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Download Name: Chapter 22 – Guided Notes Making Consumer Decisions
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Name: ____________________________ Chapter 22 – Guided Notes Making Consumer Decisions Consumer Choices • Deciding What to Buy • Deciding When to Buy • Deciding Where to Buy • Deciding How Much to Pay Customer vs. Consumer Customer o A person who selects and______________________________________________________ Consumer o A person who selects, purchases, and uses, and ____________________________________ What to Buy Brands – help consumer distinguish ___________________________________________________ Generic - __________________________________ o Producers spend as little on marketing and advertising o Usually sell for _____ lower When to Buy _____________________________________________ _____________________________________________ Before new models are released Where to Buy Department Store: sell a wide variety of goods o Clothing, Furniture appliances, jewelry o _________________________________ o _________________________________ o Higher Prices Examples: Macy’s, Penny’s, Carson’s Discount Stores: sell a wide variety of goods but at lower prices o ________________________ o ________________________ o ________________________ Off-Price and Outlet Stores: offer large discounts on brand names o ________________________ o ________________________ o ________________________ Limited Line: Sell an assortment of goods in one product line o Such as: _________________________ o Examples: Dick’s Sporting Goods, Best Buy, Toys R Us, American Eagle Superstores: have a complete grocery store but also have a___________________________ o Examples: Super Wal-Mart, Super Target, Meijer’s Convenient Stores: provide easy access that consumers often buy as a necessity o ____________________________ o Examples: 7 -11, White Hen Warehouse Stores: typically the size of a football field o Carry a huge selection of food and nonfood items Name: ____________________________ o _______________ o Examples: Costco, Sam’s Club Shopping at Home o Examples: TV, Catalogs, On-line What to Pay Comparison Shopping: comparing the prices and characteristics of competing brands or stores o Check list Price, Features, Quality, Convenience, Warranty Preparing to Shop Study Advertisements o Rational Advertising: ______________________________________________ o Emotional Advertising: ____________________________________________ Reading Consumer Publications o Consumer Reports _________________________________________ o Consumer Research Magazine Shop Sales o Promotional Sales Special buy on ___________________________ o Clearance Sales To clear out goods that are out of season or no longer profitable o Loss Leaders Advertised products that sell at a loss to bring customers ___________________ Uses Shopping Lists o To avoid impulse buying o To help ___________________ Resist pressure and gimmicks o “Super low Prices” o “You’ve Won a Prize” Read Labels and Warranties o Warranty A written guarantee from the _________________ that states the _____________ under which the Product can be ___________, ______________ or ________________ A legal document that states the ______________________________________ of the consumer and the ___________________________ Federal Law requires sellers of products greater the _____________ to have a written warranty o Types of Warranties Implied Unwritten guarantees that a product is fit for the intended use Expressed Written and comes in two forms o _________ states that the seller will repair or _________ the product o Limited Warranty covers only certain parts of a product. The ________ may have to pay a portion of the _______________. Name: ____________________________ Chapter 23 – Consumer Rights and Responsibilities Key Terms Consumer Movement: to pass laws protecting consumers from unfair and unsafe business practices Product Liability: a legal responsibility that manufacturers have to make a safe product Bait and Switch: a sales tactic in which buyers are tempted by an advertised bargain but are then persuaded to buy a more expensive item instead Pollution: contamination of air, water, and land Conservations: the process of preserving, protecting and planning the management of resources Recycling: involves collecting products for processing so that they can be used again Boycott: a refusal to buy a company’s goods or services CONSUMER RIGHTS The Right to Be Informed The Right to Choose The Right to Safety The Right to Be Heard The Right to Have Problems Corrected The Right to Consumer Education The Right to Service CONSUMER RESPONSIBILITIES The Responsibility to Be Informed The Responsibility to Choose Carefully The Responsibility to Use Products Safely The Responsibility to Speak Out The Responsibility to Seek a Remedy The Responsibility to Learn Consumer Skills Name: ____________________________ Chapter 24 – Consumer Organizations and Agencies Finding Solutions to Consumer Problems NONGOVERNMENTAL CONSUMER ORGANIZATIONS The Consumer Federation of America: Works to inform the public and government about consumer issues Promotes policies that benefit consumer Studies laws that affect consumers The National Consumers League Provides government agencies, businesses with consumer’s point of view National fraud information center Monitors the Internet to alert consumers to fraud Consumers Union Test products and report their finds in “Consumer Report” magazine Major Appliance Consumer Action Program Helps consumers solve problems with large appliances The Media The media reports on consumer issues – local and national stations GOVERNMENT CONSUMER ORGANIZATIONS The Federal Trade Commission Enforces laws to eliminate unfair or deceptive business practices: Identity Theft, deceptive advertising, credit issues etc. U.S. Department of Agriculture Inspects foods and grades them The Food and Drug Administration Regulates the labeling and safety of food, drugs, cosmetics, dietary supplements Tests and approves all drugs before going on the market The National Highway Traffic Safety Administration Sets and enforces safety standards for motor vehicle The Consumer Product Safety Commission Oversees the safety of products such as toys, cribs, power tools, electronics, etc. State Public Utilities Commissions Regulate the rates charged by electric, gas, and water companies State Insurance Commissions Control and approve insurance rates State Licensing Agencies Issues licenses or legal permits to conduct business (ie: doctors, teachers, hair stylists etc.) LAWS THAT PROTECT CONSUMERS Price Discrimination Laws Fair pricing means businesses must be fair to all customers when setting prices Price discrimination is the act of charging more than one price for the same product to different customers Name: ____________________________ The Fair Packaging and Labeling Act Requires manufacturers’ labels truthfully list all ingredients and raw materials used in production The Uniform Commercial Code A group of laws that regulate commercial business transactions. Regulates sales warranties Consumer Credit Protection Act Requires those who give credit reveal all the terms and conditions of their credit agreements Truth in Advertising Laws The FTC protect consumers from false and misleading advertising HOW BUSINESSES PROTECT CONSUMERS The Better Business Bureau (BBB) A nonprofit organization that collects information on local businesses and handles complaints Does not recommend a one business over any other Cannot legally go after a business Customer Service Representatives Can answer questions or help resolve problems Advertising A good source of consumer information Magazines Some magazines are good sources of consumer information (ie: Good Housekeeping) TERMS: Consumer Advocate: groups and individuals who work to protect, inform and defend consumers Grade labels: indicate the level of quality of foods Recall: an order to take back and repair or replace a product Legal monopoly: a company that is allowed to operate without competition Licenses: legal permits to conduct business Name: ____________________________ Create a Game Based on Chapter 24 and ___ Requirements: The following items will be graded: At least 1 question from each category including all vocabulary words clearly written on the paper provided. Question/Answer Sheet – We are not grading on how the game looks. You can take an existing game board and adaptive it to your needs so that all questions will be offer to the players You will need to provide clear and simple instructions for the player how to play and score the game.