Lesson 6 Shopping

Key Terms Comparison Shopping Contract Primary Need Recall Secondary Need Value Want Warranty

Why Do We Shop Purchase needs & wants Difference between need and want need = something you have to have to live primary need – for survival (food, shelter, clothing) secondary need – something that will contribute to your well-being (computer, television, etc.) want = something that doesn’t necessarily benefit your everyday well-being Ex: video game, $200 pair of Air Jordans, etc. Needs & wants contribute to our standard of living The necessities & comforts to maintain your lifestyle

So Many Options; How Do You Choose Often, biggest pressure is economic Sometimes, personal & social factors outweigh economic pressures Can lead to impulse buying

Research Your Purchase, Not Just Your Paper Look at consumer & expert reviews Find out what experts in type of product, and users of the product, think of the specific item you are considering Many publications to see expert opinions Ex: Consumer Reports, Consumer Research Magazine Many online sites allow buyers to give products reviews for other potential buyers to see Ex: Best Buy

Become a Comparison Shopper Once you determine which product you want, check prices at various locations to get it at the cheapest price Check similar products of similar or lesser price to see if you get better value from them Consider waiting for item to go on sale if not needed immediately

Agencies that Protect Consumers Federal Trade Commission (FTC) Protects consumers from unfair trade practices Deceptive advertising Internet scams Identity theft Consumer Product Safety Commission (CPSC) Protects consumers from dangerous consumer products Regulates safety standards Issues recalls of dangerous products Video

Food & Drug Administration (FDA) Protects us from unsafe food Protects us from unsafe medicines Protects us from unsafe cosmetics

Before You Go Shopping, Know Your Rights Purchases of goods over $500 require contracts in most cases Inspect goods prior to paying for them You have the right to return defective or unsuitable purchases within a reasonable time frame Unless purchase agreement specifies differently (i.e. “as is”) You can dispute charges for merchandise never received

Exit Pass What is a primary need? What is a secondary need? What is a want?

Math Example #1: An item has a price tag of $50 and another tag that says, "15% Off." What is the sale price? a) $38.50 b) $40.50 c) $39.00 d) $42.50

Answer #1 D $50 x .15 = $7.50 $50 - $7.50 = $42.50 is the sale price.

Example #2 A store buys an item for $25 and marks it up 100%. What is the price? a) $75 b) $50 c) $100 d) $150

Answer #2: B $25 x 2 = $50

Example #3: A store offers 4 for the price of 3. What is the implied discount? a) 20% b) 25% c) 33% d) 66%

Answer #3: B You are paying for 3/4 and getting 1/4 for free, so the discount is 1/4 or 25%.

Example #4: You can buy an item for $32 at a store within walking distance. You can buy the same item online for $22 with $12 for shipping. Which is the better deal? a) Buying at the local store b) Buying online c) Can't tell

Answer #4: A Local Store Price: $32 Online Price: $22 + $12 = $34 Since buying locally costs $32 and buying online costs $34, you are getting a better deal if you buy locally.

Example #5: You live in a state with a sales tax of 7%. You buy a car for $13,000. What is the sales tax? a) $750 b) $900 c) $910 d) $1,400

Answer #5: C $13,000 (price of the car) x .07 (sales tax) = $910 (sales tax)