Financial literacy and consumer decision making

Consumers purchase goods and services

• to satisfy their basic needs and wants

• to keep up with social trends

• because businesses use marketing to make them

• to keep the economy afloat

Consumer decision-making refers to the ways individuals make choices about which products they will purchase to satisfy their needs and wants. The process differs depending on whether the purchase is minor or major. Which of the following is an example of a major decision?

• groceries

• a pair of shoes

• a new home

• the latest game

For a major purchasing decisions, consumers need to: (which one is incorrect)

• Identify needs and wants

• Collect information about products options

• Evaluate the product alternatives against a set of criteria

• Make purchasing decisions that consider the short- and long-term financial consequences

• Buy the first product you see because you like it

Which of the following is not a factor that affects decision making?

• Personal

• Social

• Economic

• Cultural

• Attitude

Personal factors that influence consumer purchasing decisions include ( more then one answer)

• Age

• Marketing

• Occupation

• Personal Taste

Social pressure can also influence purchasing decisions. Which of the following is not an example of social pressure?

• trends and fads

• word of mouth recommendations

• age and gender

• celebrity endorsements

For most consumers the price of products versus the ability to pay are the most important factors influencing decisions. Which of the following is not an example of an economic factor:

• budget limits

• Insurance, legal fees and other costs

• loans or credit options for purchasing product

• trends or fads

Psychological factors that influence consumer purchasing decisions include: (pick all that apply)

• Motivation

• Perception

• Beliefs and attitudes

• Marketing

Cultural factors refer to the set of values, behaviours and ideals that are shared by a group of people . Which of the following is not an example:

• nation

• religion

• location

• trends

Ethical factors can affect consumer decision-making,.Which of the following is not an ethical factor:

• sustainable use of resources

• cheapest price

• animal welfare

• recycling