The Consumer in the Marketplace Chapter 22.1 You as a Consumer

OBJECTIVES Give examples of goods and services that are consumed Name and describe the three stages involved in consuming goods and services

GOODS AND SERVICES A market is created whenever two or more parties come together to buy and sell. A consumer is someone who buys or uses goods and services. Goods are articles that are produced or manufactured. Some goods, such as food are used up almost immediately. Other goods, such as tools, last for many years. A house is also a good. Services differ from goods. Services work performed by individuals or businesses for others. It involve the payment of money to people and businesses for work performed.

What is Consuming? The first stage is making choices Buying always involves making choices Consuming involves three stages-choosing, buying, and using. Sometimes, you have to choose between two similar products or services. Another type of choice is whether to spend your money or save it. This may be the most difficult choice of all

What is Consuming cont. Another stage is buying wisely, it begins once you have decided to buy. Knowledge and planning are very important to wise buying. Some ways you can learn about different products and services Talk with friends and family Attend special classes Do research on the Web Read consumer magazines Consumer Reports is perhaps the best-known consumer magazine. It rates various products in terms of price, quality, and other factors Knowing which products are rated highly can save you shopping time as well as money. To avoid exceeding your food budget, plan what you will buy. Generic products state the only the common name of the product on the label(“grape juice”) Brand-name products have a unique name given to them by the manufacturer(“Welch’s Purple 100% Grape Juice”).

What is Consuming cont. Comparison shopping means finding out the cost of a product or service at several different places before making a decision to buy. Buying wisely also involves the careful use of credit. Some businesses sell products or services for less when you pay cash. If you charge a purchase, it is important to know how much more you will pay. If you pay in a certain amount of time, the credit is free, but if you don’t pay right away, though, credit may be expensive

What is Consuming cont. Wise consuming does not end after you bring a product home. Treat products as if you want them to last forever. Read the instructions carefully before trying it. Once you are sure the item works, check the packaging for the warranty card. A warranty is a guarantee or promise that a product is free from defects. Fill out the card, make a photo-copy for your records, and send it right away. Watch for advertising by automobile dealers, discount stores, service stations, and tire and appliance service centers. Such businesses frequently lower the price on oil changes simply to increase business and get you into their shop. If you want to save the most money, buy the oil and filter at a discount store and change the oil yourself.

Checkpoint Questions How are the goals of a buyer and a seller different? What is a need? A want? The process of consuming has three stages. Name and briefly describe them. Give three reasons why Bill Martinez is a wise consumer. Why should you use and care for a product properly?