1. Effective Shopping Practices
PF Objective Students will understand the basic shopping options and use effective shopping practices.
Effective Shopping Practices

2. ESSENTIAL QUESTIONS
Where can consumers go to shop for goods and services?
What are the pros and cons of shopping options?
What practices help consumers make wise decisions when they shop?

3. 3 Basic Rules for Effective Shopping
PLAN BEFORE YOU SHOP
COMPARISON SHOP
SHOP WISELY
MAKE RATIONAL PURCHASES
MAKE EMOTIONAL
PURCHASES

4. PLAN BEFORE YOU SHOP Rule #1
Decide whether to shop at home or in a store
When there is a choice, decide whether to purchase goods or services
Check reliability and services of stores and distance-sellers
Decide when to buy
video link: tips for grocery shopping

5. Plan Before You Shop Details
3.Check reliability and services of stores and distance-sellers
Respectable businesses will back up their claims
ex: if there are product or service problems, how easily will they be resolved?
Services: what payment methods, return & refund policy, knowledgeable sales staff, special services like gift wrap, special orders, delivery, repair & maintenance
4.Decide when to buy
Cash or credit now, save for purchase later
Avoid impulsive purchasing decisions
When possible, wait for a sale
Promotional sale, tax free weekends, clearance, pre-holiday, cash or credit
1. Decide if shopping at home or shopping in stores is most appropriate
Time, cost, available goods, returns
2. Where there is a choice, decide whether it is advisable to purchase goods or services
Choose the best for your situation
Goods have prices; service prices may be harder to determine
Quality of goods can be reviewed & rated before buying
Quality of services is reflected by performance after purchase

6. Shop in stores or at home?
Let’s review the pros and cons of shopping in a store
Let’s review the pros and cons of shopping at home a
6.01- Shopping Options

7. Buy goods or services?
Sometimes you have an option of whether to purchase goods or services
Example 1: Buy a ready-made prom gown, or pay someone to make you a gown?
Example 2: Buy a new motorcycle or pay someone to fix up the used cycle you have?
6.01- Shopping Options

8. Buy goods or services?
Goods have clearly identified prices, while prices of services may be harder to determine.
Quality of goods can be reviewed and rated; quality of services is best reflected in performance.
6.01- Shopping Options

9. Check reliability and services
Only respectable businesses back up their claims
Services
Methods of payment accepted
Return/refund policies
Knowledgeable sales staff
Special services
Gift wrap
Special orders
Delivery
Repairs/maintenance
6.01- Shopping Options

10. Decide when to buy . . . Buy now with cash or credit
Save for purchase at a later time
When possible, wait for a sale
Avoid impulse buying
6.01- Shopping Options

11. Products COMPARISON SHOP Rule #2 Research the product Compare products
Understand warranties
Talk to people who have
made the same purchase
Check the Internet
6.01- Shopping Options

12. Do your homework --- become familiar with the product
Compare products --- brand name, store brands, and generics; size of packages, features
Talk to people who have made the same purchase
Check Internet for consumer information, magazines, other publications
Understand warranties that guarantee quality standards of products
Research the product
6.01- Shopping Options

13. Compare products Brand names, store brands, and generics
Size of package
Other product features
6.01- Shopping Options

14. Understand warranties
Implied warranty – product is in proper condition and does what it is intended to do
Example: Hair dryer blows and dries hair
6.01- Shopping Options

15. Understand warranties
Written warranty – goes beyond implied warranty by providing a written guarantee
Full warranty – according to law, must provide all 5 standards stated by Magnuson-Moss Act
Limited warranty – provides 1-4, but not all, of standards in Magnuson-Moss Act
Standards of Magnuson-Moss Act
Warranty extends to any owner of product, not just original owner
No cost for warranty
Nothing to do to receive warranty
Guarantees refund or replacement
Does not limit time period of implied warranty
6.01- Shopping Options

16. Understand Warranties
Implied warranty-
Product is in proper condition and it will perform intended purpose
Ex: sailboat sweater
Express warranty- uses words to guarantee
Written
Verbal
Full warranty
Must provide all standards Magnuson-Moss law requires
Limited warranty
May be
limited time
limited parts
limited labor

17. Services COMPARISON SHOP Rule #2
Identify a person(s) or business(es) that provide the desired service
Check qualifications
Interview; ask for demos/samples
Check references
Check licensing, bonding, insurance
Pay close attention to agreements
6.01- Shopping Options

18. Comparison Shop for Services
Identify providers- who are the person(s) or business(es) that provide the desired service?
Check qualifications --- What are their skills, reliability, and professional ethics?
Interview the service-provider; ask for demonstrations/work samples
Check the provider’s references and his/her record with the Better Business Bureau
Check to see if provider is licensed, bonded, or insured
Pay close attention to terms of agreements, and read carefully before signing (* see next slide)

19. Pay close attention to terms of agreements
Estimate --- a total expected cost, in writing, for performing a service
Work order --- gives authority to the provider to perform services
Contract --- a legally binding agreement between a service provider and a consumer
Service warranty --- a guarantee of quality standards for performance
video link: charlie brown's contract

20. In Stores SHOP WISELY Rule #3
Consider the value of time and energy, as well as money
Handle money, cash, and credit cards with care
Get receipts and sales slips; file carefully
Deal fairly and honestly with others in the marketplace
Report unfair/dishonest practices to the
proper authorities
video link: shopping in Kissimmee

21. OPTIONS FOR SHOPPING IN STORES
Retail stores obtain goods from wholesale sources and sell directly to consumers
Department stores sell a wide variety of goods and services
men’s, ladies, shoes, house wares, children’s sections
Attractive displays
Cashiers in sections to assist customers
Warehouse clubs and superstores offer price advantages and wide product selection
Buy in bulk, lower per unit price
Limited options available
Factory outlet stores are owned by the manufacturer or distributor of the merchandise

22. OPTIONS FOR SHOPPING IN STORES
Discount stores sell certain lines of merchandise at lower prices
Consignment or thrift stores sell used merchandise at greatly reduced prices.
Consignment: seller provides product, if it does not sell, may be returned
Thrift store: merchandise is donated for a good cause; ex: Salvation Army, Value Village
Specialty stores sell specialized goods/services --- e.g., shoe shops and gas stations.

23. Pros and Cons of Shopping in Stores
Variety of merchandise in one area or under one roof
Close to home for last-minute or emergency shopping
Offers special prices with a membership card
Malls offer special attractions and promotions for customers
Can try on clothes
Items are easy to exchange
 Offer payment plans
 Offer store credit cards
 Can work with knowledgeable sales people
 Stores offer special services---e.g., gift wrapping

24. Pros and cons of shopping in stores
Must find a place to park
Picked-over merchandise
Large crowds on sale days and weekends
Limited space

25. At Home SHOP WISELY Rule #3 Know name, location of seller
Understand what you are buying
Compare prices with other retailers
Only buy from secure sites
Check seller’s privacy policy
Pay by credit card
Find out delivery date, return and refund policy
Shipping policy and cost
Check product promptly when delivered
video link: shopping for clothes online

26. OPTIONS FOR SHOPPING AT HOME
Door-to-door---salesperson comes to home, either by invitation or not
Catalog shopping --- shopper calls on telephone to buy goods listed in a catalog
Telemarketing – seller calls on telephone to sell goods or services
T-commerce – shopping in response to ads on television
E-commerce – buying goods and services on the Internet, including Internet auctions

27. Pros and Cons of Shopping at Home
Buy any time seven days a week
Can obtain special orders
Will deliver
Can purchase on the spot with TV remote control or computer mouse
Buy from the comfort and convenience of home
Can buy from a worldwide market

28. Pros and Cons of Shopping at Home
Must have a credit card to pay
Must check seller’s privacy policy before giving personal/financial information
Offers that sound too good to be true may not be
Must keep a complete record of each transaction
Must check exchange policies; may be more costly or difficult to exchange items
May not know the physical location of the seller
May not understand exactly what is being bought
Cannot see or feel quality, size, and/or true color
Will have shipping and handling costs added
Must check reliability, legitimacy, and security of sellers before buying

29. Shop in stores or at home?
Let’s review the pros and cons of shopping in a store
Let’s review the pros and cons of shopping at home
6.01- Shopping Options