1. BEING A SMART CONSUMER

2. DEFINITIONS Consumer – someone who uses goods or services Goods – products Services – Actions performed by people Management – using available means to reach goals Resources – means used to reach goals Human Resources – comes from within people, ex: time, talents, knowledge, skills

3. Definitions Cont. Nonhuman Resources – material items, ex: money, possessions, public facilities, parks, schools. Includes air, water, land. Rights – claims to power

4. Management Process 1. Set a goal 2. List available resources 3. Choose which resources you will use. 4. Form a plan of action 5. Follow a plan 6. Evaluate the results Decision Making Process 1. State the problem 2. List the alternatives 3. Consequences of each alternative (pro and con) 4. Choose an alternative 5. Carry out the decision 6. Evaluate the decision

5. ADVERTISING APPEALS Factual appeal – describes a product’s features, where item is sold Wholesome appeal – suggests health, family life, environmental conditions will be improved by use of this product. Comparison – product features compared to competing product. “New” “Improved” compared to earlier version.

6. Testimonial – experts, celebrities make product claim seem believable. Attention getter – uses humor, bizarre images, unusual techniques to make consumers aware of product Special offer – contests, rebates, bonus, sale $ Sex appeal – will be more popular or attractive is you use this product

7. Bandwagon – everyone uses the product and invites you to become part of the crowd by using it too Snob appeal – using the product will increase your social status

8. ASSIGNMENT – DO RIGHT NOW!!! Look in magazines and find two different advertising appeals. Cut the ads out and label each with the type of appeal being used.

9. CONSUMER RIGHTS Right to safety – protection from products & services that are hazardous to your health. Right to be informed – provided with useful and truthful product facts (labeling, ads) Right to choose – wide selection of goods & services at a fair price Right to be heard – right to a voice if you have a problem, developing goods & services.

10. Right to redress - $ or other benefits that a consumer receives as fair compensation. Right to education – right to access programs and information that help make better buying decisions Right to healthy environment – to live & work in an environment that doesn’t damage your health Right to have basic needs met – access food, water, shelter

11. RESPONSIBILITIES Safety – Use products safely Information – Use information wisely Choice – choose carefully Be heard – express concerns to those who can help you Redress – seek it! Education – learn! Healthy Environment – consume in a way that promotes healthy environment Basic needs – consume sustainably (considerate choices & impact on others)

12. AGENCIES FDA – FTC – CPSC – Lemon Law – Toy packaging label – Recall – Why used?