personal finances

convenience

location of the store; clean, comfortable, payment options

customer service

building customer relationships and promotes sales

the right product and price

quality products; know the customers wants and needs

branding strategy

carry certain brands to attract customers who are loyal to those brands.

discount pricing

the lowest everyday price possible without waiting for a sale

advertising

informing customers about products

target audience

a specific group of people likely to buy a product

sales promotion

incentive offered to customers to increase demand ( coupons samples loyalty program)

creating demand

1. newspaper

2. television

3. internet

4. outdoor

5. direct

6. transit

7. sales promotion

before you shop strategies

• comparison shop (check prices, brands)

• plan purchases

• pick the best time to shop

• research business

while you shop…

• avoid impulsive buying

• read labels

• understand sale terminology

• read contracts

• compute limit prices

• compute total costs

after you buy

• keep receipts/ warrants

• evaluate purchases

• be loyal

consumer bill of right

1. right of safety

2. right to be informed

3. right to choose

4. right to be heard

expanded bill in 1985

5. right to satisfaction of basic needs

6. right to redress

7. right to consumer education

8. right to healthy environment

airline passenger right

1. reservation

2. refunds

3. delays + cancellation

4. bumped flight

5. extended tarmac delays

6. fee disclosures

patients bill of rights

1. informed disclosure

2. choice of providers

3. access to emergency services

4. treatment decision

5. respect and nondiscrimination

6. confidentiality

7. complaints and appeal

bait and switch

illegal sales technique in which a business advertises a product with the intent of persuading consumers to buy more expensive product

fake sale

when a business advertises a big sale but keep the item at regular price

low balling

company advertises a low prices to lure customers and then try’s persuade them they need additional produces

ponzi scheme

fraudulent investment operation where new investor money is used to pay earlier investments

pyramid scheme

multilevel marketing scheme promising commission from your sales and members recruited

pigeon drop

con artists convinces people to give their money or personal information in return for longer sum.

fraudulent representations

solicitations who claims to represent well known companies

health and medical product fraud

“miracles pills” creams and other products to enhance consumers health and beauty

informercial

lengthy paid TV advertisement that includes testimonials and demonstrations

How can consumers protect themselves?

1. shop online safely

2. stay informed

3. seek redress

4. identify deceptive practice