Consumer Behavior and Payment Plans

The video tutorial discusses two main problems: consumers wanting items they can't afford and retailers struggling to sell expensive products. It introduces the concept of purchasing on terms, also known as payment plans, as a solution that benefits both consumers and retailers. This approach allows consumers to acquire items immediately while paying over time, and retailers to expand their customer base and receive a steady income stream.

What is a common problem faced by consumers?

• They have too much money.

• They cannot find anything to buy.

• They want items they cannot afford.

• They dislike shopping.

Which of the following is an example of an expensive item consumers might want?

• A loaf of bread

• A luxury car

• A cup of coffee

• A pair of socks

What challenge do retailers face when selling products?

• Their products are too cheap.

• They have no products to sell.

• Consumers cannot afford their products.

• They have too many customers.

What is a typical consumer behavior regarding money?

• Saving large sums quickly

• Donating to charity

• Spending money quickly

• Investing in stocks

What is a common misconception about affording expensive items?

• They are not desirable.

• They are always on sale.

• They require a large sum of money upfront.

• Everyone can afford them easily.

What is a solution to the problems faced by both consumers and retailers?

• Increasing product prices

• Purchasing on terms or payment plans

• Reducing product quality

• Eliminating all sales

What is another term for purchasing on terms?

• Leasing

• Buying outright

• Financing

• Renting

How does a payment plan benefit consumers?

• They have to wait longer to receive the product.

• They pay less overall.

• They get to use the product immediately.

• They pay more money upfront.

Why is a payment plan advantageous for retailers?

• They receive less money over time.

• They have to lower their prices.

• They can sell to a larger group of people.

• They have fewer customers.

What is a key feature of a payment plan?

• Immediate full payment

• Delayed product delivery

• Regular smaller payments

• No interest charges