1. Consumer- any person or group that buys or uses goods and services to satisfy personal needs and wants
  2. Disposable and Discretionary Income
  3. Disposable income- the money income a person has left after all taxes have been paid
  4. Discretionary income- money income a person has left to spend on extras after necessities have been bought.
  5. Decision Making as a Consumer
  6. First decision is whether or not to buy an item
  7. Follow a checklist to buy things:
  8. Decide how to spend the money
  9. Decide on the right purchase
  10. Decide how to use the purchase
  11. Scarce Resources
  12. Your time and money
  13. How much time will it take to make the decision
  14. How much money will it cost you once you make it
  15. Opportunity Cost
  16. The cost of the next best alternative
  17. Rational Choice
  18. Choosing the alternative that has the greatest value from among comparable quality products.

Section 2

  1. Gathering Information
  2. How much Information do you need
  3. Obtain only as much information as is worthwhile
  4. Value of time and effort should not be greater than the value you receive from making the right choice for yourself.
  5. Develop a consumer knowledge base
  6. Use the internet
  7. Have salespeople give you accurate information
  8. Using Advertising wisely
  9. Competitive Advertising
  10. Advertising that attempts to persuade consumers that a product is different from and superior to any other
  11. Used to keep or take customers from competitors
  12. And use emotion
  13. Informative Advertising
  14. Advertising that benefits consumers by giving information about a product
  15. You learn existence, price, quality and special features w/o effort
  16. May also be competitive
  17. Bait and Switch
  18. Ad that attracts consumers with a low priced product then tries to sell them a higher prices product
  19. Is deceptive and illegal
  20. Comparison Shopping
  21. Getting information on the types and prices of products available from different stores and companies
  22. Warranties
  23. Promise made by the manufacturer or seller to repair or replace a product if it is found to be faulty within a certain period of time.
  24. Brand-name or generic Products
  25. Brand name- word, picture or logo on a product that helps consumers distinguish it from similar products
  26. Generic name- general name for a product rather than a specific brand name given by the manufacturer

Section 3

  1. Consumer Rights
  2. Consumerism- movement to educate buyers about the purchases they make and to demand better and safer products from manufacturers
  3. 62 from JFK Consumer Bill of Rights
  4. The right to safety
  5. Right to be informed
  6. The right to choose
  7. Right to be heard
  8. The right to redress (by Nixon)
  9. Help for Consumers
  10. BBB
  11. Give consumers info on products and selling practices and help settle disagreements
  12. Consumer Responsibilities
  13. Report problems immediately
  14. State the problem and suggest a fair and just solution
  15. Include important details and copies
  16. Describe any action you have taken
  17. Keep accurate records of your efforts to solve
  18. Allow reasonable time
  19. Keep copy of letter or email to manufacturer
  20. Keep cool
  21. Ethical behavior- acting in accordance with moral and ethical convictions about right and wrong.