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Consumers in the Global Economy

15. Consumers in the Global Economy. 15-1 Consumer Buying Decisions 15-2 Consumer Rights and Responsibilities 15-3 Consumer Protection Actions. LESSON 15-1 Consumer Buying Decisions. Goals Identify major sources of consumer information. Explain wise buying actions.

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Consumers in the Global Economy

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  1. 15 Consumers in the Global Economy 15-1 Consumer Buying Decisions 15-2 Consumer Rights and Responsibilities 15-3 Consumer Protection Actions

  2. LESSON 15-1Consumer Buying Decisions Goals • Identify major sources of consumer information. • Explain wise buying actions. • Describe the main types of shopping locations. 15

  3. Key Terms • unit price- price per unit of measure • Brand- a name given to a product to distinguish it from other similar and competitive items • impulse buying-buying too quickly 15

  4. CONSUMER INFORMATION SOURCES • Product testing organizations • Organizations paid by manufactures • Underwriters Laboratories • Association of Home Appliance Manufacturers(AHAM) • Independent testing organizations • Consumer Union 15

  5. Media sources • Print publishers • Consumers Digest • Good Housekeeping • Parents • Money • Broadcast organizations • Radio, TV • The Internet 15

  6. CONSUMER INFORMATION SOURCES (continued) • Government agencies • Federal • USDA, FTC, FDA, CPSC • State • Consumer protection agency • Local • Consumer assistance offices 15

  7. CONSUMER INFORMATION SOURCES (continued) • Business sources • Advertising • Product labels • Customer service departments • Better Business Bureau • Personal contacts 15

  8. >> C H E C K P O I N T What are the main sources of consumer information? 15

  9. WISE BUYING STRATEGIES • Use decision-making • Comparison shopping 15

  10. USE DECISION-MAKING 1. Identify your needs or wants. 2. Know the choices available. 3. Determine your desired satisfaction. 4. Evaluate alternatives. 5. Make the decision. 15

  11. COMPARISON SHOPPING • Compare prices • Compare quality • Compare services • Compare sales • Compare brands 15

  12. WISE BUYING: A SUMMARY • Take your time • Time your purchases • Avoid being impulsive 15

  13. >> C H E C K P O I N T What decision-making steps should be taken when making a purchase? 15

  14. SHOPPING LOCATIONS • Traditional retailers • Department stores, Discount Stores, Specialty Stores, Supermarkets, Convenience stores • Contemporary retailers • Specialty superstores • Office Max, Home Depot, Best Buy • Factory Outlets • Non-store shopping • Mail order, vending machines 15

  15. >> C H E C K P O I N T What are the main categories of shopping locations? 15

  16. Assignments • Pg 378, 1-3 15

  17. LESSON 15-2Consumer Rights and Responsibilities Goals • Explain the consumer movement. • Explain seven consumer rights. • Describe consumer responsibilities. 15

  18. Key Terms • consumer movement-the fight against unfair business practices • Guarantee-a promise by the manufacturer or dealer • express warranty-made orally or in writing, and promises a specific quality of performance. • implied warranty- imposed by law and is understood to apply even though it has not been stated 15

  19. THE CONSUMER MOVEMENT • Consumer Bill of Rights 1. The right to be informed. 2. The right to safety. 3. The right to choose. 4. The right to be heard. 5. The right to a remedy. 6. The right to consumer education. 7. The right to service. 15

  20. >> C H E C K P O I N T What are the seven rights of consumers? 15

  21. THE RIGHT TO BE INFORMED • You have a right to know what the product or service is and what it will do for you. 15

  22. THE RIGHT TO SAFETY • Consumers have a right to be safe from harm associated with using products or services. • Food and Drug Administration (FDA) • United States Department of Agriculture (USDA) 15

  23. THE RIGHT TO CHOOSE • Consumers have the right to choose from a variety of goods and services. • Federal Trade Commission (FTC) • Monopoly 15

  24. THE RIGHT TO BE HEARD • Federal Trade Commission (FTC) • Office of the Attorney General • Department of Consumer Affairs • Better Business Bureau 15

  25. THE RIGHT TO A REMEDY • Consumers have the right to seek a legal remedy when a problem occurs. • Guarantee • Express warranty • Implied warranty 15

  26. THE RIGHT TO CONSUMER EDUCATION • Educated consumers are aware that their decisions have economic and social implications. 15

  27. THE RIGHT TO SERVICE • Convenience • Courtesy • Responsiveness 15

  28. >> C H E C K P O I N T How does an express warranty differ from an implied warranty? 15

  29. YOUR CONSUMER RESPONSIBILITIES • Be honest • Be reasonable • Be active • Be informed • Be involved 15

  30. >> C H E C K P O I N T What actions can be taken to be an involved consumer? 15

  31. Assignment • Pg. 385, 1-4 15

  32. LESSON 15-3Consumer Protection Actions Goals • List common consumer concerns. • Describe the steps of the consumer complaint process. • Explain legal actions available to assist consumers. 15

  33. Key Terms • Mediation- involves the use of a third party who tries to resolve the complaint between the consumer and the business. • Arbitration- results in a decision that is legally binding. • class action suit- a legal action by one party on behalf of a group of people who all have the same grievance. • One person represents many others • small claims court- court system used to resolve cases involving small amounts of money 15

  34. COMMON CONSUMER PROBLEMS Sources of complaints • Motor vehicle purchases, repairs • Deceptive investments • Identity theft and credit card fraud • Guaranteed and advance-fee loans • Credit repair scams • Telemarketing, catalog, and magazine sales 15

  35. COMMON CONSUMER PROBLEMS Sources of complaints (continued) • Internet auctions, online purchases • Prizes, sweepstakes, and phony lottery promotions • Work-at-home and start-your-own business opportunities • Travel and vacation promotions • Health and diet gimmicks 15

  36. DECEPTIVE BUSINESS ACTIVITIES • Scams, cons, and swindles • Too good to be true • Financial losses • The Internet and online scams 15

  37. PROTECTION FOR SHOPPERS • Federal Laws • Right to cancel your order • Credit card bill disputes 15

  38. >> C H E C K P O I N T What are sources of common consumer complaints? 15

  39. THE COMPLAINT PROCESS Step 1 Contact the place of purchase Step 2 Contact the company headquarters Step 3 Involve a consumer agency Step 4 Take legal action 15

  40. CONTACT THE PLACE OF PURCHASE • Return to place of purchase • Remain calm • Provide evidence 15

  41. CONTACT THE COMPANY HEADQUARTERS • Customer service department • Contact information • Tell what happened • Include copies of documentation • Ask for specific action 15

  42. INVOLVE A CONSUMER AGENCY • When you do not get satisfaction from business • Consumer agencies • Public interest organization • Government agencies 15

  43. TAKE LEGAL ACTION • When the first three steps do not work 15

  44. >> C H E C K P O I N T List the steps of the consumer complaint process. 15

  45. LEGAL ACTIONS FOR CONSUMERS • Third-party settlements • Mediation • Arbitration • Class action suits • Small claims court • Using a lawyer 15

  46. >> C H E C K P O I N T How does mediation differ from arbitration? 15

  47. Assignment • Pg 391, 1-2 • Pg 393, 13-24, vocab 15

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