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Impulse buying: buying on the spur of the
moment, unplanned items
Loss leaders: You go to buy a sale item,
then spend more money on extras
Multiple pricing encourages buying
more…3/$1.00
Specials…buy one get one
Celebrity endorsement
Create brand recognition… Kleenex vs.
facial tissue
Advertisements to appeal to basic needs
Positive images
If the claim is too good to be true, it
probably is
Manufacture and store coupons
In store samples, free mailed samples
 Usually
offered on national brands
 Use coupons when the final cost is less than
other brands
 Often used to get consumer to try new
products
 Consumer often purchases items they don’t
need or use
 Rebate coupons…often require original
receipt and proof of purchase
Eggs and dairy are
at the back so
you have to pass
all the isles of
sales and junk to
get to it
•Fresh produce, meat and dairy are around the
perimeter of the store, convenience and junk food
are on the inside
•Stick to the perimeter of the store most of the
time
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Price per unit…ounce, quart, pound or other unit
to show best value
Unit price…total price divided by the number of
units
Unit pricing is often figured and listed on the
store shelf
Unit pricing is a way to compare brands and sizes
Largest package isn’t always the least expensive
Larger package may not always be the best buy if
the product isn’t going to be used before the
expiration date
Cost per serving…total price divided by the
number of servings
Cost per serving is often used to compare two
different types of foods
 Prepare
a categorized shopping list.
 Shop alone
 Avoid shopping when you are tired or hungry.
 Take a calculator
 More
and more meals are eaten
outside of the home
 Greater variety of types of
foods available
 Fast food meals often are
higher in fat and salt
 Portion sizes may be larger
which encourages overeating
 On a limited budget, reducing
the amount of food eaten out
can save money
 Store
brands are foods without
name/national brand names
 Store brands usually less expensive and often
same quality
 Check unit pricing of brands to compare
 Buy for intended use
 Food
dollars may be
evaluated by keeping a
spending record
 Is helpful when
determining how to
reduce the amount of
money spent on food
 Includes money spent on
food preparation in the
home as well as food
prepared outside the
home
 We
decide to satisfy a need by making a
purchase.
 We then determine that we can afford the
cost.
 Then we look at the alternatives (choices)
available to us in regards to that purchase
(new car or used car, etc)
 The
amount of information we gather will
depend on whether the product is
consumable (used up or thrown away after
use) or not.
 You will usually make a more satisfying
purchase of reasonable expensive items if
you research your alternatives.
 1.
Quality: Is the product well constructed?
 2. Cost: What is the lowest price for this
product?
 3. Availability: Where is it available? Is it in
stock?
 4. Warranty: If I’m not satisfied, may I return
the product for a full refund?
 5. Reputation: Reputation is the general
opinion people have of a person or company.
 Family
and Friends: Usually people you know
have made a similar purchase and can supply
you with a fair amount of information.
 Advertising:
Advertising helps identify
alternatives to a particular product or
service. It often provides information about
availability. Remember that advertising does
not present the disadvantages of a product.
 Sales
and Informational Brochures: The
ultimate purpose of an advertising brochure
is to sell products. But brochures are usually
more factual than other forms of advertising.
 Catalogs:
No matter what you are shopping
for, mail-order catalogs provide a quick
reference. In the comfort of your own home,
you can compare features and prices of
similar items from the different catalogs.
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Magazine and Newspaper Articles: Magazines
often have articles or advertisements about
products. You can learn much about a product
from these articles and advertisements.
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Consumer Product-Testing Organizing: There are
two major independent, non-profit consumer
product testing organizations. Their publications
are Consumer Report and Consumer Research.
One can look in these publications to see how
different brands of the same product compare.
The publications accept no advertising and so
their opinions are not biased.
 1.
What parts are covered by the warranty?
 2. Does the warranty cover the labor
required to repair the product?
 3. How long is the warranty in effect?
 4. If the product must be sent away for
repair, who pays the cost of shipping and
handling?
 5. What is required to keep the warranty in
effect?
 After
gathering information on a variety of
choices that you think would satisfy your
needs, evaluate your alternatives.
 Wise
consumers can save hundreds of dollars
by learning to shop sales. Many stores have a
sale cycle.
 This
means that every three or four weeks an
item will be on sale.
 Look
for ways to reduce spending. Consider a
less costly telephone plan, use coupons when
you shop, or eat out less.
 Search for the best buy. Sometimes it’s
better to spend time than money.
 Be aware of where your money is going and
plan ahead to better handle unexpected
expenses.
 Look for free items. Borrow books, CDs and
videotapes/DVDs from the library versus
buying (or renting) them.
 Workout
at home.
 Consider shopping at thrift shops,
consignment shops, garage sales and other
places that sell used items.
 Don’t pay for a service you can do yourself.
 Say no to impulse shopping. Ask yourself if
you really need this item or if there is
something else you want more.
 If you can, avoid using credit cards since
buying on credit ties up future income.
 Watch
out for money drainers – items that
you buy on a regular basis that can eat up a
sizable part of your income. For example, $1
a day for a can of soda between classes can
add up to more than $250 a year. Think
about things you buy regularly that may be
money drainers (such as snacks, magazines
(buying People magazines every week, etc.)