Final answer:
An individual purchasing flowers from a street vendor is making an impromptu decision. The degree of imperfect information varies for different purchases, being higher for items like used laptops at a garage sale and internet flower orders, and lower for visible, directly assessable items like apples or meals at a local restaurant.
Step-by-step explanation:
A person stopping to buy a bouquet of flowers from a street vendor is making an impromptu decision. This type of decision is typically spontaneous and made without extensive deliberation. In the context of purchasing behavior, we come across different degrees of imperfect information that can affect our choices.
SELF-CHECK QUESTIONS
For each of the following purchases, say whether you would expect the degree of imperfect information to be relatively high or relatively low:
- Buying apples at a roadside stand - relatively low as you can see and judge the quality of apples directly.
- Buying dinner at the neighborhood restaurant around the corner - relatively low as you have easy access to information about the restaurant, perhaps from past experiences or local reputation.
- Buying a used laptop computer at a garage sale - relatively high because the condition and functionality of the laptop may not be fully known.
- Ordering flowers over the internet for your friend in a different city - relatively high as you cannot see the actual flowers being delivered and must rely on the vendor's assurances and reputation.
Understanding these concepts can help individuals make informed decisions and navigate the market with a better grasp of the potential risks and information gaps involved.