Why We Buy

Reasons We Buy Income and Price –Income influences what we buy –Consider personal responsibilities Food, clothing, shelter, children, aging parents Extra money to be used for investments, travel, entertainment, recreation –Price influences types of products and services purchased Higher price does not always mean better quality

Reasons We Buy Status –Belief that purchasing improves status Bigger TV, faster car, bigger house… Conspicuous consumption: Desire to flaunt purchases to impress others –Purchase because others have, or to be the first, or as proof of success or status –Items purchased that cannot be afforded

Reasons We Buy Current Trends –Current fashions lure people into stores –Clothing for teens as indicator of status, popularity or being part of a group Big expense for teens Peer pressure Buying to belong –Keeping up with trends often leads to unwise purchases

Reasons We Buy Customs and Habits –Includes customs, family, religion, community –Customs includes wedding, birthdays, baby showers –Holiday disasters with spending –Habits include movie rentals, magazine subscriptions, fast-food ordering

Reasons We Buy Safety –Reflects purchases that consumers make –Cribs, car seats, highchairs, baby carriages, vehicles –High product standards in Canada Canadian Standards Association (CSA) –Not-for-profit organization –Health, safety, construction, environment

Reasons We Buy Promotion –Influence consumer spending and create desire for products/services –Lifestyle advertising: attractive, healthy, successful, appealing people using a product/service “You can be just like these people”

Taking Care of Business 3 Factors determining how customers buy –Amount of time spent in a store More time increases chance of purchase –Amount of contact time between customers and sales people More time with a sales person increases chance of sale and sales of complementary products –Amount of time a customer waits to pay Longer wait time decreases chance of purchase

Business in a Changing Marketplace E-Commerce –Electronic commerce –Internet shopping –Required: Web site and pages Domain name (address) –Variety of online practices: banking, purchase of goods and services –Why people hesitate to purchase online (p. 38)

Class Work Page 34 –1a, c, 2b Page 38 –1b, 2b, 3b