the power of consumers consumer education chapters 1-2 consumer powers and setting priorities
TRANSCRIPT
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The Power of ConsumersThe Power of Consumers
• Consumer Education
• Chapters 1-2
• Consumer Powers and Setting Priorities
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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?
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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
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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
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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?
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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
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The Power of ConsumersThe Power of Consumers
• Okay everyone wake up
• Are effective consumers important? Why
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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
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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.
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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
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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?
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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
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http://www.youtube.com/watch?v=bzfPUmQcfDs
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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
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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
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Identity Theft• Online Profiling:
• Practice in which companies collect information about the Web sites a customer visits
• This is done by the use of…………
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Identity Theft• Cookies
• No not these kind!• Small files stored
on your computer that allow a Web site to remember information about you
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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
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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
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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
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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
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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?
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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.
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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?
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GoalsGoals• Goals: targets that you want to
accomplish
• Can be long or short term
• What are some examples?
• Can or when do goals change?
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Limited ResourcesLimited Resources• Resources:
Anything that is useful or helpful in the process of achieving goals or solving problems
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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
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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?
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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
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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
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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
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ProcrastinateProcrastinate• I’ll define it later• Procrastinate: put
off taking action • If things seem
over-whelming, start with small steps
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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
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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
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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