TCO 1 Jacob Has Moved Into A Home With Large Acreage

1tco 1 Jacob Has Moved Into A Home With A Large Acreage And Is Now

Jacob has moved into a home with a large acreage and is now finding that his smaller lawnmower is no longer functional. He needs to purchase a riding mower. How would you categorize Jacob's goal?

Points : 4

  • Consumable-products goal
  • Durable-products goal
  • Intangible goal
  • Intermediate goal
  • Long-term goal

Paper For Above instruction

Jacob's goal of purchasing a riding mower to manage his new large estate falls under the category of a durable-products goal. Durable goods are tangible, long-lasting products that do not need to be purchased frequently or regularly. A riding mower, being a durable item, serves as a long-term investment in maintaining his property. This type of goal typically requires planning, saving, and possibly financing, given its high cost and utility over an extended period (Kotler & Keller, 2016).

Understanding the distinction between different types of goals is crucial for effective financial planning. Consumable-products goals, such as purchasing groceries or fuel, involve short-term consumption that does not last beyond the immediate use. In contrast, durable-products goals, like buying appliances or vehicles, involve larger investments intended to last years. Jacob's need for a riding mower exemplifies a durable goods goal because it involves acquiring an item meant to serve him indefinitely (Higgins & White, 2011).

Furthermore, categorizing goals correctly influences how individuals approach their financial planning. Long-term goals involve planning over several years, such as retirement or purchasing a home, while intermediate goals are set for a few years ahead, like saving for a vacation or a car (Brigham & Ehrhardt, 2016). Since Jacob's purchasing decision hinges on his property management needs, it is classified as a durable products goal embedded within his overall financial plan for property maintenance.

In conclusion, Jacob's goal of acquiring a riding mower to maintain his large acreage is best categorized as a durable-products goal, reflecting a long-term investment that plays a significant role in his property management and land development strategy.

References

  • Brigham, E. F., & Ehrhardt, M. C. (2016). Financial Management: Theory & Practice. Cengage Learning.
  • Higgins, R. C., & White, J. (2011). Economics of Financial Markets. Cengage Learning.
  • Kotler, P., & Keller, K. L. (2016). Marketing Management. Pearson.

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