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 Steps Identify decision Identify resources and collect info What are your options? And weigh them Chose your option Take action Evaluate 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 Information What is the source of the info?

What expertise does the source have?

Credentials – license, or certificates Is 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=QwRISk yV_B8