managerial economics Discussion

1)  What mental accounts do you have in your mind about purchasing products or services? Do you have any rules you employ in spending money?  Are they different from what other people do? Do you follow Thaler’s four principles  reacting to gains and losses? 

2) Defend ONE of the following statements: 

Brand extensions can endanger brands.
Brand extensions are an important brand-growth strategy. 

3) Defend ONE of the following statements: 

Prices should reflect the value consumers are willing to pay.

Prices should reflect only the cost of making a product or delivering a service.