CHAPTER 3 - Your Role As a Consumer

CHAPTER 3 - Your Role as a Consumer

Section I – Consumption, Income, and Decision Making

Consumer – any person or group that buys or uses goods or services to satisfy personal ______and ______.

I.  Disposable Income

A.  Income remaining for a person to ______or ______after all taxes have been paid.

B.  ______are purchased first (______, ______, ______).

II.  Discretionary Income

A.  Money left after paying taxes and all necessities that can be ______or ______on luxury items (wants).

III.  Factors that determine earning power and the ability to consume.

A.  ______

B.  ______

C.  ______

D.  ______

E.  ______

F.  ______

IV.  Decision Making as a Consumer

A.  Scarce resources

1.  ______- whether or not to buy an item

2.  ______- invested in obtaining information about an item

B.  ______- low, medium, or high quality item

C.  ______choice –decision based on opportunity costs

1.  Item with greatest value from among comparable quality items

2.  Best quality with least expense to satisfy your wants

Section 2 – Buying Principles or Strategies

I.  Gathering Information

A.  Takes ______and ______.

B.  Try to find out only what you ______.

C.  Getting accurate information from a salesperson is a ______- ______skill.

D.  Use the internet to research a ______and the ______selling it.

II.  Using Advertising Wisely

A.  Competitive Advertising

1.  Convinces people one ______is better than another.

2.  Tries to create ______recognition or loyalty.

B.  Informative Advertising

1.  Provides ______about a product or service.

2.  Can learn existence, ______, ______, and special features.

C.  Bait and Switch

1.  Use of deceptive or ______advertising

2.  Quality, features, or true price may be ______(bait).

3.  Salesperson tries to sell a ______priced item (switch).

4.  This practice is ______.

III.  Comparison Shopping

A.  Compare different ______and ______.

B.  Use information obtained from other stores to ______lower prices.

C.  Consider the different ______(repair/replace products).

D.  Compare the value of ______to ______products.

Section 3 - Consumerism

Consumerism – movement to ______buyers about the purchases they make and to ______better and safer products from manufacturers.

I.  Consumer Rights (John F. Kennedy 1962)

A.  Right to ______-______

B.  Right to be ______

C.  Right to ______

D.  Right to be ______

E.  Right to ______- ______

II. Help for Consumers

A.  Complain when dissatisfied

B.  Better Business Bureau (BBB) – give product info & help settle disputes

C.  Magazines & consumer groups provide product info

D.  Federal agencies require consumer notification and warranties

III.  Consumer Responsibilities

A.  Report problems ______

B.  State the ______and suggest a ______and ______solution

C.  Include important ______and copies of ______, guarantees and ______

D.  Describe any action to correct the problem

E.  Keep an accurate ______

F.  Allow sufficient time for a resolution

G.  Type a ______or send an ______

H.  Keep cool

I.  Exhibit ______- moral behavior