Ch 15 Consumers in the Global Economy

15-1 Consumer Buying decisions

Consumer Information SourcesAre there to help assist consumers in their

decision making process.Include the following:

Product Testing OrganizationsMedia SourcesGovernment AgenciesBusiness SourcesPersonal contacts

Product Testing OrganizationsCompanies that test the safety of products.

Electrical components UL means the product has been judged as safe by

Underwriters Laboratories.

The Association of Home Appliance ManufacturesTest items such as refrigerators, air

conditioners ect. Consumer union issues reports on the safety

of several items.Consumer Reports Magazine.

Media SourcesPrint Publishers

Magazines and news papers provide consumer assistance i.e. consumer reports, good housekeeping

Broadcast OrganizationsRadio and television provide consumer info

Stations inform on product uses, safety, and care.

The InternetOnline information has become a large

resource Federal govt. has all of their consumer protection

online.

Government AgenciesFederal government consumer resources:

Consumer information center Provides quarterly publications and maintains a

website.The United States Department of Agriculture (USDA) Publications and online info on food buying, meal

planning, and food safety.Federal Trade commission (FTC)Food and Drug Administration (FDA)Provides safety information on food and approves

new drugs.

Federal government cont.Consumer Product Safety Commission

(CPSC)Puts safety standards on productsCan recall items if not safe

National Highway Traffic Safety Administration (NHTSA)Ensures that vehicles are safe to be on the

road (i.e Toyota recall)Environmental Protection Agency (EPA)

Ensures products are safe for the environment.

State and Local GovernmentState consumer resources

State departments of banking and insurance provide consumer information.

Local government: Larger cities usually have resources to help consumers.

1954 “Melts in your mouth, _____ ____ ______ _____”

1971 “You deserve a ________ ________”

1973 “Have it your ________”

1985 “ Where’s the _______?”

Business sourcesIn order to sell goods businesses make

consumer information relatively easily available through:Advertising- can be print, radio, internet,

television Product LabelsCustomer service departments

i.e. banks and insurance s companies create booklets

Better Business Bureau Gives information on specific businesses

Personal ContactsWord of mouth

Information gathered by talking to other consumers

Sometimes known as the most influential type of information.

Consumer GoalYour goal is to get greater value for your

money each time you make a purchase.

Significant PurchasesNormally anything over $300.

Our bodies go through physiological changes.

We all have that spoiled, red-faced, grocery store kid living inside of us. His name is immaturity.

Decision making model1. Identify your wants vs. your needs2. Know the choices that are available3. Determine your desired satisfaction.

1. How much am I willing to pay for a product

4. Evaluate alternatives5. Make the decision.

You must develop power over purchase by following these steps:Wait overnight before making a purchase.

Consider your buying motives. No amount of stuff equals contentment or fulfillment.

Never buy anything you do not understand.

Consider the opportunity cost.

Seek wise counsel.

Wise buying tipsTake your time

Time your purchaseSome times of the year certain products will be

lower

Avoid being impulsive

Comparison Shopping Prices- Compare the price of each item for the same size. i.e. eggs

at $1.00 per dozen to 18 eggs for $1.36 which is the better deal.

Quality- Compare how long the item will last to the price of it.

Services- i.e one company offers a warranty with their product and the other does not.

Sales- Sometimes overused and not actually a sale Promotional sales Clearance sale

Brand National brands Store brands

Traditional RetailersDepartment stores- Have an extensive

product line and emphasize service.Discount stores- Emphasize lower prices on

their products.High volume of sales and low prices.

Specialty store- Have a special line of products. (i.e. Jewelry store)

Food RetailersSupermarketConvince stores

Contemporary RetailersSpecialty superstores- (home depot, Office

max) offer low prices and wide variety of limited product line.

Discount stores (superstores)-Offer a wide variety of product lines.

Warehouse club-Now frills. Usually large product size

Factory outlets- Sell high quality items at a low price.

Non store shoppingMail order catalogs

Internet

Vending machines

The End