Chapter 3

I can understand the important role consumers play in the economy and can describe how consumers make decisions.

Consumers Role dependent on Disposable Income –

Food, Clothing, Shelter, Energy Discretionary Income –

◦ Spent on all other items Earning Power based on:

◦

What does it show??? Who uses a Budget??? Why is a Budget Useful???

Should I Buy Item in the First Place??? Once you decide to purchase must consider:

Time and Money

Consider Quality Higher Quality means

Done when you consider all options when purchasing goods and services

I know and understand the 3 buying principles and strategies

How Much Information Should You Get?

Develop a Knowledge Base

◦ USE THE Read Reviews Compare Brands, Stores, Warranties, Prices, Etc.

Competitive – ◦ Used to steal customers

Informative –

Do not fall for ◦ Know your consumer rights

Decide to buy the product Newspaper, Telephone, Internet, Visit, Talk with others

Don’t just go by price, Also Consider

◦ backed by major manufacturer vs. Generic (difficult to determine who made product)

◦ Special Financing◦ 0% for certain number of months

Most Useful When:

◦ Price and/or Quality Varies Greatly

I can identify and explain the 5 consumer rights protected by U.S. Government

(1960s)

JFK (1962)◦ Right to Safety – ◦ Right to Be Informed –

◦ Right to Choose –

◦ Right to Be Heard –

Richard Nixon◦ Right to Redress –

I can explain my responsibilities as a consumer

Complain to Manager and/or Manufacturer◦ Small Claims Court

Better Business Bureau◦ Better Business Bureau

Online Shopping◦ Reputation of Seller◦ Read Disclosure Statements◦ CHECK THE LINK

Use Ethical Behavior◦ Returns!!