Which of the following is NOT considered a buying incentive in the context of consumer surplus and willingness to pay?

• A. Display
• B. Rebate
• C. Coupon
• D. Prize

Answer: (A)

Verified step by step guidance

1. Step 1: Understand the concept of buying incentives. Buying incentives are tools or offers used by sellers to encourage consumers to purchase a product. These typically affect the consumer's willingness to pay or the effective price they pay.
2. Step 2: Recall that common buying incentives include rebates, coupons, and prizes. Rebates and coupons directly reduce the effective price paid by the consumer, increasing consumer surplus by lowering the cost.
3. Step 3: Recognize that prizes can act as an incentive by adding extra value or a potential reward, which can increase the consumer's willingness to pay or perceived benefit from the purchase.
4. Step 4: Consider the term 'Display' in this context. A display is generally a marketing or promotional tool used to attract attention to a product but does not directly alter the price or provide a financial incentive to buy.
5. Step 5: Conclude that since 'Display' does not directly affect the consumer's willingness to pay through price reduction or added rewards, it is NOT considered a buying incentive in the context of consumer surplus and willingness to pay.