98b83f53dc459a3a775c53ffa3c3a304.ppt
- Количество слайдов: 36
Buying Goods & Services PERSONAL FINANCE
Learning Objectives: Consumer Purchasing Determine the factors that influence buying decisions Explain a research based approach to buying goods and services Identify strategies for making wise buying decisions
Factors that Influence Buying Decisions Wise Buying Decisions are smart money management Help to get the most out of products Enable you to meet your long term financial goals
Factors that Influence Buying Decisions Activity Make a list of economic factors and social factors that can influence buying decisions
Factors that Influence Buying Decisions Economic Factors Prices Interest rates Product quality Product safety Convenience Maintenance costs
Factors that Influence Buying Decisions Social Factors Lifestyle Interests, Hobbies Friends Culture Advertisements
Factors that Influence Buying Decisions Trade-offs and Buying Decisions Needs vs. Wants Price vs. Quality Online time saving vs. Return hassles Buy now on credit vs. Higher Cost
Online Shopping http: //www. cbsnews. com/news/docompanies-charge-online-shoppers-differentprices/
Research Based Approach to Consumer Purchases Before You Shop Weighing Alternatives Making the Purchase After the Purchase
Phase 1: Before You Shop Identify Your Needs Gather Information Costs Options – what is produced and where is it available Consequences – Is It In My Budget? Routine vs. Expensive Purchases Sources of information: recommendations, ads and packaging, reports, websites Be Aware of the Marketplace
Phase 2: Weighing the Alternatives Identify What is Important to You Compare Prices Do Comparison Shopping
When to Comparison Shop Complex or Expensive Item Frequent Purchase Use of Internet, Print Ads or Mail Order Catalogs Different Sellers Offering Different Prices & Services Product Quality or Price Varies Greatly
Phase 3: Making the Purchase Negotiate Price Decide on Credit or Cash Source of Loan (parents, bank, credit card) Type of Credit Account Payment Period Amount of Down Payment Know the “Real” Price Consider extra fees (installation, delivery)
Phase 4: After the Purchase Manage Additional Costs Responsibly Know what to do in case you are not satisfied with the product Return Policies Customer Complaints Know How to Maintain the Product
CAR BUYING PROCESS PERSONAL FINANCE
Phase 1 – Before you Shop Identify your wants and needs What features would you like Prioritize your wants Be realistic about your needs Identify and Research Choices Consumer Reports, Edmund’s, Car and Driver
Phase 1 – Before you Shop Determine what you can afford Budget for maintenance costs, gas, insurance Decide how you will pay Pre-Approval – being qualified for a certain amount for a loan prior to buying a car, good for 30 -60 days Check Insurance Rates Call your insurance agent for a preliminary quote
Phase 2 – Evaluating Alternatives Search for Available Vehicles Internet, Classified ads, Auto Trader, Dealerships Test Drive Vehicle Decide whether to buy New or Used New: Loses 20% of value in the first year; will probably come with warranty Used: Typically no warranty; will be less expensive than buying new
Phase 2 – Evaluating Alternatives Check History of Used Vehicles Use Vehicle Identification Number (VIN) to check car’s history using Carfax; will list all previous owners, accidents, mileage at each sale Get Used Vehicle Checked Mechanically Have a mechanic conduct compression test, check the transmission, tires, brakes, etc. Ask the seller for records of maintenance, emissions test, and inspections
Phase 2 – Evaluating Alternatives Research Price Check Kelley Blue Book Fair price based on year, mileage, condition of car (used cars) Sticker price – Manufacturer’s Suggested Retail Price (MSRP); posted in the window Invoice price – what the dealer paid for the car Negotiated price is likely to be 3 to 6 percent above invoice price
Phase 3 – Making the Purchase Negotiate the Price Make your initial offer lower than the maximum you are willing to pay Negotiate new car price separate from the trade-in Do not let your emotions show Sell your old car rather than trading it in if the dealer does not offer you a reasonable amount
Phase 3 – Making the Purchase Financing Your Car Loans are offered in 36, 48, 60 and 72 month terms Longer terms mean you pay more in total Compare interest rates Can finance at most dealerships through finance companies Watch for promotions
Phase Lease 3 – “Making the Purchase” Option Renting car for set contract period Can buy out car at end of lease Usually limits mileage No large down payment required You do not own the car at the end of the lease
Phase 4 – After the Purchase Maintenance and Repairs Yearly state inspection/emissions test Oil changes every few thousand miles Tune-ups Major repairs Tires
Consumer Protection Warranty – written statement about the car’s quality; protects certain parts for stated time period Warranties usually run out after stated time or mileage, which ever comes first Service Contract – “extended warranty”; separately purchased agreement to cover repairs (extra cost) Lemon laws protect owners who bought “lemons”; allows you to get a new car or your money back
Lemon Laws What is a lemon vehicle? What are lemon laws? http: //video. foxnews. com/v/4927304702001/h ow-to-spot-a-lemon-when-shopping-for-acar/? #sp=show-clips
Buying Goods & Services Cont. PERSONAL FINANCE
Smart Buying Strategies How Can You Make an Informed Purchase Decision? Timing of Purchases Store Selection Brand Comparison Label Information Research Price Comparison Warranty Evaluation
Smart Buying Strategies Timing of Purchases Price variations by time of year (season) Store selection Location Price Selection Services
Smart Buying Strategies Brand Comparison National Brand Private Label or Store Brand Label Information Open Dating (shelf life of products)
Smart Buying Strategies Price Comparison Unit pricing = standard of measurement Coupons and rebates More store convenience higher prices Ready-to-use products higher prices Large not always the best buy (check unit price, usage) “Sale” prices not always a savings Online sources can save time
Smart Buying Strategies Warranties Written guarantee from manufacturer or distributor specifying conditions under which a product can be returned, replaced or repaired. Express warranty (usually written) Full Warranty (covers entire product, period of time) Limited Warranty (covers only certain parts of a product)
Smart Buying Strategies Warranties (continued) Implied warranty (covers intended use) Warranty of title – seller has a right to sell a product Warranty of merchantability – product is fit for use
Resolving Consumer Complaints Learning Objectives: Describe consumer rights and responsibilities Describe what consumers can do when they have problems with products and services Describe how consumers can be defrauded
Resolving Consumer Complaints What are some sources or examples of consumer complaints?
Sources of Consumer Complaints Defective product or poor quality Deceptive advertising Unexpected costs
98b83f53dc459a3a775c53ffa3c3a304.ppt