1. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 SLIDE 1 15-1 15-1Consumer Buying Decisions 15-2 15-2Consumer Rights and Responsibilities 15-3 15-3Consumer Protection Actions 15 C H A P T E R Consumers in the Global Economy

2. © 2012 Cengage Learning. All Rights Reserved. SLIDE 2 15-1 Consumer Buying Decisions Goal 1Identify major sources of consumer information. Goal 2Explain wise buying actions. Goal 3Describe the main types of shopping locations.

3. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 SLIDE 3 KEY TERMS ●unit price ●brand ●impulse buying

4. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 SLIDE 4 CONSUMER INFORMATION SOURCES ●Product testing organizations ●Media sources ●Print-based ●Broadcast-based ●Internet-only ●Government agencies ●Business sources ●Advertising ●Product labels ●Customer service departments ●Better Business Bureau ●Personal contacts

5. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 SLIDE 5 Checkpoint ●What are the main sources of consumer information? ●The main sources of consumer information are product testing organizations, media sources, government agencies, business sources, and personal contacts.

6. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 SLIDE 6 WISE BUYING STRATEGIES ●Use decision-making steps ●Comparison shopping

7. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 SLIDE 7 DECISION-MAKING STEPS 1. 1. Identify your needs or wants. 2. 2. Know the choices available. 3. 3. Determine your desired satisfaction. 4. 4. Evaluate alternatives. 5. 5. Make the decision.

8. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 SLIDE 8 COMPARISON SHOPPING ●Compare prices ●Compare quality ●Compare services ●Compare sales ●Compare brands

9. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 SLIDE 9 WISE BUYING: A SUMMARY ●Take your time ●Time your purchases ●Avoid being impulsive

10. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 SLIDE 10 Checkpoint ●What decision-making steps should be taken when making a purchase? ●Identifying your needs or wants. ●Knowing the choices available. ●Determining your desired satisfaction. ●Evaluating alternatives. ●Making the decision.

11. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 SLIDE 11 SHOPPING LOCATIONS ●Traditional retailers ●Contemporary retailers ●Non-store shopping

12. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 SLIDE 12 Checkpoint ●What are the main categories of shopping locations? ●The main categories of shopping locations are traditional retail stores, contemporary retail stores, and non-store shopping.

13. © 2012 Cengage Learning. All Rights Reserved. SLIDE 13 15-2Consumer Rights and Responsibilities Goal 1Explain the consumer movement. Goal 2Explain seven consumer rights. Goal 3Describe consumer responsibilities.

14. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 SLIDE 14 KEY TERMS ●consumer movement ●fraud ●guarantee ●express warranty ●implied warranty

15. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 SLIDE 15 CONSUMER MOVEMENT ●Ways businesses tried to take advantage of consumer ●False claims ●High prices ●Unsafe products ●Consumer response ●United to demand fair treatment

16. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 SLIDE 16 1994 1975 1969 1962 7. 7. The right to service. 6. 6. The right to consumer education. 5. 5. The right to a remedy. 4. 4. The right to be heard. 3. 3. The right to choose. 2. 2. The right to safety. 1. 1. The right to be informed. CONSUMER BILL OF RIGHTS

17. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 SLIDE 17 Checkpoint ●What are the seven rights of consumers? ●Right to be informed ●Right to safety ●Right to choose ●Right to be heard ●Right to a remedy ●Right to consumer education ●Right to service

18. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 SLIDE 18 RIGHT TO BE INFORMED ●You have a right to know what the product or service is and what it will do for you.

19. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 SLIDE 19 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)

20. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 SLIDE 20 RIGHT TO CHOOSE ●Consumers have the right to choose from a variety of goods and services. ●Federal Trade Commission (FTC) ●Monopoly

21. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 SLIDE 21 RIGHT TO BE HEARD ●Federal Trade Commission (FTC) ●Office of the Attorney General ●Department of Consumer Affairs ●Better Business Bureau

22. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 SLIDE 22 RIGHT TO A REMEDY ●Consumers have the right to seek a legal remedy when a problem occurs. ●Guarantee ●Express warranty ●Implied warranty

23. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 SLIDE 23 RIGHT TO CONSUMER EDUCATION ●Educated consumers are aware that their decisions have economic and social implications.

24. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 SLIDE 24 RIGHT TO SERVICE ●Convenience ●Courtesy ●Responsiveness

25. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 SLIDE 25 Checkpoint ●How does an express warranty differ from an implied warranty? ●An express warranty is made orally or in writing and promises a specific quality of performance. ●An implied warranty is imposed by law and is understood to apply even though it has not been stated.

26. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 SLIDE 26 YOUR CONSUMER RESPONSIBILITIES ●Be honest ●Be reasonable ●Be active ●Be informed ●Be involved

27. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 SLIDE 27 Checkpoint ●What actions can be taken to be an involved consumer? ●To be an involved consumer, you should be honest, reasonable, active, informed, and involved.

28. © 2012 Cengage Learning. All Rights Reserved. SLIDE 28 15-3Consumer Protection Actions Goal 1List common consumer concerns. Goal 3Describe the steps of the consumer complaint process. Goal 3Explain legal actions available to assist consumers.

29. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 SLIDE 29 KEY TERMS ●mediation ●arbitration ●class action suit ●small claims court

30. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 SLIDE 30 COMMON CONSUMER PROBLEMS ●Easily resolved ●Serious problems ●Sources of complaints

31. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 SLIDE 31 TOP 10 LIST OF CONSUMER COMPLAINTS ●Debt collection ●Auto sales ●Home repair and construction ●Credit cards ●Internet goods and services ●Predatory lending and mortgages ●Telemarketing and do-not-call ●Auto repair ●Auto warranties ●Telecom, slamming, and cramming

32. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 SLIDE 32 DECEPTIVE BUSINESS ACTIVITIES ●Scams, cons, and swindles ●Too good to be true ●Financial losses ●The Internet and online scams

33. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 SLIDE 33 PROTECTION FOR SHOPPERS ●Federal laws ●Right to cancel your order ●Credit card bill disputes

34. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 SLIDE 34 Checkpoint ●What are sources of common consumer complaints? ●Debt collection ●Auto sales ●Home repair and construction ●Credit cards ●Internet goods and services ●Predatory lending and mortgages ●Telemarketing and do-not-call ●Auto repair ●Auto warranties ●Telecom, slamming, and cramming

35. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 SLIDE 35 COMPLAINT PROCESS Step 1Contact the place of purchase Step 2Contact the company headquarters Step 3Involve a consumer agency Step 4Take legal action

36. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 SLIDE 36 CONTACT PLACE OF PURCHASE ●Return to place of purchase ●Remain calm ●Provide evidence

37. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 SLIDE 37 CONTACT COMPANY HEADQUARTERS ●Customer service department ●Contact information ●Tell what happened ●Include copies of documentation ●Ask for specific action

38. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 SLIDE 38 INVOLVE A CONSUMER AGENCY ●When you do not get satisfaction from business ●Consumer agencies ●Public interest organization ●Government agencies

39. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 SLIDE 39 TAKE LEGAL ACTION ●When the first three steps do not work

40. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 SLIDE 40 Checkpoint ●List the steps of the consumer complaint process. ●Contact the place of purchase. ●Contact the company headquarters. ●Involve a consumer agency. ●Take legal action.

41. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 SLIDE 41 LEGAL ACTIONS FOR CONSUMERS ●Third-party settlements ●Mediation ●Arbitration ●Class action suits ●Small claims court ●Using a lawyer

42. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 15 SLIDE 42 Checkpoint ●How does mediation differ from arbitration? ●Mediation involves the use of a third party who tries to resolve the complaint, while arbitration results in a decision that is legally binding on both parties in a dispute.