Answer to Question #301180 in Microeconomics for megan

Question

Janice has decided to upgrade her security system at home. She hears that ADT offers more technologically advanced alarms than its competitor Beyers and at a lower subscription price. After speaking to her friends, she discovers that they all use Beyers. They agree that ADT’s alarm is more appealing but state that the add-on service and patrols provided by Beyers served as a drawcard. Janice thus chooses Beyers. Can you explain her decision? [3] 

Answer 1

Although ADT was the best option for Janice, her mind changed immediately after discussing with a friend because ADT used Beyes to sell their products and that Beyes has the add-on service and patrols as opposed to ADT.