Question

When consumers decide to purchase ---------- they generally don't expend much effort or engage in much brand comparison. Customers have already decided which brand inside the product category is most desirable to them; no need exists to further shop around.

Option 1: Generic products
Option 2: Luxury items
Option 3: Niche products
Option 4: Impulse buys

Answer 1

Consumers often choose luxury items based on brand preference without much comparison, aligning with their utility maximization, which is influenced by personal preferences, income, and prices.

Step-by-step explanation:

When consumers decide to purchase luxury items, they generally don't expend much effort or engage in much brand comparison. Customers have usually established a preferred brand in the product category that they find most desirable, diminishing the need to further shop around. Choices around luxury purchases often fall under the concept of utility maximization, where individuals make consumption decisions based on what maximizes their happiness and satisfaction, taking into account their budget constraints.

Everyday consumption choices consider several factors such as personal preferences, income, and the prices of available goods and services. The process of achieving a utility-maximizing combination of choices involves examining trade-offs and looking at the marginal utility derived from consuming different goods, but when it comes to luxury items, the affluent consumer may bypass this detailed assessment due to a strong preference for their chosen brand.