Consumerism What type of consumer are you Personal

Consumerism

What type of consumer are you? Personal consumer rating. 1. If you were given $1, 000. 00 today, what would you do with it? 2. Do you check your receipts to make certain that you have been charged correctly? 3. Do you count your change to make certain that it is correct? 4. Do you compare different prices and brands of the same item at more than one store, then select the best value to purchase?

What type of consumer are you? Continued… 5. Do you compare the warranties of different brands when selecting a brand to purchase? 6. If you feel you have been wronged by a business, do you complain to the business and attempt to right the wrong? 7. Do you find yourself buying things that you had not planned to buy? 8. Do you save money regularly?

What type of consumer are you? Continued… 9. Do you often find yourself borrowing money from parent, friends or siblings? 10. Do you keep a record of what you earn and what you spend? 11. Do you shop sales? 12. Do you read the instructions for use and care of a product and follow them?

What type of consumer are you? Continued… 13. Do you keep your sales receipts, warranties, and instructions? 14. Do you read the store’s return and exchange policy before making your purchase?

Rating • On question #1, give yourself 5 points if you selected something to do with your money that is consistent with your goals and values in life. • Give your self two points for each question you answered, as follows: #2—yes #6—yes #10—yes #3—yes #7—no #11—yes #4—yes #8—yes #12—yes #5—yes #9—no #13—yes #14—yes

So what type of consumer are you? ? ? • 25 -31 points—Great! Keep up the good work! • 19 -25 points—Fair. You should begin to make some changes. • 14 -19 points—Not too good. Consider making some big changes. • Less than 14—Take good notes during this lecture, you’ll need them!

Vocabulary 1. Goods-Products made for sale. 2. Services-Work performed by one person for others such as repairs work, tutoring, hair styling etc. 3. Advertisement- A message to persuade consumers to buy something. 4. Better Business Bureau (BBB)- Offers a variety of consumer services at no charge to help with consumer complaints.

Vocabulary • Food and Drug Administration (FDA)- Federal agency that was formed to set and enforce safety standards for food, drugs, and cosmetics. • Federal Trade Commission (FTC)- Federal agency that was formed to protect consumers against false advertising, illegal ales schemes, and all unfair trade practices.

Vocabulary • Warranty- This is a statement made by a manufacturer or seller of a product or service concerning the responsibility for quality, characteristics, and performance of the product or service. • Supply: The amount of goods and services available for sale at various prices at stated times.

Vocabulary • Second- A product that does not meet the standard requirements. • Producers- Those who provide the supply of goods and services to meet consumer demands. • Monopoly- A market situation in which only one organization produces the entire output of an industry or sells a product or service for which there is no substitute.

Vocabulary • Needs- The basic item a person must have to survive. • Impulse Buying- Unplanned consumer purchases, usually done on the spur of the moment—usually involving items on display or at reduced prices. • Comparison Shopping- Looking at different brands and models of the same item in various stores to compare price, quality, features, and store services before buying.

Vocabulary • Name Brand- A brand name that is widely recognized and sold in many different stores. • Store Brand- A brand owned by a particular store or chain of stores. • Generic Brand- Surplus products purchased from many different manufactures and then labeled with plain white and black labels stating what the product is and giving necessary information.

Being a Wise Consumer Why We Buy: We decide to satisfy a need by making a purchase. We determine that we can afford the cost. Look at alternatives available to us in regards to that purchase.

Being a Wise Things to consider when purchasing: Consumer 1. Quality: Is the product well Gathering Consumer Information: The amount of information we gather will depend on whether the product is consumable or not. You will usually make a more satisfying purchase of reasonably expensive items if you research your alternatives. 2. 3. 4. 5. constructed? Cost: What is the lowest price for this product? Availability: Where is it available? Is it in stock? Warranty: If I’m not satisfied, may I return the product for a full refund? Reputation: Reputation is the general opinion people have of a person or a company?

Being a Wise Consumer Sources of Information • Family and Friends • Advertising • Sales and Informational Brochures • Catalogs • Magazine and Newspaper Articles/Internet • Consumer Product-Testing Organizations

Being a Wise Consumer Checking the Warranty • What parts are covered by the warranty? • Does the warranty cover the labor required to repair the product? • How long is the warranty in effect? • If the product must be sent away, who pays for the cost of shipping and handling? • What is required to keep the warranty in effect?

Being a Wise Consumer • Evaluating Alternatives – Do it your own way • Write it down (pro’s and con’s) • In your mind

Being a Wise Consumer Shopping for Reduced Prices SALES SEASONAL ITEMS BULK

GUIDELINES FOR CONSUMERS 1. Think about what you NEED before you buy. 2. Compare Stores 3. Compare Brands 4. Check for any extra charges 5. Read and understand the warranty. 6. Read the contract terms carefully. 7. Read and follow the use and care guides. 8. Keep all sales receipts, warranties, and instructions. 9. Understand the store’s refund or exchange policy. 10. Buy within your budget. 11. Check your bill for accuracy. 12. Exercise the right to protest.