CHAPTER
15
SLIDE 1
CHAPTER
15
Consumers in the
Global Economy
15-1 Consumer Buying Decisions
15-2 Consumer Rights and Responsibilities
15-3 Consumer Protection Actions
© 2012 Cengage Learning. All Rights Reserved.
Principles of Business, 8e
15-1 Consumer Buying
Decisions
Goal 1 Identify major sources of consumer
information.
Goal 2 Explain wise buying actions.
Goal 3 Describe the main types of shopping
locations.
© 2012 Cengage Learning. All Rights Reserved.
SLIDE 2
CHAPTER
15
SLIDE 3
KEY TERMS
● unit price
● brand
● impulse buying
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Principles of Business, 8e
CHAPTER
CONSUMER INFORMATION
SOURCES
● Product testing
organizations
● Media sources
● Print-based
● Broadcast-based
● Internet-only
● Government agencies
15
SLIDE 4
● Business sources
● Advertising
● Product labels
● Customer service
departments
● Better Business
Bureau
● Personal contacts
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Principles of Business, 8e
CHAPTER
15
SLIDE 5
Checkpoint 
● What are the main sources of consumer
information?
● The main sources of consumer information
are product testing organizations, media
sources, government agencies, business
sources, and personal contacts.
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Principles of Business, 8e
CHAPTER
15
SLIDE 6
WISE BUYING STRATEGIES
● Use decision-making steps
● Comparison shopping
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Principles of Business, 8e
CHAPTER
15
SLIDE 7
DECISION-MAKING STEPS
1. Identify your needs or wants.
2. Know the choices available.
3. Determine your desired satisfaction.
4. Evaluate alternatives.
5. Make the decision.
© 2012 Cengage Learning. All Rights Reserved.
Principles of Business, 8e
CHAPTER
15
SLIDE 8
COMPARISON SHOPPING
● Compare prices
● Compare quality
● Compare services
● Compare sales
● Compare brands
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Principles of Business, 8e
CHAPTER
15
SLIDE 9
WISE BUYING: A SUMMARY
● Take your time
● Time your purchases
● Avoid being impulsive
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Principles of Business, 8e
CHAPTER
15
SLIDE 10
Checkpoint 
● What decision-making steps should be
taken when making a purchase?
● Identifying your needs or wants.
● Knowing the choices available.
● Determining your desired satisfaction.
● Evaluating alternatives.
● Making the decision.
© 2012 Cengage Learning. All Rights Reserved.
Principles of Business, 8e
CHAPTER
15
SLIDE 11
SHOPPING LOCATIONS
● Traditional retailers
● Contemporary retailers
● Non-store shopping
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Principles of Business, 8e
CHAPTER
15
SLIDE 12
Checkpoint 
● What are the main categories of
shopping locations?
● The main categories of shopping locations
are traditional retail stores, contemporary
retail stores, and non-store shopping.
© 2012 Cengage Learning. All Rights Reserved.
Principles of Business, 8e
15-2 Consumer Rights
and Responsibilities
Goal 1 Explain the consumer movement.
Goal 2 Explain seven consumer rights.
Goal 3 Describe consumer responsibilities.
© 2012 Cengage Learning. All Rights Reserved.
SLIDE 13
CHAPTER
15
SLIDE 14
KEY TERMS
● consumer movement
● fraud
● guarantee
● express warranty
● implied warranty
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Principles of Business, 8e
CHAPTER
15
SLIDE 15
CONSUMER MOVEMENT
● Ways businesses tried to take advantage
of consumer
● False claims
● High prices
● Unsafe products
● Consumer response
● United to demand fair treatment
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Principles of Business, 8e
CHAPTER
15
SLIDE 16
CONSUMER BILL OF RIGHTS
1. The right to be informed.
1962
2. The right to safety.
3. The right to choose.
4. The right to be heard.
5. The right to a remedy.
1969
6. The right to consumer education.
1975
7. The right to service.
1994
© 2012 Cengage Learning. All Rights Reserved.
Principles of Business, 8e
CHAPTER
15
SLIDE 17
Checkpoint 
● What are the seven rights of consumers?
●
●
●
●
●
●
●
Right to be informed
Right to safety
Right to choose
Right to be heard
Right to a remedy
Right to consumer education
Right to service
© 2012 Cengage Learning. All Rights Reserved.
Principles of Business, 8e
CHAPTER
15
SLIDE 18
RIGHT TO BE INFORMED
● You have a right to know what the product
or service is and what it will do for you.
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Principles of Business, 8e
CHAPTER
15
SLIDE 19
RIGHT TO SAFETY
● Consumers have a right to be safe from
harm associated with using products or
services.
● Food and Drug Administration (FDA)
● United States Department of Agriculture
(USDA)
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Principles of Business, 8e
CHAPTER
15
SLIDE 20
RIGHT TO CHOOSE
● Consumers have the right to choose from
a variety of goods and services.
● Federal Trade Commission (FTC)
● Monopoly
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Principles of Business, 8e
CHAPTER
15
SLIDE 21
RIGHT TO BE HEARD
● Federal Trade Commission (FTC)
● Office of the Attorney General
● Department of Consumer Affairs
● Better Business Bureau
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Principles of Business, 8e
CHAPTER
15
SLIDE 22
RIGHT TO A REMEDY
● Consumers have the right to seek a legal
remedy when a problem occurs.
● Guarantee
● Express warranty
● Implied warranty
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Principles of Business, 8e
CHAPTER
RIGHT TO CONSUMER
EDUCATION
15
SLIDE 23
● Educated consumers are aware that their
decisions have economic and social
implications.
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Principles of Business, 8e
CHAPTER
15
SLIDE 24
RIGHT TO SERVICE
● Convenience
● Courtesy
● Responsiveness
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Principles of Business, 8e
CHAPTER
15
SLIDE 25
Checkpoint 
● How does an express warranty differ
from an implied warranty?
● An express warranty is made orally or in
writing and promises a specific quality of
performance.
● An implied warranty is imposed by law and
is understood to apply even though it has
not been stated.
© 2012 Cengage Learning. All Rights Reserved.
Principles of Business, 8e
CHAPTER
YOUR CONSUMER
RESPONSIBILITIES
15
SLIDE 26
● Be honest
● Be reasonable
● Be active
● Be informed
● Be involved
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Principles of Business, 8e
CHAPTER
15
SLIDE 27
Checkpoint 
● What actions can be taken to be an
involved consumer?
● To be an involved consumer, you should be
honest, reasonable, active, informed, and
involved.
© 2012 Cengage Learning. All Rights Reserved.
Principles of Business, 8e
15-3 Consumer
Protection Actions
Goal 1 List common consumer concerns.
Goal 3 Describe the steps of the consumer
complaint process.
Goal 3 Explain legal actions available to
assist consumers.
© 2012 Cengage Learning. All Rights Reserved.
SLIDE 28
CHAPTER
15
SLIDE 29
KEY TERMS
● mediation
● arbitration
● class action suit
● small claims court
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Principles of Business, 8e
CHAPTER
COMMON CONSUMER
PROBLEMS
15
SLIDE 30
● Easily resolved
● Serious problems
● Sources of complaints
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Principles of Business, 8e
CHAPTER
TOP 10 LIST OF CONSUMER
COMPLAINTS
●
●
●
●
●
●
●
●
●
●
15
SLIDE 31
Debt collection
Auto sales
Home repair and construction
Credit cards
Internet goods and services
Predatory lending and mortgages
Telemarketing and do-not-call
Auto repair
Auto warranties
Telecom, slamming, and cramming
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Principles of Business, 8e
CHAPTER
DECEPTIVE BUSINESS
ACTIVITIES
15
SLIDE 32
● Scams, cons, and swindles
● Too good to be true
● Financial losses
● The Internet and online scams
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Principles of Business, 8e
CHAPTER
PROTECTION FOR
SHOPPERS
15
SLIDE 33
● Federal laws
● Right to cancel your order
● Credit card bill disputes
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Principles of Business, 8e
CHAPTER
15
SLIDE 34
Checkpoint 
● What are sources of common consumer complaints?
●
●
●
●
●
●
●
●
●
●
Debt collection
Auto sales
Home repair and construction
Credit cards
Internet goods and services
Predatory lending and mortgages
Telemarketing and do-not-call
Auto repair
Auto warranties
Telecom, slamming, and cramming
© 2012 Cengage Learning. All Rights Reserved.
Principles of Business, 8e
CHAPTER
15
SLIDE 35
COMPLAINT PROCESS
Step 1
Step 2
Step 3
Step 4
Contact the place of purchase
Contact the company headquarters
Involve a consumer agency
Take legal action
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Principles of Business, 8e
CHAPTER
CONTACT PLACE OF
PURCHASE
15
SLIDE 36
● Return to place of purchase
● Remain calm
● Provide evidence
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Principles of Business, 8e
CHAPTER
CONTACT COMPANY
HEADQUARTERS
15
SLIDE 37
● Customer service department
● Contact information
● Tell what happened
● Include copies of documentation
● Ask for specific action
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Principles of Business, 8e
CHAPTER
INVOLVE A CONSUMER
AGENCY
15
SLIDE 38
● When you do not get satisfaction from
business
● Consumer agencies
● Public interest organization
● Government agencies
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Principles of Business, 8e
CHAPTER
15
SLIDE 39
TAKE LEGAL ACTION
● When the first three steps do not work
© 2012 Cengage Learning. All Rights Reserved.
Principles of Business, 8e
CHAPTER
15
SLIDE 40
Checkpoint 
● List the steps of the consumer complaint
process.
● Contact the place of purchase.
● Contact the company headquarters.
● Involve a consumer agency.
● Take legal action.
© 2012 Cengage Learning. All Rights Reserved.
Principles of Business, 8e
CHAPTER
LEGAL ACTIONS FOR
CONSUMERS
15
SLIDE 41
● Third-party settlements
● Mediation
● Arbitration
● Class action suits
● Small claims court
● Using a lawyer
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Principles of Business, 8e
CHAPTER
15
SLIDE 42
Checkpoint 
● How does mediation differ from
arbitration?
● Mediation involves the use of a third party
who tries to resolve the complaint, while
arbitration results in a decision that is
legally binding on both parties in a dispute.
© 2012 Cengage Learning. All Rights Reserved.
Principles of Business, 8e