Heuristics That Are Used in Purchase Decision Making Are Created

question 75

True/False

Heuristics that are used in purchase decision making are created by company goals, budgets, and other organizational factors.

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Definitions:

Autonomous Consumption

The level of consumption spending that occurs when income is zero, representing the expenditures that consumers must make even when they have no income.

Disposable Income

Households' budget for spending and savings after the necessary income taxes have been deducted.

Induced Consumption

Consumer spending that increases as disposable income rises, and decreases as income falls.

Disposable Income

Net resources for spending and saving available to households after subtracting income taxes.