HOW TO BE A SMART CONSUMER

Introduction to Business and Marketing

Objectives

Identify types of

information that can

be helpful to a

consumer in making

wise shopping

decisions

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.

Preparing to Shop

Consumers have to decide what a bargain is to them.

Being a smart consumer means planning in advance.

What should you do before you shop?

Before Making a Purchase

StudyAdvertisement

Read Consumer Publications

Shop atSales

Use ShoppingLists

Resist Pressureand Gimmicks

Read Labelsand Warranties

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.

Example

Which of these ads provide useful information?

Read Consumer Publications

Publications such as

Consumer Reports and

Consumers’ Research

Magazine give detailed

information about goods

that have been tested

and rated.

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.

Shop at Sales

A promotional sale will usually be held at

a time when consumer purchases are down.

A clearance sale will often be held to

make room for new merchandise.

Store managers hope consumers will buy

other items along with loss leaders.

Reasons for choosing a particular store

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)

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.

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

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

warranty available to customers before a

purchase.

Types of Warranties

Implied Warranties

Express Warranties

Unwritten guarantee that a product is fit for its intended use.

Usually written and come in two forms.

Full

Limited

The seller will repair or replace the product, or give a refund. Repairs are usually free.

Covers only certain parts of a product. The buyer may have to pay for some repair costs.

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?