how do you decide what product to buy? do you consider different options before you decide? do...

How do you decide what product to buy?

Do you consider different options before you decide?

Do your friends or families influence you?

Values – › are your principles, the standards by which

you live.

Values Change – › they are not constant. Your values change

as you learn and grow.

Goals- › The things you want to accomplish in life are

your goals. They come from your values, your needs, and your hopes and dreams.

Needs- › are the things you can’t live without. Everyone

needs a minimum amount of food, water, clothing, and a place to live.

Wants- › are the things that you would like to have but

can live without. Example: new video game. 

Life Cycle- Important events in your life, such as preparing

for a career, raising a family, or enjoying retirement, are parts of your life cycle.

Long-Term Goals- goals that you want to achieve over a period of

years during your life span.

Life Span- is the time from your birth to your death. It

includes events that make up your life cycle.

Short-Term Goals- are the things you hope to accomplish within a

year. Example: Save $500

Opportunity Costs- is the value of your next best alternative

whenever you make a choice. Example: The opportunity cost for buying a

CD could be the baseball hat you also wanted, but you didn’t have money for both.

What is meant by the following terms? Values (Are they constant?) Goals (short and long term) Needs Wants Life span Life cycle Opportunity cost What purchasing decision have you made in the

last week? What was the opportunity cost of that decision?

Set yourself goals in the following areas:› One year goal› Five year goal› 10 year goal› 20 year goal

How do you make decisions?

Rational Buying Decision- is a choice made in an organized, logical

manner. 

Impulse Purchase-› is a purchase made on a whim, without using

a decision making process.

Buyer’s Remorse-› regretting a purchase decision you have

made.

Decision Making Process- Specify-Identify the need or want that you

are trying to fulfill. Determine your goals. Search-Plan specific steps to gather

information. Sift-Look at all of your options. Look at

your opportunity costs. Select-Make a choice and act on it. Study- Evaluate the result.

Think about the last purchase you made. What need or want were you fulfilling? What were your goals? What values contributed to your goals?

What is meant by the following terms which occur in the buying process?

Rational Buying Decision The Decision Making Process

Specify Search Sift Select StudyImpulse Purchase Buyer’s Remorse

Task: Task: Complete questions 1 – 6 on page 15