1. Determine the factors that influence your buying decisions

2. Use a research based approach to buying

3. Apply strategies to make wise buying decisions

4. Buy quality products and get a good value. . .

Consumer Purchasing ~

Goals:

Factors that influence buying decisions

Economic Factors

Social Factors Personal Factors

Price Lifestyle Gender

Factors that influence buying decisions

Economic Factors

Social Factors Personal Factors

PriceInterest RatesProduct QualitySupply and DemandConvenienceProduct SafetyBrand NameMaintenance CostsWarranty

LifestyleInterestHobbiesFriendsCultureAdvertisementsMedia

Gender Age Occupation Income Education Family Size Geographic

region Ethnic

background

Religion

Consumer Purchasing: A Research-Based Approach

There are 4 steps to a research based approach to buying:

Step 1: Before you shop Identify your needs. Gather information. Become aware of the marketplace.

Consumer Purchasing: A Research-Based Approach

There are 4 steps to a research based approach to buying:

Step 2: Weigh the alternatives Decide what is important to you. Compare prices. Do some comparison shopping.

Consumer Purchasing: A Research-Based Approach

There are 4 steps to a research based approach to buying:

Step 3: Making the purchase Can you negotiate the price? Should you use cash or credit? What is a down payment? Do you know what the real price is?

Consumer Purchasing: A Research-Based Approach

There are 4 steps to a research based approach to buying:

Step 4: After the PurchaseEvaluate the decision that you made.

To make wise buying decisions, consider

these ideas. . .

Smart Buying Strategies

Timing Purchases. Black Friday, Cyber Monday, The day after

Christmas, buying a car at the end of the month, etc.

Selecting the store. Cooperative: nonprofit organization owned and

operated by its members for the purpose of saving money on the purchase of goods and services

http://www.seward.coop/ Wal-Mart?

Shop at several stores

Comparative shopping means comparing quality, price, and guarantees for the same products at several different stores.

Use online price-comparison search tools to help you find the best deal.

Smart Buying Strategies

Compare Brands

Avoid Impulse Buying Don’t purchase items on the spur of the moment

Strategies to avoid Impulse Buying . . .

Avoid impulse buying

Take a list with and buy only what is on the list.

Be aware of merchandise displays that attract your attention but are expensive and unnecessary.

When shopping online, don’t let an attractive Web site or the ease of entering a credit card number lure you into buying something you don’t need.

Smart Buying Strategies

Label Information. What is open dating?

Indicates the freshness or shelf life of a perishable product

Check for expiration dates

Inspect packaging for damage

Check containers carefully

Read the label . . .Know ingredients and what they mean

A 100% cotton shirt may shrink

A dress shirt will probably have to be ironed after laundering

“Dry Clean Only” items will be more expensive to maintain

Smart Buying Strategies

Comparing Prices. Unit pricing:

Standard unit of measurement to compare the prices of packages that are different sizes

Unit Pricing formula: Total price/unit of measure = unit price

Rebates are partial refund of the price

Compute unit prices Unit pricing is the cost for one unit of an item sold

in packages of more than one unit.

To compare the price of a 15-ounce box with the price of a 24-ounce box, divide the total price of each box by the number of ounces in it.

The result is the price per ounce of each box.

The lowest unit price for products of comparable quality is the best buy.

Total PriceUnit of Measurement = Unit Price

Comparing Prices usingUnit PricingTotal PriceUnit of Measurement

The brand of cereal that Claudia likes is offered in two sizes, 12 ounces for $2.89 and 16 ounces for $3.39. Which is the better buy?

1. $2.89/12 oz = $.24/oz 2. $3.39/16 oz = $.21/oz

= Unit Price

Be aware of prices

Know regular “list” pricesPrices may not actually be reducedManufacturer’s List PriceSuggested Retail Price

Understand sale terminology

Sale: goods are being offered for sale but not necessarily at reduced prices.

Clearance: merchant wants to clear out all the

advertised merchandise but not necessarily at a reduced price.

Liquidation: merchant wants to sell immediately to turn the inventory into cash.

Smart Buying Strategies

Evaluating Warranties. What is a warranty?

Written guarantee from the manufacturer or distributor that states the conditions under which the product can be returned, replaced, or repaired.

What is a service contract? A separately purchased agreement by the manufacturer

or distributer to cover the costs of repairing the item

Keep receipts and warranties

Print out warranty statements and sales receipts from online purchases.

For major purchases, keep receipts along with warranties, guarantees, or other written promises for possible enforcement later.

Compute total cost

Check the total cost of an item, including supplementary items (such as batteries), delivery charges, finance charges, and other add-on costs.

The base price may be lower than for similar products, but once you add up all the related charges, the total cost may exceed other choices.

Wait a day for major purchases

Always wait at least 24 hours before making a major purchase.

Avoids purchasing on impulse and being coerced into wanting the item.

Many people change their minds after a “cooling-off” period before making a major buying decision.

Fight Competition

The shopkeeper was dismayed when a brand new business much like his own opened up next door and erected a huge sign which read BEST DEALS.

He was horrified when another competitor opened up on his right, and announced its arrival with an even larger sign, reading LOWEST PRICES.

The shopkeeper was panicked, until he got an idea. He put the biggest sign of all over his own shop-it read... Main Entrance.