Personal Finance Mr. Martin

1. Personal FinanceMr. Martin Being a wise consumer – part I Groceries & consumer staples

2. Generic vs. Brand Name Foods • Generic Foods • Plain Packaging • Unadvertised • Lower Price • Buy-low, Sam’s Choice, Kroger, CVS • Brand Name Foods • Attractive labels • $$$$ Advertising • Cost more • Pepsi, Doritos, Velveeta

3. Did you know? Generic products can cost up to 40% less than their name brand equivalents Generic products are often made by the same companies who make the name brands Cost differences are largely a result of differences in advertising, not quality of product

4. Our Experiment - Sprite Sprite Sam’s Choice - TwistUp 17 identified as brand name 13 preferred over Sprite Costs nearly 50% more than generic 6 identified as brand name 9 preferred over Sprite

5. Our Experiment – Orange Juice Minute Maid Sam’s Choice 2 identified as brand name 4 preferred Sam’s Choice OJ $2.50 per carton 21 identified as brand name 11 preferred Sam’s Choice OJ Less than $2.00 a carton

6. Our Experiment – Bottled Water Dasani Tap water from Seaver’s sink 15 identified as brand name 14 preferred Dasani over tap water $3.50 for a six pack 5 identified as brand name 4 preferred over tap water over Dasani FREE!

7. Our Experiment – Pop Tarts Pop Tarts Sam’s Choice 13 identified Pop Tarts as the brand name 9 preferred Pop Tarts over Sam’s Choice About 25% more expensive than generic 6 identified Sam’s Choice as the brand name 9 preferred Sam’s Choice over Pop Tarts

8. Our Experiment – Breakfast Bars Nutrigrain Kellog's Sam’s Choice 9 identified as brand name 5 preferred over generic Nearly 50% more expensive than generic 11 identified as brand name 12 preferred over brand name

9. Our Experiment – Fruit Cocktail Del Monte Fruit Cocktail Sam’s Choice 6 identified as name brand 4 preferred over generic 10-15% more expensive 10 identified as name brand 8 preferred over generic

10. Our Experiment – Cheese Puffs Cheetos Sam’s Choice 14 identified as name brand 9 preferred Cheetos over generic About 40% more expensive 6 identified as name brand 6 preferred generic over Cheetos

11. Our Experiment – Cheese Crackers Cheezits Sam’s Choice 17 identified as brand name 10 preferred Cheezits over generic 20% more expensive 5 identified as brand name 3 preferred Sam’s Choice over name brand

12. Our Experiment – Froot Loops Froot Loops Generic Cereal 11 identified as name brand 6 preferred over name brand Nearly 50% more expensive than generic (and there was no toy ) 9 identified as name brand 6 preferred over name brand

13. Conclusions of test We can’t consistently tell a difference in quality between generics and name brands So….why do people continue to pay up to 50% more for products at the grocery store??

14. Factors that influence our purchasing decisions • Previous experiences • Family & Friends • Testimonials • Advertising • Placement • Methods • http://moodle.schs.switzerland.k12.in.us/moodle/mod/resource/view.php?inpopup=true&id=3920 • Crafty sales strategies • Store layout • Shelf placement • Bulk sales • Loss leaders • Low price point products • Odd-number pricing • The allure of “Free!”

15. How we can fight back! Be aware of prices (regular and sale) Shop at several stores (but don’t overdo it) Beware of buying in bulk Beware of overly processed foods Avoid impulse buys Make a list and stick to it Compute unit prices Coupons?

16. Advertising Methods Assignment • Groups of 2 or 3 • Choose one of the persuasive advertising techniques discussed earlier • Using YouTube, find a commercial that uses your advertising technique • Click the “Assignment: Advertising Techniques in Commercials” link and submit the following • Link to commercial • Company and product depicted in commercial • Type of advertising technique used (may have more than one) • Names of the 2-3 group members