Consumer Awareness Chapter 5, page 65

Protecting our wallets from our gullible minds

CONSUMER AWARENESSCHAPTER 5, PAGE 65

3 Roles in SocietyCitizen

Vote, pay taxesWorker

Create goods or servicesConsumer

Buy and consume goods and servicesTeens spend $80 to $100 Billion and estimate to

double in the next few years

Book – Complete page 66Caveat Emptor = Buyer BewareCompanies compete for your MoneyPersonal sellingFinancing as a marketing tool88% of 90 days same as cash TV, Radio, InternetProduct Positioning

Name the Font – TV, Movie, Product1.

5. 7.

9.

8.6.

4.3.2.

13.

18.17.

16.15.14.

12.11.10.

24.21. 23.22.

20.19.

You Tube House, M.D.

Wall-E M*A*S*H

Snickers Warcraft Guitar Hero

Lord of the Rings

Mythbusters

Kiss ESPN Twitter

Amazon Breaking Bad

Indiana Jones

Tron

Simpsons Ikea Skype Harry Potter

Dexter Kraft Twilight SEGA

Page 68 & 69Significant purchase is over $300Physiological changes when making significant

purchasesHis name is immaturity Can spend more than you makeMust develop power over purchases

1. Wait overnight2. Consider your buying motives, no amount =

contentment3. Never buy anything you do not understand4. Consider the ‘opportunity cost’5. Seek wise Counsel

Short Quiz1. What is Puffing or Puffery?

Puffery as a legal term refers to promotional statements and claims that express subjective rather than objective views, such that no reasonable person would take them literally.

2. What does FTC stand for and what do they do? Federal Trade Commission

3. Which of the following is legalA. Bait and SwitchB. Phony contestsC. Infomercials

C. Lets watch

Laws you should knowDoor to door sales

3 days to cancel if sign contract at location other than sales floor

Mail OrderMust be shipped in time given, max of 30 days Unordered goods for payment cannot be sent

If it is, must have free return or allow you to keep for free

Under 18, not of age of majority Can only enter ‘necessity’ contracts (food, medical)All sales is, is a contract

Contract Law1. Offer and Acceptance

Must be given offer and must accept2. Genuine Assent

Based on truth without extra pressure 3. Consideration

Both parties must receive something of value4. Legality

Must be of something that is legal5. Capacity

Mental ability to enter into a contract

Truth in Advertisement Ads must

Be truthful and non-deceptive; Have evidence to back up their claims; and Not be unfair

Is deceptive if it ads or omits information that Is likely to mislead consumers acting reasonably under the

circumstances; and Is "material" - that is, important to a consumer's decision to

buy or use the product.Is unfair if

It causes or is likely to cause substantial consumer injury which a consumer could not reasonably avoid; and

It is not outweighed by the benefit to consumers.

What can happenCease and desist ordersCivil PenaltiesCorrective advertisements

Illegal Tactics 1: Illegal AdvertisementBait and Switch

Advertise wanted item for low priceOnly expensive items at the store or push by

sales to buy the more expensive itemTo getaway with it use small print:

Limited available per storeOnly certain modelsNo rain checks Certain requirement to get low price (Active

military) False and Misleading Advertisement

Illegal Tactics: Deceptive Sales PracticeTie In Sales

Get deal if you buy another product you do not want

Maintaining or Creating a MonopolySetting Prices / Price Fixing Agreements to restrict AdvertisementRestraints on other business practices

Chapter 8, page 119

BARGAIN SHOPPING

Page 121 & 122Misrepresented – Harm – Win/WinFirst key: Negotiate everythingDon’t be afraid to ask7 Rules of Negotiating:

1. Tell the truth2. Use the power of cash

1. Cash is Emotional & Visual2. Cash has immediacy

3. Understand and use Walk Away power4. Shut up5. That’s not good enough6. Good guy, bad guy7. If I take away

Page 122 to 124Second Key – You must have patienceDon’t get married to a purchaseThird key – Know where to find deals.Trade something of value, goods or just

your servicesPlaces to find great deals:

IndividualsEstate SalesPublic Auctions

CouponsWhy?

Great dealsFree Stuff

TypesManufacturer = from company

You give to store, they get money + $.08 back

Store = from storeDouble coupons = store gives double value

If item is on sale + coupon can = FREE

MoreRebates:

Send in data = get money backIf on sale and coupon, could get more back

then spentCatalina

In store dispenser Reward Programs

Kroger Plus Card, automatic off & couponPlus = free stuffNegative = Time

How toThe “Coupon Basics”

Organize couponsBooksWatch adsBoxes of old adsElectronic couponsObsessiveMultiple trips / transactionsCheck store coupon Check item fits coupon

Sites to useCouponmom.comCoupons.comSmartsource.comRedplum.comHouseparty.comBargainstobounty.comMoneysavingmom.comGroupon.comBooks: textsbooksrus.com, half.com

More Places to Find Great Deals5. Garage Sales6. Repo Lot7. Flea Markets8. Refunding9. Foreclosures10. Pawn Shops11. Online Auctions12. Classified13. Consignment Sales – Buy & Sell14. Conventions

Just Remember:How they get youImpulse purchases

Put items you would not normally buy but want in highly visible areas

Steal of deals – buy stuff you do not needAdvertisement Strategies Marketing

LIVE on deals

ALTERNATIVE ACTIVITY

What you will do On paper 1: Write down the name of a product that would

be difficult to get teenagers to buy Put in product box

On paper 2 & 3: Write down 2 magazines you read regularly Put in box marked “girls” or “boys”

Groups of 3 or 4Will be given marketing scenario and pick 2 product slips

and decide which you will useIf will be marketed to girls or boy, pick magazine to put ad

in from “girls” or “boys” magazine boxIn ___ minutes come up with print ad campaign based on

your scenario to introduce advertise your productWill be introducing campaign to the class

Wrap-Up activity1. Which strategy did your group use?2. Which of the campaigns presented was

the most respectful to teenagers?3. Did any reinforce traditional gender

roles?4. Which would be most effective in the real

world? Why?5. If you turned your idea into a TV

commercial, what kind of music and effects could you use to hype the product?

Remember Advertising sets us up to feel dissatisfied -  even if

we think we have everything we need, ads will still try to convince us that there is something else we need.

Advertisers try to show us how much more satisfied, popular, happy, hip, attractive, sexy, fun and in control we would be if we had their product.

Fashion and trends are always changing so that we must continually spend money to be current.

Advertising stresses competition and status versus feeling good about being who you are and accepting others for who they are.