Shopping Tips

Week: 8 (Eight)

Topic: Shopping Tips (Needs and Wants)

Meaning of needs and wants

A need is anything that is so important to a person that without it the person’s life will be at risk. When needs are not met or satisfied, human life is threatened. Needs are the basic necessities of life that make living possible.

Wants are things we desire to live comfortably but their absence or not satisfying them does not amount to a life-threatening situation. Human beings can live without their wants and still be healthy, sound and strong. Wants are there to make us live in relative luxury.

In essence, needs are necessary, wants are optional.

Making decisions about needs and wants

Considering the fact that money and resources are not in abundant supply for us to satisfy every desire that we have, it becomes rational (sensible) for us to use whatever money or resources available to get the things we need first before spending the remainder on what we want. 

This is the best way to live life without pressure and constant lack of essentials.

Impulse Buying

Impulse buying is the practice of buying things without plan or budget. It is a bad spending habit put up by some financially irresponsible people that moves them to buy things just because it caught their fancy when they saw it without checking if they have need for it or not.

It is a bad habit that will always end an individual in debts and worse financial situation if it is not changed early enough.

Effects of impulse buying

1. Financial strain: Impulse buying will lead to a situation where the individual always has less money to meet daily needs.
2. Debt accumulation: Frequent impulse buying reduces finances and forces the individual to either continue buying on credit or borrowing to cover necessary living expenses before the arrival of another income.
3. Accumulation of unused or unwanted items: These often come from the many items that were bought without planning ot budgeting.
4. Poor budgeting: When impulse buying is the order of the day, budgeting becomes ineffective and a mere formality.
5. Reduced savings or no savings: Frequent impulse buying will lead to the total depletion of savings without the discipline to save anymore.

After sales services

After sales services are services rendered to a consumer after the purchase of item as a way to help such consumer enjoy the product optimally, get value for money, strengthen relationship with the consumer, and safeguard some of the consumer’s right. Such services may include; – warranty, installation, etc.

1. Product installation: Some products require technical knowledge to ensure proper installation before usage. A consumer gets such service so that the product may be enjoyed fully.
2. Warranty: This is a promise or guarantee made by a seller or producer that a product will meet certain standard of quality performance. It usually means if the product breaks, malfunctions or does not work as expected within a specified period, the seller or manufacturer will repair it, replace it or refund the buyer depending on the terms.
3. Free servicing: Some manufacturers offer free periodic check-ups or servicing within a stipulated period after sales.
4. Repair and maintenance: This means the manufacturer offers to fix faults after sales often at a reduced cost as part of their marketing strategy.
5. Return and exchange services: This allows customers to return or exchange faulty products even if it is not a manufacturing defect.
6. Upgrades and updates: Some products like software may come with free updates while others may come with free product improvements.

Homework

1. Make a list of three things you need and three things you want right now.
2. Are there any products in your house or your parents have bought with any after-sales service attached to it? State the item and the type of aftersales service attached to it.