cheese is exactly what you want to eat. Which stand do you buy from?

______________________________________________________________________________

Why?

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Scenario 3: Picture Frames

Booth A and Booth B are almost exactly alike. However, at Booth A, for every
picture frame bought, customers receive a coupon for half price off a second
frame.

A picture frame from Booth A costs $10. A picture frame at Stand B costs $9.

You have already decided to buy a picture frame. Which booth do you buy
from?

______________________________________________________________________________

Why?

______________________________________________________________________________

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Scenario 4: Bakery Booths
The two bakery booths, both selling delicious-smelling brownies, are alike in
every way except for one: price. At Booth A, customers actually get to set their
own price! That is, each customer gets to pay whatever he or she wishes for a
brownie. At Booth B, the price is set at $1 per brownie.

You’ve already decided that a brownie would be the perfect dessert to go with
your mac and cheese. Which stand do you buy from?

______________________________________________________________________________

Why?

______________________________________________________________________________

______________________________________________________________________________

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Lessons Learned

What is one lesson about customer buying behavior you learned from thinking
through these scenarios?

______________________________________________________________________________

______________________________________________________________________________

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How will you apply that lesson to your booth at the Children’s Business Fair?

______________________________________________________________________________

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