Making Consumer Decisions Chapter 22

Spending is powerful Spending money puts us in control of the material world. When you spend money you’re The Customer – “the customer is king”. When you make a purchase, you’re the center of the world, if only for a moment. Spending money gets us the attention and respect we know we deserve.

What kind of shopper are you? Prestige Shopper Impulse Shopper Bargain Hunter

Prestige Shopper To you, the most important part of shopping is acquiring name-brand items. Sometimes paying a higher price makes the item even more attractive because it shows status.

If you like name brands, how can you save money on your purchases?

Take advantage of in-store sales Buy clothes at the end of the season Shop at off-price apparel retailers TJ Maxx Marshall’s Go to resale stores that specialize in brand names

Impulse Shopper As an impulse shopper, your purchases are often a result of your mood. Buying things temporarily lifts your spirits. No. It’s not a child throwing a tantrum. It’s the call of the impulsive shopper!

Bargain Hunter You love a sale. In fact, you are willing to comparison shop and find the best deals on everything.

Impulse Buying There are skilled people who make good money to position certain items throughout the store so that you’ll pick them up impulsively. Thought, psychology, and profit determine how and where items are placed. The strategy is to draw your attention to items you probably never considered buying, but suddenly seem attractive and necessary.

How do you resist impulse buying? Make a list of things you need before you go into a store, and stick to your list. If you’re going to the mall to hang out, take a limited amount of cash to buy a drink or food, but nothing substantial. If you see something you really like while you’re shopping, ask the store to hold it for 24 hours. If there is a big-ticket item that you want and are saving up for, use it as a motivator to stop impulse buying.

What is a healthy shopping style? The healthiest shopping style is one that allows you to save for the future and enjoy your money today. It’s all about balance. To ensure that you have a healthy relationship with your money, decide what is really most important to you, and then allocate your money appropriately.

Brand Name vs. Generic Generic – plainly labeled, unadvertised, and sold at lower prices. Most are either medicines or grocery items On the average, generic products cost 40 percent less than name- brand products.

Consumer Reports www.consumerreports.org Consumer Reports® and ConsumerReports.org® are published by Consumers Union, an expert, independent nonprofit organization whose mission is to work for a fair, just, and safe marketplace for all consumers and to empower consumers to protect themselves. To achieve this mission, we test, inform, and protect. To maintain our independence and impartiality, CU accepts no outside advertising, no free test samples, and has no agenda other than the interests of consumers. www.consumerreports.org

Comparison Shopping Checking the price and quality of a product in more than one store. Most important when making a major purchase such as a car, computer, appliance, television, etc.

Which is the better buy? Tide Detergent Liquid 46 oz $12.59 Powder 92 oz $22.39

Which is the better buy? Tide Detergent Liquid 46 oz $12.59 $.2737/oz Powder 92 oz $22.39 $.2434/oz Unit Price

Warranties A legal document that states the rights and responsibilities agreed to by the consumer and the store or the manufacturer. Full warranties are usually good for a stated time period, such as 90 days or one year. Limited warranties cover only certain parts of a product.

Limited Warranty Example

Bookwork for chapter 22 Fast Review Page 360 Numbers 1-4 Fast Review Page 363 Numbers 1-4 Using Business Key Words Page 366 Numbers 1-9