In Consumer Behaviour, a Critical Aspect of Household Decision Making

question 127

Multiple Choice

In consumer behaviour, a critical aspect of household decision making is that:

• A) the concept is only relevant to people that live in a house with three or more people
• B) family purchase decisions are always made by the high- income earner
• C) traditional family decision making behaviour has almost become extinct
• D) although one person may purchase a product, it can be used by multiple people
• E) family preferences for products and services do not change over time

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Definitions:

Gross Revenues

The total amount of sales revenue generated by a company before any deductions are made for returns, allowances, and discounts.

Payback Method

A capital budgeting method that calculates the time needed to recoup the initial investment in a project, based on the project's expected cash flows.

Discounted Cash Flow

A financial analysis method that estimates the value of an investment based on its future cash flows, adjusted for time and risk.

Cash Inflows

Money received by a business from its operations, investments, or financing activities.