- State factors that one should take into account when making purchasing decisions
- Describe tactics that advertisers use to influence our purchasing decisions
Reading For This Module:
No textbook readings in Module 13
This video lecture discusses the importance of comparison shopping and prudent decision making. It also covers the Top 5 Consumer Complaints. When was the last time you compared multiple options when making purchasing decisions?
Introduction: Consumer Decision Making and Protection
The consumer decision making process is the way in which people gather and assess information and make choices among alternative goods, services, organizations, people, places, and ideas. It consists of the process itself and factors affecting the process.
A market is where buyers and sellers come together to engage in business. Sellers seek money from sales, consumers wish to buy something they want or need. The situation suits both parties, as long as they both gain from the exchange
Buyers want to buy products at the best price possible. However, in order to stay in business, retailers must ensure that they make a profit by selling products at a price which covers all costs and provides a profit for risk taking and future development. Costs include the price at which the product was purchased, staff costs, store operation costs, delivery and other overheads. Buyers have a right to expect that the goods are safe, properly described, priced correctly and will continue to work for a reasonable period of time.
In order to control the market, the government has introduced a number of laws giving customers rights about the quality of the goods they buy. It has created criminal offenses if sellers mis-describe, charge the wrong price or sell unsafe products.
Dr. Waller Lecture: Consumer Decision Making (video) (14:22)
This video covers consumer decision making and protection, how people decide what to buy by differentiating between “wants” and “needs”. Watch for the process and steps used in making decisions, outcomes, satisfaction/dissatisfaction (and options to act on them), and conditions under which decisions are made like intention, consideration, legal capacity and consent.
Consumer Decision Making Lecture PowerPoint (.pptx 20sl, 459KB)
These handouts provide information on comparison shopping. What should you look at when comparing products? Price alone does not tell everything.
Comparison Shopping (link)
How does advertising impact purchasing decisions? Does that logo on it make the shirt work better? Would you even know about that item if some funny commercial wasn’t on TV?
How does Advertising impact your buying decisions? (.pptx 30sl, 716KB)
How does Advertising impact your buying decisions? – Information (.pdf 2pp, 86KB)
Practice Quiz (does not count toward final grade)