1. Lesson 6
Shopping

2. Key Terms Comparison Shopping Contract Primary Need Recall
Secondary Need
Value
Want
Warranty

3. Why Do We Shop Purchase needs & wants Difference between need and want
need = something you have to have to live
primary need – for survival (food, shelter, clothing)
secondary need – something that will contribute to your well-being (computer, television, etc.)
want = something that doesn’t necessarily benefit your everyday well-being
Ex: video game, $200 pair of Air Jordans, etc.
Needs & wants contribute to our standard of living
The necessities & comforts to maintain your lifestyle

4. So Many Options; How Do You Choose
Often, biggest pressure is economic
Sometimes, personal & social factors outweigh economic pressures
Can lead to impulse buying

5. Research Your Purchase, Not Just Your Paper
Look at consumer & expert reviews
Find out what experts in type of product, and users of the product, think of the specific item you are considering
Many publications to see expert opinions
Ex: Consumer Reports, Consumer Research Magazine
Many online sites allow buyers to give products reviews for other potential buyers to see
Ex: Best Buy

6. Become a Comparison Shopper
Once you determine which product you want, check prices at various locations to get it at the cheapest price
Check similar products of similar or lesser price to see if you get better value from them
Consider waiting for item to go on sale if not needed immediately

7. Agencies that Protect Consumers
Federal Trade Commission (FTC)
Protects consumers from unfair trade practices
Deceptive advertising
Internet scams
Identity theft
Consumer Product Safety Commission (CPSC)
Protects consumers from dangerous consumer products
Regulates safety standards
Issues recalls of dangerous products
Video

8. Food & Drug Administration (FDA)
Protects us from unsafe food
Protects us from unsafe medicines
Protects us from unsafe cosmetics

9. Before You Go Shopping, Know Your Rights
Purchases of goods over $500 require contracts in most cases
Inspect goods prior to paying for them
You have the right to return defective or unsuitable purchases within a reasonable time frame
Unless purchase agreement specifies differently (i.e. “as is”)
You can dispute charges for merchandise never received

10. Exit Pass What is a primary need? What is a secondary need?
What is a want?

11. Math Example #1:
An item has a price tag of $50 and another tag that says, "15% Off." What is the sale price? a) $38.50 b) $40.50 c) $39.00 d) $42.50

12. Answer #1 D
$50 x .15 = $7.50 $50 - $7.50 = $42.50 is the sale price.

13. Example #2
A store buys an item for $25 and marks it up 100%. What is the price?
a) $75 b) $50 c) $100 d) $150

14. Answer #2: B
$25 x 2 = $50

15. Example #3:
A store offers 4 for the price of 3. What is the implied discount?
a) 20% b) 25% c) 33% d) 66%

16. Answer #3: B
You are paying for 3/4 and getting 1/4 for free, so the discount is 1/4 or 25%.

17. Example #4:
You can buy an item for $32 at a store within walking distance. You can buy the same item online for $22 with $12 for shipping. Which is the better deal? a) Buying at the local store b) Buying online c) Can't tell

18. Answer #4: A
Local Store Price: $32 Online Price: $22 + $12 = $34 Since buying locally costs $32 and buying online costs $34, you are getting a better deal if you buy locally.

19. Example #5:
You live in a state with a sales tax of 7%. You buy a car for $13,000. What is the sales tax?
a) $750 b) $900 c) $910 d) $1,400

20. Answer #5: C
$13,000 (price of the car) x .07 (sales tax) = $910 (sales tax)