Being a Good Consumer Chapter 28-1

Traits of Skillful Consumers Consumer – a person who purchases goods and services Become familiar with available products, prices, and standards of quality Read and do research to learn what features to look for or avoid in a product Use self-discipline to resist society’s message to buy more than you need In order to learn the skills to be a smart consumer, you have to want to learn

Judging Quality and Price Cautious consumers want top quality at a fair price Quality – well-made, works right, and will last (saves frustration and money) Learning by experience can be costly Learn by reading what consumer advocate groups and magazines say Consumer Reports Consumers Research magazine Both test products in laboratories and report findings to readers

A Fair Price Sometimes the lowest price isn’t the best by Bargain – a good-quality product you need, want, and will use that is sold by a reliable dealer at a price you are willing to pay Four conditions of a true bargain: The product is one you need, want, and will use The item’s quality is suitable The product sells at a price you’re willing to pay A reliable dealer sells the item

Comparison Shopping Comparison shopping – finding good quality at the lowest price 1. know what you want – look for items with features you want 2. use the telephone – call stores to see who has the item and how much it costs 3. compare similar items – read labels careful so you can tell wether the products are comparable 4. check any warranty (a written guarantee. Can cover repairs) 5. compare credit terms – cost can vary greatly 6. check the return policy – does the company back its products

Control Impulse Buying Make up a shopping list ahead of time Keep your eye on the list If grocery shopping, don’t go to the store hungry Take only enough money to cover what you’ve planned to buy Try not to look at items around check outs (these are purposely put there for impulse buyers!)

Advertising Techniques Direct Advertising – tries to convince you to buy a particular product by appealing directly to your values Health, happiness, success, good looks, and love are promoted Indirect Advertising – more subtle way to advertise that uses celebrities or logos or labels Hero drinking a well known soft drink in a movie, clothes with brand names (you’re walking advertisement every time you wear it) Companies who put out Super bowl commercials pay millions of dollars for the slot

Using advertising correctly Learn to separate face from fiction Recognize “no-promise” promises Watch out for below-cost sales Be careful of percent-off ads Get the whole story