smart consumer spending
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Smart Consumer Spending. Advanced Curriculum. Planned Buying Process. From Initial desire to buy To Satisfaction after the purchase. Planned Buying Process Principles. Durable vs. Consumable Goods. What are examples of durable and consumable goods?. Applying the Planned Buying Process. - PowerPoint PPT PresentationTRANSCRIPT
Smart Consumer SpendingAdvanced Curriculum
© Take Charge Today – August 2013– Smart Consumer Spending – Slide 2Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
2.6.6.G1
Planned Buying Process
Prioritize Wants
Conduct Research
Spending Plan Evaluation
Make the Purchase
From Initial desire to buy
ToSatisfaction after the
purchase
© Take Charge Today – August 2013– Smart Consumer Spending – Slide 3Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
2.6.6.G1
Planned Buying Process Principles
Apply it each time a purchase
is made
Ongoing cycle
Essential consumer
skill
© Take Charge Today – August 2013– Smart Consumer Spending – Slide 4Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
2.6.6.G1
Durable vs. Consumable Goods
Durable
Does not quickly wear
out
More expensive (typically)
Cell phone, automobile
Consumable
Item is consumed in the present
Less expensive (typically)
Food, fuel, cosmetics
What are examples of durable and consumable
goods?
© Take Charge Today – August 2013– Smart Consumer Spending – Slide 5Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
2.6.6.G1
Applying the Planned Buying Process
Investing time typically results in greater satisfaction and is a positive financial management practice
Process applies, but less time is spent
Durable
Consumable
© Take Charge Today – August 2013– Smart Consumer Spending – Slide 6Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
2.6.6.G1
Prioritize Wants
Distinguishing between needs
and wantsresults in
Ability to prioritize spending decisions
Your present self impacts your future self
© Take Charge Today – August 2013– Smart Consumer Spending – Slide 7Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
2.6.6.G1
When Prioritizing Wants
Analyze the opportunity cost and trade-offs
Examine the impact on your spending plan
Consider personal and social factors influencing your choice
How do personal and social factors influence individuals?
© Take Charge Today – August 2013– Smart Consumer Spending – Slide 8Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
2.6.6.G1
Conduct Research
Conducting research
helps you…
Identify the best option
Be satisfied with the purchase
© Take Charge Today – August 2013– Smart Consumer Spending – Slide 9Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
2.6.6.G1
Information Sources
Be a critical consumer!
Seller
Consumer Reports
Appropriate Licenses
Product Reviews
What are questions critical consumers ask?
© Take Charge Today – August 2013– Smart Consumer Spending – Slide 10Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
2.6.6.G1
Consider Purchasing Options
Used vs. New
Store vs. Name Brand
Where to Purchase
When to Purchase
Do-it-Yourself
Depending on the item, several options may exist:
What are example of items available as used or store-brand?
© Take Charge Today – August 2013– Smart Consumer Spending – Slide 11Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
2.6.6.G1
Consider Product Features
Safety Ratings Expected Durability
Maintenance Required
Hidden Costs Warranties Environmental Impact
What are product features of automobiles?
© Take Charge Today – August 2013– Smart Consumer Spending – Slide 12Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
2.6.6.G1
Product Price
Prices vary widely across
sellers
Different version of the same product
may be available
Rank the priorities of
different product features
Determine which option provides the most desired
features at the lowest
cost
Option 1:Price:
Option 2:Price:
Option 3:Price:
Rank features in order of importance
Place a if the option includes that feature.
© Take Charge Today – August 2013– Smart Consumer Spending – Slide 13Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
2.6.6.G1
Spending Plan Evaluation
How will you pay for the item?
Will this become a contractual expense?
What is the trade-off to this purchase?
What is the cost of ownership?
Before making the purchase, evaluate your spending plan:
What is an item you currently use that has a cost of ownership?
© Take Charge Today – August 2013– Smart Consumer Spending – Slide 14Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
2.6.6.G1
Cost Per Use
$100 prom dress
Worn once
Cost per use: $100
$100 pair of jeans
Worn weekly for a year
Cost per use:$1.92
$65 monthly gym
membership
Visited 15 times per
month
Cost per use:$4.33
How can cost per use influence purchasing decisions?
© Take Charge Today – August 2013– Smart Consumer Spending – Slide 15Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
2.6.6.G1
Make the Purchase
Sales Personnel
• Be comfortable with him/her
• Prepare yourself in advance to negotiate
Seller
• Make sure they are reputable
• Ask about their refund, return or cancellation policies
When making the purchase, be confident with the company and staff!
© Take Charge Today – August 2013– Smart Consumer Spending – Slide 16Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
2.6.6.G1
Online Purchases
Online Purchase
Use only secure sites
Use a credit card
(not a debit card)
Review shipping and return
policies
Save documentation
What are principles to making a safe online purchase?
© Take Charge Today – August 2013– Smart Consumer Spending – Slide 17Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
2.6.6.G1
Redress
If you are not satisfied with your purchase:
Evaluate sellers return policy
Learn if there laws that protect consumers for the
specific item
Process of righting a wrong
© Take Charge Today – August 2013– Smart Consumer Spending – Slide 18Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
2.6.6.G1
Summary
The planned buying process should be used for all purchases
The amount of time spent on this process will vary
Consumers have a variety of product options
Be a critical consumer to maximize satisfaction