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31 Cards in this Set
- Front
- Back
Factors that determine save, spend, invest, acheive goals
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- economic
- social - personal |
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economic factors
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inflation
interest rates tax rates government regulations product safety |
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social factors
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lifestyle
interests peer group hobbies culture advertising media |
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personal factors
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gender
age occupation income family size education marital status |
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practical purchasing strategies
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timing purchases
store selection brand comparison label information price comparison |
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store selection based on:
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location
product selection services offered competition and technology have changed retailing cooperative: alternative |
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national brand
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highly advertised
available in many stores more expensive consistency of quality |
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store brand, private label
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sold by one chain of stores
low-cost alternative identify with specific retail store frequenly manufactured by same co's thta produce brand-name counterparts |
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label information - open dating
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freshness or shelf life of perishable product
use before do not sell after |
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Price comparison
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Unit pricing
- divide price by # units of measurement - compare for various sizes, brands, stores coupons and rebates |
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warranties
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written guarantee from manufacturer or distributer
specifies conditions under which products can be returned, replaced, repaired |
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express warranty
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usually written
created by seller or manufacturer two forms 1. full warranty 2. limited warranty |
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implied warranty
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covers products intended use or other basic understandings that are not in writing
1. implied warranty of title 2. imlied warranty of merchantability |
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Phases of Major Consumer Purchases
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1. Preshopping Activities
2. Evaluating Alternatives 3. Determining Purchase Price 4.Post Purchase Activities |
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Pre-Shopping Activities
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PROBLEM IDENTIFICATION
INFORMATION GATHERING - Personal contacts - business organizations - media info - independent testing orgs - government - online |
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Evaluating Alternatives
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- delay purchase or buy now
- cash or credit - which brand - price, quality, service - rent or buy |
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when comparison shopping is beneficial
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items are expensive or complex
items are purchsed often comparison shopping can be done easily product quality or prices vary greatly |
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types of vehicle options to choose
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mechanical devices
convenience options aesthetic features |
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Common sources of used vehicles
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new car dealers
used car dealers individuals selling on own auctions dealers selling previously owned buy businesses, gov't, or rentals used-car superstores online used car businesses - dealernet.com - americasautomall.com |
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Advantages of Leasing
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1. small cash outflow
2. lower monthly payments 3. detailed records for business purposes 4. more expensive vehicle, more often |
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disadvantages of leasing
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1. no ownership interest
2. need to meet credit requirements 3. possible additional costs incurred for extra mileage, repairs, turning in early, moving 4. ALWAYS HAVE A PMT |
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how to determine a purchase price for a car
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- negotiation
- price bargaining for new cars |
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low balling
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quoted a low price
price increases when add-on costs are included at last moment |
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high balling
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offered very high amount for trade-in vehicle
extra amount is made up by increasing new car price |
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financing alternatives
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cash
credit loans available from: - banks - credit unions - consumer finance companies - financial institutions preapproval : separates financing from negotiating loan length - consider upside down or negative equity low interest financing APR |
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post purchase activities
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1. Maitenence and ownership costs
2. automobile operation costs -fixed ownership costs - variable ownership costs |
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largest automobile fixed expense
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depreciation
-decreased value |
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Steps to resolve consumer complain
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1. return to place of business
2. contact company headquarters 3. obtain consumer agency assistance 4. take legal action |
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mediation
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use of third party to settle grievances
use an impartial person resolve conflict through discussion and negotiation non-binding save time an $ |
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arbitratin
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settlement of differences by third party - arbitrator
legally binding decision both sides must agree both sides present case |
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organizations that help resolve complaints
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-national orgs that specialize
- better business bureau - mediation - arbitration - government agencies - federal agencies |