Making Consumer Decisions. Chapter 22

Transcription

1 Making Consumer Decisions Chapter 22

2 In your opinion, what are the pros and cons of brand name and generic products?

3 Brand Name word or name on the product that distinguishes it from competitors. Usually in colorful displays or cartoons Nike swoosh, McDonalds Golden Arches Brand Name vs. Generic

4 Generic plainly labeled, unadvertised, and sold at lower prices. Most are either medicines or grocery items On the average, generic products cost 40 percent less than name-brand products. Why? The name main reason is because they are not advertised but are usually the same as brand name. Brand Name vs. Generic

5 Which would you buy?

6 Can you identify the company?

7 Winter clothes Why? Summer clothes? Why? A new car Why? When to buy?

8 Department stores Sell a wide variety of goods Have different departments Examples Sears JC Penny Discount stores Sell wide variety of goods, but at lower prices Offer fewer services, but stock a lot of merchandise Examples K-Mart, Wal-Mart Where to buy?

9 Off-Price & Outlet Stores Brand name products at lower prices Items may have flaws or defects Examples TJ Maxx Nike Outlet Stores Limited-Line Retailers Sell large assortment of goods in one type of product Examples Foot Locker Lids Where to buy?

10 Superstores/Hypermarkets Sell groceries and department store items Examples Super Wal-Marts Meijer Warehouse Stores Huge selection of food and non-food items Sold in bulk Examples Sam s Club Costco Where to buy?

11 Showroom Retailers Samples of products are displayed in a showroom You purchase item, but it is delivered to you at a later date Examples American Mattress Any type of furniture store Shopping at Home Using Internet, TV, catalogs Examples Home Shopping Network TV Infomercials Where to buy?

12 Checking the price and quality of a product in more than one store. Most important when making a major purchase Examples car, computer, appliance, television, etc. Comparison Shopping

13 Which is the better buy? Tide Detergent Powder 33 oz $5.15 Powder 87 oz $11.55 Unit Price: the cost of an item for a standard unit of measurement per ounce per pound

14 Which is the better buy? Tide Detergent Powder 33 oz $5.15 $.1561/oz Powder 87 oz $11.55 $.1328/oz Unit Price

15 Rational advertising Ad tries to convince you using facts Mac vs PC Emotional advertising Ad tries to appeal to your feelings Nike Training Being a smart consumer

16 Read consumer magazines Consumer Reports Rate products Shop during sales Can save up to 15% Promotional sale: give you a special buy on a new product Clearance sale: sale to clear out goods to make room for new ones Loss Leaders: advertised products that sell for a loss to bring customers to the store Wal-Mart is notorious for using loss leaders Being a smart consumer

17 Use shopping lists Cuts down on unplanned purchases Impulse buying: purchasing things on the spur of the moment Resist pressure from salespeople Free gifts Adds on like socks, shoes, shoe laces Added warranty or services Being a smart consumer

18 Warranty States rights and responsibilities of the buyer and seller Full warranty Good for a stated period of time 90 days, 1 year, 10,000 miles Limited warranty Cover only certain parts of a product Being a smart consumer

19 Businesses want to reach a certain group of customers a business So they decide how to create advertising (commercials, print ads, radio ads, online ads) to aim its marketing efforts and ultimately its merchandise towards. Target markets are based on: Age Gender Interests What the competition offers Socioeconomic status What is a target market?