Chapter 3.2, Problem 4R

To determine

To state: The reason for unreasonable purchases by the consumer.

Explanation of Solution

The consumers generally follow the below mentioned principles while buying:

1. Gathering information
2. Using advertisement properly
3. Comparison shopping

Even though the customers are aware of the buying principles, some of them might fall for unreasonable purchases. This may be because of the manipulated advertisements or reviews on the products being purchased. If the information available is manipulative or advertisements show/inform manipulative information and customers fail to cross check it then there are chances of falling for unreasonable purchases. Another reason for unreasonable purchases is if the customer is in a hurry and is short of time. In such a case, the customer tends to buy whatever is available with partial information.

Thus, insufficient time and manipulative advertisements can lead to unreasonable purchases.