© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 Time to Shop! ●What to buy ●Where to buy ●When to buy ●How to buy SLIDE 1

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 SLIDE 2 KEY TERMS ●Unit price (ounces, pounds, gallons, liters, pints, quarts, cups, grams) ●Dishwashing Detergent ●32 ozs = $1.45 =.045 per ounce ●22 ozs = $1.06 =.048 per ounce ●Cleaner ●22 ozs = $1.69 =.076 ●17 ozs = $1.39 =.081 ●Brand vs. Generic ●impulse buying

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 SLIDE 3 KEY TERMS ●Brand vs. Generic ●Food, Clothing, Cleaning/School supplies, Medicines, ●Impulse Buying

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 SLIDE 4 KEY TERMS ●consumer movement ●Fraud-false information ●Guarantee-Promise ●express warranty-orally/written, quality ●implied warranty-orally

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 SLIDE 5 CONSUMER MOVEMENT ●Ways businesses tried to take advantage of consumer ●False claims ●High prices ●Unsafe products ●Consumer response ●United to demand fair treatment

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 SLIDE 6 WISE BUYING STRATEGIES ●Use decision-making steps ●Comparison shopping ●Price ●Quality ●Services ●Sales ●Brands

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 SLIDE The right to service The right to consumer education The right to a remedy The right to be heard The right to choose The right to safety The right to be informed. CONSUMER BILL OF RIGHTS

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 SLIDE 8 YOUR CONSUMER RESPONSIBILITIES ●Be honest ●Be reasonable ●Be active ●Be informed ●Be involved

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 SLIDE 9 CONSUMER INFORMATION SOURCES ●Product testing organizations ●Media sources ●Print-based ●Broadcast-based ●Internet-only ●Government agencies ●USDA, FTC, FDA, CPSC, NHTSA ●Business sources ●Advertising ●Product labels ●Customer service departments ●Better Business Bureau ●Personal contacts ●Word of mouth

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 SLIDE 10 Where to buy! ●Traditional retailers ●Department, Discount, Specialty, Convenience ●Contemporary retailers ●Super/Hyperstores, Warehouse, Outlet ●Non-store shopping ●Online, mail, vending

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 The three reasons for the different types of places in which to shop are: The kinds of goods and services sold The prices The convenience Where to buy!

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 Department Stores Department stores sell a wide variety of goods, such as clothing, furniture, appliances, and sporting goods. They offer name brands and customer service so their prices are usually higher. Where to buy!

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 Discount Stores Discount stores sell a wide variety of goods like department stores but at lower prices. They offer few services and stock merchandise in large quantities. Where to buy!

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 Off-Price and Outlet Stores Off-price and outlet stores are able to offer large discounts because the items they sell have minor flaws, are out of season, or have been discontinued. Where to buy!

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 Limited-Line Retailers Limited-line retailers, or specialty stores, sell a large assortment of goods in one product line or a few related lines. Where to buy!

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 Superstores and Hypermarkets Superstores and hypermarkets are like supermarkets but sell items such as books, hardware, and clothing as well as groceries. Where to buy!

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 Warehouse Stores Warehouse stores carry a huge selection of food and nonfood items at low prices and in bulk quantities. They sometimes require customers to become members of the store by paying a membership fee. Where to buy!

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 Showroom Retailers Showroom retailers display samples of their products for customers to choose from. Customers fill out an order form and the orders are filled from a backroom warehouse. Where to buy!

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 Shopping at Home You can also shop without ever leaving home by ordering products through: TV home shopping channels Mail-order catalogs The Internet Where to buy!

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 Shop at Sales Some shopping experts say that the average consumer can save up to 15 percent by taking advantage of sales. When to buy! A promotional sale is one that gives you a special buy on a new product or a product that’s in season.

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 Shop at Sales A store might have a clearance sale to clear out goods that are going out of season or are no longer profitable in order to make room for new merchandise. When to buy! Products being sold at or below cost are called loss leaders.

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 Use Shopping Lists Impulse buying is purchasing things on the spur of the moment. A shopping list will keep you from making unnecessary shopping trips and keep you from buying on the spur of the moment. Tips!

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 Resist Pressure and Gimmicks Some salespersons use high-pressure tactics to try to get you to buy what they’re selling. Sales gimmicks are meant to grab your attention and get you into the store or draw you into buying something. Always closely examine any deal or bargain that seems too good to be true. Tips!

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 Read Labels and Warranties A warranty is a legal document that states the rights and responsibilities agreed to by the consumer and the store or the manufacturer. Tips!

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 Read Labels and Warranties Full warranties are usually good for a stated time period, such as 90 days or one year. Limited warranties cover only certain parts of a product. Tips!

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 SLIDE 26 KEY TERMS ●Mediation-third party(suggests compromise) ●Arbitration-third party(makes decision) ●class action suit-legal action by one party on behalf of a group ●small claims court-small accounts $ $10,000

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 SLIDE 27 TOP 10 LIST OF CONSUMER COMPLAINTS ●Debt collection ●Auto sales ●Home repair and construction ●Credit cards ●Internet goods and services ●Predatory lending and mortgages ●Telemarketing and do-not-call ●Auto repair ●Auto warranties ●Telecom, slamming, and cramming

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 SLIDE 28 DECEPTIVE BUSINESS ACTIVITIES ●Scams, cons, and swindles ●Too good to be true ●Financial losses ●The Internet and online scams

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 SLIDE 29 COMPLAINT PROCESS Step 1Contact the place of purchase Step 2Contact the company headquarters Step 3Involve a consumer agency Step 4Take legal action

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 SLIDE 30 CONTACT PLACE OF PURCHASE ●Return to place of purchase ●Remain calm ●Provide evidence

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 SLIDE 31 CONTACT COMPANY HEADQUARTERS ●Customer service department ●Contact information ●Tell what happened ●Include copies of documentation ●Ask for specific action

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 SLIDE 32 INVOLVE A CONSUMER AGENCY ●When you do not get satisfaction from business ●Consumer agencies ●Public interest organization ●Government agencies

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 SLIDE 33 LEGAL ACTIONS FOR CONSUMERS ●Third-party settlements ●Mediation ●Arbitration ●Class action suits ●Small claims court ●Using a lawyer