In this unit, you will understand: How to become a wise consumer Why is it important to be a wise consumer Who/what influences how we spend our money

Goods: Products made for sale such as in-line skates, computer games, jeans, etc.

Services: Work performed by one person for others such as repair work, tutoring, styling hair, etc.

Being a Wise Consumer… • We have many choices. Think about your choices carefully.   • Know what you are looking for in a product or service. • Evaluate! Compare! Think Before You Buy!

Influences That Affect Your Choices Complete graphic organizer. • Personal factors (beliefs, interest, curiosity)   • Family • Friends • Cost • Advice of sales people • Advertising!!!

What is Advertising? • Messages designed to cause consumers to buy a product or service   • Companies invest a lot of money into ads to persuade you to buy their product

Consumer Awareness As consumers, who spend a lot of money, we want to be sure that our buying decisions are based on solid information, not just fancy ads.

Are they facts at all, or is the advertiser using propaganda techniques to persuade you? Clipart-Microsoft Office XP 2002

Commonly Used Advertising Techniques Peer approval / Bandwagon Associates product use with friendship/acceptance “Everybody’s doing it” Scientific or numerical claims (statistics) “Nine-out-of-ten” may sound good, but many such claims can prove hard to substantiate http://www.youtube.com/watch?feature=player_embedded&v=txrALFNRuBg http://www.youtube.com/watch?v=-AnQbRPO9Cg teens – lesson 10 - slide 10-A

Commonly Used Advertising Techniques Transfer Associates product with entertainment and feelings of enjoyment Status / snob appeal Associates product use with those who have status, who are successful, and who enjoy and understand the “fine things in life” http://www.youtube.com/watch?v=bg_zxsxyKyM http://www.youtube.com/watch?v=P-4MokVSsgs teens – lesson 10 - slide 10-A

Commonly Used Advertising Techniques Hero endorsement Associates use of product with a well-known person Expert testimonial Testimonials work because you feel like you can trust the words of an expert http://www.youtube.com/watch?v=SG3mbWrNo5Q http://www.youtube.com/watch?v=dP3r3SPXgKs teens – lesson 10 - slide 10-A

Commonly Used Advertising Techniques Exploitation of fears and misgivings Ad feeds or plays on consumers’ fears “I’ve fallen and I can’t get up!” http://www.youtube.com/watch?v=6wEezef9wOU teens – lesson 10 - slide 10-A

Commonly Used Advertising Techniques Physical attraction to others Associates use of product with increased physical attraction/appeal Repetition Can be visual or auditory http://www.youtube.com/watch?v=f_SwD7RveNE teens – lesson 10 - slide 10-A

Commonly Used Advertising Techniques Name calling / “Perceptual contrast” Merchant presents undesirable/inferior option first to make the second option look far superior Unfinished comparison / Glittering generalities / Loaded Words Use of phrases such as, “Works better in poor driving conditions!” Works better than what? http://www.youtube.com/watch?v=BpOvzGiheOM teens – lesson 10 - slide 10-A

Commonly Used Advertising Techniques Wit and humor Used to entertain and keep the attention of the audience Intelligence / independence Associates product with smart people who can’t be fooled by gimmicks Associates product with people who can think and act for themselves http://www.youtube.com/watch?v=aB6S8m74N70 http://www.youtube.com/watch?v=fsJ6HVkWT14 teens – lesson 10 - slide 10-A

Other Sales Techniques Some commonly used approaches: Guarantees Abundant use of statements such as “lifetime guarantee” and “satisfaction guaranteed, or your money back” Scarcity Merchant creates a false sense of urgency by claiming that supply or time is limited Infomercial long TV commercial whose main purpose seems to be to present information, rather than to sell a product http://www.youtube.com/watch?v=i8Ugj89ztp0 teens – lesson 10 - slide 10-B

Examples of misleading advertisements Frequently seen misleading advertisements: Health fraud Promises of overnight medical cures and treatments Products developed after “years of research” and “proven to provide immediate positive results” Testimonials from medical experts and satisfied customers Credit repair Offers, for a fee, to fix a bad credit record “Get rich quick” schemes Ads that offer an opportunity to earn a lot of money in a short amount of time with very little effort Product misrepresentation Uses names similar to nationally recognized brand Merchandise offered at below-market value for a limited time only Vague descriptions of product Travel fraud Offers accompanied by certificates for free or very low-cost travel Vague description of services and accommodations teens – lesson 10 - slide 10-D

When we make buying decisions, we should… Read and listen to reliable sources Watch for combinations of truths and lies Check for hidden messages Watch for use of propaganda techniques