1. In this unit, you will understand:
How to become a wise consumer
Why is it important to be a wise consumer
Who/what influences how we spend our money

2. Goods: Products made for sale such as in-line skates, computer games, jeans, etc.

3. Services: Work performed by one person for others such as repair work, tutoring, styling hair, etc.

4. Being a Wise Consumer…
• We have many choices. Think about your choices carefully.
• Know what you are looking for in a product or service.
• Evaluate! Compare! Think Before You Buy!

5. Influences That Affect Your Choices
Complete graphic organizer.
• Personal factors (beliefs, interest, curiosity)
• Family
• Friends
• Cost
• Advice of sales people
• Advertising!!!

6. What is Advertising?
• Messages designed to cause consumers to buy a product or service
• Companies invest a lot of money into ads to persuade you to buy their product

7. Consumer Awareness
As consumers, who spend a lot of money, we want to be sure that our buying decisions are based on solid information, not just fancy ads.

8. Are they facts at all, or is the advertiser using propaganda techniques to persuade you?
Clipart-Microsoft Office XP 2002

9. Commonly Used Advertising Techniques
Peer approval / Bandwagon
Associates product use with friendship/acceptance
“Everybody’s doing it”
Scientific or numerical claims (statistics)
“Nine-out-of-ten” may sound good, but many such claims can prove hard to substantiate
teens – lesson 10 - slide 10-A

10. Commonly Used Advertising Techniques
Transfer
Associates product with entertainment and feelings of enjoyment
Status / snob appeal
Associates product use with those who have status, who are successful, and who enjoy and understand the “fine things in life”
teens – lesson 10 - slide 10-A

11. Commonly Used Advertising Techniques
Hero endorsement
Associates use of product with a well-known person
Expert testimonial
Testimonials work because you feel like you can trust the words of an expert
teens – lesson 10 - slide 10-A

12. Commonly Used Advertising Techniques
Exploitation of fears and misgivings
Ad feeds or plays on consumers’ fears
“I’ve fallen and I can’t get up!”
teens – lesson 10 - slide 10-A

13. Commonly Used Advertising Techniques
Physical attraction to others
Associates use of product with increased physical attraction/appeal
Repetition
Can be visual or auditory
teens – lesson 10 - slide 10-A

14. Commonly Used Advertising Techniques
Name calling / “Perceptual contrast”
Merchant presents undesirable/inferior option first to make the second option look far superior
Unfinished comparison / Glittering generalities / Loaded Words
Use of phrases such as, “Works better in poor driving conditions!” Works better than what?
teens – lesson 10 - slide 10-A

15. Commonly Used Advertising Techniques
Wit and humor
Used to entertain and keep the attention of the audience
Intelligence / independence
Associates product with smart people who can’t be fooled by gimmicks
Associates product with people who can think and act for themselves
teens – lesson 10 - slide 10-A

16. Other Sales Techniques
Some commonly used approaches:
Guarantees
Abundant use of statements such as “lifetime guarantee” and “satisfaction guaranteed, or your money back”
Scarcity
Merchant creates a false sense of urgency by claiming that supply or time is limited
Infomercial
long TV commercial whose main purpose seems to be to present information, rather than to sell a product
teens – lesson 10 - slide 10-B

17. Examples of misleading advertisements
Frequently seen misleading advertisements:
Health fraud
Promises of overnight medical cures and treatments
Products developed after “years of research” and “proven to provide immediate positive results”
Testimonials from medical experts and satisfied customers
Credit repair
Offers, for a fee, to fix a bad credit record
“Get rich quick” schemes
Ads that offer an opportunity to earn a lot of money in a short amount of time with very little effort
Product misrepresentation
Uses names similar to nationally recognized brand
Merchandise offered at below-market value for a limited time only
Vague descriptions of product
Travel fraud
Offers accompanied by certificates for free or very low-cost travel
Vague description of services and accommodations
teens – lesson 10 - slide 10-D

18. When we make buying decisions, we should…
Read and listen to reliable sources
Watch for combinations of truths and lies
Check for hidden messages
Watch for use of propaganda techniques