Kindra Watters

Georgia CTAE Resource Network

2010

Consumer Goods

and

Services

GPS Focus Standard

FCS-CA-4› Students will identify effective practices for

purchasing consumer goods and services A. Explore the effect of advertising on

consumer decisions. B. Identify consumer rights and

responsibilities. C. Evaluate ways to solve performance and

design problems, billing errors, or misunderstandings to satisfy the consumer.

Continued…

GPS Focus Standard…Continued

D. Identify the major differences between basic contractual obligations, warranties, and contracts.

E. Explain the process of comparison shopping.

Effect of Advertising on Consumer Decisions

Advertising “tells” the consumer about their product and why the consumer should purchase it.

Advertisers-the companies/businesses that place the advertisement.

Media- the various mediums used to convey a message. (medium is singular for media which is plural).

Types of Media for Advertising

Direct Mail Magazines Billboards Marine/Air-displaying ads at games or

events on a boat or plane Electronic:

Radio and television Internet Infomercials

Print Advertisements

Newspapers› Include classified

ads Jobs Items and tickets

for sale Yard sales

› Example newspaper:

The New York Times

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Print Advertisements…Continued

Magazines› Advertise throughout

the periodical Periodical-another

name for written and bound material

› Example magazine: Southern Living

Buyer Beware

DECEPTIVE ADVERTISEMENTS:› If it is too good to be true.› If it asks you to send money before you

receive the product.› If you have to give your personal

information.› If you have to work for free before a wage

agreement is met.

Statistics regarding advertising› http://www.plunkettresearch.com/

Industries/AdvertisingandBranding/AdvertisingandBrandingStatistics/tabid/70/Default.aspx

› http://www.entrepreneur.com/encyclopedia/businessstatistics/article82676.html

Effects of Advertising

Advertising Explained

Interactive Website› http://www.ftc.gov/youarehere/pages/

parents_and_teachers.html FTC’s WEST TERRACE:

› Shuman’s Shoes Lesson: Ads and Endorsements There are lots of different kinds of ads. Here, visitors can design their own poster for a shoe sale or listen to a popular DJ’s endorsement to determine whether it’s an ad. Market-Match Wireless

› Lesson: Targeted Marketing Businesses use target marketing to reach specific audiences. Visitors can learn more about target marketing by matching different styles of cell phones with their target audiences. Play this matching game again and again to beat your best time. Gr8 Gadgets

› Lesson: False or Misleading Ads Misleading ads cause lots of problems for businesses and consumers. Visitors watch a misleading commercial and then learn how it has caused problems for everyone involved. They also learn how the FTC prosecutes companies that intentionally mislead consumers.

Consumer Rights and Responsibilities

Role of federal government in assuring the rights of consumers › http://www.ftc.gov/

bcp/about.shtm› http://www.ftc.gov/

bcp/edu/pubs/consumer/credit/cre01.shtm

Rights Responsibilities

Right to safety Responsibility to use products safely

Right to be informed Responsibility to use information

Right to choose Responsibility to choose carefully

Right to be heard Responsibility to speak up

Right to redress (legal action on violations of laws)

Responsibility to seek redress

Right to consumer education

Rights to service

Responsibility to learn

Responsibility to reward good service

Consumer Rights and Responsibilities

Resolving Customer Complaints? Billing Errors? Misunderstandings? Contact the company and calmly discuss the situation. Make a complaint-in person; by mail; or by phone. Keep a copy of

everything sent and follow the company’s complaint procedures. If needed, take further action: contact state or federal agency; the

Better Business Bureau (BBB) or take legal action, consult an attorney.

Small claims court- a way to recover and come to a settlement over a legal matter.

Source: The Creative Living Textbook

Consumer Complaints

Warranty-a guarantee for a length of time that the consumer can depend on a product that will not be defunct.

Contract-a binding agreement that lists services/product performance expected for a duration of time.

Warranties and Contracts

Comparison Shopping

Comparison Shopping Video› Brain Pop Subscription Required

http://www.brainpop.com/math/problemsolving/comparingprices/preview.weml

Where is the better buy? Store A or Store B

Store A

Store B