1. Introduction to Business Chapter 23 Consumer Buying Decisions Essential Question: How do we become better consumers in our economy?

2. Standards Addressed: 1.2 Business Environment (C): Students will understand the development and structure of business environments. They will demonstrate competency by identifying the dynamic components of business structure and its relationship to the global business environment. 1.2.4 Competitive Environment–explain the economic effects of competition on a business in an international marketplace, 1.2.8 Interrelationships of Business Operations–discuss the interrelationships between different business lines as they relate to finance, tax, operations, human resources, marketing, production, management, and the legal environment, 1.4 Economics and Financial Concepts (C): Students will understand the impact of global and domestic businesses, financial concepts, and integrated business models. They will demonstrate competency by using appropriate technology and other resources to solve business problems. 1.4.1 Business/Financial Relationships–analyze the financial implications of various functions of a business and describe how they interrelate 1.4.3 Economic Culture–explain how culture affects economic practice and business ethics. 1.4.10 Money Management–construct personal and business budget plans which include income, expenses, savings, investments and taxes.

3. Chapter Objectives  List steps to follow when making a buying decision.  Explain the importance of a business’s reputation and the value of brand names.  Outline how a consumer becomes an efficient shopper.  Describe the Consumer Price Index (CPI).

4. Decision-making steps p.309  As a consumer you should follow the following decision-making steps:  identifying your needs or wants  Do you need it?  Why do you want it?  knowing the choices that are available to you  price  quality  location  reputation  service  variety  sales

5. Decision-making steps p.309 -- continued  determining the measure of satisfaction of your needs and wants  How much am I willing to pay?  What level of quality will be adequate?  How long am I willing to wait for the product?  considering alternatives  making the decision to buy.

6. Developing buying skills p. 310  Comparing unit prices.  The consumer should compare prices by dividing the item price by the number of common units.  Comparing quality.  High quality merchandise usually costs more.  Lower quality items can end up costing you more than the higher quality item due to wear and tear, etc..  Comparing services.  cash only  Delivery  large stock of items  follow-up after the sale

7. Developing buying skills p.310 – continued  Comparing sales.  Promotional sales  a sale in which items are sole below their regular prices to publicize the opening of a new store or location and to build acceptance for new products.  Clearance sales  a sale in which a price reduction is used to sell items that a store no longer wishes to carry in stock.  Special-purchase  items bought for a special or one-time sale, such as overstocked items, going-out-of-business, etc…

8. Deciding how to buy p. 312  Business’s Reputation.  Most valuable asset a company can hold.  If a company has a good reputation, one usually has confidence in its sales staff to direct the consumer toward an appropriate buying decision.  Brand names.  a name given to a product or service to distinguish it from other similar products or services.  Recognizable  Expectation of uniform quality.  Compare to other national brands, independent brands and store brands.

9. Deciding to buy p. 315  Take your time  Do your homework, research  look for the best values.  Time your purchases  Look for seasonal prices  cars in August or December.  Fruits and vegetables in warmer months when in season.  Winter clothing on sale in January, February and summer clothing in August, September, when most have already made purchases for season  Cord wood, home heating diesel, coal less expensive in summer.

10. Efficient shopping p. 316.  Save time, energy, and money by planning and using the following steps:  Plan purchases carefully and make a shopping list. Avoid impulse buying.  Use the web and telephone to help you. Researching product information on the website and calling a retailer to see if they have the product you desire. You may even order from the website or via the phone.  Save fuel and wear and tear on your car by carefully planning your route on the purchasing trip. You must consider the cost of fuel for, and wear and tear on, your car when considering the cost of your purchase.

11. Effect of economic conditions on buying decisions p. 316  Price indices help consumers better understand what is happening to prices in the economy.  The Bureau of Labor Statistics (BLS) publishes several indices such as the Consumer Price Index (CPI).  CPI-W monitors the buying experience of urban wage earners (about 32 percent of the population).  CPI-U monitors the buying experience of all urban consumers(about 80 percent of the population).

12. Assignments Do Now Monday--Calculate Business Data p.320 #31 Tuesday--Calculate Business Data p.320 #32 Wednesday--Calculate Business Data p.320 #33 Read example and calculate answer in an Excel spreadsheet, show your work. Give a short explanation as to your answers. Workshop Discussion Communicate Business Concepts questions 10-13 p. 318. Discuss questions with your group and write a brief answer to both questions

13. Homework Define Key Terms Develop your Business Language 319. Answer Review your reading questions 1-9 p.318. Section Four of The Resume Handbook for High School Students.