CONSUMER INFORMATION

1. LESSON 5.1 CONSUMER INFORMATION Describe several sources of information for consumers Explain how governments and businesses help consumers

2. 5.1 Consumers and Information • A consumer is a person or business that buys or uses goods and services. • Informed consumers gather information about products and services before making a buying decision.

3. 5.1 Consumer Information Organizations • Product-testing organizations • Print publishers • Broadcast organizations • The Internet

4. 5.1 Information from the Government • Federal Citizen Information Center (FCIC) • United States Department of Agriculture (USDA) • Federal Trade Commission (FTC) • Food and Drug Administration (FDA) • Consumer Product Safety Commission (CPSC) • National Highway Traffic Safety Administration (NHTSA) • Department of Housing and Urban Development (HUD) • Environmental Protection Agency (EPA)

5. 5.1 Information from Businesses • Advertising • Product labels • Customer service departments • Better Business Bureaus

6. LESSON 5.2 CONSUMER DECISIONS Identify wise buying strategies Describe what to consider when making wise buying decision

7. 5.2 Wise Buying Strategies • The business decision-making process can be applied to making wise decisions as a consumer. • Good buying strategies involve comparisonshopping—that is, comparing unit prices, quality, and services associated with one product with those of another.

8. 5.2 Comparison Shopping Compare unit prices, quality • Compare services • Consider sales

9. 5.2 Compare unit prices Unit price is a price per unit of measure, such as price per ounce, pound, quart, or other unit of measure. • Divide the total price of the item by the number of units of measure in the item.

10. 5.2 Compare quality • Compare quality • Higher quality usually means higher cost • If you buy a cheaper items that doesn’t last as long as a higher quality item the replacement cost maybe higher than the higher quality item.

11. 5.2 Compare services • Compare services • Cash only versus extend credit • Free delivery versus charge for delivery • Large stock of merchandise versus fewer items

12. 5.2 Consider Sales • Promotional sales • Enticing or building acceptance for a new product or service. • Clearance sales • Merchandise they no longer wish to carry in stock - at the end of a season, odd sizes, or out-of-date merchandise • Special-purchase sales • Feature goods that is overstocked, no longer are made, or stock from a company that is going out of business.

13. 5.2 Wise Buying Decisions • Business reputation • Brand names • Given to a product or service to distinguish it from other similar products or services • Store/Private brands

14. 5.2 Wise Buying Decisions • Type of stores • Department Stores • Discount Stores • Specialty Stores • Specialty Superstores • Factory-outlet • Warehouse Club • Supermarkets • Convenience stores

15. 5.2 Wise Buying Decisions • Timing • Impulse buying - buying without giving much thought to the purchase • Ways to Avoid Impulse Buying: • Fruits/vegetables during peak growing seasons are usually sold at lower prices • Automobiles usually are cheaper at the end of the model year: September • Winter clothing is often on sale in January.

16. LESSON 5.3 CONSUMER RIGHTS AND RESPONSIBILITIES State the seven rights in the Consumer Bill of Rights Name five consumer responsibilities

17. 5.3 Your Consumer Rights • In most business transactions, buyers and sellers are satisfied. • However, not all businesses are honest and reputable. • When a problem arises, consumers have both rights and responsibilities.

18. 5.3 Your Consumer Rights • The uniting of consumers to get fair treatment from businesses is known as the consumer movement • Led to the creation of some public and private consumer agencies

19. 5.3 Consumer Bill of Rights • Right to be informed (1962) Fraudoccurs when consumers are given false information deliberately in an effort to make a sale. • If a salesperson knowingly sells you a car on which the odometer has been turned back 30,000 miles, fraud has occurred.

20. 5.3 Consumer Bill of Rights 2. Right to safety (1962) • The Consumer Product Safety Commission (CPSC) • The Food and Drug Administration (FDA) • The U.S. Department of Agriculture (USDA)

21. 5.3 Consumer Bill of Rights 3. Right to choose (1962) When a business has no competition and controls the market for a good or service, it is said to have a monopoly. • By driving away competition, monopolies limit your right to choose.

22. 5.3 Consumer Bill of Rights 4. Right to be heard (1962) Consumers can fi le complaints with the FTC’s Bureau of Consumer Protection • Protect consumers against unfair, deceptive, or fraudulent practices by enforcing a variety of consumer protection laws

23. 5.3 Consumer Bill of Rights 5. Right to a remedy (1969) A guarantee is a promise by the manufacturer or dealer, usually in writing, that a product is of a certain quality (sometimes called express warranties). • An express warranty is made orally or in writing and promises a specific quality of performance • A guarantee that is imposed by law and is understood to apply even though it has not been stated is an implied warranty.

24. 5.3 Consumer Bill of Rights 6. Right to consumer education (1975) Consumer education programs focus on the interaction of consumers and producers.

25. 5.3 Consumer Bill of Rights 7. Right to service (1994) Consumers should be able to expect convenience, courtesy, and responsiveness to consumer problems and needs.

26. 5.3 Your Consumer Responsibilities • Just as some businesses have not met their responsibilities to consumers, some consumers are not always careful to meet their own consumer responsibilities.

27. 5.3 Consumer Responsibilities 1. Be honest 2. Be reasonable 3. Be active 4. Be informed 5. Be involved