Consumer Decisions: Introduction and Influence Mr. Ervin East Hardin Middle School

Big Idea Individual and families need to make consumer decisions due to the numerous products/services on the market, multiple advertising techniques, and the need to make responsible financial management decisions. Accessing and assessing consumer information, comparing and evaluating products and services, provides basis for making effective consumer decisions. Consumer decisions influence the use of resources and the impact they have on the community and environment.

What is a consumer? You are a consumer. A consumer is one who purchases and uses goods and services. What are some goods and services you consume?

Consumer Decisions Making decisions can be difficult. Americans consume the most products. Choices are influenced by culture, media, and technology. Choices are limited by the amount of money you have.

Importance Making good decisions is more important now than ever. We have just now began to realize how our wasteful consumer decisions are harming the planet. As a consumer, you must consider the environment.

Influences Peer Pressure Product Placement and Packaging Novelty Desire for Status Advertising

Peer Pressure Peers – people who are your age and who share your culture. Your peers have a strong influence on you because you want to fit in. It’s natural to want what your friends have. Be careful not to want something JUST because your friends have it.

Product Placement and Packaging Have you ever bought something you didn’t plan to buy? Impulse Buying Manufacturers spend a lot of money on packaging. Stores conduct research on product placement (where to put items to get your attention). Counters – Gum, Candy, and Snacks

Novelty People are often drawn to a product because it is new. After you buy it, it isn’t new anymore! Make sure whatever you buy is something you will stay interested in, even when the novelty wears off. Fishing Bait Story

Desire for Status Some people think others will respect them if they have a certain item. Beware! This can lead to a never-ending cycle of expenses and dissatisfaction! Have you ever bought something because you thought other people would think you were cool?

Advertising This factor influences our decisions the most. Advertisement is the only way we know about goods and services! – GOOD The goal of advertising is to convince the consumer to buy the product. – BAD (sometimes the customer doesn’t really need or want)

Advertising Continued Advertising is everywhere – radio, television, newspapers, magazines, catalogs, and flyers. There are ads for other products printed on products you have already bought! Do you have clothing with a brand, sports team, or a product on it? You’re a walking advertisement!

Needs vs. Wants Needs Wants Goods or services that you must have to live your daily life. Food – Water – Shelter Wants Goods or services that you would like to have, but can easily live without. Christmas List

Needs vs. Wants Sometimes because of peer pressure, desire for status, and the influence of advertising, you can sometimes become convinced that your WANTS are your NEEDS. “John and His Basketball Shoes”

Activity Open a Microsoft Word Document Title: Influence on Consumer Decisions Explain (in full sentences) how your decision to buy or use a specific brand or type of cell phone is affected by the five types of influences we discussed today.