1. CONSUMERISM

3. I. Consumer Groups A.Young People (13-19 years old) 1.29 million in the USA 2.What are things they buy?

4. B.Singles (20s - 40s) 1.What do you think they buy? 2.Expenses usually high and often spend more on luxury items if live with parents I. Consumer Groups

5. Factors that affect spending for ALL age groups: Size of Income Future Expectations Social Influences –Conspicuous Consumption –Materialism

6. SIZE OF INCOME General Effects: people with high incomes will spend more and on different things Low Income: Spend $$ on G/S they need to survive = Necessities High Income: Spend $$ on items that add to their enjoyment of life = Luxuries

7. FUTURE EXPECTATIONS What does the future have in store for you? EX: I want to buy a car: What questions do I ask myself about Future Expectations? If I expect to lose my job, then I will hold off on buying If I expect a raise/bonus, then I might buy a nicer car If I think the price will go down, then I will wait to buy If I think the price will go up, then I will buy now

8. SOCIAL INFLUENCES: CONSPICUOUS CONSUMPTION Spending $$ to impress others You want to stay on the same level as your friends and neighbors “Keeping up with the Joneses” –EX: Buying a sweatshirt you don’t need/can’t afford just because your friends have them

9. MATERIALISTIC more concerned with material things (money and possessions) Spend non-essential g/s Ask yourself these questions: a.Do I need it? b.Can I get along without it? c.Is it worth the time and effort I spent working to earn the money I am going to pay for it?

10. Selling and Advertising to Consumers Examples: Why is it that people will buy Bottled Water for $4.00 at a restaurant when they could have tap water brought to their table for free?

11. What are some names and slogans of products?

12. Sales Techniques Create Demand A. Personal Selling –Sales Person / Representative –One-on-One –Relationship –Attention and Information –EX: Car Dealer, Perfume B. Advertising –Logo, mascot, etc. –Colors, images –Words / font –“sale” “value” –Price –Fantasy –EX:

13. Sales Techniques Create Demand C. Packaging –“try me” “push here” –Clear box! –Age, size, shape, color –Lettering / font –“some assembly required” –EX: D. Public Relations (PR) –Be known to the public –Create relationship with public –Sponsor teams –Advertise on t-shirt –Billboards / stadiums –EX:

14. Sales Techniques Create Demand E. “Let the Buyer Beware” –Bash the other choices / competition –Come buy from us, not from them –EX:

15. Advertising to Create Demand Appeals to Emotion –Tries to touch your FEELINGS –EX: Donate to starving children - appeals to what feelings? –Name another product. Desire to Conform –Bandwagon –Peer pressure –Fitting in with everyone else –Everyone has one…you should too!!

16. Advertising to Create Demand Pt. 2 Brand Names –You know the name –Reliable, “Trust” –Slick logos and slogans –Repeated over and over –EX: Getting Something for Nothing –BOGO Buy one get one free –Way to sell off surplus –1/2 off –EX: Free gift for opening a new bank account

17. Pros and Cons of Advertising PROS –“Save” money thru sales and discounts –“Save” time –Provides product information –Encourages demand –Encourages competition CONS –Raises selling price –Gives misleading information –Encourages impulse buying (buying without thinking)

18. Getting the MOST for your money On a BUDGET you MUST plan ahead –A budget is a plan for how you spend your $$ A.Plan Ahead & Compare Prices - research the product on the internet, ads or word of mouth (ask friends) so you can budget your $$$$ B.Use Price per Unit Pricing - In supermarkets prices are on the shelves in price per unit and let you compare prices easily

19. Example of Unit Pricing A 7.75 oz. package of Chickpeas costs 65 cents When you compare them to other packages of Chick Peas you use the per pound price since the size and prices of other packages may be different.

20. Getting the MOST for your money part 2 Buy Store Brands – sometimes called “generic” –They can often have the same quality, taste, and quantity for less money –Sometimes they are even made by the same company that makes the name brand

21. 4 words to guide your shopping habits KNOW –what you want –what you can afford to spend PLAN –Make a list –Compare prices –Shop around READ –Product labels –Advertisements –Contracts (Fine Print) “SAVE” –Coupons –Look for Clearance sales –Watch interest rates

22. WARNINGS!!!! Be careful of installment plans - you don’t own the item until you finish paying off the installment payments Watch interest rates - Introductory rates may be low but 1 late payment can quadruple your interest rate EX:”Own a HD DVD player! Only $50 down and $5 per week!”