1. Chapter 20 Personal Decision Making
MYPF CHAPTER 20
13-SEPT-2001
Chapter 20 Personal Decision Making
Making Better Decisions
Spending Habits
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2. Lesson 20.1 Making Better Decisions
Apply the decision-making process to solve consumer problems.
Explain economic needs and wants that influence consumer decision making.
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3. The Decision-Making Process
Step 1: Define the problem
Step 2: Obtain accurate information
Step 3: Compare choices
Step 4: Make a decision
Step 5: Take action
Step 6: Re-evaluate
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4. Economic Wants and Needs
Basic needs
Individual wants
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5. Individual Wants Values Personal preferences Income Leisure time
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6. Collective Values Legal protection Employment Progress
Quality of environment
Public and government service
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7. Lesson 20.2 Spending Habits
List and describe factors that influence spending decisions.
Analyze marketing strategies that influence spending decisions.
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8. Factors that Influence Spending
Personal Factors
Personal resources
Position in life
Customs, background, and religion
Values and goals
Outside Factors
The economy
Technological advances
The environment
Social pressures
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9. Planning Major Purchases
Questions to ask before a purchase
Why do I need or want this product?
How long will this product last?
What substitutes are available and at what cost?
By postponing this purchase, is it likely that I will choose not to buy it later?
What types of additional costs are involved?
For what other purposes might I use the money spent on or committed for this purchase?
What is the total cost of this product?
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10. Marketing Strategies that Influence Spending
Advertising
Pricing
Sales
Promotional techniques
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11. Advertising Product advertising Target market Company advertising
Industry advertising
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12. Promotional Techniques
Displays
Contests and games
Coupons
Frequent-buyer cards
Packaging
Sampling
Micromarketing
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