Chapter 4 Consumer Purchasing Protection Chapter 4 Consumer

Chapter 4 Consumer Purchasing & Protection

Chapter 4 – Consumer Purchasing & Protection Section 1 – Consumer Purchasing How do you decide what you are going to buy? Factors that influence buying decisions Economic Factors Prices, Interest Rates, Quality, Convenience, Safety, Brand Names Social Factors Lifestyles, Interest, Friends, Culture, Social Media Personal Factors Age, Gender, Occupation, Income, Education, Religion, Ethnicity, Geography

Chapter 4 – Consumer Purchasing & Protection Researching Consumer Purchases Before you shop Identify your needs Gather information Know the marketplace Weighing the Alternatives Identify what is important to you Compare prices (Price DOES NOT EQUAL quality) Comparison Shop Make the purchase Negotiate the price Know the “real” price How are you going to pay? After the purchase Insurance? Maintenance?

Chapter 4 – Consumer Purchasing & Protection Smart Buying Strategies Timing your Purchases Buy “off season” Shop clearance sales Buy “last season” for big items Store Selection Department Stores vs. Specialty Stores vs. Discount stores Outlet Mall, Warehouse, Supermarkets Brand Comparison Displays (end-caps) promote “impulse buying” (usually overpay!) Label Information Sell-by/Best-by dates Efficiency, Operating costs for large items

Chapter 4 – Consumer Purchasing & Protection Price Comparison Unit Pricing - the price per unit Usually displayed on tags in grocery stores now Rebates – the partial refund of the product price Be aware, sometimes you can’t return an item afterwards Warranty evaluation A warranty is a written guarantee that states the conditions under which the product can be returned, replaced, or repaired Two types of warranties Implied warranty – Product will do as it’s intended CD plays music Toaster toasts bread Express warranty – Written warranty that covers all or part of the product Full warranty (covers all), Limited warranty (covers some) A service contract (called an “extended warranty”) is not really a warranty, it’s insurance. Usually not worth the cost of the plans

Chapter 4 – Consumer Purchasing & Protection Section 2 – Consumer Complaints Sources of complaints Most are due to products that are defective or of poor quality Some others include Unexpected costs Deceptive pricing Unsatisfactory repair service Fraud – a serious issue, where somebody is being dishonest to deceive, trick, or gain an unfair advantage How do you resolve differences if you have an issue with a product? Return to the place of purchase 99% + of issues will be resolved by simply returning to the store, and calmly, and respectfully explaining what the issue is Bring your receipts to make it even smoother The store wants your business, a good store is going to do everything they can to keep you happy!

Chapter 4 – Consumer Purchasing & Protection What if returning to the place doesn’t resolve the issue? Call company headquarters Move up the chain of command until you find somebody who can help you Contact a Consumer Agency Better Business Bureau (BBB) to log a complaint A Government agency, such as the FDA Enter into dispute resolution Mediation – a 3 rd party resolution, not legally binding Arbitration – a 3 rd party resolution, but is legally binding Full Legal Options Small Claims Court No lawyers, self represent Class Action Lawsuit Large group of people with the same issue For low cost lawyer support, could contact a Legal Aid Society