Chapter 22 Making Consumer Decisions pp. 351 - 369.
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Transcript of 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.
Introduction to BusinessIntroduction to Business 33
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.
Introduction to BusinessIntroduction to Business 44
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
Introduction to BusinessIntroduction to Business 55
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
Introduction to BusinessIntroduction to Business 66
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
Introduction to BusinessIntroduction to Business 77
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?
Introduction to BusinessIntroduction to Business 88
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
Introduction to BusinessIntroduction to Business 99
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
Introduction to BusinessIntroduction to Business 1010
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
Introduction to BusinessIntroduction to Business 1111
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
Introduction to BusinessIntroduction to Business 1212
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
Introduction to BusinessIntroduction to Business 1313
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
Introduction to BusinessIntroduction to Business 1414
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
Introduction to BusinessIntroduction to Business 1515
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
Introduction to BusinessIntroduction to Business 1616
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
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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
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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
Introduction to BusinessIntroduction to Business 1919
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.
Introduction to BusinessIntroduction to Business 2020
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
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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?
Introduction to BusinessIntroduction to Business 2222
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?
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Fast Review
3. What are the ways you can shop from home?
4. How can you calculate the unit price of an item?
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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
Introduction to BusinessIntroduction to Business 2525
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
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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
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Study AdvertisementsStudy Advertisements
30. ___________________ attempts to convince you with __________________.
31. __________________ appeals to your ______________.
Rational advertising Facts and information
Emotional advertising feelings
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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)
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“100 percent fruit juice; 8 ounces gives you 75 percent of your daily requirement of Vitamin C.”
Is this statement rational or emotional?
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One ad reads: “The best buy in town. Sale ends today!”
Is this statement rational or emotional?
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You see a sign that reads “CD Bargain Bin. Regular $7.95, on sale for $5.95.”
Is this statement rational or emotional?
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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
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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
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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
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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
Introduction to BusinessIntroduction to Business 3636
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
Introduction to BusinessIntroduction to Business 3737
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
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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
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Fast Review
1. What is the difference between rational advertising and emotional advertising?
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Fast Review
2. What two consumer magazines are good sources of information about products?
3. Why do stores have clearance sales?
Introduction to BusinessIntroduction to Business 4141
Fast Review
4. What is the difference between a full warranty and a limited warranty?
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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
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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?
Introduction to BusinessIntroduction to Business 4444
continued
Checklist for Active ListeningBusiness Building BlocksBusiness Building Blocks
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?
Introduction to BusinessIntroduction to Business 4545
continued
Checklist for Active ListeningBusiness Building BlocksBusiness Building Blocks
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?
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Checklist for Active ListeningBusiness Building BlocksBusiness Building Blocks
Pay attention even if you think the person’s words don’t interest you?
pp. 354-369
End ofChapter 22 Making Consumer Decisions
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Key WordsKey Words
loss leadersimpulse buyingwarranty
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Key WordsKey Words
brand namegeneric productscomparison shoppingunit pricepromotional saleclearance sale
continued