Smart Consumers
This is a person who buys or uses goods and services because they need or want those items for everyday life.
What is a consumer?
This could be messages like TV ads and posters that encourage people to buy things because they are designed to persuade consumers.
What is advertising?
Bright colours, celebrities/influencers, special offers and emotional appeal are examples of this.
What are advertising techniques?
This is the amount of money something costs.
What is price?
Smart consumers do this before buying to find the best option.
What is comparing options?
This is someone who thinks carefully before buying. They compare options and make the best decision for their needs and budget.
What is a smart consumer?
This could be suggestions from people you know that affect what you buy because you trust them or want to fit in.
What is peer (friend) influence?
When famous people promote products to make them look appealing, this technique is being used.
What are celebrities/influencers?
This describes how useful or worth the product is compared to what you pay.
What is value?
Smart consumers think about this to decide if something is necessary or not.
What is needs vs wants?
These are things you must have to live because they keep you safe, healthy, and able to survive (like food, water, and shelter).
What are needs?
These are online platforms that show trends and popular products often making items seem desirable.
What is social media platforms (Insta, TT, Pinterest, YouTube etc.)?
“Buy one, get one free” is an example of this advertising strategy.
What are special offers?
A product that is cheap but breaks quickly would likely have this kind of value.
What is low value?
Ignoring peer pressure when making purchases is an example of this behaviour.
What is making independent decisions (resisting influence)?
These are things you would like but don’t need because you can live without them (like toys or extra treats).
What are wants?
This affects decisions because people look for what they can afford or what is discounted.
This technique tries to make you feel happy, excited, or included so you will buy something.
What is emotional appeal?
If you use something every day and it lasts a long time, it is likely this.
What is good value?
A smart consumer sticks to this to avoid overspending.
What is a budget?
Think of something you use often. Explain how it could be considered both a need and an optional want depending on the situation.
A phone can be both important and optional because it can be used for safety and communication, making it a need, but it can also be upgraded for fun or entertainment, making it a want. This shows that the way something is used determines whether it is a need or a want.
Describe one factor that can change what people decide to buy. Include an example.
There isn’t one correct answer but ALL answers should have have:
✔ a clear influence
✔ a ‘because’ explanation
✔ a real example”
for example:
One factor that can change what people buy is price because people are more likely to choose something they can afford or that is on sale. For example, a student might choose cheaper a water bottle instead of expensive ones because they want to save money.
others: friends/peer influence, brand, price, advertising (colours) etc.
Explain why companies might choose well-known people to promote products. How could this affect buyers?
Possible response: Companies use well-known people to promote products because their audience likely trusts and admires them, which makes the product seem more appealing. This can affect buyers because they may want to copy the influencer and believe the product is better quality, which encourages them to buy it.
What is an example of paying more for better value (considering durability and quality)?
Choosing a more expensive item because it lasts longer and has a warranty shows this decision-making idea.
A classic example is buying a high-quality pair of leather shoes instead of cheaper synthetic ones.
Why it’s paying more for better value:
Long-term value:
Assuming your foot is fully grown, even though the initial cost is higher, you may spend less overall because:
In contrast, repeatedly buying cheaper shoes can end up costing more in the long run and provide a worse experience/value.
Describe a process someone could use to make a good spending decision. Why is this helpful?
A good process for making a spending decision is to think about whether something is a need or a want, check if it is affordable, and decide if it is good value because this helps people avoid wasting money and make smarter choices. This is helpful because it allows people to think carefully before buying and avoid regret or overspending.