Consumer Purchasing and Protection Chapter 6 How can learning about consumer purchasing and consumer protection benefit you now and in the future?

6 Consumer Purchasing and Protection Chapter 6 Understanding the factors that influence your buying decisions can help you get the best value for your money. There are several ways to solve consumer problems, including legal action.

6 down payment impulse buying open dating unit pricing rebate warranty Consumer Purchasing and Protection Chapter 6 down payment impulse buying open dating unit pricing rebate warranty service contract fraud mediation arbitration small claims court class-action suit legal aid society

Consumer Purchasing and Protection Chapter 6

Summarize the factors that influence buying decisions. Consumer Purchasing and Protection Chapter 6 Section 1 Consumer Purchasing Summarize the factors that influence buying decisions. Describe marginal cost and marginal benefit. Explain the phases of a research-based approach to buying goods and services including the role of marginal cost and marginal benefit. List the types of warranties and their impact. Identify strategies for making wise buying decisions.

Factors That Influence Buying Decisions Consumer Purchasing and Protection Chapter 6 Section 1 Consumer Purchasing Factors That Influence Buying Decisions What influences you to make a purchase? Marginal Cost and Marginal Benefit Trade-Offs and Buying Decisions

Factors That Influence Buying Decisions Consumer Purchasing and Protection Chapter 6 Section 1 Consumer Purchasing Factors That Influence Buying Decisions

Researching Consumer Purchases Consumer Purchasing and Protection Chapter 6 Section 1 Consumer Purchasing Researching Consumer Purchases Four Phases of a Research-Based Approach 1 2 3 4 Before You Shop Weighing Alternatives Making the Purchase After the Purchase

Researching Consumer Purchases Consumer Purchasing and Protection Chapter 6 Section 1 Consumer Purchasing Researching Consumer Purchases Phase 1 Before You Shop Identify Your Needs Gather Information Be Aware of the Marketplace

Researching Consumer Purchases Consumer Purchasing and Protection Chapter 6 Section 1 Consumer Purchasing Researching Consumer Purchases Phase 2 Weighing the Alternatives Identify What Is Important to You Compare Prices Do Comparison Shopping

Researching Consumer Purchases Consumer Purchasing and Protection Chapter 6 Section 1 Consumer Purchasing Researching Consumer Purchases Phase 3 Making the Purchase Negotiate the Price Compare Financing Options. Know the Down Payment. Know the Real Price down payment portion of the total cost of an item that must be paid at the time of purchase

Researching Consumer Purchases Consumer Purchasing and Protection Chapter 6 Section 1 Consumer Purchasing Researching Consumer Purchases Phase 4 After the Purchase Follow Maintenance Schedules Investigate, Evaluate, Negotiate Servicing Options Estimate Ownership Costs

Smart Buying Strategies Consumer Purchasing and Protection Chapter 6 Section 1 Consumer Purchasing Smart Buying Strategies Timing Purchases Store Selection Brand Comparison Smart Buying Strategies Label Information Research Price Comparison Warranty Evaluation

Smart Buying Strategies Consumer Purchasing and Protection Chapter 6 Section 1 Consumer Purchasing Smart Buying Strategies It is a good idea to avoid impulse buying. impulse buying the act of purchasing items on the spur of the moment

Smart Buying Strategies Consumer Purchasing and Protection Chapter 6 Section 1 Consumer Purchasing Smart Buying Strategies Open dating helps consumers with label information research. open dating a labeling method that indicates the freshness or shelf life of a perishable product

Smart Buying Strategies Consumer Purchasing and Protection Chapter 6 Section 1 Consumer Purchasing Smart Buying Strategies Most grocery stores and drugstores display the unit pricing information on the products they sell. unit pricing the use of a standard unit of measurement to compare the prices of packages that are different sizes

Smart Buying Strategies Consumer Purchasing and Protection Chapter 6 Section 1 Consumer Purchasing Smart Buying Strategies Two Common Ways to Save Money Discount Coupons Manufacturers’ Rebates rebate a partial refund of the price of a product

Smart Buying Strategies Consumer Purchasing and Protection Chapter 6 Section 1 Consumer Purchasing Smart Buying Strategies Many products come with a guarantee of quality called a warranty. warranty a written guarantee from a manufacturer or distributor that states the conditions under which a product can be returned

Smart Buying Strategies Consumer Purchasing and Protection Chapter 6 Section 1 Consumer Purchasing Smart Buying Strategies Two Basic Types of Warranties Implied Warranties Express Warranties

Smart Buying Strategies Consumer Purchasing and Protection Chapter 6 Section 1 Consumer Purchasing Smart Buying Strategies Service contracts are sometimes called extended warranties, but they are not really warranties. service contract a separately purchased agreement by a manufacturer or distributor to cover the costs of repairing an item

6 Consumer Purchasing and Protection Section 1 Consumer Purchasing Chapter 6 Section 1 Consumer Purchasing Many consumers are drawn to designer products, brand names, and widely recognized logos, regardless of cost. What are some reasons for this? What are some alternatives? Reasons may include: perceived or real quality; peer pressure; desire to fit in; a need to impress others. Alternatives may include: buy the items used or on sale; purchase lesser-known or generic items instead.

Explain the common reasons that lead to consumer complaints. Consumer Purchasing and Protection Chapter 6 Section 2 Resolving Consumer Complaints Explain the common reasons that lead to consumer complaints. Identify ways to solve consumer problems. Describe the legal alternatives for consumers.

Sources of Consumer Complaints Consumer Purchasing and Protection Chapter 6 Section 2 Resolving Consumer Complaints Sources of Consumer Complaints Defective Products Poor Quality Sources of Consumer Complaints Deceptive Pricing Unexpected Costs fraud dishonest business practices that are meant to deceive, trick, or gain an unfair advantage Poor Repair Service Fraud

Sources of Consumer Complaints Consumer Purchasing and Protection Chapter 6 Section 2 Resolving Consumer Complaints Sources of Consumer Complaints Free Prizes Diet Products and Health Remedies Travel Packages Common Telephone and Mail Scams Investment Opportunities Work-at-Home Schemes

Resolving Differences Between Buyers and Sellers Consumer Purchasing and Protection Chapter 6 Section 2 Resolving Consumer Complaints Resolving Differences Between Buyers and Sellers Return to Place of Purchase Contact Company Headquarters Consumer Agency Assistance Dispute Resolution Keep receipts Complaint letter Better Business Bureau Mediation Be polite Call customer service Government Agencies Arbitration Food and Drug Administration Consumer Product Safety Commission mediation the attempt by a neutral third party to use discussion and negotiation to resolve a conflict between a customer and a business arbitration process whereby a conflict between a customer and a business is resolved by an impartial third party whose decision is legally binding

Resolving Differences Between Buyers and Sellers Consumer Purchasing and Protection Chapter 6 Section 2 Resolving Consumer Complaints Resolving Differences Between Buyers and Sellers Local or State Consumer Protection Agencies State Attorney General’s Office Dispute Resolution Programs Small Claims Court Better Business Bureau Trade Associations Local Bar Association

Legal Options for Consumers Consumer Purchasing and Protection Chapter 6 Section 2 Resolving Consumer Complaints Legal Options for Consumers Legal Options Small Claims Court Class-Action Suits Legal Aid Societies small claims court court that deals with legal disputes that involve amounts below a certain limit legal aid society network of community law offices that provide free or low-cost legal assistance

6 Consumer Purchasing and Protection Section 2 Chapter 6 Section 2 Resolving Consumer Complaints Cases presented in small claims courts are often featured on daytime television shows. Do you think such programs present a realistic portrayal of the American small claims court system? Are such programs beneficial? Explain your answer. Students may argue that they present an accurate portrayal. However, because they are made for television, the shows are likely edited to emphasize situations for entertainment value. Students may feel that the shows are educational or only entertaining.

Consumer Incentives 6 Consumer Purchasing and Protection Chapter 6 Consumer Incentives Beware of incentives that seem to good to be true Always read the fine print Beware of loss leaders Beware of the “bait and switch”

Consumer Purchasing and Protection Chapter 6

Consumer Purchasing and Protection Chapter 6

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