Question

What is the primary purpose of making an operating budget for consumer purchases?

Question 1 options:

To maximize credit card rewards


To plan consumption without creating extra borrowing costs


To encourage impulse buying

Question 2 (1 point)
Which of the following best describes the concept of "opportunity cost" in consumer purchasing?

Question 2 options:

The actual price paid for an item


The cost of shipping and handling


The value of alternatives given up when making a purchase

Question 3 (1 point)
Why might a consumer choose to buy a more expensive, well-known brand over a generic alternative?

Question 3 options:

Expensive brands are always the best choice


Brand-name products always last longer


The brand may have a better warranty or customer service

Question 4 (1 point)
What is a potential advantage of shopping online versus shopping locally?

Question 4 options:

You can always return items more easily


You may find a wider selection of products


Online prices are always lower

Question 5 (1 point)
In Sig's keyboard shopping example, what method did he use to compare different models?

Question 5 options:

He created a weighted scoring system based on product attributes


He relied solely on customer reviews


He picked the keyboard with the most features


He chose the cheapest option available

Question 6 (1 point)
What is a potential benefit of buying a used or pre-owned product?

Question 6 options:

They are always in perfect condition


They always come with better warranties


They typically cost less than new products

Question 7 (1 point)
Why might a consumer choose to shop at a smaller boutique store instead of a large chain store?

Question 7 options:

They may offer more personalized service or expertise


Boutiques always have lower prices


Boutiques always have a larger selection

Question 8 (1 point)
What is the main purpose of a product warranty?

Question 8 options:

To potentially lower expected maintenance or repair costs


To encourage impulse buying


To increase the product's price

Question 9 (1 point)
How can timing affect the price of a product?

Question 9 options:

Retailers may discount old inventory before new models arrive


Timing only affects perishable goods


Prices never change based on timing

Question 10 (1 point)
What is "price discrimination" in consumer markets?

Question 10 options:

Charging different prices for identical products to different consumers


Pricing products below cost to attract customers


Offering discounts only to regular customer

Answer 1

Here are the suggested answers for each question based on the concepts of consumer purchasing:

**Question 1: What is the primary purpose of making an operating budget for consumer purchases?**
**Answer:** To plan consumption without creating extra borrowing costs

**Question 2: Which of the following best describes the concept of "opportunity cost" in consumer purchasing?**
**Answer:** The value of alternatives given up when making a purchase

**Question 3: Why might a consumer choose to buy a more expensive, well-known brand over a generic alternative?**
**Answer:** The brand may have a better warranty or customer service

**Question 4: What is a potential advantage of shopping online versus shopping locally?**
**Answer:** You may find a wider selection of products

**Question 5: In Sig's keyboard shopping example, what method did he use to compare different models?**
**Answer:** He created a weighted scoring system based on product attributes

**Question 6: What is a potential benefit of buying a used or pre-owned product?**
**Answer:** They typically cost less than new products

**Question 7: Why might a consumer choose to shop at a smaller boutique store instead of a large chain store?**
**Answer:** They may offer more personalized service or expertise

**Question 8: What is the main purpose of a product warranty?**
**Answer:** To potentially lower expected maintenance or repair costs

**Question 9: How can timing affect the price of a product?**
**Answer:** Retailers may discount old inventory before new models arrive

**Question 10: What is "price discrimination" in consumer markets?**
**Answer:** Charging different prices for identical products to different consumers

Feel free to ask if you need further clarification or additional information!