Transcript Assess the Item

Lesson 4:
Informed Purchases
Objectives:
• Assess the item
• Determine how spending choices are influenced
• Identify deceptive advertising
• Examine benefits and opportunity costs of
spending decisions
Assess the Item
Assess whether an item you want to purchase
is a necessity or a luxury.
NEED
Something that is necessary
for you to survive.
WANT
Something you would like to have.
Assess the Item
Once you determine whether the item is a
want or a need, you can begin pricing the item.
Pricing research can be
conducted through:
• Internet
• Shopping Apps
• Memberships
• Emails
• Newspapers and circulars
• Store visits
Influences on Purchases
Social factors:
Personal factors:
• Social origin
• Place of residence
• Work
• Hobbies and leisure
activities
• Age and way of life
• Purchasing power and
revenue
• Lifestyle
• Personality
Psychological factors:
Cultural factors:
Ideals from your family,
friends, cultural
environment, or
society that influence
your choices.
• Motivation – What’s
driving you to make the
purchase?
• Perception – How do
you view the product?
• Learning – What have
you learned about the
product?
Deceptive Advertising
Deceptive advertising is the use of
false or misleading statements and
misrepresentation of the product,
which may negatively affect
consumers.
1. Deceptive Description:
This form of false advertising
includes using misleading
product descriptions,
particularly to claim that a
product has certain features or
benefits that it does not, or that
it is of a higher quality than it
actually is.
Deceptive Advertising
Deceptive advertising is the use of
false or misleading statements and
misrepresentation of the product,
which may negatively affect
consumers.
2. Deceptive Pricing:
This advertising ploy involves
using hidden fees and/or
surcharges, which can cause the
final price paid by a consumer
to be substantially higher than
the advertised price.
Deceptive Advertising
Deceptive advertising is the use of
false or misleading statements and
misrepresentation of the product,
which may negatively affect
consumers.
3. Deceptive Comparison:
Advertisers may deceive consumers
by focusing on areas in which their
product exceeds their competitors’
products, while ignoring other areas.
Advertisers might use vague words
without placing the comparison in
the proper context, or without
providing proof of the claims.
Avoiding Deceptive Advertising
Tips to help you avoid deceptive advertising:
• Know what you want
• Do your research
• Trust your judgment
Benefit vs. Opportunity Cost
The opportunity cost is what you will give up
or lose by buying the product.
Example:
A trip to Cancun
Relaxation
Time with family/friends
Fun
Travel
Time away from work
Loss of vacation time for another trip
Money for other purchases
Benefits
Opportunity Costs
Summary:
• Assessed the item
• Determined how spending choices are influenced
• Identified deceptive advertising
• Examined benefits and opportunity costs of
spending decisions