Transcript Personal Decision Making

Personal Decision
Making
Chapter 20
Goals for Chapter 20.1
Apply the decision-making process to
solve consumer problems.
 Explain economic needs and wants that
influence consumer decision making.
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The Decision Making Process
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Define the Problem
Obtain Accurate Information
Compare Choices
Make a Decision
Take Action
Re-evaluate
Economic Wants and Needs
Basic needs are the ingredients necessary
for maintaining physical life.
 Life-enhancing wants include, but are not
limited to:
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Food, clothing and shelter beyond what is
necessary for survival.
Medical care to improve quality of life.
Education to achieve personal goals
Travel and vacations
Individual Wants
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Factors affecting individual wants:
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Values. Values are the principles by which a
person lives.
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Personal Preferences. Personal preferences or
tastes are your likes and dislikes.
Income. The amount you earn will influence the
type of consumer choices you make.
Leisure Time. The amount of free time you have
and the kinds of activities you enjoy also affect
how you choose to spend your money.
Collective Values
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Collective values are those things
important to society as a whole.
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Legal Protection
Employment
Progress
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Innovations are new ideas, methods, or devices that
bring about changes in the way we live.
Quality of Environment
Public and Government Services
Goals for Chapter 20.2
List and describe factors that influence
spending decisions.
 Analyze marketing strategies that
influence spending decisions.
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Factors that Influence
Spending
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Personal Factors
Personal Resources
 Position in life
 Customs, Background and Religion
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A custom is a long-established practice that
takes on the force of an unwritten law.
Values and Goals
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Outside Factors
The Economy
 Technological Advances
 The Environment
 Social Pressures
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Planning Major Purchases
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Questions to ask yourself:
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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, such
as supplies, maintenance etc..?
For what other purposes might I use the money
spent or committed for this purchase?
What is the total cost of this product?
Marketing Strategies that
Influence Spending
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Advertising
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Advertising intended to convince consumers to
buy a specific good or service is called product
advertising.
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A target market is the specific consumer group to
which the advertisements are designed to appeal.
Advertising intended to promote the image of a
store, company, or retail chain is known as
company advertising.
Advertising intended to promote a general product
group without regard to where these products are
purchased is called industry advertising.
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Pricing
Odd-number pricing is the practice of
setting prices at uneven amounts rather
than whole dollars to make them seem
lower.
 Sales
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A loss leader is an item of merchandise
marked down to an unusually low price.
 Any customer who only buys loss leaders is
called a cherry picker.
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Promotional Techniques
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Displays
Contest and Games
Coupons
Frequent Buyer Cards
Packaging
Sampling
Micromarketing
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Micromarketing is a marketing strategy designed to
target specific people or small groups with products that
they are likely to want.