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YOU --- ARE A CONSUMER-----WHAT MAKES YOU BUY? Each year teenagers spend billions of dollars. They buy clothing, magazines, school supplies, entertainment, tapes, and many other items. In fact the teen spending power is SO large that some companies cater only to the teen buyer. What goods and services have you bought recently? GOODS are objects or things, such as a bike, shirt, or watch. SERVICES or the work performed by one person for another, are things such as getting a haircut, having a medical check up, or taking guitar lessons. Although your share of these billions of dollars may be very small, it is important to be aware of the factors that influence your buying decisions. What do you have in common with your cousin, the person sitting next to you, and the retired person down the street? All of you are consumers; A CONSUMER is a person who buys services and goods. As a consumer you have many choices in marketplace. You have to decide what to buy, where to buy, and when to buy. You have to decide how to get the best value for your money. By making wise purchases, you will be a satisfied consumer. When you bought your last pair of jeans or cassette tape, what influenced your buying decision? Did your friend influence you and convince you that you needed the item? Did you buy the same type of jeans you always buy? Maybe your decision was based on habit. Perhaps you saw an advertisement that helped persuade you to buy the product. Many factors can affect the choices you make as consumer. Many teens are influenced by their peers to buy particular goods and services. They enjoy the feeling of belonging to a group and like to conform or be similar to others in their peer group. They like to listen to the same type of music, wear an acceptable hairstyle and dress in popular styles of closing. Sometimes teens even carry the same type of backpacks and notebooks and wear the same type of accessories. Their buying decisions are influenced by the peer group. It is fun to share in this type if sameness. However, while following the crowd, it is important to be sure that you are buying what is best for you. Ask yourself the following questions: Am I buying a fad item that is popular today but will soon be out of fashion? Am I getting best value for my money? Am I spending twice as much money fir a name-brand item? Before you make a purchase, evaluate the product and analyze your decision. If it’s not the best thing for you, reconsider your decision. Do what is best for you and be proud of your individuality. As you have probably have discovered, buying decisions are many times influenced by buying habits. If you have a habit of always buying name-brand items, you may think that other brands are inferior. If you always shop at only one store, you may be passing up good prices offered at another store. Sometimes it is necessary to evaluate your habits to make sure you are learning to be a careful shopper. Advertising can have a strong influence on a person’s buying decision. Advertising is everywhere. It’s found in newspapers and magazines on television and radio. It is even found in subways on taxis, and on trucks. What ever the form advertising offers many advantages. It lets consumers know what products of services are available. It introduces new products and tells people about the benefits of the product. It also lets people know abut sales. For example, the weekly food section in the newspaper is a great way to compare the best food buys for the week. Some advertising has a public service message. There are ads that warn people about the dangers of smoking, alcohol, and drugs. Other ads remind people to conserve natural resources or donate money to chartable organizations. There are also disadvantages to advertising. Sometimes it encourages people to buy things they don’t need. It can also be misleading. For example, some advertisements make exaggerated claims. One ad claims that 9 out of 10 doctors would want a certain type of pain reliever if stranded on a desert island. How many doctors were questioned? How are they chosen? What scientific laboratory conducted the study? Be careful of such claims. Advertising may use bright colors a catchy slogan or beautiful people to capture your attention. They may make a promise that something wonderful will happen to you if you use their product. Some advertising preys on fears and concerns. An advertisement may claim that without a particular product you may have bad breath, bad skin, or strong body odor. It may make you feel that you feel that you will not be as popular or something harmful might happen if you don’t use the product. Emotional reaction, however, have nothing to do with whether one product is actually better than another. You as a consumer can help to determine what remain on the market. A widely advertised product that does not meet people’s needs will go off the market because people will not continue to buy it. Advertising cannot force people to buy. Now that you are aware of the factors that may influence your buying decisions, begin to pay attention to your buying behavior. Are you buying products that are giving you the best value for your money? Are your peers or habits influencing your purchasing behavior? Are you responding to particular advertisements? When you understand what affects your buying decisions. You become a better consumer. You Are a Consumer – What Makes You Buy? Answer the following questions using the info sheet: 1. What is the difference between goods and services? 2. Name three things that teens might do to conform to their peer group. 1. 2. 3. 3. Why is it important to analyze your buying decision before going along with the peer group? 4. Explain how a habit can influence your buying decision. 5. List three places you might find advertisements. 1. 2. 3. 6. What are two advantages of advertisements? 1. 2. 7. What are two disadvantages of advertisements? 1. 2. 8. Name three techniques that advertisers can use to capture your attention. 1. 2. 3.