The world of money Lesson 4 3 Speaking and reading a In groups, discuss these questions. 1 How much would you pay for these products? Write a price for each one and compare your answers with those of a partner. a) a beef-burger _____ d) jeans
_____
b) a watch
_____ e) a soft drink _____
c) sneakers
_____
2 How important is a brand name to you? Are certain brands better than others, or just more expensive? 3 Can companies help give their products prestige by selling them at high prices? What kinds of products might this strategy work for?
c In pairs, answer these questions. 1 2 3
Why do prices for the same product vary? Do people usually buy all products on the basis of price? What is one reason why exclusive brands cost more money? What are two reasons why people buy very exclusive brands of products?
b Check (✔) the statements T (true) or F (false). Read the article below to check your answers. 1 Prices can vary almost 75% for the same product.
T
F
2 People usually buy things like detergent on the basis of brand name.
T
F
3 Price can be influenced by consumer perception of a brand.
T
F
4 Companies like Rolex and Gucci market their products primarily on the basis of price.
T
F
5 Some people buy certain products because they’re very expensive and exclusive.
T
F
P
rices can vary a lot, even for the same product. For example, you pay 60 cents for a cola in the supermarket, $1.00 for the same cola from a soda machine, and as much as $2.00 for a cola in a restaurant. Why are the prices so different? In the case of the cola, prices are affected by volume. Supermarkets, for example, buy large amounts of a product, so they can sell it more cheaply than small stores. But pricing is also affected by what we’re prepared to pay. Consumers won’t pay a lot for certain things, like detergent or paper towels. They often choose these products only on the basis of price. Would you pay $25.00 for a beef-burger?
Probably not. But would you pay $175.00 for a pair of sneakers? It depends. If the shoes are a wellknown brand, you would probably pay that much. If they were sneakers in the discount store, you probably wouldn’t. In this case, price is influenced by the consumer’s perception of the brand. People pay more for certain expensive brands like Rolex watches, Gucci bags, and Calvin Klein jeans, because they perceive more value in them. Finally, people buy certain brands, even if (or because) they are much more expensive because they give a feeling of prestige and of being different. For example, buying a Rolls Royce makes people feel special and part of an elite group.
4 Writing and speaking a Write sentences like these with your own ideas. I go shopping for various reasons. Sometimes I go shopping to … At other times, I go shopping because … When I want to buy ordinary things, the most important factor is … But when I want to buy something special, … I usually shop at … because … Some places are very … so I … For me, shopping is …
b Exchange what you have written with a partner. Talk about your ideas. A: You said you usually buy CDs or DVDs. Do you often buy clothes? B: No, almost never. I hate trying on clothes.
Unit 5
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