2. EconomicSocial FactorsPersonal Factors Prices Interest Rates Product Quality Supply and demand Convenience Product Safety Brand Name Maintenance Costs Warranty Lifestyle Interests Hobbies Friends Culture Advertisements Media (magazines, radio, computer, newspapers) Gender Age Occupation Income Education Family Size Geographic Region Ethnic Background Religion

3.  Partner with one member of the class  Discuss one large purchase you have made during the last year (Greater than $200); What influenced you to make this purchase?  Discuss one small purchase you have made during the past week (less than $10); what influenced you to make this purchase.

4.  Phase 1 - Before you Shop  Phase 2 - Weighing alternatives  Phase 3 - Making the purchase  Phase 4 - After the purchase

5.  Do your homework!  Identify your needs Do you want the product or need it?  Gather Information Costs Options Consequences  Be Aware of the Marketplace Understand stores sales, Returns, and credits

6.  “ I can return my car within 3 days of purchase”  “It says right here that I’ve won; it must be true”  “If I lose my credit cards, I’m liable for purchases”  “An auto lease is just like a rental; if I have problems paying, I can just bring it back”  “ You can’t repossess my car; its on private property”

7.  Identify what is important to you  Your personal values  Available time for research  Amount of money you have to spend  Convenience of buying the item immediately  Pros and cons of a particular brand  Compare Prices  Comparison Shopping

8.  Negotiate the price  Is negotiation an option?  Does the store have a ‘price match guarantee’?  Decide on Credit or Cash  Cash No extra fees to pay Discounts offered  Credit Interest charged on outstanding balance Payment period- ‘When is it due’ You might spend more than you can afford  Down Payment A portion of the total cost of an item that must be paid at the time of purchase  Know the Real Price Shipping and handling fees

9.  What additional costs or tasks are associated with your purchase?  Can you think of items that have ongoing costs?  Cognitive Dissonance  Are you satisfied with your purchase? Why or Why not?

10.  Timing Purchases  Can you buy the product in off season?  Supply & Demand- Wait a few months to buy the hot new product and its price will go down!  Store Selection  What types of stores do you shop at? Why  Cooperatives- Non profit organization used for the purpose of saving money on purchases

11.  Brand Comparison  National versus Generic or Store Brand  Consider price and quality What brand name products do you purchase? What generic products do you purchase? Why?  Impulse buying Are you buying products you don’t really need? Can your budget afford impulse buying? What was the last impulse purchase you made?

12.  Federal Regulations require labels to contain factual information  All processed foods must have nutritional information  Foods must meet government criteria to be labeled with such items  Open dating- A labeling method that indicates freshness, or shelf life of a perishable product.

13.  Warranty - A written guarantee from the manufacturer or distributor that states the conditions under which the product can be returned, replaced, or repaired  Types of Warranties  Implied – unwritten guarantee that cover certain aspects of a product or its use.  Express – usually written; Full- defective product will be replaced or repaired Limited - may require the purchaser to pay for part of the repair.