Chapter 2 Consumer Management Skills

What’s Most important? 2-1

• Priorities= your judgments about the relative importance of alternatives- what’s important to you?

• Needs= things you have to have in order to survive( food, clothing, shelter)

• Wants= things you desire

• Values= strongly held beliefs about what is worthwhile

• Standards= established levels of quality

• Goals= targets for what you want to accomplish

• Family life cycle= the series of stages through which a family passes

2-2 Managing Limited resources

• Resources – includes anything that is useful in the process of achieving goals

• Human• Time• Financial • Technology• Community• Natural

• Scarcity= satisfying unlimited wants with limited resources

• Opportunity costs= what you give up for something else

• Using Resources Effectively

Expand resources

Conserve resources

Substitute resources

Exchange recourses

Management Skills

• Management- process of using resources to effectively reach goals

• The Management Process

Plan

Organize

Implent

Evaluate

• Manage Money= budget

• Managing Time and Money=

Stay focused

Identify time wasters

Get organized

Plan ahead

Make a list

Take action

Make use of time

2-3 Making Consumer Decisions

• Impulse Buying = made on a whim, without thought or plan- results in overspending

• Decision Makings StepsIdentify decisionIdentify resources and collect infoWhat are your options? And weigh themChose your optionTake actionEvaluate the decision

Factors that affect consumer decisions

• Personal factors- needs, wants, goals, hunger, etc.

• Family Factors• Culture• Social Factors- fads, status symbol, brands• Economic = $$• Technology• Media• Marketplace• Legal and moral factors

2.4 Evaluating Information Sources

• Critical Thinking- applying reasoning strategies in order to make sound decisions

• Evaluating InformationWhat is the source of the info?What expertise does the source have?Credentials – license, or certificatesIs the Source bias? – Is the info fact or opinion?How can you confirm info?Is it supicisious?

Sources of Consumer Information

• Protection Agencies

• Professional Advisors

• Media sources

• Package info

• Advertising

• Sales people

• Other consumers

SHAMWOW

• http://www.infomercialratings.com/product/shamwow_reviews

• http://www.youtube.com/watch?v=QwRISkyV_B8