Consumer ChoicesChapter 22.1

Introduction to Business and Marketing

Objectives Identify four decisions that consumers make when they

buy goods and services.

Compare brand-name and generic products.

Identify choices that consumers must make about when to

buy.

List several choices that consumers have when selecting a

store to make purchases.

Describe tools that consumers can use to compare prices

for goods and services.

The Main IdeaConsumers must make many buying

decisions

They must decide what, when, and where

to buy goods and services, and how much

to pay for them

Buying Goods and ServicesA consumer must decide:

What to buyWhen to buyWhere to buyHow much to pay

Deciding What to BuyWhen deciding what products they want to buy, consumers decide what is a top priority for them.

Buyers often associate quality with brand name products.

Despite a difference in cost, generic products may be equal in quality to some brand-name products.

Examples:Nike®

Kellogg’s®

Pepsi®.

Deciding When to BuyPostponing or planning a

purchase can sometimes save you moneyBuying AC units or

bathing suits in the winterBuying coats or winter

clothing in the summer

Deciding When to BuyStores often run specials

promotions during and after the holidays, just before the school year begins, and at the end of the season

When deciding when to buy, it often pays to wait until items go on sale

Deciding Where to BuyThere are three factors that affect a consumer’s decision where to shop:

The kinds of goods and services sold Prices Convenience

Department StoresBecause department stores offer brand names and customer service, their prices may be higher than other types of stores.

Examples:Sears

JCPenny®

Macy’s®

Discount StoresDiscount stores can sell for less because they offer fewer services and keep large quantities of goods.

Examples:Wal-Mart® Kmart®

Off-Price and Outlet StoresOff-price and outlet stores can offer big discounts because the items they sell may have flaws, may be out of season, or may be discontinued merchandise.

Examples:T.J. Maxx®

Stein Mart®

Loehmann’s®

Limited-Line RetailersLimited-line retailers, or specialty stores, have a variety of items and high levels of service and expertise.

Examples:

Foot Locker®

PetSmart®

Ace Hardware®

SuperstoresSuperstores sell groceries and a wide variety of items such as books, hardware, and clothing.

Examples:Target®

Wal-Mart®

Convenience StoresConvenience stores offer limited lines of products, mostly grocery items.

Example:7-Eleven®

Warehouse StoresWarehouse stores carry a huge selection of goods at low prices and in bulk quantities.

Examples:Costco®

Sam’s Club®

Shopping at HomeConsumers can shop at home through TV channels, catalogs, or the Internet.

Many retail stores mail catalogs to consumers.

Deciding How Much to PayComparison shopping is important for major purchases because the difference in cost can be significant.

Deciding How Much to Pay

Some people think the most expensive item is always the best product.

Sometimes the least expensive item or the one in the middle might be the best buy for the money.