Consumer Awareness Chapter 5, page 65

1. Consumer AwarenessChapter 5, page 65 Protecting our wallets from our gullible minds

2. 3 Roles in Society • Citizen • Vote, pay taxes • Worker • Create goods or services • Consumer • Buy and consume goods and services • Teens spend $80 to $100 Billion and estimate to double in the next few years

3. Book – Complete page 66 • Caveat Emptor = Buyer Beware • Companies compete for your Money • Personal selling • Financing as a marketing tool • 88% of 90 days same as cash • TV, Radio, Internet • Product Positioning

4. Name the Font – TV, Movie, Product Wall-E 1. You Tube 2. House, M.D. 3. 4. M*A*S*H 5. Snickers 6. Warcraft 7. Guitar Hero 8. Lord of the Rings 9. Mythbusters 12. Twitter 10. Kiss 11. ESPN Amazon 13. 14. Breaking Bad 15. Indiana Jones Tron 16. Simpsons 18. Ikea 19. Skype 17. 20. Harry Potter 23. 21. Dexter 22. Kraft Twilight 24. SEGA

5. Page 68 & 69 • Significant purchase is over $300 • Physiological changes when making significant purchases • His name is immaturity • Can spend more than you make • Must develop power over purchases • Wait overnight • Consider your buying motives, no amount = contentment • Never buy anything you do not understand • Consider the ‘opportunity cost’ • Seek wise Counsel

6. Short Quiz • What is Puffing or Puffery? • Puffery as a legal term refers to promotional statements and claims that express subjective rather than objective views, such that no reasonable person would take them literally. • What does FTC stand for and what do they do? • Federal Trade Commission • Which of the following is legal • Bait and Switch • Phony contests • Infomercials C. Lets watch

7. Laws you should know • Door to door sales • 3 days to cancel if sign contract at location other than sales floor • Mail Order • Must be shipped in time given, max of 30 days • Unordered goods for payment cannot be sent • If it is, must have free return or allow you to keep for free • Under 18, not of age of majority • Can only enter ‘necessity’ contracts (food, medical) • All sales is, is a contract

8. Contract Law • Offer and Acceptance • Must be given offer and must accept • Genuine Assent • Based on truth without extra pressure • Consideration • Both parties must receive something of value • Legality • Must be of something that is legal • Capacity • Mental ability to enter into a contract

9. Truth in Advertisement • Ads must • Be truthful and non-deceptive; • Have evidence to back up their claims; and • Not be unfair • Is deceptive if it ads or omits information that • Is likely to mislead consumers acting reasonably under the circumstances; and • Is "material" - that is, important to a consumer's decision to buy or use the product. • Is unfair if • It causes or is likely to cause substantial consumer injury which a consumer could not reasonably avoid; and • It is not outweighed by the benefit to consumers.

10. What can happen • Cease and desist orders • Civil Penalties • Corrective advertisements

11. Illegal Tactics 1: Illegal Advertisement • Bait and Switch • Advertise wanted item for low price • Only expensive items at the store or push by sales to buy the more expensive item • To getaway with it use small print: • Limited available per store • Only certain models • No rain checks • Certain requirement to get low price (Active military) • False and Misleading Advertisement

12. Illegal Tactics: Deceptive Sales Practice • Tie In Sales • Get deal if you buy another product you do not want • Maintaining or Creating a Monopoly • Setting Prices / Price Fixing • Agreements to restrict Advertisement • Restraints on other business practices

13. Bargain Shopping Chapter 8, page 119

14. Page 121 & 122 • Misrepresented – Harm – Win/Win • First key: Negotiate everything • Don’t be afraid to ask • 7 Rules of Negotiating: • Tell the truth • Use the power of cash • Cash is Emotional & Visual • Cash has immediacy • Understand and use Walk Away power • Shut up • That’s not good enough • Good guy, bad guy • If I take away

15. Page 122 to 124 • Second Key – You must have patience • Don’t get married to a purchase • Third key – Know where to find deals. • Trade something of value, goods or just your services • Places to find great deals: • Individuals • Estate Sales • Public Auctions

16. Coupons • Why? • Great deals • Free Stuff • Types • Manufacturer = from company • You give to store, they get money + $.08 back • Store = from store • Double coupons = store gives double value • If item is on sale + coupon can = FREE

17. More • Rebates: • Send in data = get money back • If on sale and coupon, could get more back then spent • Catalina • In store dispenser • Reward Programs • Kroger Plus Card, automatic off & coupon • Plus = free stuff • Negative = Time

18. How to • The “Coupon Basics” • Organize coupons • Books • Watch ads • Boxes of old ads • Electronic coupons • Obsessive • Multiple trips / transactions • Check store coupon • Check item fits coupon

19. Sites to use • Couponmom.com • Coupons.com • Smartsource.com • Redplum.com • Houseparty.com • Bargainstobounty.com • Moneysavingmom.com • Groupon.com • Books: textsbooksrus.com, half.com

20. More Places to Find Great Deals • Garage Sales • Repo Lot • Flea Markets • Refunding • Foreclosures • Pawn Shops • Online Auctions • Classified • Consignment Sales – Buy & Sell • Conventions

21. Just Remember:How they get you • Impulse purchases • Put items you would not normally buy but want in highly visible areas • Steal of deals – buy stuff you do not need • Advertisement Strategies • Marketing LIVE on deals

22. Alternative Activity

23. What you will do • On paper 1: Write down the name of a product that would be difficult to get teenagers to buy • Put in product box • On paper 2 & 3: Write down 2 magazines you read regularly • Put in box marked “girls” or “boys” • Groups of 3 or 4 • Will be given marketing scenario and pick 2 product slips and decide which you will use • If will be marketed to girls or boy, pick magazine to put ad in from “girls” or “boys” magazine box • In ___ minutes come up with print ad campaign based on your scenario to introduce advertise your product • Will be introducing campaign to the class

24. Wrap-Up activity • Which strategy did your group use? • Which of the campaigns presented was the most respectful to teenagers? • Did any reinforce traditional gender roles? • Which would be most effective in the real world? Why? • If you turned your idea into a TV commercial, what kind of music and effects could you use to hype the product?

25. Remember • Advertising sets us up to feel dissatisfied -  even if we think we have everything we need, ads will still try to convince us that there is something else we need. • Advertisers try to show us how much more satisfied, popular, happy, hip, attractive, sexy, fun and in control we would be if we had their product. • Fashion and trends are always changing so that we must continually spend money to be current. • Advertising stresses competition and status versus feeling good about being who you are and accepting others for who they are.