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Questions and Answers
What is impulse buying?
What is impulse buying?
- Avoiding all discretionary spending
- Purchasing essential items like food and shelter
- Making unplanned purchases on nonessential goods and services (correct)
- Budgeting carefully for every purchase
Why is it easy to make impulse purchases?
Why is it easy to make impulse purchases?
- Impulse purchases can only be made with cash, not credit cards
- There are limited items available for impulse buying
- Consumers are highly disciplined and avoid impulse buying
- Advertisements on social media make it hard to resist (correct)
What is the impact of impulse purchases on consumer spending?
What is the impact of impulse purchases on consumer spending?
- It only affects essential items like food and shelter
- It has no impact on consumer spending
- It leads to overspending on nonessential goods and services (correct)
- It only affects nondiscretionary spending
What is buyer's remorse?
What is buyer's remorse?
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What is discretionary spending?
What is discretionary spending?
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Study Notes
Impulse Buying
- Impulse buying refers to the unplanned purchase of a product or service, often driven by emotions, rather than a deliberate and rational decision-making process.
Factors Contributing to Impulse Buying
- Easy credit facilities and payment options make it convenient for consumers to make impulse purchases.
- Attractive store displays, promotions, and discounts can create a sense of urgency, leading to impulsive decisions.
- Peer pressure, social media influence, and clever marketing tactics can also trigger impulse buying.
Impact of Impulse Purchases on Consumer Spending
- Impulse purchases can lead to a significant increase in consumer spending, as they often result in unplanned expenses.
- This can lead to a decrease in savings, an increase in debt, and a negative impact on personal finances.
Buyer's Remorse
- Buyer's remorse is a feeling of regret or guilt that occurs after making a purchase, often due to the realization that the item was not needed or was too expensive.
- It can result in a negative emotional response, such as anxiety, disappointment, or frustration.
Discretionary Spending
- Discretionary spending refers to the portion of a consumer's income that is available for non-essential expenses, such as hobbies, entertainment, or lifestyle upgrades.
- Impulse purchases can significantly deplete discretionary spending, leading to a reduction in funds available for other important expenses or savings.
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Description
Test your ability to resist impulse buying and learn strategies for mindful shopping with this quiz. Explore the tactics used in marketing and sales to make you spend more money, and discover tips for avoiding impulsive purchases.
