Chapter 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 Idea
 Consumers 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 Services
A consumer must decide:
What to buy
When to buy
Where to buy
How much to pay
Deciding What to Buy
When 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 Buy
 Postponing or planning a
purchase can sometimes save you
money
 Buying AC units or bathing
suits in the winter
 Buying coats or winter clothing
in the summer
Deciding When to Buy
 Stores 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 Buy
There are three factors that affect a consumer’s
decision where to shop:
 The kinds of goods and services sold
 Prices
 Convenience
Department Stores
Because department stores offer brand names and
customer service, their prices may be higher than
other types of stores.
Examples:
Sears
JCPenny®
Macy’s®
Discount Stores
Discount stores can sell for less because they offer
fewer services and keep large quantities of goods.
Examples:
Wal-Mart®
Kmart®
Off-Price and Outlet Stores
Off-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 Retailers
Limited-line retailers, or specialty stores, have a
variety of items and high levels of service and
expertise.
Examples:
Foot Locker®
PetSmart®
Ace Hardware®
Superstores
Superstores sell groceries and a wide variety
of items such as books, hardware, and
clothing.
Examples:
Target®
Wal-Mart®
Convenience Stores
Convenience stores offer limited
lines of products, mostly grocery
items.
Example:
7-Eleven®
Warehouse Stores
Warehouse stores carry a huge
selection of goods at low prices
and in bulk quantities.
Examples:
Costco®
Sam’s Club®
Shopping at Home
Consumers can shop at home
through TV channels,
catalogs, or the Internet.
Many retail stores mail
catalogs to consumers.
Deciding How Much to Pay
Comparison 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.