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All consumers are unique which makes it
difficult for businesses to be able to
satisfy everyone’s needs and wants.
Everyone has a different lifestyle and
different financial resources. Everyone
has different values and goals as well.
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Values are based on what you believe is
important in life and are influenced by
personal experiences.
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Goals are something you work to
achieve. Goals can be: Short-term or
Long-term
Choices
-Before buying something, consumers must
ask themselves:
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Turn to a partner and discuss what you
think.
Do I really need it?
 Where would I buy it?
 Is there much variety to choose from?
 How much can I afford to spend?
 Should I wait for it to go on sale?
 Is it possible that someone may buy it for
me?
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Discuss with a partner what you read
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Why We Buy
› Income and Price
› Status
› Current Trends
› Customs and Habits
› Safety
› Promotion
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Income- the money that individuals receive
from various sources, such as job wages/salary,
interest, or dividends.
The amount of money consumers have
available to them has a big influence on what
they buy.
Low-income families have to spend a greater
portion of their income on basic necessities
(essential goods/services) and therefore do not
tend to buy luxury goods/services.
High-income families can buy the basic
necessities and have more money left over to
spend on luxury goods/services.
Price- the value of a product or service expressed
in dollar$ and cents.
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Price is still the most important consideration for
consumers when deciding to buy something.
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Consumers expect good value for the money
they spend.
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Price alone, however, is not the only
consideration. Other important factors that
influence the decision to buy include:
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Quality
Service
Warranty
Convenience
Variety in selections (sizes, colors, styles)
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Status- the social rank or position of a person or
the level of importance that is given to
something
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People tend to buy expensive products that
they feel help improve their status, or make
others admire or notice them. This is called
‘conspicuous consumption’.
Conspicuous Consumption- the desire to flaunt
purchases to impress others
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What is “In style” or “Fashionable” right
now is the current trend. Many people
believe style and brand names help
create an image or indicate status and
popularity.
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Current trends strongly affect demand.
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Read Textbook pg. 32 “Current Trends”
and
“Teenage Consumers”
Family, religion, community, and customs
often affect consumer choices.
 Ex: weddings, birthday,s baby showers,
etc
 Habit also plays a part in what you buy.
 Ex: going for coffee, watching movies
every weekend, shopping on Saturdays,
buying Christmas presents in December
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Safety refers to product safety and
standards.
 This is an important concern for
consumers, especially when purchasing
products such as:
 vehicles (road safety, air bags, anti-lock
brakes)
 baby products (cribs, car seats, high
chairs).
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Advertising and promotion are designed to influence
consumer spending and create desire for products
and services.
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Strong market competition has resulted in more
sophisticated promotional techniques.
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Important to be aware of, advertising methods are
often deceptive. Consumers are led to believe that
certain products are much better than others, when
in fact, there is very little difference.
Lifestyle advertising- a type of misleading advertising
that shows attractive, healthy, successful and appealing
people using the product to make consumers believe
their lifestyle will improve if they use the product too.
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Businesses try to determine how much
customers will buy to satisfy their needs
and wants. They try to study customers’
behavior patterns and create an
environment that will promote sales.
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3 Factors determine how customers buy:
› Time Spent in a Store
› Contact Time
› Waiting Time