Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE1 CHAPTER Consumer Buying Decisions Consumer Rights and Responsibilities Consumer Protection Actions Consumers in the Global Economy

Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE2 Consumer Buying Decisions Learning Targets Identify major sources of consumer information. Explain wise buying actions. Describe the main types of shopping locations. 15-1

Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE Chapter 15 3 CONSUMER INFORMATION SOURCES  Product testing organizations – tests products and services for the benefit of consumers and businesses. Underwriters Laboratories tests electrical products. UL symbol indicates the product has been tested and is safe. AHAM – the Association of Home Appliance Manufacturers develops and tests appliances. Organizations paid by manufactures Independent testing organizations  Media sources – consumers have access to this information Print publishers Broadcast organizations The Internet

Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE Chapter 15 4 CONSUMER INFORMATION SOURCES Government agencies Federal – USDA, FDA, CPSC State – regulate banking and insurance Local – consumer assistance offices (continued)

Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE Chapter 15 5 CONSUMER INFORMATION SOURCES Business sources Advertising Product labels Customer service departments Better Business Bureau Personal contacts (continued)

Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE Chapter 15 6 WISE BUYING STRATEGIES Ask yourself Do you really need the item now or can it wait? Which stores should you consider? What quality do you want? What price are you willing to pay? Use decision-making 1)Identify your needs and wants 2)Know the choices available 3)Determine your desired satisfaction 4)Evaluation alternatives 5)Make the decision Comparison shopping – compare price, quality, services and brands

Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE Chapter 15 7 COMPARISON SHOPPING 1)Compare prices 2)Compare quality 3)Compare services 4)Compare sales 5)Compare brands

Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE Chapter 15 8 WISE BUYING: A SUMMARY Take your time Time your purchases winter clothes on sale at a certain time Right season for fruits/vegetables Avoid being impulsive

Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE Chapter 15 9 SHOPPING LOCATIONS Traditional retailers – department stores, discount Contemporary retailers - specialty Non-store shopping – on-line, mail order, vending machines

Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE10 Consumer Rights and Responsibilities Learning Targets Explain the consumer movement. Explain seven consumer rights. Describe consumer responsibilities. 15-2

Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE Chapter CONSUMER MOVEMENT Consumer Bill of Rights The right to be informed The right to safety The right to choose The right to be heard The right to a remedy The right to consumer education The right to service.

Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE Chapter RIGHT TO BE INFORMED You have a right to know what the product or service is and what it will do for you.

Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE Chapter RIGHT TO SAFETY Consumers have a right to be safe from harm associated with using products or services. Food and Drug Administration (FDA) United States Department of Agriculture (USDA)

Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE Chapter RIGHT TO CHOOSE Consumers have the right to choose from a variety of goods and services. Federal Trade Commission (FTC) Monopoly

Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE Chapter RIGHT TO BE HEARD Federal Trade Commission (FTC) Office of the Attorney General Department of Consumer Affairs Better Business Bureau

Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE Chapter RIGHT TO A REMEDY Consumers have the right to seek a legal remedy when a problem occurs. Guarantee Express warranty Implied warranty

Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE Chapter RIGHT TO CONSUMER EDUCATION Educated consumers are aware that their decisions have economic and social implications.

Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE Chapter RIGHT TO SERVICE Convenience Courtesy Responsiveness

Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE Chapter YOUR CONSUMER RESPONSIBILITIES Be honest Be reasonable Be active Be informed Be involved

Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE20 Consumer Protection Actions Learning Targets List common consumer concerns. Describe the steps of the consumer complaint process. Explain legal actions available to assist consumers. 15-3

Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE Chapter COMMON CONSUMER PROBLEMS Sources of complaints Motor vehicle purchases, repairs Debt harassment Identity theft and credit card fraud Guaranteed and advance-fee loans – check cashing places Credit repair scams Telemarketing, catalog, and magazine sales

Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE Chapter COMMON CONSUMER PROBLEMS Sources of complaints (continued) Internet auctions, online purchases Prizes, sweepstakes, and phony lottery promotions Work-at-home and start-your-own business opportunities Travel and vacation promotions Health and diet gimmicks

Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE Chapter DECEPTIVE BUSINESS ACTIVITIES Scams, cons, and swindles Too good to be true Financial losses The Internet and online scams

Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE Chapter PROTECTION FOR SHOPPERS Federal Laws Right to cancel your order Credit card bill disputes

Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE Chapter COMPLAINT PROCESS Step 1Contact the place of purchase Step 2Contact the company headquarters Step 3Involve a consumer agency Step 4Take legal action

Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE Chapter CONTACT PLACE OF PURCHASE Return to place of purchase Remain calm Provide evidence

Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE Chapter CONTACT COMPANY HEADQUARTERS Customer service department Contact information Tell what happened Include copies of documentation Ask for specific action

Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE Chapter INVOLVE A CONSUMER AGENCY When you do not get satisfaction from business Consumer agencies Public interest organization Government agencies

Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE Chapter TAKE LEGAL ACTION When the first three steps do not work

Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE Chapter LEGAL ACTIONS FOR CONSUMERS Third-party settlements Mediation Arbitration Class action suits Small claims court Using a lawyer