© South-Western Educational Publishing Chapter 20 Personal Decision Making  Making Better Decisions  Spending Habits

GOALS © South-Western Educational Publishing Lesson 20.1 Making Better Decisions  Apply the decision-making process to solve consumer problems.  Explain economic needs and wants that influence consumer decision making.

© South-Western Educational Publishing The Decision-Making Process  Step 1: Define the problem  Step 2: Obtain accurate information  Step 3: Compare choices  Step 4: Make a decision  Step 5: Take action  Step 6: Re-evaluate

© South-Western Educational Publishing Economic Wants and Needs  Basic needs  Individual wants  Collective values

© South-Western Educational Publishing Individual Wants  Values  Personal preferences  Income  Leisure time

© South-Western Educational Publishing Collective Values  Legal protection  Employment  Progress  Quality of environment  Public and government service

GOALS © South-Western Educational Publishing Lesson 20.2 Spending Habits  List and describe factors that influence spending decisions.  Analyze marketing strategies that influence spending decisions.

© South-Western Educational Publishing Factors that Influence Spending Personal Factors  Personal resources  Position in life  Customs, background, and religion  Values and goals Outside Factors  The economy  Technological advances  The environment  Social pressures

© South-Western Educational Publishing Planning Major Purchases Questions to ask before making a purchase  Why do I need or want this product?  How long will this product last?  What substitutes are available and at what cost?  By postponing this purchase, is it likely that I will choose not to buy it later?  What types of additional costs are involved?  For what other purposes might I use the money spent on or committed for this purchase?  What is the total cost of this product?

© South-Western Educational Publishing Marketing Strategies that Influence Spending  Advertising  Pricing  Sales  Promotional techniques

© South-Western Educational Publishing Advertising  Product advertising  Company advertising  Industry advertising

© South-Western Educational Publishing

Promotional Techniques  Displays  Contests and games  Coupons  Frequent-buyer cards  Packaging  Sampling  Micromarketing