Download Chap20

Chapter 20
Personal Decision Making
Making Better Decisions
Spending Habits
© South-Western Educational Publishing
Lesson 20.1
Making Better Decisions
GOALS
 Apply the decision-making process
to solve consumer problems.
 Explain economic needs and wants
that influence consumer decision
making.
© South-Western Educational Publishing
The Decision-Making
Process
Step
Step
Step
Step
Step
Step
1:
2:
3:
4:
5:
6:
Define the problem
Obtain accurate information
Compare choices
Make a decision
Take action
Re-evaluate
© South-Western Educational Publishing
Economic Wants
and Needs
Basic needs
Individual wants
Collective values
© South-Western Educational Publishing
Individual Wants
Values
Personal preferences
Income
Leisure time
© South-Western Educational Publishing
Collective Values
Legal protection
Employment
Progress
Quality of environment
Public and government service
© South-Western Educational Publishing
Lesson 20.2
Spending Habits
GOALS
 List and describe factors that
influence spending decisions.
 Analyze marketing strategies that
influence spending decisions.
© South-Western Educational Publishing
Factors that
Influence Spending
Personal Factors
Personal resources
Position in life
Customs,
background,
and religion
Values and goals
Outside Factors
The economy
Technological
advances
The environment
Social pressures
© South-Western Educational Publishing
Planning Major
Purchases
Questions to ask before making a purchase
 Why do I need or want this product?
 How long will this product last?
 What substitutes are available and at what cost?
 By postponing this purchase, is it likely that I will
choose not to buy it later?
 What types of additional costs are involved?
 For what other purposes might I use the money
spent on or committed for this purchase?
 What is the total cost of this product?
© South-Western Educational Publishing
Marketing Strategies
that Influence Spending
Advertising
Pricing
Sales
Promotional techniques
© South-Western Educational Publishing
Advertising
Product advertising
Company advertising
Industry advertising
© South-Western Educational Publishing
Promotional Techniques
Displays
Contests and games
Coupons
Frequent-buyer cards
Packaging
Sampling
Micromarketing
© South-Western Educational Publishing