Presentation on theme: "Ch 15 Consumers in the Global Economy"— Presentation transcript:
1 Ch 15 Consumers in the Global Economy 15-1 Consumer Buying decisions
2 Consumer Information Sources Are there to help assist consumers in their decision making process.Include the following:Product Testing OrganizationsMedia SourcesGovernment AgenciesBusiness SourcesPersonal contacts
3 Product Testing Organizations Companies that test the safety of products.Electrical componentsUL 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.
4 Media Sources Print Publishers Broadcast Organizations The Internet Magazines and news papers provide consumer assistancei.e. consumer reports, good housekeepingBroadcast OrganizationsRadio and television provide consumer infoStations inform on product uses, safety, and care.The InternetOnline information has become a large resourceFederal govt. has all of their consumer protection online.
5 Government Agencies Federal government consumer resources: Consumer information centerProvides 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.
6 Federal government cont. Consumer Product Safety Commission (CPSC)Puts safety standards on productsCan recall items if not safeNational 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.
7 State and Local Government State consumer resourcesState departments of banking and insurance provide consumer information.Local government: Larger cities usually have resources to help consumers.
8 1954 “Melts in your mouth, _____ ____ ______ _____” 1971 “You deserve a ________ ________”1973 “Have it your ________”1985 “ Where’s the _______?”
9 Business sourcesIn order to sell goods businesses make consumer information relatively easily available through:Advertising- can be print, radio, internet, televisionProduct LabelsCustomer service departmentsi.e. banks and insurance s companies create bookletsBetter Business BureauGives information on specific businesses
10 Personal Contacts Word of mouth Information gathered by talking to other consumersSometimes known as the most influential type of information.
11 Consumer GoalYour goal is to get greater value for your money each time you make a purchase.
12 Significant Purchases Normally 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.
13 Decision making model Identify your wants vs. your needs Know the choices that are availableDetermine your desired satisfaction.How much am I willing to pay for a productEvaluate alternativesMake the decision.
14 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.
15 Wise buying tips Take your time Time your purchase Some times of the year certain products will be lowerAvoid being impulsive
16 Comparison ShoppingPrices- 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 salePromotional salesClearance saleBrandNational brandsStore brands
17 Traditional Retailers Department 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
18 Contemporary Retailers Specialty 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 sizeFactory outlets- Sell high quality items at a low price.
19 Non store shoppingMail order catalogsInternetVending machines