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'Consumers want to hear about discounts and sales, not just products.' (www.retail-week.com) (i) Discuss how the following might affect consumers’ decision making when shopping: • household income • discount offers • shopper loyalty schemes - Leaving Cert Home Economics - Question 4(b) - 2021
Question 4(b)
'Consumers want to hear about discounts and sales, not just products.' (www.retail-week.com) (i) Discuss how the following might affect consumers’ decision makin... show full transcript
Worked Solution & Example Answer:'Consumers want to hear about discounts and sales, not just products.' (www.retail-week.com) (i) Discuss how the following might affect consumers’ decision making when shopping: • household income • discount offers • shopper loyalty schemes - Leaving Cert Home Economics - Question 4(b) - 2021
Step 1
Discuss how household income might affect consumers’ decision making when shopping:
Answer
Household income plays a crucial role in consumer decision-making. The amount of disposable income available dictates how much consumers can spend. When disposable income is limited, consumers are compelled to prioritize essential needs over luxury items, seeking the best value for their money. Higher household income generally allows consumers to purchase higher-value items or luxury goods, which can lead to impulsive spending choices, influenced by discount offers.
Step 2
Discuss how discount offers might affect consumers’ decision making when shopping:
Answer
Discount offers significantly impact consumer behavior by creating the perception of savings and value. Consumers are often lured by the promise of lower prices, which can encourage them to make purchases they might otherwise defer. Special offers or promotional sales can create urgency and lead to increased spending, as shoppers feel they are getting more for their money. This can encourage re-evaluation of item desirability and prompt impulse buys.
Step 3
Discuss how shopper loyalty schemes might affect consumers’ decision making when shopping:
Answer
Shopper loyalty schemes reward consumers for repeat purchases and can strongly influence shopping decisions. By providing benefits such as discounts on future purchases or exclusive offers, these schemes encourage customers to remain loyal to specific retailers. This could potentially limit shopping options, as consumers may feel emotionally connected to particular brands or stores due to loyalty rewards, reducing competition among suppliers.
Step 4
State the advantages and disadvantages of online shopping.
Answer
Advantages of online shopping include convenience, as consumers can shop from home without the need to travel; a greater variety of products and access to multiple websites; and ease of price comparison, enabling consumers to find the best deals. However, disadvantages include potential delays in delivery; lack of tactile interaction with products; and the risk of fraud, particularly if the website's security is questionable. Consumers also cannot barter or negotiate prices online, which limits their purchasing power.