FIN2100 Chapter 8: Consumer Purchasing Strategies and Legal Protection

what are some economic factors of buying influences?

inflation, interest rates, tax rates, gov't regulations, and product safety

what are some social factors of buying influences?

lifestyle, interests, hobbies, peer groups, culture ads, and media

what are some personal factors of buying influences?

gender, age, occupation, income, education, marital status, and family size

What are some wise purchasing strategies?

avoid impulse buying, time your purchases, and compare brands, label info and prices

what are rebates?

a partial refund of price of products

What is shrinkflation?

products are getting smaller but the price doesn't change

what is skimpflation?

products are worse quality but the price doesn't change

what is surge pricing?

an adjustment of the price based on supply and demand

what is ROSCA?

the Restore Online Shoppers' Confidence Act

what does ROSCA require?

the clear disclosure of items and their price

what does an Implied warranty of Title indicate?

the seller can sell the product

what does an Implied warranty of Merchantability guarantee?

the product is fit for its intention

what are the 4 steps for wise online Buying Activities?

conduct online research, compare purchase stores, make purchase, plan for future purchases

what are the 4 phases for buying a motor vehicle?

preshopping activities, evaluating alts., determining purchase price, post purchase activities

what does Phase 9 of buying a motor vehicle entail?

problem identification and gathering info

What does Phase 2 of buying a motor vehicle entail?

asking yourself alt. questions, selecting vehicle options, comparing used vehicles, and leasing a vehicle

what should you check before buying a used car?

outside the car, the engine, inside the car, and a road test

what does Phase 3 of buying a motor vehicle entail?

knowing necessary info of the product, negotiate with a person of authority, and comparing financing alts.

What does Phase 4 of buying a motor vehicle entail?

knowing the Lemon Laws, vehicle operation costs, motor vehicle maintenance, and automobile servicing sources

what are the 4 steps to resolving consumer complaints?

initial communication, communication with the company, consumer agency assistance, legal action

what is the difference between meditation vs. arbitration?

one uses a 3rd party to negotiate (nonbinding) and the other uses a 3rd party to make the decision (binding)

what are some legal options for consumers?

small claims in court, class-action lawsuits, using a lawyer, and personal consumer protection