Category: Purchase Decisions

QoD: How many years has the typical American homeowner been in their current home?

|
Nov 06, 2019
|
Economics, Question of the Day, Budgeting, Purchase Decisions, Research, Mortgages
This is a good one for Economics class as it's a demonstration of supply/demand factors in the housing market. Given that the trend has been for homeowners to stay in their houses for longer periods of time, the supply of houses for sale (inventory) goes down and if new construction doesn't close that supply gap then there's a supply/demand imbalance. You can guess what happens next.  Answer: 13 years Here's a chart showing the regions where homeowners have been in their homes the longest,...

QoD: Which brands do Gen-Zers prefer: a) Coke or Pepsi b) Snapchat or Instagram c) Starbucks or Dunkin Donuts?

|
Nov 05, 2019
|
Question of the Day, Purchase Decisions
Answer: a) Coke (63%) vs. Pepsi (37%) b) Instagram (59%) vs. Snapchat (41%) c) Starbucks (61%) vs. Dunkin Donuts (39%) Questions: What influences brand choices? Take ONE of the three brand pairs and describe why you use that brand.  Looking at the brand pairs above, do you typically use just one brand or both? Explain. Here's the ready-to-go slides for this Question of the Day that you can use in your classroom. Behind the numbers (State of Gen Z Snackers): Make way for the newest...

QoD: Which Halloween item do consumers spend the most on: Decorations, Candy or Costumes?

|
Oct 30, 2019
|
Question of the Day, Budgeting, Purchase Decisions
Answer: Note: Figures above represent amount spent per person.  Questions: What did you/your family spend the most on this year? How much did you/your family spend on all Halloween items? [Average spend this year was $86.27]  What role did social media have on your Halloween spending this year (e.g., did you find costume ideas on Instagram?) Explain.  Would it surprise you to learn that Halloween is the second most popular holiday in terms of consumer spending? Why do you think...

Chart of the Week: Social Media and Halloween Spending

|
Oct 29, 2019
|
Chart of the Week, Purchase Decisions, Behavioral Finance
Courtesy of National Retail Federation: Questions: Write a one sentence summary for this chart. Finish this sentence: Since 2015, social media has had a ________________ impact on Halloween purchases.  Which social media platform has seen the largest increase since 2015? Do you think this will continue?  The data in the chart came from surveying adults. Complete a chart like this for 2019 based on responses from classmates.  How did social media influence any purchases you may...

QoD: Where do teens consume the most video: Cable, YouTube or Netflix?

|
Oct 23, 2019
|
Question of the Day, Purchase Decisions, Budgeting
Answer: YouTube Here's the ready-to-go slides for this Question of the Day that you can use in your classroom. Questions: Where do you go most frequently? Why? Five years ago, what would your answer have been?  Compare these services from a cost perspective. Which is most costly? Least costly? Have you heard about any of the new streaming services? Do you think any of them will be in the top five next year? Explain.  Behind the numbers (Piper Jaffray Teen Survey) 37% of teens prefer...

QoD: Rank order these snacks from most to least popular for Gen Zs: Goldfish, Cheez-It, Lays

|
Oct 15, 2019
|
Question of the Day, Budgeting, Purchase Decisions
Answer:  Questions: How much do you think you spend on snacks in a typical month?  For those of you who buy snacks pretty regularly, think about the details of these purchases (time of day, day of week, location). Is there a pattern to these purchases?  What makes each of these snacks so popular?  What is one idea you have on how to save money on snacks like these?  Click here for the ready-to-go slides for this Question of the Day that you can use in your...

Chart of the Week: New Car Loans

|
Oct 08, 2019
|
Chart of the Week, Purchase Decisions, Budgeting, Behavioral Finance
Summary: This chart shows the percentage of new car loans and the term of their loans (in months).  Questions: How would you summarize the trend in the length of new car loans over the past decade? Increasing or decreasing? Which loan term has seen the sharpest increase in the past decade?  What is the relationship between the term of the loan and the amount of the monthly payment? The longer the loan term, the _______ the monthly payment.  The _________ the loan term, the...

QoD: You purchase a new car and a year later sell it back to the dealer. What is the loss in value you should expect, as a percentage of the original purchase price?

|
Oct 02, 2019
|
Question of the Day, Purchase Decisions
Answer: 31% loss in value from your original purchase price Questions: Why do you think this loss is so large since the car is still only one year old?  What are the reasons that someone would be selling a car back to the dealer after only one year? Why might a dealer be hesitant about buying back a one-year old car?  Here's the ready-to-go slides for this Question of the Day that you can use in your classroom. Behind the numbers: (DURABLES AND LEMONS: PRIVATE INFORMATION AND THE...

Interactive: How much money would you save if you brewed that coffee yourself?

|
Sep 29, 2019
|
Interactive, Investing, Purchase Decisions, Budgeting
Hat tip to Jessica for finding this resource which allows students to tweak variables to find out how much they can save through D-I-Y coffee. It also provides opportunities to discuss investing as one of the variables is "investment return."  Here are the variables (the dark rectangles are calculated fields while the white rectangles are user-generated:  For those students who don't drink coffee, they can identify something they might buy several times a week (e.g. snacks) and Put...

QoD: What percent of product searches on the Amazon website do consumers include a brand name in the search?

|
Sep 17, 2019
|
Question of the Day, Budgeting, Purchase Decisions
Answer: 22% Questions: If you just looked at the searches that teens did on Amazon, what percentage do you think would include a brand name?  What product searches do you think consumers would look for a specific brand rather than just a generic search like "running shoes?" Do you ever buy store brand products (e.g., Kirkland, CVS, Sam's Club, Amazon)? Why or why not? Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom Behind the numbers...

QoD: Which country has the most retail store space per capita: Australia, U.S. or Spain?

|
Aug 20, 2019
|
Question of the Day, Budgeting, Purchase Decisions
Answer: Questions: What do you expect these numbers in the U.S. to be in 10 years? Explain.  Do people shop more in the U.S. because of the large number of retail stores OR are there so many retail stores in the U.S. because people shop more here?  Of your last five purchases, how many were made at a physical store vs. online?  Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom. Behind the numbers (from Irrelevant Investor): In...

Throwback Tuesday QoD: Groceries or Restaurants: Where are Americans spending more money?

|
Aug 19, 2019
|
Question of the Day, Budgeting, Purchase Decisions
Answer: Restaurants Questions: What do you think accounts for the trend you see in the chart? What percentage of meals do you/your family eat at a restaurant per week? From a cost perspective, how much do you think you can save (on a percentage basis) eating at home vs. going to a restaurant? For example, do you think it costs 10% less to eat at home? 40%? 50%? What might be other advantages to buying groceries compared to dining at restaurants? Click here for the ready-to-go slides for this...

NGPF Podcast: Andrei Smith discusses the car industry

|
Aug 09, 2019
|
Purchase Decisions, Podcasts, Budgeting, Behavioral Finance
I had Andrei Smith back on the podcast recently where we talked about what's ailing the car industry, the promise of autonomous and electric vehicles and the owning vs. leasing debate. He also shares his observations on the current zeitgeist in Silicon Valley when it comes to status symbols and car buying behaviors. Enjoy! Details: 0:00~1:14 Introduction 1:14~2:04 Current state of car dealerships 2:04~11:14 The slowdown in car sales  11:14~19:08 Introduction of electric car sales...

QoD: In percentage terms, how many more items of clothing do people buy today compared to 15 years ago?

|
May 28, 2019
|
Question of the Day, Budgeting, Purchase Decisions
Answer: 60% Questions: Why do you think that young people are purchasing more clothing but keeping it for only half as long?  What impact do you think that social media has had on this trend?  How would you describe how your shopping habits when it comes to clothing?  Here's the ready-to-go slides for this Question of the Day that you can use in your classroom. Behind the numbers (Business of Fashion) This trend is partly driven by the young generation’s hunger for...

QoD: What is the top restaurant choice among teens?

|
May 27, 2019
|
Budgeting, Question of the Day, Purchase Decisions
Answer: Chick-fil-A Questions: What do you think makes a restaurant popular among teens? Name at least three factors.  What is your favorite restaurant?  Food is considered the number one spending priority for males and #2 for females. How much do you think YOU spend on food (snacks, drinks, meals) every month? How much of your monthly food spend would you call a "need" vs. a "want?" Here's the ready-to-go slides for this Question of the Day that you can use in your classroom....