How to Be A Smart Consumer

1. How to Be A Smart Consumer Introduction to Business and Marketing

2. Objectives • Identify types of information that can be helpful to a consumer in making wise shopping decisions

3. The Main Idea • To get the most value for your shopping dollar, you can collect information to make an informed decision when you shop. • You should plan ahead so that you can make the best choices and get the best buys.

4. Preparing to Shop • Consumers have to decide what a bargain is to them. • Being a smart consumer means planning in advance.

5. What should you do before you shop? StudyAdvertisement Read Labelsand Warranties Read Consumer Publications Before Making a Purchase Resist Pressureand Gimmicks Shop atSales Use ShoppingLists

6. Study Advertisements Rational advertising attempts to convince consumers with facts and information. Emotional advertising appeals to people’s feelings. When you look at advertising, decide whether it provides useful information.

7. Example Which of these ads provide useful information?

8. Read Consumer Publications Publications such as Consumer Reports and Consumers’ Research Magazine give detailed information about goods that have been tested and rated.

9. Read Consumer Publications Specialty magazines, such as those for photographers or hikers, rate equipment such as cameras or hiking boots. Libraries and online services are good places to find consumer publications.

10. Shop at Sales A promotional salewill usually be held at a time when consumer purchases are down. A clearance salewill often be held to make room for new merchandise. Store managers hope consumers will buy other items along with loss leaders.

11. Reasons for choosing a particular store

12. Use Shopping Lists Using a shopping list will help prevent impulse buying. It will also help make sure you don’t forget something and have to go back (inevitably meaning you will buy more)

13. Resist Pressure and Gimmicks High-pressure sales tactics can be very persuasive. Always ask yourself if what a salesperson is saying is true, if you need the product or service, and if you can afford it.

14. Resist Pressure and Gimmicks Sales gimmicks are meant to grab consumers’ attention. Always examine any deal that seems too good to be true. • Read the fine print

15. Read Labels and Warranties When you read a label, you might find information that will lead you to decide not to buy the product. Federal law requires sellers of products that cost more than $15 to make a warrantyavailable to customers before a purchase.

16. Types of Warranties Implied Warranties Unwritten guarantee that a product is fit for its intended use. Full The seller will repair or replace the product, or give a refund. Repairs are usually free. Express Warranties Usually written and come in two forms. Limited Covers only certain parts of a product. The buyer may have to pay for some repair costs.

17. Activity • Log on and visit the Target, Wal-Mart and Macy’s weekly ads • Google _____ weekly ad • Write a 1 page (typed, double spaced, times new roman 12 pt font) essay comparing and contrasting the following elements • How long is the ad? • What is the overall theme? • Why do you think the store picked the theme for this week? • What products are advertised? • What important information is included in the ad to convince the customer to visit the store?