CHRISTMAS SHOPPING SCENARIO
Many consumers wait until the weekend before Christmas to do their gift shopping, and
Lanny is one of those consumers. She did not want to go to a crowded mall as she only
had a Saturday to do all of her shopping. She saw an advertisement that morning in the
newspaper for a new store that claims to be the “right destination for all kinds of
Christmas shopping.” She decided to go there instead of the mall in order to avoid the
crowd in the mall. While she was in the new store, she was trying to keep a track of her
purchases in her head in an attempt to avoid going overboard and winding up with a
huge credit card bill next month. In just two hours, Lanny was able to purchase all the
gifts she needed and even found a cute bracelet for herself though the bracelet was not a
part of the shopping list that she had made earlier. Refer to Christmas Shopping
Scenario. Lanny was trying to keep a track in her head of how much she was spending
in an attempt to avoid going overboard and winding up with a huge credit card bill next
month. This is an example of _____ budgeting.
a. formal
b. programmed
c. mental
d. performance-based
e. participatory
VALENTINE”S DAY SCENARIO
Todd decides to propose marriage to his girlfriend on Valentine’s Day. He wants this to
be a very special day, so he decided to take her to a fancy restaurant. He is not sure
about the choice of restaurant, and so he asks his boss, who often patronizes fancy
restaurants, for suggestions. Though Todd doesn”t have much experience in fine
restaurants, he knows what to expect: he will give his car to the valet, be seated by the
hostess, be given menus and a wine list, order, eat, pay the bill, and retrieve his car from
the valet. On the big day, he goes to his girlfriend’s apartment with a dozen roses in his