22 Flashcards
consumer
decides what when where to buy and how much to pay for goods and services
person who selects uses purchases and disposes of goods and services
brand name vs generic (what to buy)
brand :
trade name for a product or service produced by a particular company,
buyers associate quality with brand name products
generic :
plainly labeled unadvertised products sold at lower prices than brand name products
deciding when to buy
postponing or planning a purchase can save money
ex : there is less demand for air cons in cold months; ppl wait until items go on sale or on special promotion
deciding where to buy
3 factors that affect decision of where to shop
- kinds of goods or services sold
- prices
- convenience
types of stores (where to buy)
department stores (offers brand names and customer service, prices may be higher)
discount stores (fewer services, keeps large quantities of goods, can be cheaper)
off price or outlet stores (offers big discounts bc items are flawed, out of season, discontinued)
limited line retailers or specialty stores (have a variety of items and high levels of expertise and service in one area)
convenience stores (limited lines of products, mostly grocery items, open everywhere)
superstores (groceries and a wide variety of items like books hardware and clothing)
warehouse stores (huge selection of goods in bulk quantities at low prices)
shopping at home
consumers can shop thru tv, catalogs, or the internet
comparison shopping (deciding how much to pay)
comparing prices and characteristics of competing brands or stores
expensive is not always better product, cheap is not always better product
being a smart consumer (before making a purchase)
- study ads
- read consumer publications (goods being tested and rated)
- shop at sales
- use a shopping list
- resist pressure and gimmicks. ask urself if what the salesperson is saying is true, if u need the product, and if u can afford it
gimmicks grab attention. examine any deal that seems too good to be true - read labels and warranties
study ads
rational vs emotional ads (plays w ur feelings)
sales
promotional sale : offers a special buy on a new product
clearance sale : clears out goods that are no longer profitable or out of season
loss leader : advertised products that sell at a loss to bring in customers
impulse buying
unplanned purchases
warranty
written guarantee from a manufacturer or distributor that states the conditions the product can be returned, repaired, or replaced
implied : unwritten guarantee that a product is fit for intended use
express : full (free) and limited (payment req, only certain parts are covered)
