1. Lesson 4: Informed Purchases

2. Objectives: Assess the item Determine how spending choices are influenced Identify deceptive advertising Examine benefits and opportunity costs of spending decisions

3. Assess the Item Assess whether an item you want to purchase is a necessity or a luxury. Something that is necessary for you to survive. Something you would like to have. NEED WANT

4. Assess the Item Once you determine whether the item is a want or a need, you can begin pricing the item. Internet Shopping Apps Memberships Emails Newspapers and circulars Store visits Pricing research can be conducted through:

5. Influences on Purchases Psychological factors: Motivation – What’s driving you to make the purchase? Perception – How do you view the product? Learning – What have you learned about the product? Personal factors: Age and way of life Purchasing power and revenue Lifestyle Personality Social factors: Social origin Place of residence Work Hobbies and leisure activities Cultural factors: Ideals from your family, friends, cultural environment, or society that influence your choices.

6. Deceptive Advertising Deceptive advertising is the use of false or misleading statements and misrepresentation of the product, which may negatively affect consumers. 1. Deceptive Description: This form of false advertising includes using misleading product descriptions, particularly to claim that a product has certain features or benefits that it does not, or that it is of a higher quality than it actually is.

7. Deceptive Advertising Deceptive advertising is the use of false or misleading statements and misrepresentation of the product, which may negatively affect consumers. 2. Deceptive Pricing: This advertising ploy involves using hidden fees and/or surcharges, which can cause the final price paid by a consumer to be substantially higher than the advertised price.

8. Deceptive Advertising Deceptive advertising is the use of false or misleading statements and misrepresentation of the product, which may negatively affect consumers. 3. Deceptive Comparison: Advertisers may deceive consumers by focusing on areas in which their product exceeds their competitors’ products, while ignoring other areas. Advertisers might use vague words without placing the comparison in the proper context, or without providing proof of the claims.

9. Avoiding Deceptive Advertising Tips to help you avoid deceptive advertising: Know what you want Do your research Trust your judgment

10. Benefit vs. Opportunity Cost The opportunity cost is what you will give up or lose by buying the product. Example: A trip to Cancun Relaxation Time with family/friends Fun Travel Time away from work Loss of vacation time for another trip Money for other purchases BenefitsOpportunity Costs

11. Summary: Assessed the item Determined how spending choices are influenced Identified deceptive advertising Examined benefits and opportunity costs of spending decisions