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