U1 AOS1 - Lesson 8 - Internal Factors Influencing Consumer Behaviour

Question 1

List of Internal Factors Influencing Consumer Behaviour

Answer 1

• Personality types
• Ethics
• Habits

Question 2

Define Utility Maximisation

Answer 2

Consumers seeking to maximise their overall wellbeing through consuming different combinations of goods and services

Question 3

Define Budget Constraints

Answer 3

Consumers being limited in their ability to consume goods and services due to their limited income avaliable for spending

Question 4

Personality

Answer 4

The combination of attributes, motives,
values and behaviors unique to each individual.

Question 5

Personality Types

Answer 5

• Status Seekers
• Veblen Goods
• Self Control
• Overconfidence
• Procrastination

Question 6

Ethics

Answer 6

Moral principles that guide decision making

Question 7

Habits

Answer 7

Tendency or routine of buying a certain good or service regularly

Question 8

Status Seekers

Question 9

Examples of Goods attracting Status Seekers that are NOT Veblen Goods

Answer 9

Price increases of these goods will generally not increase demand for them. These goods are also not rare or collectable, so will not attract buyers seeking a high value asset.

• Business class air fares
• Jet skis/yachts
• North Face/Kathmandu puffer jackets
• iPhones
• Dyson vacuums

Question 10

Examples of Veblen Goods

Answer 10

• Houses in expensive areas
• Vintage/collector cars, art and wine

Question 11

When buying your first car, which of the following would not normally be regarded as an internal factor affecting your behaviour as a consumer?

A. Feedback from your family
B. Type of personality
C. Values
D. Sense of what is cool

Answer 11

A