Consumer Purchasing ~ Goals: Determine the factors that influence your buying decisions Use a research based approach to buying Apply strategies to make wise buying decisions Buy quality products and get a good value. . .

Factors that influence buying decisions Economic Factors Social Factors Personal Factors Price Lifestyle Gender

Factors that influence buying decisions Economic Factors Social Factors Personal Factors Price Interest Rates Product Quality Supply and Demand Convenience Product Safety Brand Name Maintenance Costs Warranty Lifestyle Interest Hobbies Friends Culture Advertisements Media Gender Age Occupation Income Education Family Size Geographic region Ethnic background Religion

Consumer Purchasing: A Research-Based Approach There are 4 steps to a research based approach to buying: Step 1: Before you shop Identify your needs. Gather information. Become aware of the marketplace.

Consumer Purchasing: A Research-Based Approach There are 4 steps to a research based approach to buying: Step 2: Weigh the alternatives Decide what is important to you. Compare prices. Do some comparison shopping.

Consumer Purchasing: A Research-Based Approach There are 4 steps to a research based approach to buying: Step 3: Making the purchase Can you negotiate the price? Should you use cash or credit? What is a down payment? Do you know what the real price is?

Consumer Purchasing: A Research-Based Approach There are 4 steps to a research based approach to buying: Step 4: After the Purchase Evaluate the decision that you made.

To make wise buying decisions, consider these ideas. . .

Smart Buying Strategies Timing Purchases. Black Friday, Cyber Monday, The day after Christmas, buying a car at the end of the month, etc. Selecting the store. Cooperative: nonprofit organization owned and operated by its members for the purpose of saving money on the purchase of goods and services http://www.seward.coop/ Wal-Mart?

Shop at several stores Comparative shopping means comparing quality, price, and guarantees for the same products at several different stores. Use online price-comparison search tools to help you find the best deal.

Smart Buying Strategies Compare Brands Avoid Impulse Buying Don’t purchase items on the spur of the moment Strategies to avoid Impulse Buying . . .

Avoid impulse buying Take a list with and buy only what is on the list. Be aware of merchandise displays that attract your attention but are expensive and unnecessary. When shopping online, don’t let an attractive Web site or the ease of entering a credit card number lure you into buying something you don’t need.

Smart Buying Strategies Label Information. What is open dating? Indicates the freshness or shelf life of a perishable product Check for expiration dates Inspect packaging for damage

Check containers carefully Read the label . . . Know ingredients and what they mean A 100% cotton shirt may shrink A dress shirt will probably have to be ironed after laundering “Dry Clean Only” items will be more expensive to maintain

Smart Buying Strategies Comparing Prices. Unit pricing: Standard unit of measurement to compare the prices of packages that are different sizes Unit Pricing formula: Total price/unit of measure = unit price Rebates are partial refund of the price

Compute unit prices Unit pricing is the cost for one unit of an item sold in packages of more than one unit. To compare the price of a 15-ounce box with the price of a 24-ounce box, divide the total price of each box by the number of ounces in it. The result is the price per ounce of each box. The lowest unit price for products of comparable quality is the best buy. Total Price Unit of Measurement = Unit Price

Comparing Prices using Unit Pricing Total Price Unit of Measurement The brand of cereal that Claudia likes is offered in two sizes, 12 ounces for $2.89 and 16 ounces for $3.39. Which is the better buy? $2.89/12 oz = $.24/oz $3.39/16 oz = $.21/oz = Unit Price

Know regular “list” prices Be aware of prices Know regular “list” prices Prices may not actually be reduced Manufacturer’s List Price Suggested Retail Price

Understand sale terminology Sale: goods are being offered for sale but not necessarily at reduced prices. Clearance: merchant wants to clear out all the advertised merchandise but not necessarily at a reduced price. Liquidation: merchant wants to sell immediately to turn the inventory into cash.

Smart Buying Strategies Evaluating Warranties. What is a warranty? Written guarantee from the manufacturer or distributor that states the conditions under which the product can be returned, replaced, or repaired. What is a service contract? A separately purchased agreement by the manufacturer or distributer to cover the costs of repairing the item

Keep receipts and warranties Print out warranty statements and sales receipts from online purchases. For major purchases, keep receipts along with warranties, guarantees, or other written promises for possible enforcement later.

Compute total cost Check the total cost of an item, including supplementary items (such as batteries), delivery charges, finance charges, and other add-on costs. The base price may be lower than for similar products, but once you add up all the related charges, the total cost may exceed other choices.

Wait a day for major purchases Always wait at least 24 hours before making a major purchase. Avoids purchasing on impulse and being coerced into wanting the item. Many people change their minds after a “cooling-off” period before making a major buying decision.

Fight Competition The shopkeeper was dismayed when a brand new business much like his own opened up next door and erected a huge sign which read BEST DEALS. He was horrified when another competitor opened up on his right, and announced its arrival with an even larger sign, reading LOWEST PRICES. The shopkeeper was panicked, until he got an idea. He put the biggest sign of all over his own shop-it read... Main Entrance.