 How do you decide what product to buy?  Do you consider different options before you decide?  Do your friends or families influence you?

 Values – › are your principles, the standards by which you live.  Values Change – › they are not constant. Your values change as you learn and grow.

 Goals- › The things you want to accomplish in life are your goals. They come from your values, your needs, and your hopes and dreams.  Needs- › are the things you can’t live without. Everyone needs a minimum amount of food, water, clothing, and a place to live.  Wants- › are the things that you would like to have but can live without. Example: new video game.

 Life Cycle-  Important events in your life, such as preparing for a career, raising a family, or enjoying retirement, are parts of your life cycle.  Long-Term Goals-  goals that you want to achieve over a period of years during your life span.  Life Span-  is the time from your birth to your death. It includes events that make up your life cycle.

 Short-Term Goals-  are the things you hope to accomplish within a year. Example: Save $500  Opportunity Costs-  is the value of your next best alternative whenever you make a choice.  Example: The opportunity cost for buying a CD could be the baseball hat you also wanted, but you didn’t have money for both.

 What is meant by the following terms?  Values (Are they constant?)  Goals (short and long term)  Needs  Wants  Life span  Life cycle  Opportunity cost  What purchasing decision have you made in the last week?  What was the opportunity cost of that decision?

 Set yourself goals in the following areas: › One year goal › Five year goal › 10 year goal › 20 year goal

How do you make decisions?

 Rational Buying Decision-  is a choice made in an organized, logical manner.  Impulse Purchase- › is a purchase made on a whim, without using a decision making process.  Buyer’s Remorse- › regretting a purchase decision you have made.

 Decision Making Process-  Specify -Identify the need or want that you are trying to fulfill. Determine your goals.  Search -Plan specific steps to gather information.  Sift -Look at all of your options. Look at your opportunity costs.  Select -Make a choice and act on it.  Study -Evaluate the result.

Think about the last purchase you made.  What need or want were you fulfilling?  What were your goals?  What values contributed to your goals?

What is meant by the following terms which occur in the buying process?  Rational Buying Decision  The Decision Making Process  Specify  Search  Sift  Select  Study  Impulse Purchase  Buyer’s Remorse Task: Task: Complete questions 1 – 6 on page 15