For Shopping Products, the Consumer

question 197

Multiple Choice

For shopping products, the consumer

• A) purchases the items frequently, conveniently, and with a minimum of effort.
• B) compares several alternatives on criteria such as price, quality, or style.
• C) makes a special effort to search out and buy the items.
• D) does not know about the items or knows about them but does not initially buy them.
• E) buys the items as a result of buying other consumer products, such as impulse purchases.

---

Definitions:

Time Value

The theory that a sum of money is more valuable if it's available immediately, rather than the same amount in the future, because of its earning capabilities.

Interest Rate

The percentage of a loan amount charged by the lender to the borrower for the use of money, typically expressed on an annual basis.

Present Values

This concept calculates the current worth of a future sum of money or stream of cash flows given a specified rate of return.

Annuity Payments

Regular fixed payments received from an investment over a specified period of time.