Question of the Day: What do 98% of consumers do prior to buying a product?

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May 24, 2021
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Question of the Day, Behavioral Finance

Answer: Read online reviews

Questions:

  • Why do you think that so many people want to look at reviews before making a purchase? 
  • Do you check online reviews prior to purchasing products? How do you know if reviews are credible? 
  • Do you vary the amount of time you read reviews based on the cost of the item that you are looking to purchase? 

Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom.

Behind the numbers (re: Charity):

"We are generally uncertain when it comes to making decisions. That’s why 98% of us consult online reviews before we buy a product nowadays (according to Cialdini). Knowing that others have supported or purchased helps give us more certainty."

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Interested in behavioral finance? Be sure to check out NGPF's Behavioral Finance and Psychology of Money Certification Courses which will be offered this summer. Check out the schedule here

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 Did you know that we have a mini-unit on Behavioral Finance? Check it out here. 

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.