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Personal Decision Making Chapter 20. Goals for Chapter 20.1 Apply the decision-making process to solve consumer problems. Apply the decision-making process.

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Presentation on theme: "Personal Decision Making Chapter 20. Goals for Chapter 20.1 Apply the decision-making process to solve consumer problems. Apply the decision-making process."— Presentation transcript:

1 Personal Decision Making Chapter 20

2 Goals for Chapter 20.1 Apply the decision-making process to solve consumer problems. Apply the decision-making process to solve consumer problems. Explain economic needs and wants that influence consumer decision making. Explain economic needs and wants that influence consumer decision making.

3 The Decision Making Process Step 1: Define the Problem Step 1: Define the Problem Step 2: Obtain Accurate Information Step 2: Obtain Accurate Information Step 3: Compare Choices Step 3: Compare Choices Step 4: Make a Decision Step 4: Make a Decision Step 5: Take Action Step 5: Take Action Step 6: Re-evaluate Step 6: Re-evaluate

4 Economic Wants and Needs Basic needs are the ingredients necessary for maintaining physical life. Basic needs are the ingredients necessary for maintaining physical life. Life-enhancing wants include, but are not limited to: Life-enhancing wants include, but are not limited to: Food, clothing and shelter beyond what is necessary for survival. Food, clothing and shelter beyond what is necessary for survival. Medical care to improve quality of life. Medical care to improve quality of life. Education to achieve personal goals Education to achieve personal goals Travel and vacations Travel and vacations

5 Individual Wants Factors affecting individual wants: Factors affecting individual wants: Values. Values are the principles by which a person lives. Values. Values are the principles by which a person lives. Personal Preferences. Personal preferences or tastes are your likes and dislikes. Personal Preferences. Personal preferences or tastes are your likes and dislikes. Income. The amount you earn will influence the type of consumer choices you make. Income. The amount you earn will influence the type of consumer choices you make. Leisure Time. The amount of free time you have and the kinds of activities you enjoy also affect how you choose to spend your money. Leisure Time. The amount of free time you have and the kinds of activities you enjoy also affect how you choose to spend your money.

6 Collective Values Collective values are those things important to society as a whole. Collective values are those things important to society as a whole. Legal Protection Legal Protection Employment Employment Progress Progress Innovations are new ideas, methods, or devices that bring about changes in the way we live. Innovations are new ideas, methods, or devices that bring about changes in the way we live. Quality of Environment Quality of Environment Public and Government Services Public and Government Services

7 Goals for Chapter 20.2 List and describe factors that influence spending decisions. List and describe factors that influence spending decisions. Analyze marketing strategies that influence spending decisions. Analyze marketing strategies that influence spending decisions.

8 Factors that Influence Spending Personal Factors Personal Factors Personal Resources Personal Resources Position in life Position in life Customs, Background and Religion Customs, Background and Religion A custom is a long-established practice that takes on the force of an unwritten law. A custom is a long-established practice that takes on the force of an unwritten law. Values and Goals Values and Goals

9 Outside Factors Outside Factors The Economy The Economy Technological Advances Technological Advances The Environment The Environment Social Pressures Social Pressures

10 Planning Major Purchases Questions to ask yourself: Questions to ask yourself: Why do I need or want this product? Why do I need or want this product? How long will this product last? How long will this product last? What substitutes are available and at what cost? What substitutes are available and at what cost? By postponing this purchase, is it likely that I will choose not to buy it later? By postponing this purchase, is it likely that I will choose not to buy it later? What types of additional costs are involved, such as supplies, maintenance etc..? What types of additional costs are involved, such as supplies, maintenance etc..? For what other purposes might I use the money spent or committed for this purchase? For what other purposes might I use the money spent or committed for this purchase? What is the total cost of this product? What is the total cost of this product?

11 Marketing Strategies that Influence Spending Advertising Advertising Advertising intended to convince consumers to buy a specific good or service is called product advertising. Advertising intended to convince consumers to buy a specific good or service is called product advertising. A target market is the specific consumer group to which the advertisements are designed to appeal. A target market is the specific consumer group to which the advertisements are designed to appeal. Advertising intended to promote the image of a store, company, or retail chain is known as company advertising. Advertising intended to promote the image of a store, company, or retail chain is known as company advertising. Advertising intended to promote a general product group without regard to where these products are purchased is called industry advertising. Advertising intended to promote a general product group without regard to where these products are purchased is called industry advertising.

12 Pricing Pricing Odd-number pricing is the practice of setting prices at uneven amounts rather than whole dollars to make them seem lower. Odd-number pricing is the practice of setting prices at uneven amounts rather than whole dollars to make them seem lower. Sales Sales A loss leader is an item of merchandise marked down to an unusually low price. A loss leader is an item of merchandise marked down to an unusually low price. Any customer who only buys loss leaders is called a cherry picker. Any customer who only buys loss leaders is called a cherry picker.

13 Promotional Techniques Promotional Techniques Displays Displays Contest and Games Contest and Games Coupons Coupons Frequent Buyer Cards Frequent Buyer Cards Packaging Packaging Sampling Sampling Micromarketing Micromarketing Micromarketing is a marketing strategy designed to target specific people or small groups with products that they are likely to want. Micromarketing is a marketing strategy designed to target specific people or small groups with products that they are likely to want.


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