3.1 - Major Buying Decisions of Consumers Flashcards
What is an external factor when making a decision on what to spend money on?
An external factor is something a business can control.
What is the definition of ‘Price Inelasticity?’
‘Price Inelasticity’ is when the price of a product doesn’t impact its demand as much (eg. vegetables, as they are important food for people).
What are the 3 external factors of spenders?
The 3 external factors for spenders:
1. Marketing Strategies (Spreads the word & creates a positive image)
2. Price (price can change the demand of a product)
3. Finance (Availability & Cost)
What is the definition of ‘Price Elasticity?’
‘Price Elasticity’ is when the price of a product heavily impacts its demand (eg. an expensive videogame gets discounted for much cheaper).
What is the definition of ‘Debt Cycle?’
A ‘Debt Cycle’ is a result of not keeping on top of debt payments, and therefore accumulating more debt through interest and extra borrowing.
What is an internal factor when making a decision on what to spend money on?
An internal factor is something a business can’t control.
What are the 4 internal factors of spenders?
The 4 internal factors for spenders:
1. Personal (eg. age, gender, personality)
2. Social and Cultural (influences from ‘peer group,’ trends, and values & beliefs)
3. Ethical and Environmental (How the product is sourced or/and manufactured)
4. Psychological (level or motivation of a consumer)
