the power of consumers consumer education chapters 1-2 consumer powers and setting priorities
TRANSCRIPT
The Power of ConsumersThe Power of Consumers
• Consumer Education
• Chapters 1-2
• Consumer Powers and Setting Priorities
The Power of ConsumersThe Power of Consumers
• What is a consumer?
• Consumer is defined as: some one who uses goods and services
• Is everyone a consumer? Why?
• What about a baby brother/sister?
• Do they consume? How?
The Power of ConsumersThe Power of Consumers• Goods defined as: physical object
which are produce. (chips, cookies, toys etc.)
• Services are actions that are performed for someone. (ex: car repair, dry cleaners etc.)
• Lets look at your role in the economy
The Power of ConsumersThe Power of Consumers
• Our Roles
• 1. Consumer: use goods and services
• 2. Worker: Earn money to buy, and produce goods
• 3. Citizen: Taxes, use public services (school, roads), elect officials
The Power of ConsumersThe Power of Consumers• If you buy a name brand hair product
or piece of clothing, does it matter? Why
• We influence the marketplace• Marketplace: all of the goods and
services available for sale to the general public
• How can you influence the marketplace?
The Power of ConsumersThe Power of Consumers
• Marketing experts define a product and how it is going to be sold, as well as what consumers will buy.
• Many sell through retailers
• Retailer: those who sell goods and services directly to the customer
The Power of ConsumersThe Power of Consumers
• Okay everyone wake up
• Are effective consumers important? Why
The Power of ConsumersThe Power of Consumers
• Are we always provided with accurate information?
• Effective consumers:
• Set goals and think critically
• Do research, and plan finances for today and future
The Power of ConsumersThe Power of Consumers
• Consumer Advocate: people or organizations who work on behalf of consumers.
• Ralph Nader may be the best known of all consumer advocates
• Greenpeace also a well known for its work to protect environment.
The Power of ConsumersThe Power of Consumers
• President John Kennedy responsible for developing rights for consumers in 1962
• Redress: remedy for a wrong or a loss
• Look at pg. 29 for consumer rights and responsibilities
• Also look at pg. 30 pay particular attention to the FTC, USDA, FDA, FCC, also fair credit and reporting acts.
• USDA: http://www.youtube.com/watch?v=eoIxBsO3iQI&feature=fvw
The Power of ConsumersThe Power of Consumers• Consumer Affairs Dept.: business
that communicate with customers about their rights and needs
• Consumer action Panel: groups formed by trade associations to address complaints
• Media; channels of mass communication
• What type of info can media provide use with?
Identity Theft• Identity theft: the illegal use of of
an individuals personal information
• How can these thieves obtain this information?
• How can we prevent this from happening?
Identity Theft:
http://www.youtube.com/watch?v=WqS7fCmsmLY&feature=related
http://www.youtube.com/watch?v=bzfPUmQcfDs
Identity Theft• Social security
number: nine-digit number used to keep track of your earnings
• Secure site: Uses safeguards to prevent theft of info during transmission
Identity Theft• What to do if your identity is stolen.• 1. File police report• 2. Notify your bank, credit card
companies, and close accounts that may have been tampered with.
• 3. Call the three major credit reporting agencies. Equifax, Experian, or Trans Union
• Ask to be put on fraud alert
Identity Theft• Online Profiling:
• Practice in which companies collect information about the Web sites a customer visits
• This is done by the use of…………
Identity Theft• Cookies
• No not these kind!• Small files stored
on your computer that allow a Web site to remember information about you
Deceptive AdvertisingDeceptive Advertising• Deceptive Advertising: used to
mislead consumers through false statements, omitted information or other unfair means.
• Examples:
• Bait and switch, free gifts, deceptive pricing, Hidden catches
Deceptive AdvertisingDeceptive Advertising• Fraud: deceitful conduct designed
to manipulate another person for some gain.
• What are some examples?• Investment, charity, get rich quick,
work at home,Pyramid schemes,and sweepstakes to name a few
• http://www.youtube.com/watch?v=OJdC4R4hrHU&feature=related
Deceptive AdvertisingDeceptive Advertising• Ways to resolve problems
• If contacting the store or company have failed you may use
• Mediation: try to resolve issue with the help of a third party. Not binding
• Arbitration: a neutral person listens to both sides and reaches a decision. Can be binding
Deceptive AdvertisingDeceptive Advertising• Small claims court: quick,
cheaper, do not need lawyer, less strict, does have monetary limits
• Class action suits: a lawsuit filed on behalf of a group of people who have the same complaint. Ex: automobile malfunction
Priorities and GoalsPriorities and Goals• Priorities: choices you
make as a consumer about the importance of alternatives.
• Priorities go beyond being a consumer
• What are some yours in life or in general?
Needs and WantsNeeds and Wants Difference between a need or want?
• Need: things you must have in order to live.
• Want: things you desire but are not necessary to survive.
Values and StandardsValues and Standards• What is your definition of values? What are
some examples?• Values: strongly held beliefs and principals
what is important• Standards: establishing levels of quality or
quantity to measure against• Do we all have the same standards?
why/why not What if we have the same values?
GoalsGoals• Goals: targets that you want to
accomplish
• Can be long or short term
• What are some examples?
• Can or when do goals change?
Limited ResourcesLimited Resources• Resources:
Anything that is useful or helpful in the process of achieving goals or solving problems
Limited ResourcesLimited Resources• Types of resources• 1. Human: personal energy, knowledge,
experience, skills or talents• 2. Time: making the best use of time
available. Time management• 3. Financial: investments, cash, saving,
and credit. All part of what you need to reach most goals
Limited ResourcesLimited Resources• 4. Material/Technology: food, clothing,
tools, phones, cars, computers etc.
• 5. Community Resources: churches, libraries, school, police/fire, Red Cross
• 6. Natural Resources: Water, trees, minerals
• Are any of the resources unlimited?
Limited ResourcesLimited Resources• People’s wants? Limited/Unlimited?• Resources? Limited/Unlimited?• What becomes the problem?• Scarcity: limited resources for unlimited
wants. • Opportunity Cost: what you give up when
you decide how to use your limited resource (ex jacket, shoes music) can only afford two
Limited ResourcesLimited Resources• Resource Options• 1. Expand resources• 2. Conserve resources• 3. Substitute resources• 4. Exchange resources can lead to• Bartering: exchanging goods or
services with another person
Management SkillsManagement Skills• Management; the process of using resources
effectively to reach goals• Four steps:• Planning: identify, prioritize• Organizing: steps to take, schedules,set
targets• Implement: put plan to action• Evaluate: Are results satisfactory? Do you
need to adjust
ProcrastinateProcrastinate• I’ll define it later• Procrastinate: put
off taking action • If things seem
over-whelming, start with small steps
Decision Making StepsDecision Making Steps• Steps in complex decisions
• 1. Identify issue or problem or goals
• 2. Identify resources: time, money, manpower
• 3. Identify options
• 4. Weigh options Pros/Cons
• 5. Choose best option
• 6. Take action
• 7. Evaluate decision
Decision MakingDecision Making• Factors affecting consumer decisions• 1. Personal factors: needs, values,
priorities and goals• 2. Family factors:• 3. Culture: Beliefs, traditions, • 4. Social: includes fads, status symbols• Conspicuous consumption-purchasing
goods and services to impress others
Decision MakingDecision Making• Terms to know• Critical thinking-applying
reasoning strategies in order to make sound decisions.
• Credentials-indicates knowledge and expertise in a certain area
• Bias- prevents impartial judgment