According to economist Daniel Kahneman's theoretical framework, consumers confronted with buying choices under conditions of sparse information depend...
GMAT Information and Ideas : (Ideas) Questions
According to economist Daniel Kahneman's theoretical framework, consumers confronted with buying choices under conditions of sparse information depend extensively on pricing as a measure of product quality. This dependency becomes reinforced through "anchoring effects," whereby the initial price observed substantially shapes all following pricing assessments. In contrast, Kahneman suggests that when buyers possess comprehensive product data and numerous pricing alternatives, they would embrace a more systematic methodology for evaluating worth. Take, for instance, the digital commerce platform Amazon, which prominently displays thorough customer feedback and comprehensive comparison utilities in conjunction with price information. Based on Kahneman's theoretical reasoning, such a marketplace should influence buyers by ______
Which choice most logically completes the text?
diminishing their dependence on pricing as the main quality measure, fostering more thorough worth evaluation instead.
heightening their vulnerability to anchoring effects because of the excessive volume of accessible data.
forcing them to concentrate mainly on the initial pricing they observe rather than on merchandise specifications.
steering their focus toward marketing elements and away from essential product attributes.
Step 1: Decode and Map the Passage
Part A: Passage Analysis Table
| Text from Passage | Analysis |
|---|---|
| "According to economist Daniel Kahneman's theoretical framework, consumers confronted with buying choices under conditions of sparse information depend extensively on pricing as a measure of product quality." |
|
| "This dependency becomes reinforced through 'anchoring effects,' whereby the initial price observed substantially shapes all following pricing assessments." |
|
| "In contrast, Kahneman suggests that when buyers possess comprehensive product data and numerous pricing alternatives, they would embrace a more systematic methodology for evaluating worth." |
|
| "Take, for instance, the digital commerce platform Amazon, which prominently displays thorough customer feedback and comprehensive comparison utilities in conjunction with price information." |
|
| "Based on Kahneman's theoretical reasoning, such a marketplace should influence buyers by ______" |
|
Part B: Passage Architecture & Core Elements
Main Point: Kahneman's framework suggests that consumer decision-making shifts from price-dependent to systematic evaluation when comprehensive product information is available.
Argument Flow: The passage establishes Kahneman's theory by first explaining how consumers rely on price when information is scarce, then contrasts this with how they should behave when comprehensive data is available (like on Amazon), leading to a logical conclusion about the impact of information-rich marketplaces.
Step 2: Interpret the Question Precisely
This is a fill-in-the-blank question asking us to choose the best logical connector. The answer must create the right relationship between what comes before and after the blank.
Step 3: Prethink the Answer
- Based on our analysis, Kahneman's framework creates a clear contrast: sparse information leads to price dependency, while comprehensive information leads to systematic evaluation
- Since Amazon provides comprehensive data (reviews, comparisons, prices), the logical completion should show:
- reduced reliance on price as the primary quality indicator
- increased use of systematic evaluation methods
- a shift away from the anchoring effects mentioned earlier
diminishing their dependence on pricing as the main quality measure, fostering more thorough worth evaluation instead.
✓ Correct
- Directly aligns with Kahneman's framework: comprehensive data should "diminish their dependence on pricing as the main quality measure" and "fostering more thorough worth evaluation instead" perfectly matches the "more systematic methodology" mentioned in the passage
heightening their vulnerability to anchoring effects because of the excessive volume of accessible data.
✗ Incorrect
- Contradicts Kahneman's theory by suggesting more information increases anchoring effects
- The passage clearly states that anchoring effects occur under "sparse information" conditions, not comprehensive data conditions
forcing them to concentrate mainly on the initial pricing they observe rather than on merchandise specifications.
✗ Incorrect
- Completely contradicts the theory by suggesting comprehensive data makes consumers focus on "initial pricing" (anchoring effects)
- The passage explicitly states that systematic methodology emerges when consumers have comprehensive data
steering their focus toward marketing elements and away from essential product attributes.
✗ Incorrect
- Introduces "marketing elements" which aren't mentioned in the passage or Kahneman's framework and doesn't connect to any aspect of the theoretical framework presented