Lesson Notes By Weeks and Term - Senior Secondary 3

Wise purchasing

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Term: 2nd Term

Week: 1

Class: Senior Secondary School 3

Age: 17 years

Duration: 40 minutes of 2 periods each

Date:       

Subject:      Home management

Topic:-       Wise purchasing 

SPECIFIC OBJECTIVES: At the end of the lesson, pupils should be able to

:

  1. Distinguish the advantages and disadvantages of hire purchase.
  2. Show the role of co-operatives in consumerism.
  3. Discuss market survey.

INSTRUCTIONAL TECHNIQUES: Identification, explanation, questions and answers, demonstration, videos from source

INSTRUCTIONAL MATERIALS: Videos, loud speaker, textbook, pictures

INSTRUCTIONAL PROCEDURES

PERIOD 1-2

PRESENTATION

TEACHER’S ACTIVITY

STUDENT’S ACTIVITY

STEP 1

INTRODUCTION

The teacher reviews the previous lesson on the food purchasing

Students pay attention

STEP 2

EXPLANATION

She discusses the advantages and disadvantages of hire purchase

Students pay attention and participates

STEP 3

DEMONSTRATION

She demonstrates the roles of cooperatives in consumerism. She further discusses the concept of market survey

Students pay attention and participate

STEP 4

NOTE TAKING

The teacher writes a summarized note on the board

The students copy the note in their books

 

NOTE

WISE PURCHASING

A hire purchase agreement, also known as a conditional sale agreement, is a form of finance for a new or used car purchase.

After paying an initial deposit, you then make monthly payments to pay-off the value of the car. Once the last payment has been made, the car is yours.

A hire purchase agreement is a form of borrowing, which means that you will accrue interest on-top of the original car value. This means that, at the end of the agreement, you’ll have paid more than the amount first borrowed to pay for the car.

 

Advantages of hire purchase

  1. Spread the cost

It allows you to acquire a car that you otherwise wouldn’t be able to afford, by spreading the cost over a series of months or even years.

 

  1. Option to get a newer, higher spec

For example, because hire purchase allows you to shop for cars that would otherwise have been outside of your price range, it also means you can consider something a little newer or upmarket. The benefit of this is that newer cars will often come with the latest technology, increasing the car’s efficiency and improving on safety features like parking  sensors. This will mean that you might spend less in the long run, whether it’s savings on fuel, or spending less on repairs.

 

  1. Fixed monthly payments

Hire purchase agreement payments will remain fixed.

 

  1. Flexible repayment terms, including paying off early in some cases

Most lenders will allow you to opt for a longer repayment term to reduce the cost of the monthly payments. It’s worth keeping in mind that, while the monthly payments will be lower, a longer repayment term will increase the total interest paid and therefore the total amount paid at the end of the agreement.

You might also have the option to pay the agreement off early too, which can be great if you find yourself with some extra cash part way through the repayment term.

 

Disadvantages of hire purchase

  1. You don’t own the item until you make the final payment. For example while hire purchase gives you immediate access to the car, it remains the legal property of the lender until the final payment is made. If payments are missed, lenders have the right to repossess the vehicle.

 

  1. Higher overall cost than if you bought the iteme outright

For example, A hire purchase agreement’s value will be the combined total of the car’s price and the interest that the lender charges.

The interest charged will vary depending on your circumstances and the payment term agreed. A shorter payment term will require you to pay more towards the car’s value each month, but will typically result in less overall interest. By contrast, a longer payment term will make the monthly payments more affordable, but the total amount paid at the end of the agreement will be higher due to the increased interest.

 

ROLES OF COOPERATIVES IN CONSUMERISM

  1. To protect consumers from the exploitation of private businessmen like inferior goods, overcharged prices, less weight and adulteration.
  2. To freeze the price line at its level and try to bring it down.
  3. To extend customer services like dental clinics, medical advice, tailoring, banking and postal services.
  4. Propaganda on unfair trade practices, done by businessmen.
  5. To supply household consumer goods to consumers at reasonable price in good quality.
  6. To supply controlled goods like sugar, kerosene etc.
  7. To eliminate middlemen in the business field between consumers and manufacturers and establish private properties earned by business people.
  8. To give the benefit of the stores to the members by distribution of dividend and patronage dividend.

 

THE CONCEPT OF MARKET SURVEY

Market survey is the survey research and unit of analysis of the market for a particular product/service which includes the investigation into customer inclinations. It is a study of various customer capabilities such as investment attributes and buying potential.

Purpose of Market Survey

  • Gain critical customer feedback: The main purpose of the market survey is to offer marketing and business managers a platform to obtain critical information about their consumers so that existing customers can be retained and new ones can be got onboard.
  • Understand customer inclination towards purchasing products: Details such as whether the customers will spend a certain amount of money for their products/services, inclination levels among customers about upcoming features or products, what are their thoughts about the competitor products etc.
  • Enhance existing products and services: A market survey can also be implemented with the purpose of improving existing products, analyze customer satisfaction levels along with getting data about their perception of the market and build a buyer persona using information from existing clientele database.
  • Make well-informed business decisions: Data gathered using market surveys is instrumental in making major changes in the business which reduces the degree of risks involved in taking important business decisions

 

Importance of Market Survey

  1. Understanding the demand and supply chain of the target market:A product is most likely to be successful if it is developed by keeping in mind the demand and supply of the target market. This way, marketers can obtain insights about market capabilities to absorb new products and concepts to develop customer-centric products and features.
  2. Developing well-thought marketing plans:The World is a target market for an organization, especially a well-established one. Getting data from the target market through thorough market research using market surveys and segmentation can be a source of creating concrete and long-term marketing plans.
  3. Figure out customer expectationsand needs:All marketing activities revolve around customer acquisition. All small and large organizations require market surveys to gather feedback from their target audience regularly, using customer satisfaction tools such as Net Promoter Score, Customer Effort Score, Customer Satisfaction Score (CSAT) etc. Organizations can analyze customer feedback to measure customer experience, satisfaction, expectations etc.  
  4. Accurate launch of new products: Market surveys are influential in understanding where to test new products or services. Market surveys provide marketers a platform to analyze the scope of success of upcoming products and make changes in strategizing the product according to the feedback they receive.
  5. Obtain information about customer demographics:Customer demographics form the core of any business and market surveys can be used to obtain intricate and sensitive details about customer demographics such as race, ethnicity or family income.

 

TYPES OF MARKET SURVEY

Market Surveys for segmentation: An organization can spot existing and prospective customers and understand why the customers have chosen their products/services and the prospects have not yet made a purchase. This can lead to a structured market segmentation and analysis.

  1. Market Surveys for exploring various aspects of the target market: Get information about factors such as market size, demographic information such as age, gender, family income etc. to lay out a roadmap by considering growth rate of the market, positioning, and average market share.
  2. Market Surveys to probe into purchase procedure: How does a customer deciding on making a purchase? What are the factors that convert product awareness into sales? This type of market survey will unveil awareness, information, free trial, purchase, and repeat.
  3. Market Surveys to establish buyer persona:These surveys are to build a buyer persona by knowing about customer preferences, inclination, and capabilities of purchasing a product.
  4. Market Surveys to measure customer loyalty: What is the degree of loyalty that the customers have towards and organization? The answer to this question can be obtained by conducting a market survey.
  5. Market Surveys to analyze a new feature or concept:It is essential for an organization to include market-compliant features and concepts. By carrying out a market survey to understand which features to launch, will help all the teams involved in the feature development process to do that with proper research.
  6. Market Surveys for competitor analysis:Healthy competition is always good for an organization’s progress. Market surveys done with the motive of competitor analysis will produce results about how does the target market weigh the organization’s products/services in comparison to the others in the market.
  7. Market Surveys to understand the impact of sales activities:Sales activities are the backbone of an organization and it becomes crucial to keep track of these activities. Market surveys for sales activities will produce a report of the impact of sales activities, whether their frequency needs to increase or any changes the audiences think should be inculcated in the sales process.
  8. Market Surveys to assess prices for new products/services:Affordability of products also is an aspect that drives the market for organizations. Price ranges, product variants to cater multiple price ranges, target customers for each of the products etc.
  9. Market Surveys for evaluation of customer service:Good customer service can lead to enhanced satisfaction levels among customers. Factors such as time taken to resolve issues, the scope of improvement, best practices of customer service etc.

 

EVALUATION:    1. Discuss the advantages and disadvantages of hire purchase

  1. Enumerate the roles of cooperatives in consumerism
  2. Discuss in details the concept of market survey under the following headings

       a. definition

       b. purpose

       c. importance

       d. types

CLASSWORK: As in evaluation

CONCLUSION: The teacher commends the students positively