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Part 1A retail store offers a marketing program in which they suggest that consumers try the product for 30 days, and if they don’t like it, send it back. What behavioral economic concept is at issue here?
Part 2
Saliency since it will serve as a signal to consumers that the product may not be very high quality, but that it can be returned if it is far below your lowest required quality needs.
Loss aversion since people will likely return the product before the 30 days are up to avoid being stuck with an item they may not fully like.
New goods bias since consumers will always value new goods over older goods. This type of promotion will not work since consumers will likely return the product to get a newer item.
Endowment effect since once the item is in their house they will feel ownership and value it more, making them less likely to return it.
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