Transcript Unit 2 Notes: Consumerism

Do Now:
•
What does the term consumer mean to you?
•
What are some common things that teenagers consume?
Theme 2: Consumerism
and Consumer Protection
Main Ideas
•
Understand the factors that influence buying
and purchasing decisions
•
Explain how to make research-based
decisions when purchasing goods and
services.
•
Identify strategies for making smart consumer
decisions
•
Identify consumer problems and consumer
problem solving
•
Describe legal considerations for purchasers
Consumer Purchasing
•
What is a consumer?
A person who purchases goods and services for personal use.
•
What is purchasing?
To acquire (something) by paying for it; to buy.
•
What factors influence my consumer purchasing?
Several factors including price of goods, availability of funds,
age/interests of consumer, supply and demand of goods/services
and more
Why should I be a smart consumer?
Smart consumerism will…
 Help you get the most out of the
products you buy now
 Enable you to meet your longterm financial goals
•
To get the most for your money, you
will need to recognize the
economic, social, and personal
factors that affect your buying
habits.
Trade-Offs and Buying Decisions
Keep in mind that buying decisions
always involve trade-offs.
Some examples of trade-offs include:
 Buying a sound system with a
credit card instead of waiting
until you have saved enough
money to pay cash for it
 Choosing a poorly made or
difficult to repair jacket because
it is the cheapest one available
Researching Consumer Purchases
By taking time to do research and
evaluating products you want to buy, you
can get more value for your money.
A research-based approach to buying has
four phases:
 Before you shop
 Weighing alternatives
 Making the purchase
 After the purchase
Figure 4.1: Influences on Consumer Buying
Decisions
Research Steps: Consumer Purchasing
STEP ONE: BEFORE YOU SHOP
•
Identifying Your Needs and
Gathering Information:
Costs, Options and
Consequences
•
Researching and Utilizing
Information Sources
•
Becoming Aware of the
Marketplace
STEP TWO: WEIGHING ALTERNATIVES
•
Compare Prices
•
Comparison Shopping
Research Steps: Consumer Purchasing
STEP THREE: MAKING THE PURCHASE
STEP FOUR: AFTER THE PURCHASE
•
Negotiate the Price

•
Deciding on Cash or Credit

•
Determining the “Real
Price” of the Product

Additional maintenance
Ownership costs
(gasoline and
insurance)
Repair service
Comparison Shopping Flyer Project
•
You will create a flyer or a poster that shows the comparison of two of the
same product or type of product. The only difference could be:
•
The brand
•
The store
•
The online website
•
Example 1: Check two grocery store websites for similar products: A box
with 8 granola bars for $4.40 or a box of 6 granola bars for $3.50. What is
the price per granola bar in each case?
•
Example 2: Target sells the Hunger Games Trilogy of books for $19.80, but
Amazon sells it for $15.50.
•
What is the price per book at each store?
Steps: Comparison Shopping Project
1. Go shopping! Select the product or products that you would like
to compare, and draw or copy images of each item you found into
your project.
. Compare the Unit Prices: Which one is the better buy? Why?
Calculate the unit price- (price per ounce, book, yogurt, etc). Show
all work and be ready to explain your thinking.
2
3. Create a chart showing the unit rate from one (ounce,
book, yogurt, etc) to ten.
How stores track your shopping Behavior
•
While you watch the video answer the following questions:
•
1) Name 3 ways stores track our shopping behavior?
•
2) How does tracking behaviors help stores improve their sales?
•
3) Is it ethical for stores to track us by what we buy?
Homework
•
Bring in ads, information, etc that you need to
complete your Comparison Shopping Project
next class.
•
ACE vocabulary: Chapter 4-1
•
Consumer Tracker due next Tuesday
Do Now:
1. Why does MILK use celebrities to advertise their product?
2. What impression do these advertisers want consumers to get for their product?
Theme 2: Consumerism
(Smart Buying Strategies)
Smart Buying Strategies
Whatever your buying style, several
strategies can help you get the
most value for your dollar:
 Timing of purchases
 Store selection
 Brand comparison
 Label information research
 Price comparison
 Warranty evaluation
Timing Purchases
You are more likely to find a bargain
at certain times of the year. You can
save money by:
 Buying seasonal clothing about
midway through a particular
season
 Shopping at back-to-school
sales, spring sales, and other
special sales

Taking advantage of clearance
sales
Store Selection
Your decision to shop at a store may
be influenced by the:
 Quality and variety of goods
 Price
 Hours
 Location
 Reputation
 Policies
 Services such as parking and
delivery
Brand Comparison
Remember to consider price and quality when:
 Comparing brands
 Choosing between national-brand
products and store-brand, or generic,
products
You can avoid impulse buying by:
 Planning what you are going to buy before
you shop
 Taking a list of what you need
Impulse buying can cost you more, and you may
buy products that you do not really need.
HONEST BRANDING Some food labels claim that the product is considered
“low in fat” or “lighter.” Foods must meet government criteria to be labeled
with such terms. Why do you think this type of regulation is necessary?
Price Comparison
You can save money by taking
advantage of:
 Discount coupons
 Manufacturers’ rebates
Most grocery stores and drugstores
display the unit pricing information
for the products they sell. If a store
does not provide this information,
you can calculate the unit price by
dividing the price of the item by the
unit of measurement
Warranty Evaluation
Many products come with a guarantee of quality
called a warranty. Warranties are divided into two
basic types:
 Implied—unwritten guarantees that cover
certain aspects of a product or its use
 Express—full or limited written warranties
When you buy a product, you may be offered an
extended warranty, or service contract. Before
purchasing a service contract, make sure that it is
worth the cost.
Are Teenagers Smart Consumers? Teens and
Materialism
•
We are going to watch 2 short videos that respond to the claim that
teenagers and kids today are more materialistic and driven by consumer
goods than ever before.
•
While watching both videos, you need to respond to the following
questions and use EVIDENCE from the video to back up your position.
1)
Are kids and teenagers today too materialistic? How can this
materialism effect their ability to be smart consumers?
2)
What are some of the problems caused by consumerism and
materialism? How can we work as a society to combat these
problems? Explain your answer.
Activity: Price Comparison Poster
•
Take the rest of class to complete your price comparison project.
Remember to include visuals and a graph that outline your
understanding of price comparison.
•
We will present our findings to the class Thursday(Short, 5 minutes or less
presentations)
Homework
•
Finish Consumer Price Comparison Project.
Presentations Thursday
•
Read article“Teenagers More Materialistic than
Ever” and write a one paragraph response to the
article. (In Notebook)
Do Now:
•
How can companies reach out to consumers to
convince them to buy their product?
Consumerism:
Advertising Mini Lesson
What is Advertising?
•
What is an advertisement?
A notice or announcement in a public medium promoting a product, service, or
event or publicizing a job vacancy.
•
What does advertising have to do with consumerism?
Advertising helps to influence consumer behavior and convince consumers to
purchase products.
•
What are some common types of consumer advertising we see today?
Commericals, Radio Ads, Newspaper advertisements, pop-up ads,
facebook/Instagram, etc….
Types of Advertising
•
Advertising is EVERYWHERE… from TV and
radio, right into the bathroom stall with you.
•
Advertisements encourage you to buy
products… even if you don’t need them
•
Advertisers use a variety of techniques to
entice you use/buy their product
Types of Advertising
•
Bandwagon Effect:
• “Everyone Has one”
•
Emotional Appeal
• Appeals to your fears or desires
• Uses emotions to convince you to purchase product
•
Glittering Generalities
• Promises Everything, Delivers very little
• Sometimes known as the “snob effect” (Promises you’ll
be rich, attractive, famous…even though it won’t
happen)
Types of Advertising
•
Plain Folks Appeal:
•
•
Testimonials
•
•
Experience of “Everyday People”
Uses celebrities or experts to appeal for the product
Scientific Appeal
•
Uses statistics or data to persuade use of product.
Activity: Identifying Advertisement
Techniques
•
We’re going to watch a variety of commericials that represent these
different advertising techniques. Your job is to fill in the graphic organizer
with each advertisement and identify the following
•
Which type of advertisement is this?
•
What audience is the advertisement attempting to speak to?
•
Do you feel the advertisement is effective in what it is trying to do?
•
Why or why not?
Homework
•
•
Consumerism Report due Tuesday
Vocabulary Quiz: Chapter 4 Tuesday
Do Now
•
1) What does fraud mean?
•
2)Have you ever been a victim of fraud (consumer or otherwise)? If so,
explain.
Theme 2: Consumer
Fraud and Consumer
Complaints
Sources of Consumer Complaints
Every purchase involves some degree of risk. Most
customer dissatisfaction results from products that
are:

Defective

Of poor quality
Consumers also complain about:

Unexpected costs

Deceptive pricing

Unsatisfactory repair service
Another source of consumer complaints is fraud
Common Types of Fraud
As a consumer, you must be
aware of various types of
fraud. Telephone and mail
scams, for example, may offer
you phony:
 Free prizes
 Travel packages
 Work-at-home schemes
 Investment opportunities
Protecting Yourself from Fraud
Protect yourself from
consumer fraud by:
 Recognizing it before you
become a victim
 Reporting it if you see it
happening
Subway Consumer Fraud Video Questions
•
1) Do you think the subway sandwich incident is an example of consumer
fraud? Why or why not?
•
2) What are some of the things that Subway did to lead to these
accusations and lawsuits?
•
3) Do you think the consumers have a right to sue subway? Why or why
not?
Top 10 Internet Scams You Should Avoid:
Notebook Questions
•
1) Have you ever encountered any of the scams that the video
discussed? If so which one?
•
2) Which of the scams did you find the most believeable? The most
unbelievable?
•
3) Write a short advice column for a teen magazine about internet safety
and avoiding internet scammers. Include examples of at least 2 of the
scams that were discussed in the video.
Activity: Avoiding Consumer Fraud
Commerical
•
In small groups (3-4) you will be designing a commercial (2-5 minutes)
that addresses one of the themes from this unit.
•
You must use one of the types of advertising we learned about in class.
(Emotional Appeal, Celebrity Endorsement, Bandwagon Appeal etc)
Possible topics include:
•
Smart Consumerism
•
Avoiding Consumer Fraud
•
Resolving Consumer Complaints
•
Each commercial should contain a script/storyboard and an explanation
of your advertising type. Presentations will be 9/29 (Thursday)
Homework
•
Find a current events article about consumer
fraud and do a 1 page article review
(summarize main points and explain why
article is about consumer fraud and what the
relevance of the article is)
•
Be prepared to discuss your article with the
class.
Do Now:
•
Why is it important to understand “Consumer Fraud”
•
What are some examples of Consumer Fraud you have encountered?
Comparing Political Candidates: On the
Economy
DONALD TRUMP (REPUBLICAN
PRESIDENTIAL CANDIDATE)
HILARY CLINTON (DEMOCRATIC
PRESIDENTIAL CANDIDATE)
Presidential Debate Reflection Questions
•
1) What were some of the political issues discussed by the candidates?
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2) Based on what you know, what economic questions do you have for
the candidates? What issues do you think should have been discussed
more or what details would you like to hear?
•
3) Based on what you heard, is there a candidate whose economic
plan/ideas you agree with more (think ISSUES not BEHAVIOR)? If so,
explain. If not, what additional information would you need before
making a decision?
Theme 3 Consumerism:
Resolving Consumer
Complaints
Resolving Differences Between Buyers and
Sellers
If you are dissatisfied with a product or
service and decide to make a
complaint, document the process by
keeping a file of:
 Receipts
 Names of people you talk to
 Dates of attempted repairs
 Copies of letters you write
 Any fees that you have had to
pay
Options for Dissatisfied Consumers
1) Return to the Place of Purchase
2) Contact Company Headquarters
3) Consumer Agency Assistance

Consumer organizations

Business organizations (Better Business
Bureau)

Government organizations (Food and
Drug Administration, Consumer
Product Safety Commission)
Legal Options for Consumers
•
1) Small Claims Court
•
2) Class Action Suits:
•

Injured by a defective product

Overcharged by a utility company
3) Other Legal Alternatives

Getting a referral from someone you know

Checking newspapers and the yellow pages of
the phone book

Calling a local branch of the American Bar
Association (ABA)
Avoiding Consumer Problems
You will have fewer consumer
problems if you:
 Do business only with
companies that have good
reputations.
 Avoid signing contracts and
other documents you do not
understand.
 Watch out for offers that seem
too good to be true.
President Obama: Protecting American
Consumers
•
1) Why does President Obama say it is important to protect American
consumers? (What problems does he talk about?)
•
2) What is his plan/ideas for protecting American consumers?
Activity: Continue Consumer Commercials
• Use
this time to continue your work
on your consumerism commercials.
Presentations will be 9/27 (Tuesday)
Homework
• Complete
Script/Storyboard for
Consumerism Commericial
• Quiz: Chapter 4 Consumerism on
Thursday(After Commercial
Presentations)
The History of the Advertising: Notebook
Questions
•
1) How can understanding the history as well as the goals of advertising help you to
become a smarter consumer?
•
2) Do you think advertising in the United States has changed the way we consume
goods? If yes, how? If no, why not?
•
3) Of the types of advertising we’ve learned about (outdoor (billboards), television, print)
which do you think has had the largest impact on our consumerism?
•
4) This documentary came out 10 years ago, before the social media boom of the late
2000’s. If you were going to add a segment on internet/social media ads to this
documentary what are some things you would include?