Consumer Decisions Terms
An individual who purchases and uses goods and services to satisfy wants and needs.
What is a consumer?
Needs to have a set of priorities and a target date for achievement.
What are goals?
A good for which demand will not change in relation to price.
What is a necessity?
Provides a framework to examine important issues for a variety of family units
What is categorization?
goods whose demand decreases when income increases
What is an inferior good?
A specific group for which a business's products, services, and marketing efforts are intended.
What is a target market?
Allows users to withdraw and deposit money at anytime, used for daily expenses; usually free
What is a checking account?
How many stages are in the consumer decision making process?
What is five?
How many stages are the Family Life Cycle categorized into?
What is eight?
the production, distribution and consumption of goods and services
What is economics?
What is motivation?
Assist in planning financial situations throughout the year; acts a control mechanism in regards to the way money is spent
Refers to the quantifiable statistics detailing an individual’s current status, such as age, gender, ethnicity, occupation and income
What is demographic status?
Can have $250,000 worth of funds insured by the Federal Deposit Insurance Corporation (FDIC)
What is a Savings Account?
If the price of any good falls, the quantity demanded will increase
What is the Law of Demand?
What is culture?
Explains how a person changes financial position, earnings, consumption, and savings throughout
What is the family life cycle?
Is identified by activities, interests, and opinions.
What is lifestyle?
These require you to invest cash for fixed terms of 6 months, 12 months, or 18 months.
responsible for alleviating poverty and raising employment among low-income individuals and families
What is Earned Income Tax Credit (EITC)?
The cost of making an investment which is the difference between the return on one investment and the return on an alternative
What is opportunity cost?
Investment in publicly traded companies; provides ownership in a company
What are stocks?
The most basic needs under Maslow's Heirarchy of Needs. Air, Water, Food, Shelter, Sleep, Clothing are all under this category.
What is physiological needs?
These provide individuals with the chance to put a portion of their earnings in a financial portfolio
What is a 401k Plan?
Provide a cushion for unforeseen financial conditions in the event anything goes wrong
What are emergency funds?