Consumer Decisions

Who is a Consumer?

A consumer is someone who buys or uses goods and services.

• Goods: Items that are bought and sold, e.g. food, clothes, petrol.
• Services: Work done for customers by skilled people, e.g. hairdressers, electricians, bus drivers.

Factors That Influence Consumer Decisions

Several factors can affect what we buy and why:

• Money:
  • Limited money = choose affordable products instead of expensive brands.
• Needs and Wants:
  • Decide if an item is a need (essential) or a want (nice to have).
• Peer Pressure:
  • Teenagers may feel pressure to own certain brands or items to fit in.
• Trends:
  • Companies release new trends to keep sales high, even if changes are small.
• Advertising and Marketing:
  • Techniques like celebrity endorsements make products look more desirable.
• Personal Values:
  • Our values affect choices. E.g., avoiding products tested on animals.

Making Wise Consumer Decisions

• Impulse buying: Buying something on the spur of the moment without thinking.
  • Often leads to spending money on unnecessary items. Tip: Always think carefully before buying goods and services!

Sources of Consumer Information

To make smart decisions, consumers should research products and services. Here are reliable sources:

1. Product packaging: Labels and leaflets give details about the product.
2. Word of mouth: Friends and family share opinions and experiences.
3. Online shopping websites: Provide images, reviews, and detailed descriptions.
4. Magazines/Newspapers:

• Consumer magazines (e.g. Consumer Choice) evaluate products.

5. TV and Radio: Programs sometimes review goods and services.
6. Community information services: Citizens Information Centres give advice on consumer rights.
7. Consumer Protection Organisations: Provide information on rights and responsibilities.
8. Advertising: Be careful! Ads aim to sell, so the information can be biased.
9. Salespeople: Knowledgeable but may give biased information to make a sale.