1. Warm UP
What impacts your decision when you are purchasing a “want?”

2. Chapter 4 Consumer Purchasing
Personal Finance
Chapter 4
Consumer Purchasing

3. Objectives Determine factors that influence buying decisions
Describe an approach to spending
Research different vendors to compare prices

4. Economic Factors Prices Interest Rates Quality Supply/Demand
Brand Name

5. Social Factors
Lifestyle
Image
Hobbies
Friends
Culture

6. Personal Factors
Age
Gender
Occupation
Income
Religion

7. Questions Have you made any wise buying decisions?
Have you made any poor buying decisions?
How might you have been able to make a poor decision into a good decision?

8. Consumer Purchasing Phases
Before You shop:
Determine your needs
Gather Information, How? Where?

9. Phase 2 Weighing the Alternatives: Buying vs. Renting Do without it
Decide what’s important
Comparison Shop

10. Phase 3 Making The Purchase: Can you negotiate the price?
What type of items are negotiable?
Should you use cash or credit?

11. Phase 4 After The Purchase: What other costs are there? Maintenance
Car Example?
Gas, parts, services, oil, etc…

13. Timing Seasonal Clothing “Back To School” sales
What strategy can you use when buying electronics?
The price may be lowered if you wait

14. Selecting The Store Quality and Variety
Hours, location, prices, reputation, etc
Alternative to Store Shopping:
Direct Selling: TV, mail, online
Drawbacks of direct selling?

15. Comparing Brands Store Brand vs. National Brand
Make a plan before you shop
Avoid Impulse Buying: Purchasing items on the spur of the moment
How is a Supermarket Arranged?

16. Label Information What type of information will you find?
Open Dating: Measures freshness or “shelf life”
What information do appliances have on them?
Energy efficiency

17. Compare Prices
Unit Pricing: Use of a standard unit of measurement to compare prices at different sizes
Total Price/Unit of measurement=Unit Price
Use coupons and rebates
Rebate: Partial refund of the price of a product

18. Keys to Comparing Prices
More convenience usually means higher prices
Ready to use, usually higher
Large quantities usually best buy, unless you don’t use them
Sale is not always the best. Sales price at one store might be higher then regular price at another store

19. Warranty
Written agreement from the manufacturer or distributor that states:
Conditions to be returned, replaced, or repaired

20. Types of Warranties
Implied: Guarantees the product is fit for its intended service
Express (2 types)
Full: Fixed or replaced with no charge
Limited: Only specific parts
Service Contract: Covers costs of repairing the item

21. Internet Activity
Think about a “big ticket item” you would like to buy in the near future
Use the internet and look for prices and deals
Find at least 3 sellers and compare them (Include the sellers and their information/website)
Make a decision on who you would purchase from and why
When done, write ½-1 page summary explaining your choice

22. Class work
Page 103
#1-3
Page 104
#1-5