Brands, Price, Quality, False economy Chapter 8

What is a brand?? Different makes of a particular product. Examples:

brands Consumers normally choose a brand and stay buying that product. E.g. Some might only buy Cadburys chocolate and not buy Nestlé

How does a consumer choose a brand? A consumer will look at the following: - Price of each brand of the product - Quality of each brand of the product

Choosing a brand Features that each brand offer with their product. (e.g. Cars- sunroof, leather seats, air-con may be available in a particular brand) Ingredients and additives in food products

Choosing a brand If there is a guarantee, and the length of it. Special offers from the manufacturers (e.g. free insurance with a new car)

Price Price refers to the amount of money paid for a good or a service Consumers know the prices of products as by law, prices must be displayed in shops.

Quality Quality refers to how good the product or service was for the price paid for it

questions Which are the best value? (a) A box of 60 teabags costing €1.20 or a box of 120 teabags costing €1.95 (b) 10 slices of ham costing €0.80 or 15 slices costing €1.20 (c) A box of 200 tissues costing €1.40 or a box of 500 tissues for €3.50

False economy What is it??

Jaffa Cakes

Did you notice a difference in taste in the.. False Economy Did you notice a difference in taste in the..

What is the main factor that helps you to decide on what good to buy?

False economy What is it??

False Economy When a purchase seems to be cheap but in the long run, it turns out to be more expensive.

Examples of false economy Deciding not to have your boiler serviced every year for €50 and as a result the boiler breaks after 3 years and it costs you €2,000 for a new one

Linking it to price.. Buying a 400g tin of beans for €0.80 instead of a 200g for €0.50, and then having to throw half of the contents out

Recap What is a brand? What is Price? What is Quality? What is False Economy. Give an example