Chapter 8 - Consumer Purchasing Strategies and Legal Protection

What are some preshopping activities?

- Considering information from independent testing organizations. - Identifying transportation needs.

What happens when you evaluate alternatives when purchasing a car?

- Selecting vehicle options (mechanical devices, convenience options, and aesthetic features) - Considering certified, preowned vehicles.

Wise Buying Activities

1. Conduct Online Research 2. Compare Stores 3. Make Purchase 4. Plan For Future Purchases

Small Claims Court

A court that settles legal differences involving amounts below a set limit & employs a process in which the litigants usually do not use a lawyer.

Class-Action Suit

A legal action taken by a few individuals on behalf of all the people who have suffered the same alleged injustice.

Cooperative

A nonprofit organization whose member-owners may save money on certain products or services.

What can influence the price of a car?

A number of factors influence the basic price of a used car, including the number of miles the car has been driven & the car's features & options. A low-mileage car will have a higher price than a comparable car with high mileage. The condition of the vehicle & the demand for the model also affect price.

Rebate

A partial refund of the price of a product.

Warranty

A written guarantee from the manufacturer or distributor of a product that specifies the conditions under which the product can be returned, replaced, or repaired.

Service Contract

An agreement between a business & a consumer to cover the repair costs of a product.

Label Information

Certain label information is helpful; however, other information is nothing more than advertising. Federal law requires that food labels contain the company name and address, ingredients, nutrients & food allergy warnings. Product labeling for appliances includes information about operating costs, to assist you in selecting the most energy-efficient models.

What factors influence buying?

Economic Factors: Inflation, Interest, Rates, Tax Rates, Government Regulations & Product Safety Social Factors: Lifestyle, Interests, Hobbies, Peer Group, Culture, Advertising & Media Personal Factors: Gender, Age, Occupation, Income, Education, Marital Status & Family Size

What are some automobile operation costs

Fixed Ownership Costs - Depreciation - Interest on Auto Loan - Insurance - License, Registration, Taxes & Fees Variable Operating Costs - Gasoline & Oil - Tires - Maintenance & Repairs - Parking & Tolls The largest fixed expense associated with a new automobile is depreciation, the loss in the vehicles value due to time & use. Well-maintained vehicles & certain high-quality, expensive models, such as BMW & Lexus, depreciate at a slower rate.

Mediation

The attempt by an impartial third party to resolve a difference between 2 parties through discussion & negotiation.

Legal Aid Society

One of a network of publicly supported community law offices that provide legal assistance to consumers who cannot afford their own attorney.

Arbitration

The settlement of a difference by a third party whose decision is legally binding.

Unit Pricing

The use of a standard unit of measurement to compare the prices of packages of different sizes.

Price Comparison

To calculate the unit price, divide the price by the number of units of measurement, such as ounces, pounds, gallons, or number of sheets (for items such as paper towels and facial tissues). Then, compare the unit prices for various sizes, brands & stores.

Impulse Buying

Unplanned buying.