Consumer Decisions: Smart Consumer Choices 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.

Law of Supply and Demand Supply – how much there is of an item Demand – how many people want an item If supply is greater than demand, an item will decrease in price. If demand is greater than supply, an item will increase in price. Do you understand how consumer choices have an effect on the market?

Rights You have a right: to choose from a variety of goods and services. to be given ALL the facts and information. to expect goods and services will be safe for consumers. to return an item for a refund if something is wrong.

Responsibility You have a responsibility: to learn as much as possible about purchases. to read instructions on products. to think independently and make decisions on your own. to return purchased items as soon as possible if there is something wrong with them. to respect the environment with the items you purchase.

Step One Be aware of the influences on your decisions. Peer Pressure Product Placement and Packaging Novelty Desire for Status Advertising Don’t let others make your decisions for you!

Step Two Learn everything you can about your purchase before you make it! Do some research. Why do you want it? What will you do with it? What features do you want? Can you do without it?

Step Three Decide how much money you’re willing to spend. Decide how much money you’re able to spend. Decide how much money the product is worth so you don’t overpay for it. Doing this before you shop will help you avoid spending too much.

Step Four Check out merchandise by comparison shopping. Compare different products to find out which on is best for you. Goal: Find the “best buy.” Online vs. Visiting Stores Do this for the important purchases you make! When you comparison shop you should consider: 1. Quality 2. Brand 3. Features 4. Price 5. Availability

1. Quality The way something is put together, what materials are used, and how well it’s made. Quality products usually last longer than other products. Quality costs more, but it’s worth it. A $10 sweater may fall apart after you wash it a few times, but a $45 sweater may last for years.

2. Brand Name Some manufacturers have been around for a while and have a reputation of quality products. It’s usually a good idea to buy “brand-name products.” “No-name” products cost way less than “brand-name” products. BUT the “no-name” product probably lacks quality in ways you can’t even see.

3. Features Don’t spend money on a product that has more features than you will ever use. Pay attention to guarantees and warranties; these are promises made to the customer. For instance, an electronic product should have a warranty stating that the manufacturer will fix the product if something goes wrong in a period of time.

4. Price Look for coupons! Look for sales! Check online prices! Visit several stores to find the best price! Watch for “hidden costs” that increase the price of a product. Electronics may need expensive batteries.

5. Availability Try to find items that are readily available. Remember supply and demand? If you order from a catalog or online, the cost of shipping and handling may be added to the product. It may be cheaper to purchase an item at a store (not always).

Step Five Once you have completed steps one through four, you are ready to make the purchase. Purchase the product! Make sure you keep the receipt in case something goes wrong. Don’t worry about not liking the item; if you’ve completed the proper steps, there’s no way you won’t enjoy your product!