Chapter 22 Making Consumer Decisions pp. 351 - 369.

Chapter 22Chapter 22

Making Consumer DecisionsMaking Consumer Decisions

pp. 351 - 369pp. 351 - 369

Introduction to BusinessIntroduction to Business 22

Learning ObjectivesLearning Objectives

After completing this chapter, you’ll After completing this chapter, you’ll be able to: be able to:

• DescribeDescribe choices consumers make when buying goods and services.

• Identify Identify types of stores where consumers can make purchases.

• List ways to be a smart consumer.


Why It’s ImportantWhy It’s Important

As a consumer you have the problem of making your money go as far as possible. If you want to get the most for your money, you have to learn how to make good consumer decisions.


Consumer ChoicesConsumer Choices

1. Being a consumer—___________ ___________________________ __________________ difficult when

you have many choices.

A person who selects, purchases, uses, and disposes of goods and services


What to BuyWhat to Buy2. You can choose to buy either a

_______ name product or a ___________ product.

3. A ___________ is a word or name on a product that helps consumers distinguish it from other products.

Brand generic

Brand name


What to Buy (Generics)What to Buy (Generics)

4. _______________ are plainly labeled, unadvertised, and sold at ___________.

5. On the average, generic products cost _______ less than name-brand products.

6. The main reason generic products cost less is because the producers spend so _______________________________.

Generic products Lower prices

40%

Little on marketing and advertising


Figure22.1

MAKING A BRAND DECISION

Generic brands usually cost less than brand-name products. Fresh, frozen, and canned are choices for many food products.When would you buy each of these different vegetable products?


When to BuyWhen to Buy

7. Prices for many items _____________________________ of the year.

8. If you plan on buying a car or a computer, the prices usually go way down shortly before the ___________

____________________.

Change during different times

New models are released


Where to BuyWhere to Buy

9. The three reasons for the different types of places in which to shop are:

– The kinds of goods and services sold– The prices – The convenience


Department StoresDepartment Stores

10. ________________ sell a wide variety of goods, such as clothing, furniture, appliances, and sporting goods.

11. Because department stores offer name brands and customer services, their ______________________________

__________________

Department stores

Prices are often higher than other types of stores


Discount StoresDiscount Stores

12. ________________ sell a wide variety of goods like department stores but at _______________.

13. They offer _____________ and stock merchandise in ________________.

Discount stores

Lower prices

Few services Large quantities


Off-Price and Outlet StoresOff-Price and Outlet Stores

14. Off-price and outlet stores are able to offer large discounts because the items they sell have _____________________

_______________________________.

Minor flaws, are out of season, or have been discontinued


Limited-Line RetailersLimited-Line Retailers

15. Limited-line retailers, or specialty stores, sell a large assortment of goods in ________________________________. one product line or a few related lines


Superstores and Superstores and HypermarketsHypermarkets

16. Superstores and hypermarkets are like supermarkets but sell items such as ________________________ as well as groceries.

books, hardware, and clothing


Warehouse StoresWarehouse Stores

17. Warehouse stores carry a ___________ of food and nonfood items at ________

____________________.

18. They sometimes require customers to become _____________ of the store by paying a __________________.

huge selection low prices and in bulk quantities

membersMembership fee


Showroom RetailersShowroom Retailers

19. _________________ display samples of their products for customers to choose from

20. Customers fill out an order form and the orders are filled from a __________

_________________.

Showroom retailers

Backroom warehouse


Shopping at HomeShopping at Home

21. You can also shop without ever leaving home by ordering products through:– TV home shopping channels – Mail-order catalogs – The Internet


What to PayWhat to Pay

22. Checking the price and quality of a product in more than one store is called _____________________.

23. Comparison shopping is most important when making a ________________.

Comparison shopping

Major purchase


What to PayWhat to Pay24. The ___________ is the cost of an

item for a ______________________ ______________, such as an ounce.

25. Many stores _________________ under the posted cost of an item.

26. You can calculate the unit price of an item yourself by _________________

_______________________________.

Unit price Standard unit of measurement

List the unit price

Dividing the total price by its weight, volume, or quantity.


What to PayWhat to PayTwo bags of Chips:

24oz bag Cost $4.10

20oz bag Cost $3.00

$4.10 / 24 OZ = $.17 PER OZ

$3.00 / 20 OZ = $.15 PER OZ


Figure22.2 CHECKLIST FOR COMPARISON SHOPPING

When you’re comparison shopping, check for various products’ features.When you examine an item of clothing for quality, what should you look for?


Fast Review

1. Why do generic products cost less than brand-name products?

2. When is a good time to shop for a product like a car, a computer, or an item of clothing?


Fast Review

3. What are the ways you can shop from home?

4. How can you calculate the unit price of an item?


How to Be a Smart How to Be a Smart ConsumerConsumer

27. You can become a smart consumer by ____________________.

28. One way to be a smart consumer is by learning how to ___________________.

Planning in advance

Read advertisements


Graphic OrganizerBeing a Smart ConsumerBeing a Smart Consumer

Graphic OrganizerGraphic Organizer

Resistsales

gimmicks

Resistsales

gimmicks

Useshopping

lists

Useshopping

lists

Readconsumer

publications

Readconsumer

publications

Shop atsales

Shop atsales

Studyadvertisements

Studyadvertisements

Read labelsand

warranties

Read labelsand

warranties

SMARTSMARTCOSUMERSCOSUMERS


29. How to Be a Smart 29. How to Be a Smart ConsumerConsumer

Study Advertising Shop at Sales Use Shopping Lists Resist Sales Gimmicks Read Consumer Publications Read Labels and Warranties


Study AdvertisementsStudy Advertisements

30. ___________________ attempts to convince you with __________________.

31. __________________ appeals to your ______________.

Rational advertising Facts and information

Emotional advertising feelings


Study AdvertisementsStudy Advertisements

An ad that says “The best buy in town!” won’t necessarily help you become a smarter consumer. (Emotional Advertising)

An ad that says “9 oz. Sparkle-Plenty Toothpaste, $1.99” might be very helpful.

(Rational Advertising)


“100 percent fruit juice; 8 ounces gives you 75 percent of your daily requirement of Vitamin C.”

Is this statement rational or emotional?


One ad reads: “The best buy in town. Sale ends today!”



You see a sign that reads “CD Bargain Bin. Regular $7.95, on sale for $5.95.”



Read Consumer PublicationsRead Consumer Publications

32. Magazines such as Consumer Reports and Consumers Research Magazine give detailed information about goods that have been _______________________.

33. __________________________ are good places to find these sources of consumer information.

Tested and rated by them

Libraries and online services


Shop at SalesShop at Sales

34. Some shopping experts say that the average consumer can save up to _______ by taking advantage of sales.

35. A _______________ is one that gives you a special buy on a new product or a product that’s in season.

15%

promotional sale


Shop at SalesShop at Sales

36. A store might have a ____________ to clear out goods that are going out of season or are no longer profitable in order to make room for new merchandise.

37. During sales, look for products that are advertised as _____________________

_____________. These advertised specials are called _______________.

Clearance sale

Selling at a loss or below cost

Loss leaders


Use Shopping ListsUse Shopping Lists

38. Impulse buying is purchasing things on the ____________________.

39. A ____________ will keep you from making unnecessary shopping trips and keep you from buying on the spur of the moment.

Spur of the moment

Shopping list


Resist Pressure and Resist Pressure and GimmicksGimmicks

40. Some salespersons ______________ ___________________________ what

they’re selling.

41. ______________ are meant to grab your attention and get you into the store or draw you into buying something.

42. Always _______________ any deal or bargain that seems too good to be true.

use high-pressure tactics to try to get you to buy

Sales gimmicks

Closely examine


Read Labels and WarrantiesRead Labels and Warranties

43. ______________________________ that will make you decide not to buy the product.

44. A ___________ is a legal document that states the ____________________ agreed to by the consumer and the store or the manufacturer.

You might find information on the label

WarrantyRights and responsibilities


Read Labels WarrantiesRead Labels Warranties

45. ____________ are usually good for a ________________, such as 90 days or one year.

46. ________________ cover only ______________ of a product.

Full warranties Stated time period

Limited warrantiesCertain parts


Fast Review

1. What is the difference between rational advertising and emotional advertising?


Fast Review

2. What two consumer magazines are good sources of information about products?

3. Why do stores have clearance sales?


Fast Review

4. What is the difference between a full warranty and a limited warranty?


In business, good communication spells success. Active listening is an important part of good communication. You can learn and improve active listening.

continued

Developing Listening SkillsBusiness Building BlocksBusiness Building Blocks


When you’re listening, do you:

continued

Checklist for Active ListeningBusiness Building BlocksBusiness Building Blocks

Fidget? Ignore things that could distract you? Keep your eyes on the speaker? Concentrate on what the speaker is

saying?


continued


Pick out the important ideas and think about how they’re related?

Summarize the ideas in your head? Take notes to help you focus and

remember?


continued


Ask the person to repeat or explain something that isn’t clear to you?

Avoid interrupting before the speaker is finished talking?

Avoid thinking of what you’ll say next?



Pay attention even if you think the person’s words don’t interest you?

pp. 354-369

End ofChapter 22 Making Consumer Decisions


Key WordsKey Words

loss leadersimpulse buyingwarranty


Key WordsKey Words

brand namegeneric productscomparison shoppingunit pricepromotional saleclearance sale

continued

Chapter 22 Making Consumer Decisions pp. 351 - 369.

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Transcript of Chapter 22 Making Consumer Decisions pp. 351 - 369.