Transcript Chap20
Chapter 20 Personal Decision Making Making Better Decisions Spending Habits © South-Western Educational Publishing Lesson 20.1 Making Better Decisions GOALS 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 Step Step Step Step Step 1: 2: 3: 4: 5: 6: Define the problem Obtain accurate information Compare choices Make a decision Take action 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 © South-Western Educational Publishing Lesson 20.2 Spending Habits GOALS 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 © South-Western Educational Publishing