Personal Finance Chapter 4 Vocab
fraud, unexpected cost and deceptive pricing
What are examples of consumer complaints?
economic, social and personal
What are the 3 influences on Consumer Buying Decisions?
phase 1: identify your needs, gather information (before you shop) phase 2: identify what is important to you, compare prices (weighing alternatives) phase 3: negotiate the price, decide on credit or cash, know original price (making purchase) phase 4: take care of product, return or replace it (after purchase)
What are the four phases when doing research on a product?
save as much money as possible, buying an item when it is on sale if you know it will be soon, and not making big purchases at times when you aren't stable financially
What does it mean to "Time Your Purchase"?
convenience, ready-to-use items, large packages are usually best buy, and buying items "on sale" may not always mean you save money
When comparing prices, what guidelines can be helpful? (4)
a receipt for what you purchased and maybe the name of the employee that helped you for proof you bought that item there
When making a return to the place of purchase what do you need?
small claims court
a court that deals with legal disputes that involves amount below a certain limit
open dating
a labeling method that indicates the freshness, or shelf life, on a perishable product, such as milk or bread
class-action suit
a legal action on behalf of all people who have suffered the same injustice
legal aid society
a network of community law offices that provide free or low cost legal assistance
cooperative
a nonprofit organization owned and operated by its members for the purpose of saving money on the purchase of goods and services
rebate
a partial refund of the price of a product
down payment
a portion of the total cost of an item that must be paid at the time of purchase
arbitration
a process whereby a conflict between a customer and a business is resolved by an impartial third party whose decisions is legally binding
service contract
a separately purchased agreement by the manufacturer or distributor to cover the costs of repairing an items
warranty
a written guarantee from the manufacturer or distributor that states conditions under which the product can be returned, replaced, or repaired
mediation
attempt by a neutral third party to resolve a conflict between a customer and a business through discussion and negotiation
fraud
dishonest business practices that are meant to deceive, trick, or gain an unfair advantage
responsibility of Consumer Product Safety Commission
give public protection from unreasonable injury risk from consumer products, develop safety standards for products, help resolve an issue if there is a problem with the safety of a product
document when you purchased the item, write a complaint letter to the owner, or get legal help
what is the best way to resolve a dispute over goods or services?
1. the time you decide to buy something 2. the store you are shopping at 3. making brand comparison with items 4. get information on the product 5. compare prices with different brands 6. make sure to evaluate the warranty over thoroughly
How can you make an informed purchase decision? (6 steps)
each state may have a different limit but they range from $500 to $10,000 and missouri's is $5,000
in what amounts can you take a person to small claims court?
legal rights as a consumer
making small claims court, a class-action suit, or other legal alternatives if the product does not perform as wanted or as said
impulse buying
purchasing items on the spur of the moment
Food and Drug Administration (FDA)
responsible for protected the public health by assuring the safety and security of human and veterinary drugs, biological products, medical devices, food supply, cosmetics and products that emit radiation
trade-off
the exchange of a good/service for another service i.e a lady does taxes for a nail salon owner to get free services
unit pricing
the use of a standard unit of measurement to compare the prices of packages that are different sizes
implied warranty
unwritten guarantees that cover certain aspects of a product or its use i.e. toaster will toast bread
express warranty
usually written and come in two forms, full warrant (states defective product will be fixed or replaced at no charge during reasonable amount of time) and limited warranty (covers only certain aspects of product)
timing of purchases, store selection, brand comparison, information search, price comparison
what are a least 5 strategies followed by smart shoppers?
