tailieunhanh - Lecture Focus on personal finance: An active approach to help you develop successful financial skills (2e) - Chapter 6

Chapter 6 - Consumer purchasing strategies. In this chapter, you will learn to: Implement a process for making consumer purchases, describe steps to take to resolve consumer complaints, describe steps to take to resolve consumer problems, evaluate legal alternatives available to consumers. | 6 Consumer Purchasing Strategies Practical Purchasing Strategies Timing purchases Price variations by time of year (seasons) Store selection Location, price, selection, services Brand Comparison Private-label or store brands (sold by one chain) vs. national brands Label Information Open dating (shelf life of products) 6- Practical Purchasing Strategies Price comparison Unit pricing = standard of measurement Coupons and rebates More store convenience higher prices Ready-to-use products higher prices Large is not always best buy (check unit price, usage) “Sale” prices not always a savings (anchoring) Online sources can save time 6- Practical Purchasing Strategies Warranties Written guarantee from manufacturer or distributor specifying conditions under which a product can be returned, replaced, or repaired. Express Warranty (usually written); 2 Forms Full Warranty (covers entire product; fix or repair for a time) Limited Warranty (covers only certain parts of a product) Implied warranty (covers a product’s intended use) Warranty of title (says seller has the right to sell a product) Warranty of merchantability (product is fit for its use) 6- Warranties Used Car Warranties FTC requires a “buyers’ guide sticker” Tells if car has warranty and, if so, what it covers Warranty of merchantability (item fit for intended use) New Car Warranties Basic parts against defects Power train coverage (engine, transmission) Corrosion warranty (covers holes due to rust) Service Contracts “Extended warranty” 6- Research-Based Buying Major Purchase Decision-making Process Phase 1: Pre-shopping Activities Problem identification: prioritize needs and wants Information gathering: information is power! WHERE to go? Follow the RULE OF THREE (all major products and services) Phase 2: Evaluating Alternatives Price analysis (range of prices and differences in cost) Comparison shopping (especially complex and expensive items) Phase 3: Determining Purchase Price and Selection . | 6 Consumer Purchasing Strategies Practical Purchasing Strategies Timing purchases Price variations by time of year (seasons) Store selection Location, price, selection, services Brand Comparison Private-label or store brands (sold by one chain) vs. national brands Label Information Open dating (shelf life of products) 6- Practical Purchasing Strategies Price comparison Unit pricing = standard of measurement Coupons and rebates More store convenience higher prices Ready-to-use products higher prices Large is not always best buy (check unit price, usage) “Sale” prices not always a savings (anchoring) Online sources can save time 6- Practical Purchasing Strategies Warranties Written guarantee from manufacturer or distributor specifying conditions under which a product can be returned, replaced, or repaired. Express Warranty (usually written); 2 Forms Full Warranty (covers entire product; fix or repair for a time) Limited Warranty (covers only certain parts of a product) Implied