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Free response · 2.2 Consumer Behavior

Exam-style concept-application task: apply the topic to a new business scenario. Suggested time 12–13 minutes.

FRQ 3 — Concept application (3 points)

Luna Bakery wants to increase sales of its new gluten-free bread, which costs more than regular bread. Its owner notices that customers often hesitate at the display, and that many of its regulars are members of a neighborhood running club. She is considering two tactics: (1) offering a free slice to every customer who walks in, and (2) creating a 'Luna Runners' breakfast club with a members-only loaf and early opening on race days.

(A) Identify the principle of influence each tactic draws on. 1 pt

(B) Explain why customers' hesitation at the display is more likely a routine-decision problem than a rational-decision problem, and how tactic (1) addresses it. 1 pt

(C) Explain how tactic (2) uses a social factor in consumer buying decisions, and identify ONE risk of the tactic. 1 pt