WHY DID I BUY THAT?

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WHY DID I BUY THAT?
I thought I wanted it, but I never use it. Or
It looked really cool. Does this sound familiar?

• Understanding consumer decisions

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LifeSmarts is a program of the National Consumers
League
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Money cant buy me love

• Purchasing goods and services is complex human
  behavior.

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Behavioral Economics

• The field of behavioral economics tells us
• Humans seem to be only partially rational.
• We sometimes make decisions that are not inour
  best interest.

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ir.ra.tion.al -adjective, without the faculty of
reason deprived of reason
Dictionary.com

• Recognizing the human capacity to be irrational
  at times is a helpful piece of information when
  examining choices.

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Needs and Wants

• We make consumer decisions based onneeds and
  wants that we can sort into threecategories
• Physiological
• Psychological
• Social

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Physiological Needs

• Some of our basic biological needs are food,
  water and shelter from the elements.

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Psychological Needs

• Our self concept,values, beliefs andattitudes
  all effectour decisions.

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Social Needs

• Culture, family, social class and reference
  groups all influence consumer behavior, too.

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What is a reference group?

• A reference group is one source of ourpersonal
  standards. Individuals look toreference groups
  to help them define whothey are or who they want
  to be.

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Common decision making strategies

• Analyzing decision making strategies canhelp
  you make good decisions or evaluatewhy a
  particular decision was unsatisfactory.

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Spontaneity

• Not dangerous if it isan occasional icecream,
  but if yourincome flows out andyou
  continuouslywonder where your paycheck went,
  youare in trouble.

• I just feel like it.

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Compliance

• An appropriatestrategy when youare sent to the
  grocerystore with a list, butthink twice if you
  arebuying the latestelectronic gadget
  justbecause your friendshave one.

• Ill just go along.

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Procrastination

• This could be positiveif you delay a
  decisionto complete moreresearch or to ask
  foradvice, but can benegative when you failto
  take responsibilityfor choices you needto make.

• Ill decide later. or
• I just cant decide.

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Agonizing

• You may never knowas much as theexperts, but
  you arethe expert on yourneeds and wants.

• I just cant decide what I want.

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Desire

• You can want a resultso much that youignore
  risk to achievea desirable outcome.

• Just go for it!

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Avoidance

• You should use cautionin making decisionsthat
  have seriousconsequences, but, as aregular
  decision makingstrategy, avoidanceseldom
  producessatisfying results.

• Well, I could do worse.

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Intention

• Intent is important whenit helps you reach
  agoal, but it can looklike stubbornness if
  youare not thinking aboutconsequences.

• This is what I want, it is the right decision
  for me.

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Security

• When you avoid riskyou use the
  securitystrategy, but there aretimes when risk
  isdesirable.

• This is the safest option I have.

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Synthesis

• When you combine theelements of
  severaldecision makingstrategies you
  havesynthesis.

• I believe this is the best decision and I have
  confidence I can make it work.

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Ethics and Consumer Decisions

• Consumer decisions are also influenced bysocial
  responsibility the welfare of society.

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Avoiding excessive consumption

• Buying clothes at the local thriftshop,
  adhering to the slow food movement, and using the
  library are all decisions that reduce
  consumption.

Money is just the symbol we use to facilitate
the gathering of memories and experiences.
Stuart Wilde
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Conserving Natural Resources

• Becoming aware ofyour carbon footprint,driving
  a hybrid car,and recycling areexamples
  ofconservation strategiesthat
  influencepurchasing decisions.

• Reduce, reuse recycle.

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Protecting the Environment

• Teenagers are moreaware of the need tochoose
  to recycle batteriesand electronics because
  oftheir harmful effects inlandfills. They have
  grownup with environmentalawareness.

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Consumer Decision Making

• What are the influences on the consumer
  decisions you make?

Thinking well is wise planning well, wise but
doing well is the wisest and best of all.
Unknown
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LifeSmarts
Learn it. Live it.

• An educational program teaching teens and tweens
  important real-life knowledge
• A competition students compete online and
  in-person 
• A teaching toolbox. Check out our resources
• An opportunity for students to gain leadership
  skills, and fulfill community service
  requirements
• A chance to develop strong partnerships with
  national groups such as FBLA and FCCLA

LifeSmarts is
Visit LifeSmarts at www.lifesmarts.org