1 / 17

Chapter 3

Chapter 3. Your Role as a Consumer*. Section 1. Consumption, Income, and Decision Making. Consumption, Income, and Decision Making*. Consumer Any person or group that buys or uses goods and services to satisfy personal needs and wants*. Disposable and Discretionary Income.

halen
Download Presentation

Chapter 3

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Chapter 3 Your Role as a Consumer*

  2. Section 1 Consumption, Income, and Decision Making

  3. Consumption, Income, and Decision Making* • Consumer • Any person or group that buys or uses goods and services to satisfy personal needs and wants*

  4. Disposable and Discretionary Income • Disposable income • Income remaining for a person to spend or save after all taxes have been paid

  5. Disposable and Discretionary Income • Discretionary income • Money income a person has left to spend on extra after necessities have been bought*

  6. Decision Making as a Consumer • The first decision a consumer must make • Whether to buy an item or not* • The 3 parts to making a consumer decision • Scarce Resources • Opportunity Cost • Rational Choice

  7. Decision Making as a Consumer • Scarce Resources • Two scarce resources are involved after you have decided to make a purchase: • Income • Time*

  8. Decision Making as a Consumer • Opportunity Cost • The value of your highest alternative choice that you did not make

  9. Decision Making as a Consumer • Rational Choice • Choosing the alternative that has the greatest value from among comparable quality products

  10. Section 2 Buying Principles or Strategies*

  11. Gathering Information • How Much Information Do You Need • It cost TIME to gather info • decide how much time to spend getting info • get only as much info as is worthwhile

  12. Gathering Information • Developing a Consumer Knowledge Base • information you get from buying one product, can be used when buying another item later • a skill you can acquire and sharpen is getting salespeople to give you accurate info. • you can get a lot of info in a short time on the internet

  13. Using Advertising Wisely • Competitive Advertising* • ads that attempt to persuade consumers that a product is different from and superior to any other • purpose is to take customers away from competitors or keep competitors from taking customers

  14. Using Advertising Wisely • Competitive ads also appeal to people’s emotions • Informative Advertising • benefits consumers by giving information about a product • you can learn existence, price, quality, and special features of a product • could be competitive

  15. Using Advertising Wisely • Bait and Switch • One of the most widely used methods of deceptive advertising • attracts consumers with low-priced product, then tries to sell them a higher-priced product • This practice is deceptive and illegal*

More Related