Personal Finance Chapter 4

Factors that influence buying decision Economic Socisl factorsPersonal factors
Credit history To see how good/ responsible you are with paying people back/ good credit
Know the difference between the three factors
Research a product you want to buy Before you shop (background work- identify needs, gathering info, and become aware of the market)
Research a product you want to buy Weighing alternatives: identify what is important (values, time limit, money available, convenience, brand quality), compare prices, comparison shopping
Research a product you want to buy Making the purchase (negotiate prices when available, credit vs. cash, know the real price)
Research a product you want to buy After the purchase (other costs might be present, return possibility, and warranty possibility)
How to get info about a product 1. Friends and aquaintances2. Ads and packaging (check)3. Reports and reviews4. Websites for companies in question
Common myths Return a car after buying it within the next 3 days-don’t believe it, get it in writing -untrue -is it always?, maybe
Common myths #2 Something that you have won (you won a free ipod!) -untrue -don’t believe it
Common myth #3 Is you lose a credit card you’re liable for all the purchases -untrue
Common myth #4 Auto lease is just like a rental
Auto lease Renting under a contract
Common myth #5 You cant reposess your car if it’s on private property
Smart buying strategies -Timing (bargain time)-Store selection (hours, location, reputation, policies, services)-Brand Comparison (consider price and quality, displays lead to “impulse buying”) -Label info (read what it is that you’re buying) (if it’s not there why purchase it)-Price comparison (know how to calculate unit pricing and basic conversions)-Warranty (be aware of warranty and what it states)
Honest branding A term used for you have to tell people what you’re selling and be honest about it -honey nut cheerios .. MAY lower cholesterol (truthful)
Examples of consumer complaints Defective , poor quality, and fraud
Defective vs. poor quality It goes home and doesn’t workWorks but is terrible quality
Fraud -Biggest way money is lost in this country-free opportunities through phone and email-
Two cents! Nothing in this life is freeWhatever you’re trying to get, get it for yourselfNo ones gonna give stuff for free
Receipt benefit You can track back your purchase if you lose it if you’ve used a credit card
To want a return/ problem 1. Go back to the place of purchase2. Contact Company HQ (describe your purchase, state problem, give history of problem, state ressonable time of action)3. Consumer Agency Assistance4. Dispute Resolution
Mediation vs. Arbitration -no law process-law process
Legal Options Small claims court -low cost (no lawyer)-ex: Judge Judy-$500-$10,000Class Action Suits-usually more than one person filing a report-something that defective to someone’s health

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