Unit 8: Consumer Decision-Making

Consumer

a person who purchases goods and services for personal use

Demographic

a particular sector of the population. Ex: men, young people, etc.

Advertising

marketing tactic done to get public attention for a product or service

Product Placement

advertising of products by having them in movies, tv shows, videos, etc.

Targeted Advertising

advertising that tracks user data, cookies, internet searches, etc. to tailor ads to your interests.  The “algorithm”

Trend Setting

starting/popularizing a new trend to boost sales

Consumerism

idea that buying and obtaining more is always a good thing

Consumer reports

a report/review created by unbiased sources that test products for consumers

Brand Loyalty

loyalty customers have to a brand

Product Review

report written by customer rating the product/service to help others decide if they want to pay for it.

Consumer Activism

consumers working to change how products/services are produced

Boycotts

show of disapproval by refusing to do business with a business

Recalls

when a business removes a product due to concerns while compensating the customer

Federal Trade Commission (FTC)

government agency that enforces protection laws that prevent fraud, deception, and unfair business practices

Consumer Product Safety Comission

government agency that protects consumers from unreasonable risks of serious injury or death from products. They are the ones in charge of recalling products.

Better Business Bureau

private organization that provides the public info on businesses and charities

Let the Buyer Beware

individual buys it at their own risk. Often stated in contracts on older products

Deceptive Advertising

misleading advertising

Warranty

guarantee by the business to the consumer to repair or replace product within the time limit

Telemarketing

Direct marketing to consumers through telephone calls often unsolicited

Fraudulent

Trying to deceive normally to get $

Scam

trick people into giving scammers their personal info or $

Phishing

sending fraudulent messages from legitimate sources to obtain personal info, $, etc.

Fraud

deceiving/stealing information or $ from someone often without their knowledge

Ponzi scheme

investing fraud where investors are paid with money from new investors.

Pyramid Scheme

fraudulent business practice where people pay to sell a product but can only really make money if they get more people to sell the product

Money laundering

earning illegal money from what appears to be a legal source

Elder Fraud

deceiving or exploiting elderly usually for their money.

Skimming

obtaining credit/debit card info without the consumer’s knowledge usually with a tool