Introduction to Business Chapter 22 The Informed Consumer Essential Question: Why is an informed consumer important for our economy ?

Standards Addressed: 1.2 Business Environment (C): Students will understand the development and structure of business environments. They will demonstrate competency by identifying the dynamic components of business structure and its relationship to the global business environment Competitive Environment–explain the economic effects of competition on a business in an international marketplace, Interrelationships of Business Operations–discuss the interrelationships between different business lines as they relate to finance, tax, operations, human resources, marketing, production, management, and the legal environment, 1.4 Economics and Financial Concepts (C): Students will understand the impact of global and domestic businesses, financial concepts, and integrated business models. They will demonstrate competency by using appropriate technology and other resources to solve business problems Business/Financial Relationships–analyze the financial implications of various functions of a business and describe how they interrelate Economic Culture–explain how culture affects economic practice and business ethics Money Management–construct personal and business budget plans which include income, expenses, savings, investments and taxes.

Chapter Objectives Describe the informed consumer in our economy. Identify three types of consumer organizations. List ways in which businesses provide customer information. Outline questions which informed consumers should ask when selecting the best product or service.

The consumer p.297  A person who buys and uses goods or services.  Have the power to decide to buy or not to buy goods and services.  Without satisfied consumers, businesses would not make sales.  Obligation to society to be wise and efficient consumers.

Consumer information organizations p. 297  Help inform consumers.  Three basic types.  Product testing organizations  Paid by manufacturers to perform safety tests on products.  Underwriters’ Laboratories (UL)  Association of Home Appliance Manufacturers (AHAM).  Also of note these and many more organizations evaluate the processes of service providers.  International Organization for Standardization (ISO)  Joint Commission on Accreditation of Healthcare Organizations (JCHCO).  The New England Association of Schools and Colleges (NEASC)  Financial Industry Regulatory Authority (FINRA)  Various management consulting firms

Consumer information organizations p. 297 continued  Print/Web publishers.  Some organizations publish objective consumer information on products and services.  Consumers’ Union, Inc a.k.a. Consumers’ Reports.  Good Housekeeping.  Consumers’ Digest.  Others provide broader industry news and information. For example, in financial services:  Wall Street Journal  Barron's  Fortune  Bloomberg  Money  Kiplinger’s

Consumer information organizations p. 297 continued  Broadcast/Web organizations.  electronic media outlets carry regular and special programming for consumer interests.

Consumer information from government p. 299  Information is provided at the federal, state and local level.  Consumer Information Center - Federal Citizen Information Center - answers to your questions about the Federal government and common consumer issues.  Rhode Island Department of Business Regulation.  Federal Department of Agriculture.  Food and Drug Administration.  Consumer Product Safety Commission  Environmental Protection Agency, etc…

Consumer information from businesses p. 300  Businesses provide information to consumers through:  Advertising.  Product labeling.  Customer Service Departments.  Business specialists  Better Business Bureaus

Effective consumer practices p  Use reliable information when purchasing goods and services. Do your homework!!  Use good consumer skills by asking questions such as:  Would you rather buy this item instead of another desired item which costs the same amount of money?  Which business or businesses should you visit?  What quality of goods or services do you want to buy?  What price are you willing to pay?  Should you pay cash or buy now and pay later (credit)?  Do you really need this item, or can you wait awhile?  If you make this purchase, what other important item may you have to do without?

Assignments Do Now Monday--Calculate Business Data p.305 #21 Tuesday--Calculate Business Data p.305 #22 Wednesday--Calculate Business Data p.305 #23 Read example and calculate answer in an Excel spreadsheet, show your work. Give a short explanation as to your answers. Workshop Discussion Communicate Business Concepts questions p Discuss questions with your group and write a brief answer to both questions

Homework Define Key Terms Develop your Business Language 305. Answer Review your reading questions 1-9 p.304. Section Three of The Resume Handbook for High School Students.