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) process that is intended to result in and purchasing decisions 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 Conduct an investigation of the features and price of the good or service and vendor you are considering. Compare alternative products or services to determine the best buy. 6 According to financial planners, which of the planned buying activities should you conduct during a meeting with a seller? Steps 1 through 4 Steps 3 and 4 Steps 4 and 5 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: Dante is a teller at a bank that is 35 miles from his home. Unfortunately, there is no bus or train service available; therefore, he must drive his 10-year-old, 13-mpg car to and from work every day. He is likely to categorize his desire for a newer, more fuel-efficient vehicle 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 environmental impact, and the trade-in value of an existing item. Which of the following are reasonable sources of preshopping information? Check all that apply. Pictures showing the car driven by your favorite celebrities Online reviews and blogs Advertisements and catalogs Consumer magazines and government websites It is often best to discount reviews that are overly positive or inappropriately critical as they may represent the opinion of: industry lobbyists. company representatives or competitor