Educated Consumer Buying

In this essay, the topic of becoming an educated consumer will be discussed in terms of increasing one’s buying power. Aspects of being an educated consumer include prices and consumer choices. The prices are affected by consumer choices because the more people buy a product the lower the price goes. Also, the less a product is brought the more expensive it gets. Prices vary annually in the market considering who is buying a certain product and for how much. Products such as microwaves, cars, homes, and clothing items have varying prices depending on the consumer choices.
For one, the prices of products can be set depending on cost-recovery pricing, cost-plus pricing, value-based pricing, and market-based pricing. In the past year, my family has purchased products which include a bedroom set, dining table utensils, and clothing items such as sweaters. I believe the prices of the items are determined by market-based pricing. According to the textbook, market-based pricing is the process of setting prices to be …show more content…
Also, value-based pricing is set on the basis of how much consumers are willing to pay, which is in complete opposition to market-based pricing. In addition, the products that my family has purchased which include a bedroom set, dining utensils, and clothing items such as sweaters were all purchased with intent of optimizing. As mentioned in the textbook, optimizing is the process of getting the highest value for the money spent on a specific item. When my family purchased the dining utensils they had intent of getting the best deal possible to ensure that our money was well spent. Also, in the situation of my family purchasing clothes, they had the intent of optimizing. Due to the fact that, we purchased clothes for a reasonable amount of money that would award us the highest value for our money