1. Introduction to Business © Thomson South-Western ChapterChapter Consumers in the Global Economy 15-1 15-1Consumer Buying Decisions 15-2 15-2Consumer Rights and Responsibilities 15-3 15-3Consumer Protection Actions 15

2. Introduction to Business © Thomson South-Western Chapter 15 Slide 2 LESSON 15-1 Consumer Buying Decisions Goals Identify major sources of consumer information. Explain wise buying actions. Describe the main types of shopping locations.

3. Introduction to Business © Thomson South-Western Chapter 15 Slide 3 Key Terms unit price brand impulse buying

4. Introduction to Business © Thomson South-Western Chapter 15 Slide 4 CONSUMER INFORMATION SOURCES Product testing organizations Organizations paid by manufactures Independent testing organizations Media sources Print publishers Broadcast organizations The Internet

5. Introduction to Business © Thomson South-Western Chapter 15 Slide 5 CONSUMER INFORMATION SOURCES Government agencies Federal State Local (continued)

6. Introduction to Business © Thomson South-Western Chapter 15 Slide 6 CONSUMER INFORMATION SOURCES Business sources Advertising Product labels Customer service departments Better Business Bureau Personal contacts (continued)

7. Introduction to Business © Thomson South-Western Chapter 15 Slide 7 >> C H E C K P O I N T What are the main sources of consumer information?

8. Introduction to Business © Thomson South-Western Chapter 15 Slide 8 WISE BUYING STRATEGIES Use decision-making Comparison shopping

9. Introduction to Business © Thomson South-Western Chapter 15 Slide 9 USE DECISION-MAKING 1. 1. Identify your needs or wants. 2. 2. Know the choices available. 3. 3. Determine your desired satisfaction. 4. 4. Evaluate alternatives. 5. 5. Make the decision.

10. Introduction to Business © Thomson South-Western Chapter 15 Slide 10 COMPARISON SHOPPING Compare prices Compare quality Compare services Compare sales Compare brands

11. Introduction to Business © Thomson South-Western Chapter 15 Slide 11 WISE BUYING: A SUMMARY Take your time Time your purchases Avoid being impulsive

12. Introduction to Business © Thomson South-Western Chapter 15 Slide 12 >> C H E C K P O I N T What decision-making steps should be taken when making a purchase?

13. Introduction to Business © Thomson South-Western Chapter 15 Slide 13 SHOPPING LOCATIONS Traditional retailers Contemporary retailers Non-store shopping

14. Introduction to Business © Thomson South-Western Chapter 15 Slide 14 >> C H E C K P O I N T What are the main categories of shopping locations?

15. Introduction to Business © Thomson South-Western Chapter 15 Slide 15 LESSON 15-2 Consumer Rights and Responsibilities Goals Explain the consumer movement. Explain seven consumer rights. Describe consumer responsibilities.

16. Introduction to Business © Thomson South-Western Chapter 15 Slide 16 Key Terms consumer movement fraud guarantee express warranty implied warranty

17. Introduction to Business © Thomson South-Western Chapter 15 Slide 17 THE CONSUMER MOVEMENT Consumer Bill of Rights 1. 1. The right to be informed. 2. 2. The right to safety. 3. 3. The right to choose. 4. 4. The right to be heard. 5. 5. The right to a remedy. 6. 6. The right to consumer education. 7. 7. The right to service.

18. Introduction to Business © Thomson South-Western Chapter 15 Slide 18 >> C H E C K P O I N T What are the seven rights of consumers?

19. Introduction to Business © Thomson South-Western Chapter 15 Slide 19 THE RIGHT TO BE INFORMED You have a right to know what the product or service is and what it will do for you.

20. Introduction to Business © Thomson South-Western Chapter 15 Slide 20 THE RIGHT TO SAFETY Consumers have a right to be safe from harm associated with using products or services. Food and Drug Administration (FDA) United States Department of Agriculture (USDA)

21. Introduction to Business © Thomson South-Western Chapter 15 Slide 21 THE RIGHT TO CHOOSE Consumers have the right to choose from a variety of goods and services. Federal Trade Commission (FTC) Monopoly

22. Introduction to Business © Thomson South-Western Chapter 15 Slide 22 THE RIGHT TO BE HEARD Federal Trade Commission (FTC) Office of the Attorney General Department of Consumer Affairs Better Business Bureau

23. Introduction to Business © Thomson South-Western Chapter 15 Slide 23 THE RIGHT TO A REMEDY Consumers have the right to seek a legal remedy when a problem occurs. Guarantee Express warranty Implied warranty

24. Introduction to Business © Thomson South-Western Chapter 15 Slide 24 THE RIGHT TO CONSUMER EDUCATION Educated consumers are aware that their decisions have economic and social implications.

25. Introduction to Business © Thomson South-Western Chapter 15 Slide 25 THE RIGHT TO SERVICE Convenience Courtesy Responsiveness

26. Introduction to Business © Thomson South-Western Chapter 15 Slide 26 >> C H E C K P O I N T How does an express warranty differ from an implied warranty?

27. Introduction to Business © Thomson South-Western Chapter 15 Slide 27 YOUR CONSUMER RESPONSIBILITIES Be honest Be reasonable Be active Be informed Be involved

28. Introduction to Business © Thomson South-Western Chapter 15 Slide 28 >> C H E C K P O I N T What actions can be taken to be an involved consumer?

29. Introduction to Business © Thomson South-Western Chapter 15 Slide 29 LESSON 15-3 LESSON 15-3 Consumer Protection Actions Goals List common consumer concerns. Describe the steps of the consumer complaint process. Explain legal actions available to assist consumers.

30. Introduction to Business © Thomson South-Western Chapter 15 Slide 30 Key Terms mediation arbitration class action suit small claims court

31. Introduction to Business © Thomson South-Western Chapter 15 Slide 31 COMMON CONSUMER PROBLEMS Sources of complaints Motor vehicle purchases, repairs Deceptive investments Identity theft and credit card fraud Guaranteed and advance-fee loans Credit repair scams Telemarketing, catalog, and magazine sales

32. Introduction to Business © Thomson South-Western Chapter 15 Slide 32 COMMON CONSUMER PROBLEMS Sources of complaints (continued) Internet auctions, online purchases Prizes, sweepstakes, and phony lottery promotions Work-at-home and start-your-own business opportunities Travel and vacation promotions Health and diet gimmicks

33. Introduction to Business © Thomson South-Western Chapter 15 Slide 33 DECEPTIVE BUSINESS ACTIVITIES Scams, cons, and swindles Too good to be true Financial losses The Internet and online scams

34. Introduction to Business © Thomson South-Western Chapter 15 Slide 34 PROTECTION FOR SHOPPERS Federal Laws Right to cancel your order Credit card bill disputes

35. Introduction to Business © Thomson South-Western Chapter 15 Slide 35 >> C H E C K P O I N T What are sources of common consumer complaints?

36. Introduction to Business © Thomson South-Western Chapter 15 Slide 36 THE COMPLAINT PROCESS Step 1 Step 1Contact the place of purchase Step 2 Step 2Contact the company headquarters Step 3 Step 3Involve a consumer agency Step 4 Step 4Take legal action

37. Introduction to Business © Thomson South-Western Chapter 15 Slide 37 CONTACT THE PLACE OF PURCHASE Return to place of purchase Remain calm Provide evidence

38. Introduction to Business © Thomson South-Western Chapter 15 Slide 38 CONTACT THE COMPANY HEADQUARTERS Customer service department Contact information Tell what happened Include copies of documentation Ask for specific action

39. Introduction to Business © Thomson South-Western Chapter 15 Slide 39 INVOLVE A CONSUMER AGENCY When you do not get satisfaction from business Consumer agencies Public interest organization Government agencies

40. Introduction to Business © Thomson South-Western Chapter 15 Slide 40 TAKE LEGAL ACTION When the first three steps do not work

41. Introduction to Business © Thomson South-Western Chapter 15 Slide 41 >> C H E C K P O I N T List the steps of the consumer complaint process.

42. Introduction to Business © Thomson South-Western Chapter 15 Slide 42 LEGAL ACTIONS FOR CONSUMERS Third-party settlements Mediation Arbitration Class action suits Small claims court Using a lawyer

43. Introduction to Business © Thomson South-Western Chapter 15 Slide 43 >> C H E C K P O I N T How does mediation differ from arbitration?