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2. The planned buying process - Part 1

What Is Planned Buying?

The phrase planned buying refers to using intentional and deliberate thought prior to, during, and after making a purchase. It is important for every purchase, but it is critical for purchases that are expensive or long lived. Mistakes made in these transactions can be very expensive and lasting.

What steps are involved in the planned buying process?

In general, planned buying is a(n) seven-step process that is intended to result indeliberate andwell-considered purchasing decisionsbefore making the acquisition.

It is important to conduct the activities in the planned buying process in a logical sequence.

Organize the table that follows by matching the step number associated with the planned buying process on the left with its corresponding activity on the right.

Step Number	Activities
1	Differentiate between needs and wants, and prioritize their importance.
2	Conduct an investigation of the features and price of the good or service and vendor you are considering.
3	Answer the question, Can I afford it?
4	Compare alternative products or services to determine the best buy.
5	Select the product or service and the vendor with which to complete the purchase.
6	Compare alternative products or services to determine the best buy.
7	Evaluate what went well and not so well in the purchase transaction.

According to financial planners, which of the planned buying activities should you conduct at home after youve interacted with a seller, but before you purchase the item or service?

Steps 1 and 3

Steps 1 and 2

Step 6

Now, consider the first two steps of the planned buying process in greater detail. What is the difference between a need and a want?

A is an item that is thought to be necessary, whereas a is an item that may not be necessary, but is desirable.

Although people frequently identify many goods or services as needs, in reality, most people have needs and wants. The disadvantage of identifying a want as a need is that it can cause a shopper to the item he or she is considering. Therefore, it is important to consider all purchase alternatives as , and then concentrate on prioritizing and identifying the of each, including its opportunity cost.

To see this, consider the following situation:

Daphnes favorite color is pink. As such, the walls in her bedroom are pink; her favorite sweater is pink. For graduating with a 4.0 average, her father has offered to buy her a lightly used, previously owned car. He is likely to categorize her request that the car be pink as a .

What kind of information should you gather when performing your preshopping research?

Although it varies with the good or service you are considering, relevant preshopping information generally includes the features and capabilities of the good or service, as well as the , the price, and the environmental impact.

Which of the following are reasonable sources of preshopping information? Check all that apply.

Advertisements and catalogs

A psychic or your Magic 8 ball

Consumer magazines and government websites

Manufacturers, service providers, and sellers

It is often best to discount reviews that are overly positive or inappropriately critical as they may represent the opinion of:

company representatives or competitors.

disgruntled former employees.

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