4
AssignmentMultiple Choice

Factors That Affect Financial Decisions

Question 4 • * FL-2102373-Personal Finance and Money Management - GF

Why should consumers be cautious when encountering sales tactics like BOGO, 50% off sales, and psychological pricing?

Answer
A
The quality of the sale items might be inferior.
B
The discounted items might come without a warranty.
C
These campaigns might offer a wider variety of products.
D
These approaches may encourage unnecessary purchases.

Explanation

BOGO offers, 50% discounts, and psychological pricing can make a purchase seem like a bargain or create a sense of urgency. Consumers may then buy more than they need or spend money they did not plan to spend. That is why choice D, “These approaches may encourage unnecessary purchases,” is the best answer.

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