Unit Six Consumers Contents 1 Brief on Consumers

Unit Six Consumers

Contents 1 Brief on Consumers 4 2 Lead-in 5 3 Reading 6 Business Practice 7 Extension Words & Phrases Exercises

Brief on consumers Consumers refer to individuals or households that purchase and use goods and services generated within the economy. Moving a bit further, we can also say that consumer refers to an individual who buys products or services for personal use and not for manufacture or resale. The concept of a consumer is used in different contexts, so that the usage and significance of the term may vary.

Brief on consumers In free market economics, consumers dictate what goods are produced and are generally considered the center of economic activity. Individual consumption of goods and services is primarily linked to the consumer’s level of disposable income, and budget allocations are made to maximize the consumer’s marginal utility. In ‘time series’ models of consumer behavior, the consumer may also invest a proportion of their budget in order to gain a greater budget in future periods. This investment choice may include either fixed rate interest or risk-bearing securities.

Brief on consumers Within law, the notion of consumer is primarily used in relation to consumer protection laws, and the definition of consumer is often restricted to living persons (i. e. not corporations or businesses) and excludes commercial users. A typical legal rationale for protecting the consumer is based on the notion of policing market failures and inefficiencies, such as inequalities of bargaining power between a consumer and a business. As potential voters are also consumers in many countries, consumer protection takes on a clear political significance there.

Brief on consumers Concern over the interests of consumers has also spawned much activism, as well as incorporation of consumer education into school curricula. There also various non-profit publications, such as Consumer Reports and Choice Magazine in US, dedicated to assist in consumer education and decision making. From Wikipedia, the free encyclopedia

Lead-in Ø 1. Discuss the following questions with your partner. Ø 2. Suppose your group is working for a certain Consumers Association. Faced with a few of the following typical questions asked by consumers, you have to work out the answers through discussion.

Lead-in 1. Discuss the following questions with your partner. 1)What do you mainly rely on to help you make purchasing decisions? Advertisements or word of mouth? Why? 2) By and large, as a consumer, are you satisfied with the quality of products on the Chinese market? Why or why not? 3) What role can the Internet play in helping consumers make informed purchasing decisions? Some car-buyers are highly knowledgeable about the car they are interested in buying because they have visited the auto manufacturer’s website and obtained the information about a model before going to the showroom. With so much information around, what role do auto salespeople play?

Lead-in 2. Suppose your group is working for a certain Consumers Association. Faced with a few of the following typical questions asked by consumers, you have to work out the answers through discussion. 1) I am interested in purchasing goods over the internet, but fear that if I pay in advance, the product may turn out to be shoddy upon arrival, or it may never arrive. What can I do to protect myself while shopping on the internet? 2) My mother bought a skincare product last week. Yesterday it was reported to contain certain toxins, and when I asked for a refund, the retailer simply said I should contact the manufacturer. Who is responsible in this case? 3) I have just ordered a new stereo system over the Internet but have now seen it cheaper in a street shop. What would happen if I cancel the online order?

Preview: Reading The high-sounding slogan “customer is king” has a century-long history. In the past, retailers only paid lip service to that lofty ideal; the consumer did not enjoy a high status in the eyes of the retailer because the former had only limited access to information, while the latter took advantage of their control of information. But since the very beginning of the Internet, power has shifted from the supplier to the consumer. The internet allows people to compare prices more easily. The shift has created a new world of implications for the consumer and retailer both.

Reading Power at Last From The Economist Armed with the internet, the customer has finally got on top. [1] “When a customer enters my store, forget me. He is king, ” decreed John Wanamaker, who in 1876 turned an abandoned railway depot in Philadelphia into one of the world’s first department stores. This revolutionary concept changed the face of retailing and led to the development of advertising and marketing as we know it today. Translation

Reading [2] But compelling as that slogan was, in truth the shopper was cheated of the crown. Although manufacturing efficiency boosted the variety of goods and lowered prices, advertising provided most information about products. Through much of the past century, ads spoke to a captive audience confined to just a few radio or television channels or a limited number of publications. Now media choice has exploded too, and consumers select what they want from a far greater variety of sources — especially with a few clicks of a computer mouse. Thanks to the internet, the consumer is finally seizing power. Translation

Reading [3] Consumer power has profound implications for companies, because it is changing the way the world shops. Many firms already claim to be “customer-driven” or “consumer-centric”. Now their claims will be tested as never before. Trading on shoppers’ ignorance will no longer be possible: people will know— and soon tell others, even those without the internet — that prices in the next town are cheaper or that certain goods are inferior. The internet is working wonders in raising standards. Good and honest firms should benefit most. Translation

Reading [4] But it is also intensifying competition. Today, window shopping takes place online. People can compare products, prices and reputations. They can read what companies say about products in far greater detail, but also how that tallies with the opinions of others, and — most importantly of all — discover what previous buyers have to say. Newsgroups and websites constantly review products and services. Translation

Reading [5] This is changing the nature of consumer decisions. Until recently, consumers usually learned about a product and made their choice at the same time. People would often visit a department store or dealership to seek advice from a salesman, look at his recommendations and then buy. Now, for many, each of these steps is separate. For instance, Ford is finding that eight out of ten of its customers have already used the internet to decide what car they want to buy — and what they are willing to pay— even before they arrive at a showroom. Translation

Reading [6] Of course, the amount of time people spend researching and checking prices tends to rise in proportion to the value of the product — and cars are expensive. But consumers are displaying similar behaviors when they purchase other things, such as digital cameras, mobile phones or fashionable clothes. And while supermarket shoppers may not research in this way all the individual items they drop into their trolley, many suppliers of the packaged goods sold in supermarkets are already acutely aware that their customers, too, are better informed than ever before about the value or health implications of the products they sell. Translation

Reading [7] Reaching these better-informed consumers with a marketing message is not easy, and not only because they are more skeptical. Many people now spend as much time surfing the web as they do with television, magazines or newspapers. The audience for advertising is splintering and its attention is harder to attract. On top of that, many people arming themselves with technology to avoid marketing messages, such as pop-up ad-blockers for the internet and personal video recorders that make it easy to skip TV commercials. Translation

Reading [8] Despite the flood of product and price information suddenly available, consumers are unlikely ever to become wholly calculating. Tastes and fashion will differ. Brands are likely to remain popular. But brand loyalties are weakening. A slip or delay can cost a firm dearly and hand the advantage to an opportunistic rival. This is how Apple’s i. Pod snatched from Sony the market leadership in portablemusic devices. Translation

Reading [9] Many firms do not yet seem aware of the revolutionary implications of newly empowered consumers. Too many companies relaxed after the bursting of the dotcom bubble, assuming that the online threat had faded. This was a mistake. It is true that the vast majority of people still go to shops for most purchases. Before doing that, however, most have used the internet. More than 90% of people aged between 18 and 54 told America’s Online Publishers Association in a survey that they would turn to the internet first for product information. The differences between the virtual and the bricks-and-mortar worlds do not worry consumers. But they should worry companies. Many consumers first encounter a firm through its website, and yet for too many firms, their online presence remains a low priority. Translation

Reading [10] By contrast, some businesses have embraced the internet wholeheartedly, and been rewarded for it. Dell has by-passed retailers and used direct sales to become the world’s leading supplier of personal computers. The web is also transforming the travel business, giving consumers the power to book flights, hotels and cars directly. And it has allowed hundreds of thousands of small businesses, from mom-and-pop stores to traders of collectibles on e. Bay, to reach a global market. Translation

Reading [11] The explosion of choice that followed the opening of Mr. Wanamaker’s store is minuscule compared with the cornucopia already provided by the internet. But the consumer‘s choice is about to become even greater. Internet search firms such as Google, Yahoo! and MSN are now falling over each other to offer more localised services. These promise to open up a new goldmine in search advertising. And this facility is available not just on PCs at home or work, but on mobile phones. At a touch, consumers will be able to find a local store and then check the offers from nearby outlets even as they browse the aisles, or listen to a salesman. When that happens consumers will truly be kings, and only those firms ready and able to serve these new monarchs will survive. (1002 words) From The Economist Translation The end

Information Reading-related Information John Wanamaker He is a 19 th-century U. S. department-store magnate and legendary retailer. His maxim, “the customer is king, ” is very famous.

Information Reading-related Information Ford Motor Company entered the business world on June 16, 1903. It became one of the world’s largest corporations. It began a manufacturing revolution with its mass production assembly lines in the early 1900 s. Now the company is firmly established as one of the world’s largest makers of cars and trucks. It makes vehicles with such brands as Ford, Lincoln, and Mercury.

Information Reading-related Information Apple’s i. Pod It is a family of extremely popular digital music players from Apple introduced in 2001 for the Mac and in 2002 for Windows. i. Pods are noted for their user interface. It is one of the most successful consumer electronics products in history.

Information Reading-related Information Sony It is one of the world’s top consumer electronics firms based in Japan. It was founded by Akio Morita and Masaru Ibuka in 1946.

Information Reading-related Information Dell It is a leading PC manufacturer founded in 1984 by Michael Dell's rise throughout the 1990 s was extraordinary. It made the Fortune 500 in 1991 with sales of $546 million. Eight years later, sales exceeded $25 billion.

Information Reading-related Information e. Bay It is a major auction service on the Web launched in 1995. It popularized the concept of buying and selling online, and both individuals and commercial enterprises list items for sale. Millions of items are offered, and billions of dollars’ worth of merchandise is sold every year through this service.

Information Reading-related Information Google It is the largest search engine on the Web, founded by Larry Page and Sergey Brin, two Stanford University students.

Information Reading-related Information Yahoo! It is the largest and most comprehensive information portal on the Web. The company was started as “Jerry’s Guide to the World Wide Web” in 1994 by Stanford Ph. D. candidates Jerry Yang and David Filo and was later renamed Yahoo! Along with Web search, news, sports and weather, Yahoo! offers e-mail, instant messaging, travel, auctions, classified ads, discussion groups, Web hosting and numerous other services.

Information Reading-related Information MSN It is short for “Microsoft Network, ” a network of Internet-based services from Microsoft, which includes a search engine, e-mail (Hotmail), instant messaging (Windows Live Messaging) and a general-purpose portal with news, information and shopping (MSN Directory).

Reading 1. Armed with the internet, the customer has finally got on top. — Equipped with the internet, the customer has finally been at an advantageous position on the market. Note that when there are more of the products for sale than there are people who want to buy them, and buyers have a lot of choice and can make prices come down, we say there is a buyer’s market （� 方市� ） for a particular product.

Reading 2. changed the face of — If you say that someone or something changes the face of an area, institution, or field of activity, you mean this person or thing changes its appearance or nature, e. g. During the past 20 years, the explosion in communications technology has revolutionized the American workplace and has radically changed the face of business communications.

Reading 3. But compelling as that slogan was, in truth the shopper was cheated of the crown. — Although the slogan above was very attractive, retailers still had the advantage and ruled over the consumer.

Reading 4. . ads spoke to a captive audience confined to just a few radio or television channels or a limited number of publications. —. . advertisements reached consumers who had only partial access to information about a product, through a small number of radio or TV channels, or publications, i. e. , books, newspapers and magazines.

Reading 5. Thanks to the internet, the consumer is finally seizing power. —With the help of the internet, the customer is finally taking control over the information about products.

Reading 6. Now their claims will be tested as never before. — Unlike in the past, now vendors’ claims will be more carefully verified, i. e. , it will be possible to see whether these firms really live up to their promises to be “customer-driven” or “consumercentric” (as mentioned in the preceding sentence).

Reading 7. Trading on shoppers’ ignorance will no longer be possible. . . — Taking advantage of uninformed consumers will not be possible any longer because customers can rely on their own access to information (especially on the internet) about goods’ quality. . .

Reading 8. The internet is working wonders in raising standards. —The internet is making a dramatic improvement in what consumers can expect to find in a product.

Reading 9. This is changing the nature of consumer decisions. —This is changing the way consumers make decisions about what to buy.

Reading 10. . consumers are unlikely ever to become wholly calculating. —. . consumers will probably continue to be influenced by advertisements, opinions, and fashion, rather than be guided by facts alone.

Reading 11. brand loyalties —Brand loyalty refers to the degree to which a consumer repeatedly purchases a brand. It has been considered the ultimate goal of marketing. The success of a brand in the long term does not depend only on the number of consumers that buy it once; rather it is based on the number of customers that become regular buyers of the brand. 品牌忠� 度

Reading 12. A slip or delay can cost a firm dearly and hand the advantage to an opportunistic rival. —A minor mistake or temporary setback may damage a company, giving competitors a chance to improve their standing.

Reading 13. Too many companies relaxed after the bursting of the dotcom bubble, assuming that the online threat had faded. —Too many companies quit (developing online shopping tools) when well-funded internet-only companies failed, thinking that shopping online would not develop (to challenge physical stores).

Reading 14. . their online presence remains a low priority. —. . they attach little importance to making use of the internet to expand their business.

Reading 15. . some businesses wholeheartedly. . . have embraced the internet —. . some businesses have supported the idea of the internet enthusiastically. . .

Reading 16. The explosion of choice. . . —The sudden and dramatic increase in choice. . .

Reading 17. . check the offers from nearby outlets. . . —. . see whether nearby stores have given any specially reduced prices for the product. Note that an offer in a shop is a specially low price for a specific product or something extra that people get if they buy a certain product.

Words & Phrases Ø Words Ø Phrases

Words & Phrases Words decree slip confine snatch explode empower intensify priority tally transform localize

Phrases cheat (out) of trade on in proportion top of Words & Phrases

Words & Phrases 1. decree v. order 命令；规定 e. g. • The commercial committee decreed the movie unsuitable for children. • It was decreed that the following day would be a holiday. n. an official order e. g. • The Ministry of Foreign Trade issued a decree to administer Chinese-foreign cooperative distribution enterprises of audio and video products. • He is prepared to use his recently-acquired powers to introduce reform by presidential decree. Next

Words & Phrases 2. confine ν. 1) prevent sb from having sth, especially in a way that is not honest or fair 限制；使局限 e. g. • The lack of core technology confines China’s consumer electronics industry. • Some businesses are confined to developing general food processing projects. Next

Words & Phrases 2) keep within limits, restrict e. g. • They confined the sales of their products to Eastern Asian countries. • Sales are chiefly confined to some small items. 3) shut or keep in a small or enclosed space e. g. • He has been confined to bed for a week because of a bad cold. • Any soldier who deserts his post will be confined to quarters.

Words & Phrases 3. explode v. 1) increase rapidly in size, number or extent 激增；迅速扩大 e. g. • The population in the world exploded after World War Two. • We are living in an age where choice is exploding and the Internet further accelerated the trend. 2) suddenly express strong feelings such as anger e. g. • The manager exploded with anger when he saw the sales report. • John, who was short-tempered from a sleepless night, was ready to explode.

Words & Phrases 4. intensify � v. become greater in strength, amount, or degree 加强；增强 e. g. • The terrorists have intensified their bombing campaign. • His first failure in the experiment intensified his desire to succeed. Next

Words & Phrases 5. tally v. agree, correspond or match 符合；吻合 e. g. • Some of the records held by the accounts departments did not tally. • The checkbook stubs don’t tally with my bank statement. n. a record of how much you have spent, won etc by a particular point in time e. g. • Don’t forget to keep a careful tally of what you spend. • Banks kept a tally of foreign exchange fluctuations.

Words & Phrases 6. slip n. a small or unimportant mistake in judgment, policy, or procedure 疏忽；差错 e. g. • The company lost a large overseas contract due to a slip. • Molly knew she could not afford to make a single slip in signing the contract. 3. In a slip of the tongue the director exposed the company’s promotion scheme. v. move smoothly, secretly, or unnoticed e. g. • The terrorists managed to slip through the airport’s security net. • He wouldn’t let such a good chance slip through his fingers.

Words & Phrases 7. snatch v. quickly seize sth in a rude or eager way 一把抓起（某物）；夺得 e. g. • Laptop computers have begun to slowly snatch away some of the market share originally dominated by desktops. • Many producers of MP 3 players sacrifice quality to snatch higher market share. snatch at: accept or try to get eagerly e. g. • Motorola snatched at every chance to make improvements on its products. • Some businessmen can snatch at quick profits.

Words & Phrases 8. empower v. give power to do sth; make sb stronger and more confident, esp. in controlling their life and claiming their rights 授权于；增 强（人）的力量和信心（尤指使能够掌握自身命运及维护自 身权利） e. g. • The new law empowers the police to search private houses. • The company can empower its partners by giving information to them.

Words & Phrases 9. priority n. a thing that is regarded as more important than others 优先考虑 的事 e. g. • The company gives priority to quality of products. • The government gave priority to the development of the information industry.

Words & Phrases 10. transform v. make a thorough or dramatic change in the form, appearance, or character of 彻底改变，使发生巨变，使改观，变革 e. g. • The government planned to transform the state enterprises into viable players under market economy. • China planned to use virtual worlds to supply customized goods to consumers across the globe, thus transforming business.

Words & Phrases 11. localize v. make (sth) local in character 使本土化；使具有地方特色 e. g. • Currently, more than 90 percent of KFC’s products are localized. • Many foreign firms intend to localize their business operations in China.

Words & Phrases 1. cheat (out) of prevent sb from having sth, especially in a way that is not honest or fair（尤指用不诚实或不正当的手段）阻止某人得到某物 e. g. • She cheated her aged aunt out of her fortune. • The company engaged in a deliberate effort to cheat them out of their pensions.

Words & Phrases 2. trade on make use of sth for one’s own advantage 幸亏；由于 e. g. • Some companies get the market share by trading on their competitors’ weakness. • Children of celebrities trade on their family names.

Words & Phrases 3. in proportion to relative to, in relation to 与…成比例 e. g. • Since the quality of these goods is very poor in proportion to the price, we hope you will compensate us for the loss. • Payment will be in proportion to the work done, not to the time spent doing it.

Words & Phrases 4. on top of in addition to 除…之外 e. g. • The unemployment rate is rising, and on top of that factory orders are decreasing. • On top of borrowing $ 50, he asked me to lend him my car.

Exercises ØComprehension 1. T&F 2. Paragraph identification ØCritical Thinking ØVocabulary 1. Matching words 2. Filling blanks 3. Rewriting ØTranslation 1. English to Chinese 2. Chinese to English

Comprehension Exercises 1. Mark whether the following statements are true (T) or false (F) or not mentioned (NM) in the passage. Discuss with your partner about the supporting points for each statement. F From John Wanamaker’s point of view, when customers entered his store, 1) _____ he should automatically disappear so that his existence would not be noticed. T 2) _____ T 3) _____ T 4) _____ John Wanamaker’s idea revolutionized retailing and boosted advertising and marketing. When customers purchased goods in the past, they did not enjoy a high status and sellers could more easily take advantage of them. During much of the last century, the target audience of ads already had a large number of information channels, apart from TV, radio, newspapers, etc.

Comprehension T 5) _____ F 6) _____ T 7) _____ T 8) _____ F 9) _____ T Exercises Due to the internet, the consumer is becoming more powerful than before in controlling their shopping experience. The advent of the internet can make commercial competition less fierce because much of the consumer’s attention will be diverted from traditional bricks-and-mortar stores. The Internet is responsible for much of the information revolution hitting the retail industry. Some new-car buyers spend time researching their proposed purchases online before visiting a dealership. With the development of the market, consumers’ loyalty to brands increases as the number of choices of goods available explodes. 10) _____ Worldwide many companies are now racing to meet the constantly changing demands of the internet-empowered consumers.

Exercises Comprehension 2. Do the following exercises and compare your answers with your partner’s. Identify which paragraph contains information that fits each phrase given below. Paragraph Information Para _6 Para _4 Para _2 11 Para _ Discussion on the research cost More intense competition Why the customer wasn’t king What marketers can do How the customer was considered before Para _3 5 Para _ 7 Para _ How the internet changes the balance of power Para _ 9 Companies’ illusions about the online threat Different decision-making Problems with marketing to these informed consumers

Critical Thinking Exercises 1. By combining e. Commerce with social networking teambuying offers customers an innovative and money-saving shopping approach. Did you ever get anything through teambuying? If you did, share your experience with your group. How does teambuying or Tuango manifest growing consumer power in China? Do you think Tuangou will exist generation for generation or it is just a temporary purchasing phenomenon? Why or why not? 2. What negative impacts does the Internet have on consumers? As a consumer, do you have any unpleasant experience caused by the negative impacts of the Internet? If you do, what is it?

Exercises Vocabulary 1. Make two-word expressions connected with business by combining words from the two lists A and B. Match each expression with the appropriate phrase. Use each word once. The first one has been done for you. A B consumer reality competitive bubble department loyalty direct leadership dotcom store virtual edge brand sales market power

Vocabulary Exercises 1)unsolicited advertising material which is mailed and thrown away immediately by the people who receive it — junk mail 2)a speculative bubble covering roughly 1995– 2001 during which stock markets in Western nations saw their value increase rapidly from growth in the new Internet sector and related fields dotcom bubble _____________ 3)customer’s ability to understand, control and potentially change the market place consumer power ______________ 4)the advantage that a business has over its competitors competitive edge ______________

Vocabulary Exercises 5)an environment which is produced by a computer and seems very like reality to the person experiencing it virtual reality ______________ 6)a large shop which sells many different kinds of goods department store ______________ 7)a consumer’s repeated buying of a product or service or other positive behaviors such as word of mouth advocacy brand loyalty ______________

Vocabulary Exercises 8)the marketing of products or services to consumers through sales tactics including presentations, demonstrations, and phone calls without using a “middle man” such as retail outlets, distributors or brokers ______________ direct sales 9)the status of a business which commands a large share of the market and achieves public recognition market leadership ______________

Exercises 2. Fill in the blanks with the proper forms of the words and phrases given below. tally work wonders minuscule fall over each other implication priority encounter localise in proportion to cornucopia 1) Under the new incentive package, the employees of the company are paid in proportion to _______ the contribution they have made, which fully taps their potentials. 2) Financial service companies are responding to these needs with a _____ of cornucopia investment trusts designed with baby boomers in mind. 3) The large mobile phone operator is likely to exploit its scale advantage and use the knowledge of its customer base to offer _____ services such as guides to localized restaurants.

Exercises 4)In a presentation about the London 2012 Olympic project, Mr Evans said the estimated value of the Olympic park and venues was £ 2. 4 billion, which tallied with _____ original government figures. 5)Like most East Asian governments, Singapore’s has consistently exposed its worked wonders manufacturers to the forces of globalisation, which has ________ throughout the region, fostering the strong export-led growth for which Asia’s tigers are known. 6)Supermarkets are now falling over each other __________ to paint themselves as the ‘greenest’ or most responsible for the protection of the environment. 7)The Black. Berry and other portable e-mail devices are a boon to the travelling executive who needs to keep in touch with colleagues and customers, but the minuscule _____ screens and text can be hard on the eyes.

Exercises 8)Some top government officials fail to realize that the low level of current implications investment has serious _____ for future economic growth. 9)The promotion of mass transit over automobile as an alternative mode of encountered transportation has _____ consumer resistance. 10)The fight against inflation has been the Government’s overriding economic priority _____ for nearly two decades.

Exercises 3. Rewrite each sentence with the word or phrase in brackets, keeping the meaning unchanged. A certain part of the senence has been written for you. 1) A slip or delay can cost a firm dearly and hand the advantage to an opportunistic rival. (pay a price) A firm may pay a high price for a slip or delay ___________________ and hand the advantage to an opportunistic rival. 2) The government official claimed that the profits the power plant would generate for investors dwarfed the estimated $500, 000 in additional tax revenue from the plant. (minuscule) The government official claimed that__________________________________ the estimated $500, 000 in additional tax revenue from the power plant would be ____________________________ minuscule compared to the profits it would generate for investors.

Exercises 3)Member governments’ financial backing for the IMF would determine any allocation that would be transferred to them, with the rich countries receiving most. (proportion) Any allocation would be transferred to member governments in proportion to their _______________________________ financial backing for the IMF _________________with the rich countries receiving most. 4)The risks stemming from a slowdown in the Chinese economy are very real and have a far-reaching impact on global markets. (implication) The risks stemming from a slowdown in the Chinese economy are very real have profound implications for global markets. and_____________________________.

Exercises 5)The Fraud Advisory Panel says the Home Office and Treasury refuse to attach primary importance to the fight against financial crime even though it cost the economy an estimated £ 16 billion a year or more. (priority) The Fraud Advisory Panel says the Home Office and Treasury refuse to give priority to the fight against financial crime ______________________________ even though it costs the economy an estimated £ 16 billion a year or more. 6)Although the retailer’s sales pitch sounds compelling, it seldom honours its commitment to be “customer-driven” and “consumer-centric” and frequently sells shoddy products. (as) Compelling as the retailer's sales pitch sounds _______________________, it seldom honours its commitment to be “customer-driven” and “consumer-centric” and frequently sells shoddy products.

Exercises 7)Given its poor management and lack of clear strategic vision, the chances of the company expanding its domestic business and getting out of the red are quite slim. (likely) Given its poor management and lack of clear strategic vision, the company is not likely to expand its domestic business and get out of the red. _______________________________. 8)Under Forgeard, Airbus surpassed Boeing in market share and sales volume and became No. 1 on the market, winning more orders and delivering more planes than its rival in recent years, while breaking the American firm’s monopoly at the top end of the aircraft market. (market leadership) Airbus snatched market leadership from Boeing Under Forgeard, _________________________, winning more orders and delivering more planes than its rival in recent years, while breaking the American firm’s monopoly at the top end of the aircraft market.

Translation Exercises 1. Translate the following sentences into Chinese. 1) Consumer power has profound implications for companies, because it is changing the way the world shops. 2) Trading on shoppers’ ignorance will no longer be possible: people will know--and soon tell others, even those without the internet---that prices in the next town are lower or that certain goods are inferior. 3) The internet is working wonders in raising standards. Good and honest firms should benefit most. But it is also intensifying competition. 4) Today, window shopping takes place online. People can compare products, prices and reputations. They can read what companies say about products in far greater detail, but also how that tallies with the opinions of others, and--most important of all---discover what previous buyers have to say.

Exercises 2. Put the following sentences into English, using the words and phrases given in the brackets. 1)In the past, when consumers purchased goods, they mainly relied on salespeople’s advice and recommendations to decide whether to buy them or not. Consumers made decisions at the same time when he learned about the commodity. 2)Today, the advent of the internet has changed the face of the retailing industry. When consumers surf the internet, they only have to click the mouse and then may see how others review some product in newsgroups. 3)On top of that, people can share their own purchasing experiences through online communication. When making purchasing decisions, consumers depend more and more on the word of mouth about products obtained over the internet. 4)Generally speaking, the time a consumer spends searching product information online is in proportion to the value of the product. Retailers can no longer trade on information asymmetry to deceive customers. 5）The development of web technology not only intensifies the competition of the retailing industry, it also works wonders in raising standards of goods and services.

Business Practice ØBusiness Practice 1. Consumer Behavior Survey 2. Memo

Consumer Behavior Survey Business Practice Figuring out not only who would buy it, but why they would buy it, where they would buy it, how often they would buy it, and how they would use it is the cornerstone of understanding consumer behavior. Marketers can benefit from an understanding of consumer behavior so that they can better predict what consumers want and how best to offer it to them. Suppose you work for a Consumer Research Institution. Now you need to conduct a general survey of consumer behavior to measure changes in consumer attitudes and expectations, to evaluate how these changes relate to consumer decisions to save, borrow, or make discretionary purchases, and to forecast changes in aggregate consumer behavior. Look at the given questions and work by the following steps. 1) Find a new partner of other groups and start asking him/her the questions. 2) Change a partner every three or four questions until you have finished all the questions. 3) Come back to your group and exchange the survey result with your group members to see which of the questions produced the impressive answers.

Business Practice Survey questions: Do you enjoy shopping? How often do you go shopping? How much time do you spend each time you go? When you buy something, do you read the label? Why or why not? What’s your favorite place to shop? Why? Are you a price conscious shopper? What is your opinion of discount stores? Have you ever been to an outlet store? If you have, what do you think of it? If not, would you like to shop at one? Why or why not? What store did you like best and what store did you like least? Why? Are thrift stores popular in your city? Do you enjoy shopping at thrift stores?

Business Practice How important is good customer service when you are shopping? Do you compare prices at different stores when you shop? How important is it for you to be up to date with the latest fashions? Is it important for you to own designer clothes? Why or why not? Do you ever buy second-hand things? Do you haggle when you shop? Do you sometimes buy things that you don’t need? If so, give some examples. What is something that you want to buy, but think you never will? What is the most expensive thing you’ve ever bought? What kind of things do you often shop for? What kinds of things are you saving your money for? When you buy something, what is most important to you: price, quality, fashion trend, status/image? What do you do if you can’t get the clerk’s attention at the store? If you can’t find an item at the store, do you find a clerk and ask for help, or do you leave and go somewhere else? You own questions …

Business Practice Language hints Asking questions Stating problem Can I ask some questions? Can I ask a (I’m) sorry. I don’t quite follow you. question about…? I’d like to ask some I don’t understand what you’ve just questions. There a couple of said. … questions I’d like to ask you…There’s Making request something else I’d like to know. Could you go over that again? There’s something else I want to Sorry, could you say that again, know. … please? … Responding to questions Getting time to think Yes, certainly. / Sure. Of course. Go Mmm, let me see. . . ahead. … Well…um…Er…well…Yes, that’s an Moving on/back to the topic interesting question, well, …… (Thank you. ) Please go on. Good. Sorry to interrupt. …

Memo Business Practice Look at the following questions and answer them by writing relevant memos. You may refer to the sample memo in Unit Five if necessary. Question 1 Miss Indira Purewal, senior sales officer at Calibre International Products, is worried that several customers have complained in the past few weeks of incorrect orders having been received. She asks you to write a memo under her name to Mrs. Selma Pusao, a supervisor at the Packing Department. You are reminded to be tactful since Mrs. Pusao is usually very efficient, but Miss Purewal wants all orders to be checked twice before they are dispatched. ‘All the mistakes are in Mrs. Pusao’s section. We simply can’t have such glaring faults in our system; our customers rightly expect quality in our service and I intend to see that they get the best. ’ She adds, ‘Tell her to let you know if she is having any unusual, short-term difficulties. Something must be causing the inaccuracies! We have not had such problems previously. ’

Memo Business Practice Question 2 You work at the Sneyd Public Library in the Administration Offices where you have particular responsibility for the Children’s Section. The address is Sneyd Library, 19 -25 Church Street, Barnstaple, Devon EX 31 IBD and the telephone number is 01271 76322. You receive a telephone complaint from a customer who had been very upset when a library assistant had told her ‘very rudely and loudly’ to keep her children quiet. The customer explains to you that her 2 very young children had been happy and excited because coming to a library was a new experience for them. You apologize and reassure her that silence is not a requirement in the Children’s Section and that you will send a memo to all staff reminding them of that fact. You decide to make a few notes for possible inclusion in the memo.

Business Practice ‘Be quiet, ’. . . we don’t say this to children using their own Section. They are having a good time! Excited . . . some noise . . . first time . . . telling each other about it. . . pictures they recognize. . . stories they know. . , etc. Our Section: welcoming, NOT embarrassing to parents/children — regular customers later. No customer should be treated ‘rudely’.

Sample answers Business Practice Question 1: MEMO To Mrs. Selma Pusao From Miss Indira Purewal Subject Need in short term for consignments to be checked twice Date (Appropriate date) We have problems that are completely new to Calibre International Products: incorrect orders dispatched complaints from customers. Order the amounts you need from me: The mistakes appear to come from your section. Have you noticed anything that may be the cause? We need your help and advice since you are our most experienced Section Head and our most efficient. Until we can trace the reason for the difficulty, please arrange for your staff to double check all orders before they are sent out. IP

Sample answers Business Practice Question 2: MEMO To All staff of Children’s Section From A Candidate Subject The Children’s Section belongs to the children; reasonable noise is welcomed Date (suitable date) Please note that children are not expected to be silent in the Children’s Section. We welcome children to talk about what they are experiencing, to be excited, to enjoy themselves. Remember that children are our future adult clients. We do not embarrass parents or children. We are pleased to have them here. Customers should never feel that they have been badly treated by any of us. If any of our visitors complain of the noise, please explain our position tactfully. AC

Exercises Ø Business Expressions Giving the English equivalents Completing sentences Ø Critical thinking

Extension Business Expressions 1. Give the English equivalents of the Chinese expressions below. Chinese expressions 1) 消费者权利 2) 促进消费 3) 消费者利益保护委员会 English equivalents consumer rights boost consumption Consumer Council (Consumers’ Council) 4) 消费模式 5) 有环保意识的消费者 6) 耐用消费品 7) 消费大众 8) 消费者偏好 9) 生活高消费化 10) 消费(品)价格指数 11) 消费者抵制 12) 家庭消费 consumption patterns green consumers consumer durable (durables) the consuming public Consumers’ preference consumerization of life the consumer price index consumer boycott household consumption

Extension 2. Complete the following sentences with the expressions or words in the box. bargaining power consumer behavior consumer protection purchasing power consumer boom consumer watchdog consumption tax consumer confidence takeover fold up wholesale transnational company shareholders retail

Extension 1) 1)Within law, the notion of consumer is primarily used in relation to consumer protection __________ laws. bargaining power 2) 2)In many cases, the __________ between a consumer and a business is not equal. 3) 3)The concern over the interests of consumers has resulted in some consumer education action such as the incorporation of __________ into school curricula. purchasing power 4) 4)People’s __________ is growing, which helps to boost the economy.

Extension consumption level 5)Along with the increase of __________ in China, especially in rural China, the need of beer will increase continuously. 6)In a world driven by supply and demand, product availability typically consumer awareness mirrors __________ and Bluetooth wireless technology is no exception. 7)Simply offering the same set of television channels and a limited number of subscriber packages will no longer be sufficient as consumer tastes __________ and requirements become even more demanding. consumption tax 8)In recent years, the old idea of a __________ in contrast to an income tax has been put forward by many economists, particularly by allegedly pro-free market conservatives

Extension Consumer behavior 9)__________is a subcategory of marketing that blends elements from psychology, sociopsychology, anthropology and economics. 10)The high price of oil, Russia’s main export, is fueling a huge consumer boom __________, and Russians are flocking to shopping malls as fast as developers can build them. 11)Businesses will face substantially larger penalties for misleading consumers if the government agrees to a request from consumer watchdog __________ to beef up her powers. 12)According to the survey, conducted in the third quarter of the year, the consumer confidence __________ index in China stood at 106. 9, while in the United States it was 82. 0.

Specialized Reading Extension Read the following introductory paragraph and the given information of the sequential paragraphs. Then read another 20 sentences below and classify them under the proper paragraphs. 1)They don’t like wasting time and are eager to get on with things. 2)They expect you to provide them with a lot of information. 3)They want you to be well-prepared and thorough. 4)Make sure that you ask clear, logical questions. 5)They would be sold by someone who is prepared and organized.

Specialized Reading Extension 6)They are not risk-takers and are often resistant to change. 7)Don’t hurry them into a decision! Let them talk while trying to direct them to a mutual agreement. 8)Make sure that your facts are straight and you provide them with references. 9)Above all, avoid pushing them, and give them time to think. 10)They are often recognition-oriented and seek out situations where they can be the center of attention.

Specialized Reading Extension 11)They want to be sold in a way that is non-threatening. 12)They are perfectionists and love facts and details. 13)They enjoy presentations that are entertaining and fun. 14)They must feel that you are trustworthy and credible. 15)They often make decisions very quickly and hardly ever change their minds.

Specialized Reading Extension Clients want to feel comfortable during a selling process. Just because you might like to be approached a certain way, doesn’t mean that your client will. Every client wants to be sold in a way that fits them personally. There are four common personality types that customers fall into: expressive, steady, dominating, and analyzers. Expressive people view the world positively. They are comfortable socially and like to interact with others. They are often recognition-oriented and seek out situations where they _____________________________ can be the center of attention. Expressive customers want to be sold by a ______________________________ sales person who shows interest in them as a person. They enjoy ______________________________ presentations that are entertaining and fun. Don’t hurry them into a ______________________________ decision! Let them talk while trying to direct them to a mutual agreement. ______________________________

Specialized Reading Extension People who fall into the “steady” category are positive like the expressives. However, they are more comfortable being behind the scenes, not in the “spotlight”. Steady people are not risk- takers and are often resistant to change. They _______________________________ want to be sold in a way that is non-threatening. They must feel that you are ________________________________ trustworthy and credible. Make sure that you listen to them and are sincere. ________________________________ Dominators are usually very suspicious. They feel that people are out to get them. _______________________________ They don’t like wasting time and are eager to get on with things. They often make decisions very quickly and hardly ever change their minds. A ________________________________ dominating person would be sold by someone who is prepared and ________________________________ organized. A sales person must be direct and get to the point with them. ________________________________ They want a salesperson to respond to their ideas. Make sure that your facts ________________________________ are straight and you provide them with references. ______________________

Specialized Reading Extension People who are considered “analyzers” are also suspicious. They, however, are very detail oriented. Analyzers are perfectionists and love facts and details. They don’t show a _____________________________ lot of emotion, and don’t like people who do. Analytic people expect you ______________________________ to provide them with a lot of information. They want you to be well______________________________ prepared and thorough. Make sure that you ask clear, logical questions. ______________________________ Above all, avoid pushing them, and give them time to think. __________________________

Specialized Reading Extension 16)They don’t show a lot of emotion, and don’t like people who do. 17)They want to be sold by a sales person who shows interest in them as a person. 18)A sales person must be direct and get to the point with them. 19)They want a salesperson to respond to their ideas. 20)Make sure that you listen to them and are sincere.

Specialized Reading Extension There are many arguments over consumerism and anti-consumerism. Read the following passage and choose the correct part from A-E to fill each gap marked 1) - 5) A. The term and concept of “conspicuous consumption” originated at the turn of the 20 th century B. the tendency of people to identify strongly with products or services C. many luxuries and unnecessary consumer products are social signals D. this unnecessary consumption is a form of status display E. A culture that is permeated by consumerism

Specialized Reading Extension B In many critical contexts, consumerism is used to describe 1) ________ they consume, especially those with commercial brand names and obvious status-enhancing appeal, e. g. an expensive automobile, expensive jewelry. 2) E ________ can be referred to as a consumer culture. Impulse buyers who cannot resist spending money are commonly termed shopaholics. C Opponents of consumerism argue that 3) ________ that allow people to identify like-minded individuals through consumption and display of similar products. Some believe that relationships with a product or brand name are substitutes for the healthy human relationships lacking in dysfunctional modern societies and along with consumerism itself are part of the general process of social control and cultural hegemony in modern society.

Specialized Reading Extension The older term “conspicuous consumption” spread to describe consumerism in the United States in the 1960 s, but was soon linked to larger debates about media theory, culture jamming, and its corollary productivism. A 4) ________ in the writings of sociologist and economist Thorstein Veblen. The term describes an apparently irrational and confounding form of D economic behavior. Veblen’s scathing proposal that 5) ________ is made in darkly humorous observations like the following: “It is true of dress in even a higher degree than of most other items of consumption, that people will undergo a very considerable degree of privation in the comforts or the necessaries of life in order to afford what is considered a decent amount of wasteful consumption; so that it is by no means an uncommon occurrence, in an inclement climate, for people to go ill clad in order to appear well dressed. ”

Specialized Reading Extension 3. Discuss the following questions with your group members. 1)What do you think of the phenomenon that people, especially the newly rich, tend to have conspicuous consumption? 2)What consumer behavior is proper? Why do you think so?

Thank you!

Lead-in 3)The internet can play a crucial role in helping customers make informed purchasing decisions: it offers a large variety of products on display so that consumers can browse through and compare them.

Lead-in 4) Auto salespeople still play a very important role. They are still relied on to help consumers to interpret the barrage of facts and figures, claims and counterclaims. The Internet can mislead because a good deal of the information it provides is biased toward whichever company, group or individual has posted it. A good sales rep helps consumers separate the wheat from the chaff. Showroom staffers are educated to a higher degree than ever before. They receive regular product updates from manufacturers and attend sales seminars to improve their selling skills. Another essential role of salespeople in the carbuying process concerns test drives. Despite all the information available, shoppers still want to take a vehicle on the road before they buy.

Lead-in 1)Insist on the “cash upon delivery” policy. Never pay for a product before you see it in good quality. You can choose to pay for the item in cash or by credit card after you have checked it. Most important is to shop carefully, buy from reputable dealers with an established business, and to check their return and/or satisfaction guarantee.

Lead-in 2)You should not be afraid of confronting the retailer. Most reputable manufacturers try to make it easy to return defective merchandise, usually in coordination with retailers. Take your product and receipt, and negotiate with the retailer for a refund. The retailer is obligated to offer satisfactory customer service. If it refuses to give you a refund, contact the local Consumers Association for protection. Consider contacting the manufacturer directly.

Lead-in 3)If you do cancel your order, you may be financially penalized (pay a penalty to the retailer) because you have breached the contract. You may have to pay shipping to you and to return to the online merchandiser. There may be restocking charges.