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55 Cards in this Set
- Front
- Back
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Overlooked tradeoffs
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-Paying a higher price overtime by using credit
-buying poor quality brands -brands difficult to repair -time and effort to comparison shop -if by main or online-difficult to return |
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factors of consumer purchase
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economic, social, personal
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economic factors
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-consumer prices
-interest rates -supply/demand -brand name -warranty -product quality -tax rates gov. regulations |
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personal factors
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-Income
-education -family size -house -ethnicity -religion -sex/age -occupation -marital status |
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Social factors
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-lifestyle
-culture -attitudes -ads/media -hobbies -peers |
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practical purchase strategies:
Timing purchases |
price varies with time of the year
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practical purchase strategies:
Store selection |
-cooperatives
-retailer depends on location, price and product |
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cooperatives
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non-profit organization where members save money
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practical purchase strategies:
price comparison |
-unit pricing is a standard of measurement
-coupons -convenience and ready to use are often higher prices |
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practical purchase strategies:
evaluate warranties |
-warranty of title
-full or limited express warranty usually written -implied warranty-normal use |
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warranty title
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right to sell the product
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Buying motor vehicle process
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1) Pre shopping activities
2) evaluate alternatives 3) Determine Purchase price 4) post purchase activities |
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pre shopping activities
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-problem identification
-information gathering: ---media/reports/personal/business/online/gov. agencies |
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evaluate alternatives
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-Compare/compare used vehicles
-vehicle options- appeal, convenience -leasing |
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Leasing a car
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-low payments/small cash initially
-no ownership -maximum miles per year- charged for extra -no monthly cost/money factor/number of payments/residual factor |
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Determining purchase price
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-Negotiation for new and used
-compare financing alternatives |
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Negotiation for new and used
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-know information
-Deal with person of authority for discount -used cars-kellybluebook, newspapers -new cars- set price dealers, car buying services |
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Compare financing alternatives
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-variety of lenders and some may pre approve you
-avoid negative equity -look for rebates or low-interest financing -consider APR-total finance charge |
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post purchase activities
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-lemon laws
-automobile operation cost-use correctly -motor vehicle maintenance- fixed and variable expenses -servicing sources- Walmart, garages, dealers |
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resolving consumer complaints
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1) local communication: return to place of purchase
2) higher-level communication: contact company's main office 3) third party involvement: assistance from consumer agency 4)litigation- take legal action |
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steps to resolve conflicta
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1-return to place of purchase
2-contact main office 3-assistance from consumer agency 4-legal action |
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assistance from consumer agency
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mediation- third party negotiations- non binding
Arbitration- decision is binding - state consumer protection agency -federal agencies |
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mediation
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third party negotiations- non binding
Mediator tries so solve dispute through talking and negotiating |
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Arbitration
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mediator listens to both sides and makes a decision that is legally binding
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legal action
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-small claims court
-class action suits -lawyer -legal aid/prepaid legal services -personal consumer protection |
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Personal consumer protection
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Follow common sense guidelines on dealing with reputable companies, signing contracts, exaggerated offers, credit vs. cash purchase and rushing to get a deal
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impulse buying
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unplanned buying
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open dating
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information about freshness or shelf life found on the package of a product
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unit pricing
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The use of a standard unit of measurement to compare the prices of packages of different sizes
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rebate
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partial refund of the price of a product
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warranty
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written guarantee from the manufacturer that specify the conditions under which the product can be returned, replaced or repaired.
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express warranty
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written form by seller
2 forms: full warranty and limited warranty |
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full warranty
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can be fixed during a reasonable amount of time
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limited warranty
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only covers certain parts or asks buyer to pay for shipping or other costs
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implied warranty
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covers products intended use or other understandings that are not written
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FTC
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Federal Trade Commission- for used car- requires sellers place a sticker in windshield saying what type of warranty it is and type of protection the dealer will provide
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service contract
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agreement between business and consumer to cover the repair costs of a product
(extended warranty |
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residual value
capitalized cost money factor |
expected value at end of lease
cost of vehicle interest rate on top of capitalized cost |
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sticker price
invoice price |
suggested retail price
dealers price -range in between is for negotiations |
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set-price dealers
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no haggling-wither accepted or rejected
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car-buying services
(autobroker) |
help buyers find a specific new car at a reasonable price
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lowballing
highballing |
quoted at very low price that increase when add-on costs are included at last moment
when offered very high amount for trade in vehicle with the extra amount made up by increasing new car price |
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upside down/negative equity
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value of car being less than the amount you still owe.
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APR
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ANNUAL PERCENTAGE RATE- best indicator of the true cost of credit
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lemon laws
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require a refund for the vehicle after the owner has made repeated attempts of servicing
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depreciation
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loss in vehicles value due to time and use
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better business bureaus
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network of offices that resolve complaints against local merchants
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small claims court
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person may file a claim involving amounts below a set dollar limit
no lawyer |
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class-action suit
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legal action taken by a few individuals on behalf of all the people who suffered from the same alleged injustice
The "class" is represented by one lawyer or a group of lawyers |
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legal aid society
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network of publicly supported community law offices that provide legal assistance to people who cannot afford their own attorney
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prepaid legal services
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unlimited or reduced-fee assistance for a set amount
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young, single lie stage
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-renting is little maintenance and offers mobility
-purchase home or condominium for finacial and tax benifits |
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young couple, no children
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-rental offers convenience and flexibility of lifestyle
-purchase house for benefits and long term financial security |
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single parenting
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-rental can provide good environment and sense of home security
-purchase low maintenance housing to meet needs for financial ad social needs of family. |
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couple, children moved out
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rentals for convenience and flexibiliy for financial changes
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