Assessment of Skills and Knowledge(ASK) in Fundamental Business Concepts Practice Test

What do credit customers typically prioritize compared to cash customers?

1. Quality of service

2. Payment convenience

3. Price sensitivity

4. Brand loyalty

The correct answer is: Payment convenience

Credit customers typically prioritize payment convenience because they often prefer the flexibility that comes with using credit. When customers use credit, they can make purchases without having to pay the full amount upfront, which allows them to manage their cash flow more effectively. This is particularly appealing for larger purchases or when cash reserves are low. Credit options can also simplify transactions, as customers don't have to carry large sums of cash or worry about their available balance at the moment of purchase. In contrast, while factors like quality of service, price sensitivity, and brand loyalty hold significance for all customers, those who utilize credit are especially focused on how easy it is to make payments and the financial flexibility credit provides. This priority helps them manage their budgets and make strategic purchasing decisions without the immediate impact on their cash.