Chapter 6: Consumer Awareness
Learning Outcomes
Section 1: Buyer Beware
Identify ways companies compete for your money
Be familiar with marketing strategies that encourage people to go into debt for finance large purchases
Evaluate how peer pressure can affect spending decisions
Summarize factors that influence consumer decisions
Section 2: Buyer's Remorse
List five steps you should take before making a major purchase
Section 3: Opportunity Cost
Evaluate the role opportunity cost plays in purchasing decisions
Describe the effect of inflation on buying power
Vocabulary
Branding - The promotion of a product or service by identifying it with distinct characteristics (usually associated with public perception, quality, or effectiveness)
Brand Recognition/Awareness - refers to the public's ability to recall and recognize a brand by its logo, jingles, packaging, etc.
Buyer's Remorse - feeling regret or concern after making a large purchase
Caveat Emptor - Latin term for "buyer beware"
Financing - to buy an item with credit; paying over time
Marketing - the process of communicating the value of a product or service to customers
Opportunity Cost - refers to the financial opportunity that is given up because you choose to do something else with your money
Significant Purchase - an amount of money you spend that causes some pain to part with