Big-ticket items are durable goods that have a high selling price. True False
The correct answer and explanation is:
Correct Answer: True
Big-ticket items are indeed durable goods that have a high selling price. These items are generally long-lasting and not purchased frequently. Examples include automobiles, refrigerators, washing machines, televisions, furniture, and major home appliances. Because they are expensive and durable, consumers often spend significant time and effort researching these products before making a purchase.
Durable goods are characterized by their extended lifespan, usually three years or more, during which they do not wear out quickly or need frequent replacement. Big-ticket items fall into this category because of their cost and longevity. For instance, a car is not something consumers buy monthly or even yearly; it is considered a long-term investment. The term “big-ticket” refers to the higher financial investment required for these goods.
Big-ticket items are also sensitive to economic conditions. During times of economic growth, consumers are more confident and willing to make large purchases. On the other hand, during recessions or periods of financial uncertainty, sales of big-ticket items often decline because people become more cautious about spending large amounts of money. As a result, companies that produce and sell these products often monitor economic trends closely.
In marketing and retail, big-ticket items often require specialized sales strategies. Sales representatives for these products are usually trained to handle objections, provide detailed product information, and offer financing options to make the purchase more accessible. Retailers may also use promotions, warranties, and after-sales service to attract buyers and ensure customer satisfaction.
In conclusion, big-ticket items are accurately described as durable goods with a high selling price. Their importance in both consumer behavior and the broader economy makes them a key focus in sectors like retail, manufacturing, and finance.