1. Making Consumer Decisions pp. 351 - 369
Chapter 22
Making Consumer Decisions pp

2. Introduction to Business
Learning Objectives
After completing this chapter, you’ll be able to:
Describe choices consumers make when buying goods and services.
Identify types of stores where consumers can make purchases.
List ways to be a smart consumer.
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3. Introduction to Business
Why 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.
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4. Introduction to Business
Consumer Choices
1. Being a consumer—___________
___________________________
__________________ difficult when you have many choices.
A person who selects, purchases, uses, and disposes of goods and services
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5. Introduction to Business
What to Buy
Brand
2. 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.
generic
Brand name
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6. Introduction to Business
What to Buy (Generics)
Generic products
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 _______________________________.
Lower prices
40%
Little on marketing and advertising
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7. Introduction to Business
Figure
22.1
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?
MAKING A BRAND DECISION
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8. Introduction to Business
When to Buy
Change during different times
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 ___________
____________________.
New models are released
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9. Introduction to Business
Where 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
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10. Introduction to Business
Department 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
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11. Introduction to Business
Discount Stores
Discount stores
12. ________________ sell a wide variety of goods like department stores but at _______________.
13. They offer _____________ and stock merchandise in ________________.
Lower prices
Few services
Large quantities
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12. Off-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
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13. Limited-Line Retailers
15. Limited-line retailers, or specialty stores, sell a large assortment of goods in ________________________________.
one product line or a few related lines
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14. Superstores and Hypermarkets
16. Superstores and hypermarkets are like supermarkets but sell items such as ________________________ as well as groceries.
books, hardware, and clothing
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15. Introduction to Business
Warehouse Stores
huge selection
17. Warehouse stores carry a ___________ of food and nonfood items at ________
____________________.
18. They sometimes require customers to become _____________ of the store by paying a __________________.
low prices and in bulk quantities
members
Membership fee
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16. Introduction to Business
Showroom Retailers
Showroom 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 __________
_________________.
Backroom warehouse
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17. Introduction to Business
Shopping 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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18. Introduction to Business
What 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
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19. Introduction to Business
What to Pay
24. The ___________ is the cost of an item for a ______________________
______________, such as an ounce.
Many stores _________________ under the posted cost of an item.
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.
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20. Introduction to Business
What to Pay
Two 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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21. Introduction to Business
Figure
22.2
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?
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22. Introduction to Business
Fast Review
Why do generic products cost less than brand-name products?
When is a good time to shop for a product like a car, a computer, or an item of clothing?
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23. Introduction to Business
Fast Review
What are the ways you can shop from home?
How can you calculate the unit price of an item?
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24. How to Be a Smart Consumer
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
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25. Introduction to Business
Graphic Organizer
Graphic Organizer
Being a Smart Consumer
Study
advertisements
Read labels
and
warranties
Shop at
sales
SMART
COSUMERS
Read
consumer
publications
Resist
sales
gimmicks
Use
shopping
lists
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26. 29. How to Be a Smart Consumer
Study Advertising
Shop at Sales
Use Shopping Lists
Resist Sales Gimmicks
Read Consumer Publications
Read Labels and Warranties
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27. Introduction to Business
Study Advertisements
Rational advertising
30. ___________________ attempts to convince you with __________________.
31. __________________ appeals to your
______________.
Facts and information
Emotional advertising
feelings
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28. Introduction to Business
Study 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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29. Introduction to Business
“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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30. Introduction to Business
One ad reads: “The best buy in town. Sale ends today!”
Is this statement rational or emotional?
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31. Introduction to Business
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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32. Read 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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33. Introduction to Business
Shop 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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34. Introduction to Business
Shop at Sales
Clearance sale
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 _______________.
Selling at a loss or below cost
Loss leaders
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35. Introduction to Business
Use 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
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36. Resist Pressure and Gimmicks
use high-pressure tactics to try to get you to buy
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.
Sales gimmicks
Closely examine
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37. Read 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
Warranty
Rights and responsibilities
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38. Read 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 warranties
Certain parts
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39. Introduction to Business
Fast Review
What is the difference between rational advertising and emotional advertising?
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40. Introduction to Business
Fast Review
What two consumer magazines are good sources of information about products?
3. Why do stores have clearance sales?
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41. Introduction to Business
Fast Review
What is the difference between a full warranty and a limited warranty?
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42. Business Building Blocks Developing Listening Skills
In business, good communication spells success. Active listening is an important part of good communication. You can learn and improve active listening.
continued
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43. Business Building Blocks Checklist for Active Listening
When you’re listening, do you:
Fidget?
Ignore things that could distract you?
Keep your eyes on the speaker?
Concentrate on what the speaker is saying?
continued
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44. Business Building Blocks Checklist for Active Listening
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
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45. Business Building Blocks Checklist for Active Listening
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?
continued
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46. Business Building Blocks Checklist for Active Listening
Pay attention even if you think the person’s words don’t interest you?
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47. Making Consumer Decisions
End of
Chapter 22
Making Consumer Decisions pp

48. Introduction to Business
Key Words
loss leaders
impulse buying
warranty
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49. Introduction to Business
Key Words
brand name
generic products
comparison shopping
unit price
promotional sale
clearance sale
continued
Introduction to Business