Download Name: Chapter 22 – Guided Notes Making Consumer Decisions

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.