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Consumer Goods and Services Kindra Watters Georgia CTAE Resource Network 2010 GPS Focus Standard FCS-CA-4 › Students will identify effective practices for purchasing consumer goods and services A. Explore the effect of advertising on consumer decisions. B. Identify consumer rights and responsibilities. C. Evaluate ways to solve performance and design problems, billing errors, or misunderstandings to satisfy the consumer. Continued… GPS Focus Standard …Continued D. Identify the major differences between basic contractual obligations, warranties, and contracts. E. Explain the process of comparison shopping. Effect of Advertising on Consumer Decisions Advertising “tells” the consumer about their product and why the consumer should purchase it. Advertisers-the companies/businesses that place the advertisement. Media- the various mediums used to convey a message. (medium is singular for media which is plural). Types of Media for Advertising Direct Mail Magazines Billboards Marine/Air-displaying ads at games or events on a boat or plane Electronic: Radio and television Internet Infomercials Print Advertisements Newspapers › Include classified ads Jobs Items and tickets for sale Yard sales › Example newspaper: The New York Times Continued… Print Advertisements Magazines › Advertise throughout the periodical Periodical-another name for written and bound material › Example magazine: Southern Living …Continued Buyer Beware DECEPTIVE ADVERTISEMENTS: › If it is too good to be true. › If it asks you to send money before you receive the product. › If you have to give your personal information. › If you have to work for free before a wage agreement is met. Effects of Advertising Statistics regarding advertising › http://www.plunkettresearch.com/Industries/ AdvertisingandBranding/AdvertisingandBran dingStatistics/tabid/70/Default.aspx › http://www.entrepreneur.com/encyclopedia /businessstatistics/article82676.html Advertising Explained Interactive Website › http://www.ftc.gov/youarehere/pages/parents_and_ teachers.html FTC’s WEST TERRACE: › › › Shuman’s Shoes Lesson: Ads and Endorsements There are lots of different kinds of ads. Here, visitors can design their own poster for a shoe sale or listen to a popular DJ’s endorsement to determine whether it’s an ad. MarketMatch Wireless Lesson: Targeted Marketing Businesses use target marketing to reach specific audiences. Visitors can learn more about target marketing by matching different styles of cell phones with their target audiences. Play this matching game again and again to beat your best time. Gr8 Gadgets Lesson: False or Misleading Ads Misleading ads cause lots of problems for businesses and consumers. Visitors watch a misleading commercial and then learn how it has caused problems for everyone involved. They also learn how the FTC prosecutes companies that intentionally mislead consumers. Consumer Rights and Responsibilities Role of federal government in assuring the rights of consumers › http://www.ftc.gov/b cp/about.shtm › http://www.ftc.gov/b cp/edu/pubs/consum er/credit/cre01.shtm Consumer Rights and Responsibilities Rights Responsibilities Right to safety Responsibility to use products safely Right to be informed Responsibility to use information Right to choose Responsibility to choose carefully Right to be heard Responsibility to speak up Right to redress (legal action on violations of laws) Responsibility to seek redress Right to consumer education Responsibility to learn Rights to service Responsibility to reward good service Consumer Complaints Resolving Customer Complaints? Billing Errors? Misunderstandings? Contact the company and calmly discuss the situation. Make a complaint-in person; by mail; or by phone. Keep a copy of everything sent and follow the company’s complaint procedures. If needed, take further action: contact state or federal agency; the Better Business Bureau (BBB) or take legal action, consult an attorney. Small claims court- a way to recover and come to a settlement over a legal matter. Source: The Creative Living Textbook Warranties and Contracts Warranty-a guarantee for a length of time that the consumer can depend on a product that will not be defunct. Contract-a binding agreement that lists services/product performance expected for a duration of time. Comparison Shopping Where is the better buy? Store A or Store B Store A Store B Comparison Shopping Video › Brain Pop Subscription Required http://www.brainpop.com/math/problemsolving/comparingprices/preview.we ml