Consumer Decision Making

Curriculum Area

Subject: Business Studies
Grade Level: Year 10 (10th Grade)
Curriculum Standard: Aligned with National Business Education Association (NBEA) Standards – Economics and Personal Finance
Focus Area: Consumer Economics – Understanding factors that influence purchasing decisions

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Lesson Duration: 90 Minutes

Class Size: 30 Students

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Lesson Objective

By the end of this 90-minute lesson, students will be able to:

• Analyze factors that influence consumer decisions, including price, price of substitutes, quality, taste, tradition, income, spending patterns, and brand loyalty.
• Apply this knowledge to real-world purchasing scenarios and evaluate how businesses adjust their strategies based on consumer behavior.
• Collaborate in groups to assess consumer choices and present findings.

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Lesson Structure – 5E Model

1. Engage (15 minutes) – "Would You Buy It?" Activity

🎯 Objective: Grab students' attention and help them relate personally to consumer behavior.

Activity: "Would You Buy It?"

• Display images of two similar products with different price points, brand names, or quality levels on the classroom screen (e.g., Nike vs. Generic Sneakers, iPhone vs. Android, Store-Brand vs. Name-Brand cereal).
• Ask students to vote (raise hands or digital poll) on which they would buy and why.
• Facilitate a quick discussion on reasons behind choices:
  • “Why would you choose the name brand over the generic?”
  • “What made price more important than brand loyalty in this case?”
  • “Would your choice change if you had a lower budget?”

🔎 Key Takeaway: Consumer choices are influenced by multiple factors beyond just price.

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2. Explore (20 minutes) – Consumer Behavior Scenarios

🎯 Objective: Allow students to investigate different factors affecting consumer purchasing decisions.

Group Task: "What Would the Consumer Do?"

• Class is divided into 8 groups of about 3-4 students.
• Each group receives a different consumer profile (e.g., a teenager on an allowance, a single parent, a high-income CEO, a college student on a budget).
• They are given a list of purchase scenarios (e.g., buying a laptop, choosing between fast food or home-cooked meals, selecting a clothing brand).
• Each group discusses and records their consumer’s likely decision based on defined factors.
• Groups share their findings as a quick presentation/summary to the class.

🔎 Key Takeaway: Consumer behavior differs depending on economic status, preferences, and circumstances.

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3. Explain (25 minutes) – Concept Breakdown with Class Discussion

🎯 Objective: Provide explicit instruction on the factors influencing consumer behavior and link them to tangible examples.

Discussion With Real-World Examples

• The teacher presents the eight core factors that influence consumer behavior:
  • Price: Higher/lower prices affect decisions.
  • Price of Substitutes: Cheaper alternative brands/products compete.
  • Quality: Consumers often weigh value vs. cost.
  • Taste: Personal preferences impact decisions.
  • Tradition: Some consumers prefer culturally relevant brands.
  • Income (Affordability): Spending power limits choices.
  • Spending Patterns: Essential vs. luxury purchases.
  • Brand Loyalty: Repeatedly buying from the same brands.

💡 Think-Pair-Share:

• Students turn to a partner and answer:
  • "What is one product where you are brand-loyal?"
  • "Can you think of something you'd only buy based on price?"

🔎 Key Takeaway: There is no one-size-fits-all when it comes to consumer behavior—decisions are impacted by multiple interconnected factors.

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4. Elaborate (20 minutes) – Marketing Strategy Challenge

🎯 Objective: Apply understanding to a business strategy context.

Activity: "Market Like a Pro" Challenge

• Students are divided into 6 groups.
• Each group is assigned a product (e.g., sneakers, smartphones, soft drinks, fast food).
• Their mission: Develop a marketing strategy that persuades consumers to buy their product.
• They must consider:
  • Pricing strategy
  • How to compete with substitutes
  • Emphasizing quality/taste/tradition
  • Targeting different income levels
  • Encouraging brand loyalty
• Groups present a 1-minute pitch to the class, explaining how their marketing strategy uses key consumer behavior factors to boost sales.

🔎 Key Takeaway: Businesses must analyze consumer behavior when designing pricing and marketing strategies.

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5. Evaluate (10 minutes) – Exit Ticket Reflection

🎯 Objective: Assess understanding and allow for student reflection.

Exit Ticket Prompts (Written Response)

• "Which factor influences your personal purchasing decisions the most? Why?"
• "Which factor do you see affecting businesses the most?"
• "How do businesses use consumer behavior patterns to increase sales?"

Teacher collects responses to gauge understanding and adjust future lessons accordingly.

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Differentiation Strategies

✅ For Struggling Learners:

• Provide structured sentence starters for discussions and group work.
• Use real-life scenarios students relate to (e.g., buying a phone, choosing a fast-food restaurant).

✅ For Advanced Learners:

• Encourage deeper thinking with "What if?" questions (e.g., What if a new competitor enters the market with an almost identical product but half the price?).
• Challenge students to analyze global consumer trends and their impact on brand loyalty (e.g., why are certain international brands more successful in the US?).

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Assessment & Homework

📌 Formative Assessment:

• Exit Ticket Responses
• Group Presentations (Marketing Challenge)

📌 Homework:
Students interview 3 family members or friends about one purchase they made recently. They must analyze which factor(s) influenced their decision the most and bring findings to the next lesson.

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Materials & Resources Needed

📌 Classroom projector or Smartboard
📌 Printed consumer behavior profiles and scenarios for group work
📌 Markers/whiteboard for class discussions
📌 Optional: Online polls (if technology is available)

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Teacher Reflection Questions (Post-Lesson)

💡 What worked well in student engagement?
💡 Were students able to connect theory to real-world decisions?
💡 How can the lesson be adapted for improved understanding next time?

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Final Thoughts

This engaging and interactive lesson allows 10th-grade students to explore how consumer behavior shapes business decisions in real life. Using debates, real-world applications, and group challenges, students actively participate, making learning both meaningful and memorable. 🚀