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Questions and Answers
What are some of the considerations to be taken when comparison shopping? (Select all that apply)
What are some of the considerations to be taken when comparison shopping? (Select all that apply)
What are the steps in purchasing or leasing a vehicle?
What are the steps in purchasing or leasing a vehicle?
Identify several alternative vehicles, gather information and test-drive, compare each alternative to established criteria.
Considerations in purchasing or leasing a vehicle may include which of the following? (Select all that apply)
Considerations in purchasing or leasing a vehicle may include which of the following? (Select all that apply)
What are subjective resources?
What are subjective resources?
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What are objective resources?
What are objective resources?
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Discretionary spending refers to spending for goods and services beyond essentials.
Discretionary spending refers to spending for goods and services beyond essentials.
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Discretionary spending allows consumers freedom of choice in what?
Discretionary spending allows consumers freedom of choice in what?
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What tools can consumers use to evaluate discretionary spending decisions? (Select all that apply)
What tools can consumers use to evaluate discretionary spending decisions? (Select all that apply)
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What is comparison shopping?
What is comparison shopping?
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Study Notes
Comparison Shopping Considerations
- Key factors include value, time, convenience, and dollar costs.
- Payment options play a crucial role in budget planning.
- Price negotiations can influence final costs and terms.
- Be aware of conspicuous consumption's consequences on spending behavior.
- Opportunity cost should be considered when evaluating purchases.
- Analyze costs and benefits of each option to make informed decisions.
Steps in Vehicle Purchasing/Leasing
- Identify multiple vehicle alternatives, both new and used.
- Gather relevant information about each vehicle.
- Test-drive several options to assess performance and features.
- Compare alternatives against personal criteria, noting the importance of each criterion.
Considerations for Vehicle Purchase/Lease
- Evaluate performance aspects including safety ratings and reliability.
- Check the odometer for mileage and annual average miles driven.
- Analyze fuel consumption relative to personal or family needs.
- Consider size, appearance, and overall aesthetic appeal.
- Set a price/payment limit, and factor in insurance costs.
- Account for taxes, maintenance needs, warranty options, and depreciation.
Subjective Resources in Decision-Making
- Advertisements can influence consumer perceptions and choices.
- Sales representatives may offer guidance but can also have biased interests.
- Consumer reviews provide insights into product performance and satisfaction.
Objective Resources for Evaluations
- Utilize statistically based research for factual information on products.
- Turn to published consumer data, such as Consumer Reports, for unbiased recommendations.
Discretionary Spending Defined
- Refers to expenditures exceeding basic needs like food, shelter, and clothing.
- Allows consumers to allocate funds for non-essential goods and services.
Freedom of Choice in Discretionary Spending
- Consumers can decide on spending for education, healthcare, entertainment, transportation, and technology.
- The ability to choose impacts overall financial management and lifestyle.
Tools for Evaluating Discretionary Spending
- Weigh costs and benefits of alternative spending options for effective budgeting.
- Utilize decision models to clarify financial choices and outcomes.
- Consider saving as a viable alternative to immediate spending.
Understanding Comparison Shopping
- Involves checking multiple stores for the same product to secure the best price.
- Aims to identify the highest quality product for the cost, enhancing spending efficiency.
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Description
This quiz encompasses various considerations to keep in mind when comparison shopping, including value, time, and payment options. Additionally, it covers the steps involved in purchasing or leasing a vehicle, emphasizing important alternative choices for consumers.
