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

3. 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.

4. 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

5. Consumer Purchasing and Protection
Chapter 6

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.

7. 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

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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

20. 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

21. 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

22. 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.

23. 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.

24. 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

25. 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

26. 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

27. 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

28. 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

29. 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.

30. 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”

31. Consumer Purchasing and Protection
Chapter 6

32. Consumer Purchasing and Protection
Chapter 6

33. End of