Consumer Behavior & Influences
What do we call items people buy that are physical products?
Goods
What is the first stage in the consumer decision-making process?
Need identification.
What does "demand" mean for consumers?
Consumers' desire and ability to buy a good or service.
What is the first step of smart shopping listed in the lesson?
Identify the needs.
Name one federal act that protects consumers (from the lesson).
Examples: Consumer Product Safety Act; Fair Packaging and Labeling Act; Federal Trade Commission Act; Truth in Lending Act (any one).
Name two personal factors that influence consumer behavior (choose any two).
Examples: demographic status, lifestyle, personality (any two)
What stage comes after information searching?
Alternative evaluation.
State the law of demand in one sentence.
As price falls, quantity demanded increases; as price rises, quantity demanded decreases.
Name one way smart shopping helps consumers get more value for their money.
Buying the same product for less money (or buying better quality for the same money).
What agency enforces rules from the Consumer Product Safety Act?
Consumer Product Safety Commission.
What is the term for goods whose demand increases when income increases and also falls when price rises?
Normal goods
Why do businesses conduct research about consumers? Give one clear reason.
To learn consumer needs so they can provide value or make better products.
What does "supply" mean for sellers?
The amount of a good or service available for purchase.
When comparing items, what two questions should shoppers ask according to the lesson?
What problem is being solved/how it will be used; what functions are required vs. nice-to-have (and which fits the budget).
Give one example of an unfair or deceptive practice the Federal Trade Commission deals with.
False or deceptive advertising (also bait and switch, unsolicited merchandise).
Give one example of how culture can affect what people buy (use an example from holidays or traditions).
Example: Buying a Christmas tree for the holiday.
Describe what "post-purchase evaluation" means in one sentence.
When a buyer evaluates whether the purchase met expectations after buying.
Name two factors that can change demand (choose any two).
Change in number of people, tastes/preferences, expectations, income, price of substitutes/complements (any two).
Define "attributes" as used in the smart shopping steps.
The functions or features an item must have or would be nice to have.
Name two services (not laws) that help consumers outside the federal government (from the lesson).
Better Business Bureau; Renters’ Associations; States’ Departments of Consumer Services (any two).
Explain what a "reference group" is and give one way it can influence a person's purchases.
A reference group is a group a person looks to for personal standards; it can influence attitudes and visible purchases (e.g., friends influencing clothing choices).
List all five stages of the consumer decision-making process in order.
Need identification → Information searching → Alternative evaluation → Purchase decision → Post-purchase evaluation.
Explain opportunity cost using the example from the text where a student picks candy instead of a soda.
Opportunity cost is what is given up; example: buying candy rather than a soda — the soda is the opportunity cost.
Give a short plan (3 steps) a shopper should follow when buying a large item (use the three smart shopping steps).
Identify needs → List attributes → Compare items.
Briefly describe what the Federal Food, Drug and Cosmetic Act regulates.
It provides a basis for regulation of testing, manufacture, distribution and sale of foods, drugs, cosmetics and medicinal products.