Consumer Skills Chapter 33 1 Planning Purchases

Consumer Skills Chapter 33 1

Planning Purchases • Smaller purchases need no planning • More expensive purchases require a plan 2

Consumer Resources • 1. talking with friends or family • 2. research consumer magazines • Most reliable---– Consumer Reports – Consumer Research – Consumer Index 3

Impulse Buying • Purchasing something that you did not intend to buy • Avoid impulse purchases – Buy one and get one free – Stores set out samples 4

Getting Value at Sales • Just because it is on sale doesn’t mean it’s a bargain • 1. do you need it • 2. compare sale prices • 3. find out whether you can return it • 4. if model is discontinued what about replacement parts 5

Where to Buy • Specialty stores – Sells only a certain kind of merchandise – Carries wide selection, higher prices • Department stores – Wide selection of goods – different price ranges – Issue their own credit cards – Have their own customer services 6

• Discount store – Carries nationally advertised brands – Reduced prices – Sell lines of clothing and shoes – Lesser quality • Factory outlets – Manufacturers sell directly to shoppers – Low prices – Seconds – items that are slightly imperfect or out of production 7

Outlet Shopping • Unfortunate side effect • Stores with no connection to a manufacturer lease space in outlet malls • Shoppers must check, not assume, that a store truly offers merchandise from factories at discounted prices 8

Seconds & Irregulars • May only have cosmetic defects • Product’s appearance may suffer but not its performance 9

• Warehouse clubs – Charge lower prices – Buy in bulk and furnish store sparsely – Customers pay a membership fee – Variety of goods from bulk groceries to home furnishings to clothes 10

Mail-Order Companies • Varied as stores • Rely on mail-order sales for income • Customers pay shipping and handling fees and sometimes a sales tax • May have to pay to return an item 11

Mail Order Shopping • Will ship an item to another address and not just to yourself • Ordering can put you on their mailing list • To have your name removed: – Mail Preference Service – Direct Marketing Association – 11 W. 52 nd ST – Box 3861 – New York, NY 10163 12

Electronic Shopping • Cable television • Home shopping networks • Order products by calling a toll-free number • Pay by credit card or check • Can return items you don’t want 13

Infomercials • • Air in early morning or late at night Cheaper air time Hosted by celebrities Beware of their claims 14

Direct Sales • • Door-to-door salesperson Cosmetics, vacuums, encyclopedias Decreased at this point May set up appointments 15

Other Shopping Alternatives • Yard and garage sales • Flea and swap meets • Classified ad in newspaper 16

Real Life Application • Browsing at a flea market, Edgar noticed a framed, autographed baseball card of his favorite player. It was priced at $20. Edgar believed it was worth at least five times that. The seller said the man who sold her the card claimed it was authentic. 17

• 1. Do you think the card is genuine? • 2. What factors besides monetary value are involved in his interest in the card? • 3. What role does emotion play in buying items? 18

Comparison Shopping • 1. Compare products – Quality • Performance – Ask for demonstration (camera, television) – clothing, /shoes try them on 19

• Convenience, Maintenance, Durability – Reading care labels and service manuals – Indicate location of repair centers – Read instructions 20

• Safety – Underwriter’s Laboratory (UL) • Agency that tests electrical products for safety • Check label to see if clothing and furniture are flame retardant or flame resistant 21

Comparison Shopping • 2. Price – Lowest-priced item not always the best buy • Hidden costs – expenses of time, energy and money not included in the purchase price 22

3. Hidden Costs • Travel – Time and cost of traveling to make purchase – Low cost item not low cost if it is far to get there (Bismarck vs Beulah) • Maintenance – Cost of care – Can you afford replacement parts – Washable vs dry cleaning 23

• Extras – Consider price of batteries and accessories • Exchanges – If you can exchange a defective item or replace at your extra expense 24

4. Warranties • Is the manufacturer’s or retailer’s promise to repair or replace a defective product, or to refund the customer’s money 25

Warranties…. . • Name and address of company or person to contact • Precise account of what is covered • Length of warranty • Specific procedures to follow to ship it back • Any requirements the purchaser must meet • Length of time the manufacturer has in which to fix the problem 26

By telephone • • Most accessible consumer resource Saves time, energy, and gasoline Compare over the phone for best price Talk to a helpful sales associate and take their name in when visiting the store 27

Did You Know? • Merchandise being returned that is lost en route, the consumer must either pay for the lost item or provide proof that it was mailed such as a post office, Federal Express or a UPS receipt 28

Good Housekeeping Seal of Approval • Sign of product quality • Checks claims of various products • Showed product passed test claimed on label 29

• BE A CAREFUL CONSUMER 30

Activity • Choose an item to purchase • Make a list of features you want • Select 3 to 4 brands and check them out 31