Question

Which type of purchase is most likely to be the result of joint decision making?

1) Impulse purchase
2) Individual purchase
3) Routine purchase
4) Complex purchase

Answer 1

The type of purchase most likely to involve joint decision-making is a complex purchase, as it often includes more risks and requires thorough consideration. Simple purchases like buying apples from a stand or dinner from a neighborhood restaurant tend to have low degrees of imperfect information.

Step-by-step explanation:

The type of purchase most likely to result from joint decision-making is a complex purchase. Complex purchases often involve significant financial investment, a high degree of risk, or considerable emotional engagement. Such purchases typically require more information and deliberation, making it common for multiple individuals to collaborate in making the final decision. Examples of complex purchases might include buying a house, a car, or making investments.

SELF-CHECK QUESTIONS

1. Buying apples at a roadside stand: The degree of imperfect information is expected to be relatively low because the product is simple, direct, and easy to evaluate by visual inspection.
2. Buying dinner at the neighborhood restaurant around the corner: The degree of imperfect information is also likely low, assuming you are familiar with the restaurant and its offerings.