Consumers in the Global Economy CHAPTER 15 Consumers in the Global Economy 15-1 Consumer Buying Decisions 15-2 Consumer Rights and Responsibilities 15-3 Consumer Protection Actions

Consumer Buying Decisions 15-1 Consumer Buying Decisions Goals

CONSUMER INFORMATION SOURCES Chapter 15 CONSUMER INFORMATION SOURCES Product testing organizations What they are Example of one and what they do Media sources- 3 types Give examples of each type

CONSUMER INFORMATION SOURCES Chapter 15 CONSUMER INFORMATION SOURCES (continued) Government agencies Federal What they do Example(s) of 5 State (what they do) Local (what they do)

CONSUMER INFORMATION SOURCES Chapter 15 CONSUMER INFORMATION SOURCES (continued) Business sources (ways companies make information available) Advertising (2 things about advertising/what it does/why important) Product labels (what they are & why important) Customer service departments (what they are and why important Better Business Bureau (who this is and what they do) Personal contacts (what this is and why important)

WISE BUYING STRATEGIES Chapter 15 WISE BUYING STRATEGIES Use decision-making Record the steps and explain each Comparison shopping What are the 4 things customers compare when they shop? Describe each in 2 sentences What is a unit price? Promotional sales vs clearance sales (what’s the difference?) What is a brand? What is a brand name? Why are they designed? What are national brands? Give 3 examples What are store brands/private label brands? Give an example of this What are generic products?

WISE BUYING: A SUMMARY List 3 the tips Chapter 15 WISE BUYING: A SUMMARY List 3 the tips Include the 3 examples of making sure you make your purchases at the right time What is impulsive buying? List 3 additional things about impulse buying

SHOPPING LOCATIONS Traditional retailers Contemporary retailers Chapter 15 SHOPPING LOCATIONS Traditional retailers What are department stores? Discount stores? Specialty shops? Supermarkets? Convenience stores? Contemporary retailers What are specialty superstores? What are superstores? What is a warehouse club? Factory outlets? Non-store shopping What is mail order? Vending machines?

15-1 Assessment >> highlight answer in red Chapter 15 15-1 Assessment >> highlight answer in red The most reliable consumer information source will usually be: Advertising Comments from salespeople Comments from other consumers Reports from consumer testing organizations The first step in the buying decision-making process is: Identify product alternatives Evaluate the services at different stores Decide whether to use cash or credit cards Identify your needs Which of the following is an example of a non-store shopping location? Club warehouse Vending machine Factory outlet hypermarket

Consumer Rights and Responsibilities 15-2 Consumer Rights and Responsibilities Goals

CONSUMER MOVEMENT What was the consumer movement? Chapter 15 CONSUMER MOVEMENT What was the consumer movement? List the 7 consumer bill of rights and 1 important element of each. What is fraud? Who is the FDA? What do they do? USDA? Who is the FTC and what do they do? What is a monopoly? What is the Better Business Bureau? What is a guarantee? What is an express warranty? What is an implied warranty?

YOUR CONSUMER RESPONSIBILITIES Chapter 15 YOUR CONSUMER RESPONSIBILITIES Be honest (list 2 points about each listed) Be reasonable Be active Be informed Be involved

15-2 Assessment>>highlight answers in RED Chapter 15 15-2 Assessment>>highlight answers in RED T/F The U.S. Consumer Product Safety Commission is responsible for regulating the safety of food T/F An implied warranty is usually printed in the owner’s manual of a product A person who compares product information on labels is using the consumer right to: Service Be informed Be heard A remedy If a person returns an item as new for a refund after using it, this violates the consumer responsibility of: Honesty Involvement Informed active

Consumer Protection Actions 15-3 Consumer Protection Actions Goals

COMMON CONSUMER PROBLEMS Chapter 15 COMMON CONSUMER PROBLEMS List 2 examples of common consumer problems Sources of complaints List 8 types of businesses that receive a lot of customer complaints

DECEPTIVE BUSINESS ACTIVITIES Chapter 15 DECEPTIVE BUSINESS ACTIVITIES List 5 important facts about what some businesses do that is deceptive or sneaky?

PROTECTION FOR SHOPPERS Chapter 15 PROTECTION FOR SHOPPERS Federal Laws (what do they protect?) Credit card bill disputes (how do those work?)

COMPLAINT PROCESS-list each step AND describe Chapter 15 COMPLAINT PROCESS-list each step AND describe Step 1 Step 2 Step 3 Step 4

LEGAL ACTIONS FOR CONSUMERS Chapter 15 LEGAL ACTIONS FOR CONSUMERS Third-party settlements What is Mediation? When is it used? What is Arbitration? When it is used? What are Class action suits? When are they filed? What is Small claims court? What kinds of cases are sent there? Using a lawyer (2 facts about using one)

15-3 Assessment>>highlight answer in RED Chapter 15 15-3 Assessment>>highlight answer in RED Most consumer complaints are resolved by Taking legal action Using arbitration Hiring a lawyer with consumer protection experience Returning to the place of purchase A company refused to refund $10 to more than 4000 customers. This might result in the use of Mediation Arbitration A class action suit Small claims court