Consumer Shopping Notes

Decision Making Steps

  1. Identify your needs and wants
  2. Why you intend to buy something?
  3. Ice Glass Method – could you wait?
  1. Factors to consider in choosing between goods and services
  2. Price
  1. Unit Price – divide the price of the item by the number of units per measure
  2. Choice 1 – 16 oz bag of frozen corn for $1.26 = ($1.26/16) = 7.9 cents per ounce
  1. Choice 2 – 8 oz bag of frozen corn for $.69 = ($.69/8) = 8.6 cents per ounce

Read each of the situations below. Use the information given to find unit prices and answer the questions:

-Mario went to the grocery store to buy hot dogs for a cookout. One brand cost $1.49 for a one-pound package. Another brand cost $1.19 for a 12-ounce package. Which brand would be the best buy for Mario? Explain.

1 pound package would be a good buy, since it costs less per ounce.

-Kris was looking through Sunday circular ads to find the best buy on her favorite shampoo. One grocery store advertised the shampoo for $3.69 for 18 ounces. A drugstore that also carried the shampoo advertised it for $4.15 for 27 ounces. Should Kris buy the shampoo at the grocery store or the drugstore? Explain.

At the drugstore, since the shampoo costs less per ounce.

-A grocery store ran a special on eggs, selling two dozen for $1.25. Normally, a dozen eggs cost 69 cents a dozen. Would a customer save money by buying the eggs on special? Explain.

Yes, but only a little.

-A single roll of a private brand of paper towels costs 73 cents, and a double-roll package of a name brand product costs $1.70. Alex had a coupon for 10 cents off the double-roll package. Would he save more money by buying two single rolls, or the double-roll package with the coupon? Explain.

2 single rolls

-Camille was trying to decide whether she should buy a 32-ounce jar of mayonnaise for 99 cents, or two one-pint jars for 45 cents a piece. Which decision would save her the most money? Explain. (Hint: There are 16 ounces in a pint.)

Buying 2 single pint jars

  1. Sales
  2. Promotional Sales – sales in which business promote the sale of regular merchandise by making temporary price reductions.
  1. Clearance sales – are used to clear merchandise that stores no longer wish to carry in stock.
  1. Time purchases
  2. Fruits/vegetables cheaper in peak time
  1. Winter clothing is often on sale in January
  • Quality – what product exemplifies superior quality?
  • Service – what company offers excellent service or service associated with a product?
  • Reputation – Irrational or Rational?
  • Brand Name – is a name given to a product or service that is intended to distinguish it from other similar and/or competitive products or services
  1. In your opinion, what is the most trusted brand?
  • Other Factors – Location, variety, etc. Anything else?
  1. Key questions to most efficiently satisfy your needs and wants:
  2. How much am I willing to pay?
  • What quality level will be acceptable?
  • How long am I willing to wait for a product?
  1. Why must we consider alternatives and make a choice?
  2. Scarcity
  3. Benefit Cost Analysis
  1. Take your time and do not get pressured
  1. Avoid Impulse buying – buying too rapidly without much thought
  1. Make decision to buy

Consumer Shopping Notes

Decision Making Steps

  1. Identify your needs and wants
  1. Factors to consider in choosing between goods and services
  2. Price
  1. Choice 1 –
  1. Choice 2 –

Read each of the situations below. Use the information given to find unit prices and answer the questions:

-Mario went to the grocery store to buy hot dogs for a cookout. One brand cost $1.49 for a one-pound package. Another brand cost $1.19 for a 12-ounce package. Which brand would be the best buy for Mario? Explain.

-Kris was looking through Sunday circular ads to find the best buy on her favorite shampoo. One grocery store advertised the shampoo for $3.69 for 18 ounces. A drugstore that also carried the shampoo advertised it for $4.15 for 27 ounces. Should Kris buy the shampoo at the grocery store or the drugstore? Explain.

-A grocery store ran a special on eggs, selling two dozen for $1.25. Normally, a dozen eggs cost 69 cents a dozen. Would a customer save money by buying the eggs on special? Explain.

-A single roll of a private brand of paper towels costs 73 cents, and a double-roll package of a name brand product costs $1.70. Alex had a coupon for 10 cents off the double-roll package. Would he save more money by buying two single rolls, or the double-roll package with the coupon? Explain.

-Camille was trying to decide whether she should buy a 32-ounce jar of mayonnaise for 99 cents, or two one-pint jars for 45 cents a piece. Which decision would save her the most money? Explain. (Hint: There are 16 ounces in a pint.)

  1. Sales
  1. Time purchases
  • Quality – what product exemplifies superior quality?
  • Service – what company offers excellent service or service associated with a product?
  • Reputation – Irrational or Rational?
  1. In your opinion, what is the most trusted brand?
  • Other Factors – Location, variety, etc. Anything else?
  1. Key questions to most efficiently satisfy your needs and wants:
  1. Why must we consider alternatives and make a choice?
  1. Make decision to buy