CHAPTER 15 1 CHAPTER 15 Consumers in the
- Slides: 42
CHAPTER 15 1 CHAPTER 15 Consumers in the Global Economy 15 -1 Consumer Buying Decisions 15 -2 Consumer Rights and Responsibilities 15 -3 Consumer Protection Actions © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8 e
15 -1 Consumer Buying Decisions Goal 1 Identify major sources of consumer information. Goal 2 Explain wise buying actions. Goal 3 Describe the main types of shopping locations. © 2012 Cengage Learning. All Rights Reserved. SLIDE 2
CHAPTER KEY TERMS 15 3 ● unit price ● brand ● impulse buying © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8 e
CONSUMER INFORMATION SOURCES ● Product testing organizations ● Media sources ● Print-based ● Broadcast-based ● Internet-only ● Government agencies CHAPTER 15 4 ● Business sources ● Advertising ● Product labels ● Customer service departments ● Better Business Bureau ● Personal contacts © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8 e
CHAPTER 15 5 Checkpoint ● What are the main sources of consumer information? ● The main sources of consumer information are product testing organizations, media sources, government agencies, business sources, and personal contacts. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8 e
CHAPTER WISE BUYING STRATEGIES 15 6 ● Use decision-making steps ● Comparison shopping © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8 e
CHAPTER DECISION-MAKING STEPS 15 7 1. Identify your needs or wants. 2. Know the choices available. 3. Determine your desired satisfaction. 4. Evaluate alternatives. 5. Make the decision. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8 e
CHAPTER COMPARISON SHOPPING 15 8 ● Compare prices ● Compare quality ● Compare services ● Compare sales ● Compare brands © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8 e
CHAPTER WISE BUYING: A SUMMARY 15 9 ● Take your time ● Time your purchases ● Avoid being impulsive © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8 e
CHAPTER 15 10 Checkpoint ● What decision-making steps should be taken when making a purchase? ● Identifying your needs or wants. ● Knowing the choices available. ● Determining your desired satisfaction. ● Evaluating alternatives. ● Making the decision. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8 e
CHAPTER SHOPPING LOCATIONS 15 11 ● Traditional retailers ● Contemporary retailers ● Non-store shopping © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8 e
CHAPTER 15 12 Checkpoint ● What are the main categories of shopping locations? ● The main categories of shopping locations are traditional retail stores, contemporary retail stores, and non-store shopping. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8 e
15 -2 Consumer Rights and Responsibilities Goal 1 Explain the consumer movement. Goal 2 Explain seven consumer rights. Goal 3 Describe consumer responsibilities. © 2012 Cengage Learning. All Rights Reserved. SLIDE 13
CHAPTER KEY TERMS 15 14 ● consumer movement ● fraud ● guarantee ● express warranty ● implied warranty © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8 e
CHAPTER 15 15 CONSUMER MOVEMENT ● Ways businesses tried to take advantage of consumer ● False claims ● High prices ● Unsafe products ● Consumer response ● United to demand fair treatment © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8 e
CHAPTER CONSUMER BILL OF RIGHTS 1. The right to be informed. 15 16 1962 2. The right to safety. 3. The right to choose. 4. The right to be heard. 5. The right to a remedy. 1969 6. The right to consumer education. 1975 7. The right to service. 1994 © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8 e
CHAPTER 15 17 Checkpoint ● What are the seven rights of consumers? ● ● ● ● Right to be informed Right to safety Right to choose Right to be heard Right to a remedy Right to consumer education Right to service © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8 e
CHAPTER 15 18 RIGHT TO BE INFORMED ● You have a right to know what the product or service is and what it will do for you. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8 e
CHAPTER 15 19 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) © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8 e
CHAPTER 15 20 RIGHT TO CHOOSE ● Consumers have the right to choose from a variety of goods and services. ● Federal Trade Commission (FTC) ● Monopoly © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8 e
CHAPTER RIGHT TO BE HEARD 15 21 ● Federal Trade Commission (FTC) ● Office of the Attorney General ● Department of Consumer Affairs ● Better Business Bureau © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8 e
CHAPTER 15 22 RIGHT TO A REMEDY ● Consumers have the right to seek a legal remedy when a problem occurs. ● Guarantee ● Express warranty ● Implied warranty © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8 e
RIGHT TO CONSUMER EDUCATION CHAPTER 15 23 ● Educated consumers are aware that their decisions have economic and social implications. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8 e
CHAPTER RIGHT TO SERVICE 15 24 ● Convenience ● Courtesy ● Responsiveness © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8 e
CHAPTER 15 25 Checkpoint ● How does an express warranty differ from an implied warranty? ● An express warranty is made orally or in writing and promises a specific quality of performance. ● An implied warranty is imposed by law and is understood to apply even though it has not been stated. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8 e
YOUR CONSUMER RESPONSIBILITIES CHAPTER 15 26 ● Be honest ● Be reasonable ● Be active ● Be informed ● Be involved © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8 e
CHAPTER 15 27 Checkpoint ● What actions can be taken to be an involved consumer? ● To be an involved consumer, you should be honest, reasonable, active, informed, and involved. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8 e
15 -3 Consumer Protection Actions Goal 1 List common consumer concerns. Goal 3 Describe the steps of the consumer complaint process. Goal 3 Explain legal actions available to assist consumers. © 2012 Cengage Learning. All Rights Reserved. SLIDE 28
CHAPTER KEY TERMS 15 29 ● mediation ● arbitration ● class action suit ● small claims court © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8 e
COMMON CONSUMER PROBLEMS CHAPTER 15 30 ● Easily resolved ● Serious problems ● Sources of complaints © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8 e
CHAPTER TOP 10 LIST OF CONSUMER COMPLAINTS ● ● ● ● ● 15 31 Debt collection Auto sales Home repair and construction Credit cards Internet goods and services Predatory lending and mortgages Telemarketing and do-not-call Auto repair Auto warranties Telecom, slamming, and cramming © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8 e
DECEPTIVE BUSINESS ACTIVITIES CHAPTER 15 32 ● Scams, cons, and swindles ● Too good to be true ● Financial losses ● The Internet and online scams © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8 e
PROTECTION FOR SHOPPERS CHAPTER 15 33 ● Federal laws ● Right to cancel your order ● Credit card bill disputes © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8 e
CHAPTER 15 34 Checkpoint ● What are sources of common consumer complaints? ● ● ● ● ● Debt collection Auto sales Home repair and construction Credit cards Internet goods and services Predatory lending and mortgages Telemarketing and do-not-call Auto repair Auto warranties Telecom, slamming, and cramming © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8 e
CHAPTER 35 COMPLAINT PROCESS Step 1 Step 2 Step 3 Step 4 15 Contact the place of purchase Contact the company headquarters Involve a consumer agency Take legal action © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8 e
CONTACT PLACE OF PURCHASE CHAPTER 15 36 ● Return to place of purchase ● Remain calm ● Provide evidence © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8 e
CONTACT COMPANY HEADQUARTERS CHAPTER 15 37 ● Customer service department ● Contact information ● Tell what happened ● Include copies of documentation ● Ask for specific action © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8 e
INVOLVE A CONSUMER AGENCY CHAPTER 15 38 ● When you do not get satisfaction from business ● Consumer agencies ● Public interest organization ● Government agencies © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8 e
CHAPTER 15 39 TAKE LEGAL ACTION ● When the first three steps do not work © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8 e
CHAPTER 15 40 Checkpoint ● List the steps of the consumer complaint process. ● Contact the place of purchase. ● Contact the company headquarters. ● Involve a consumer agency. ● Take legal action. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8 e
LEGAL ACTIONS FOR CONSUMERS CHAPTER 15 41 ● Third-party settlements ● Mediation ● Arbitration ● Class action suits ● Small claims court ● Using a lawyer © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8 e
CHAPTER 15 42 Checkpoint ● How does mediation differ from arbitration? ● Mediation involves the use of a third party who tries to resolve the complaint, while arbitration results in a decision that is legally binding on both parties in a dispute. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8 e
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