Sections 1, 2, 5, 6

1
Chapter 1
Homework Read Chapter 1, sections 1, 2, 5, 6

• Sections 1, 2, 5, 6
• How do consumers
• make decisions?

2
Values
1.1 Consumer Influence

• Your principlesthe standards by which you live.
• -_______ -_______
• -_______ -_______
• -_______
• Values change for societies as a whole.
• Before you make a decision, consider what
  __________.

3
Goals

• The things you want to accomplish in your life.
  They come from your
• ________
• ________
• Types of goals
• ________
• ________
• Make a PLAN to reach your goals!

4
__________

• Important events in your life, such as
• being ________
• preparing for a __________
• raising a family
• or _____________
• are parts of your ________.
• The life stage you are in may change your
  _________.

5
How do we make decisions?

• Brad believes in buying only American cars to
  support our country.
• Angelina will buy any car as long as it runs.
• They have different ______________.
• VALUES

6
How do we make decisions?

• Katie wants to have children in the near future.
• Tom does not. He wants to complete more movies.
• They have different _______________?
• GOALS

7
How do we make decisions?

• Jojo just found out his beagle wife is going to
  have puppies.
• How are his decisions affected?
• ___________________
• LIFE STAGES!

8
What about the things you need to give up to
reach your goals?

• You have 20 dollars to spend after school
  todaywhat 2 things would you buy (you only have
  today to use the money!) Please write them down!
• Oops, I forgot to tell you that you owe your
  friend 10, so you only have 10 leftwhich item
  would you now buy?

9
Opportunity Cost - Definition

• The value of your ___________ whenever you make a
  _______.
• The item that you didnt buy
• Cost of making a choice
• What you are giving up
• Ex I would like pizza and a sandwich for lunch
  I choose a sandwich, so the _______ is my
  opportunity cost.

10
1.2 STEPS forRATIONAL DECISION MAKING
(The 5 S Approach)

• _________ the need or want that you are trying to
  fulfill.
• _______ for possible choices by gathering
  information.
• ______ through your optionslook at opportunity
  costs.
• _______make a decision and act on it.
• ____ and evaluate the results.

11
________

• What are you trying to accomplish?
• Does a need or want need to be fulfilled?
• Identify relevant values and goals
• Use the knowledge you have and the thinking you
  have already done
• Establish priorities

12
________

• Explore all choices open to you, including those
  that may seem out of the ordinary

13
______

• Research _______
• Comparison shop
• start with basic model - go up the product line
• use salespeople, in-store videos, product labels,
  friends and relatives
• Look at Opportunity Costs
• Compare with your __________

14
_____Make a Decision

• After you compare the benefits and costs of each
  option, you ______.
• Choose the alternative that reflects either the
  greatest number or most important of you values,
  standards, and goals.
• Usually offers the most _______

15
_______

• Evaluate your decision.
• Are you happy with it a month later? A year
  later?
• Do you have buyers remorse?
• Learning is an ongoing process, and we learn from
  the decisions we make.

16
Example.

• 1. Specify
• I want to take a summer vacation.
• Identify goals I want to go Central America.
• 2. Search
• Costa Rica, Panama, Bermuda, Dominican Republic
• Gather information, Go to a travel agency, check
  on line
• Sift
• Evaluate Choices look through options and
  opportunity costs
• Select
• We are going to Costa Rica this summer!!
• Study
• Will you go back? Was it worth it?

17
1.5 Advertising andConsumer Decisions

• Types of Advertising
• Brand Advertising
• ______ Advertising
• _______ Advertising
• Defensive Advertising
• _________ Advertising

18
Brand Advertising

• The purpose is to cause you to ___________________
  __.
• Used to introduce new products or to reinforce
  consumer loyalty.
• Jingles and Slogans are often used
• Examples
• Have it your way.
• Just do it.
• Im lovin it.
• The quicker picker upper.

19
__________ Advertising

• Designed to influence you to buy a product by
  educating you about the products benefits.
• Used for complex or ___________, such as
  computers and automobiles.
• For example
• An ad for a car may explain the benefits of
  technical features such as stability control and
  AWD.

20
________ Advertising

• _______ its qualities to those of a competing
  product.
• Used to convince you to buy the product instead
  of the targeted competing product.
• For example
• A Bounty paper towel compared to how much a
  competing brand can absorb.

21
_______ Advertising

• To counter attacks from comparative ads,
  businesses often use defensive advertising.
• Tries to convince you that its product is
  __________.

22
_________ Advertising

• Designed to appeal to your emotions to influence
  you to buy, but it doesnt provide much useful
  information.
• Play on your emotions
• Success -________
• ________ -Appearance
• Popular -________
• Example
• ________

23
Puffery in Advertising

• ____________
• Puffery is _______
• Examples
• Best Available
• NEW and IMPROVED
• Voted 1
• FRAUDULENT advertising is ______ watch out!

24
Businesses Advertise to Sell!

• Learn to use information that advertising
  provides to help you make rational buying
  decisions.
• Ignore persuasive advertising to make a rational
  decision.
• Advertisements could be misleading and/or
  deceptive.
• Be a smart consumer and protect yourself!
• Use the ____________!

25
1.6 Be a Responsible Consumer

• Share Limited Resources and Limit Use of Natural
  Resources
• Oil, gas, water, trees
• Protect ________
• Protect the ________
• Reduce, Re-use, and Re-cycle garbage
• Encourage ________