Prospect Theory

When consumers involve themselves into the market of consumption, they can be considered prospects. Companies must make their product look better than the others and have better qualities than the others competing in for the consumers buy. Many prospects, when looking for a new product that may be a big purchase, usually conduct research to see what brand would be best for them and most beneficial to fit their needs. Companies need to take these prospect buyers and convince them that their product is the best through advertisements and what those ads show to the consumer. A little bit ago, I was looking to buy new coils for my car. When I was searching, I had known what other people used and started to investigate those products. When looking at various brands, I would look for the issues that some of the coils gave people in the reviews and if there were any recalls. I would also look at the price range as to which ones would provide the best performance and what would not break the bank during the process.

Looking at the risk and recalls that were found when looking for the coils showed the idea of insurance on cars and what specific car insurance covered. Car insurance covers all of the car so even if something were to happen with the coils bought, the insurance would cover and major damage. This also brought up the question as to if gun owners should have insurance to hold them liable if anything were to happen regarding harm towards another human or suspect of harm. This would not be a bad idea due to the fact that the insurance companies would be at a large risk due to the number of gun owner and gun issue ratio leaves the insurance at a low rate of incidents. On the other hand, if there were something bad to happen such as a life-threatening event, then the insurer would be in a big deficit in trying to resolve the issue. Car insurance is also a necessity for people with a car. Car accidents are also widely more common than a gun accident which would leave the liability, so a low ratio as mentioned before leaving it a good turnout for it to be an option.

With insurance companies using a higher premium and lower deductibles. As said is another discussion posted by Shannon Kindred, people are most likely to look at the negative aspects of an event rather than the positives. This means that while the odds of them getting into say a car accident is low, they still look at the fact that it is still possible for them to get into a car accident rather than them not getting into a car accident. This shows that they will do what it takes to keep them safe and or have a good outcome if something like that does happen. This also does benefit the people that have lower income, they might want to take the chance of having to pay the price of a high deductible so that if they were to get into a car accident the price would then be lower to replace or fix the car.

a.)     Overall, McDonalds is the preferred fast-food chain

b.)    The top three most important attributes to a customer are number one.) location two.) the value and three.) the speed of the service provided.

c.)     McDonald’s should focus more on their quality of their food so that they might even be able to switch over some more people how go to Burger King over McDonalds.

d.)    Burger King should work on their presentation of the amenities that they provide for the public to ensure that they are giving the best overall quality of their restaurant.

e.)     This model is great for showing the firms customers attitudes and general opinions on what they think the restaurant provides to them. This shows what they need to work on and what they are doing a good job in so that they can keep doing that certain thing or so that they can focus more attention on something else.