daily information – 10/17 objectives: 1. describe methods of setting prices in a market economy 2....
TRANSCRIPT
Daily Information – 10/17
Objectives:
1. Describe methods of setting prices in a market economy
2. Explain consumer buying strategies.
Warm Up:
You have 5 minutes to complete the activity from yesterday
“Fighting Inflation”
Agenda:
1.Complete the warm up2.Define vocab.3.Making purchases P.P.4.Fill in the blank activity
Fighting Inflation
How do actions of the Fed affect your life and that of your family?
• When the Fed raises interest rates, consumers find it harder to borrow and repay loans.
• When rates are low, loans are easier to obtain and repay.
• This directly affects a family’s ability to make and repay large purchases on credit
Fighting Inflation
How does raising tax rates help curb inflation?
• Generally, tax increases decrease disposable income and purchasing power.
• As we spend less, the inflation rate decreases.
Cost-recovery
• (R&D costs)
Cost-plus
• (production costs plus a markup)
Value-based
• (what consumers are willing to pay)
Market-based
• (competitive with similar products)
Rational buyingo Economizing is saving money and spending only
when necessary.o Optimizing is getting the highest value for money
spent.
Emotional buying –desire rather than logic (sad, angry)
Impulse buying –spur of the moment without any planning
Convenience
Customer service
Appeal to the needs and wants of customers• Brands and loyalty• Discount pricing (lowest price possible)
Advertise to target audience
What are some of the ways a business can advertise?
T.V.RadioBillboardsLoyalty Programs
MagazineInternetHome MailingsTransit
Before You Shop
• Research and plan (create lists)
While You Shop
• Avoid impulse and emotional buying
After You Buy
• Keep receipts and warranties
The Consumer Bill of Rights of 1962
Having the right to…..
• Safety• Be informed• Choose• Be heard• Redress (compensation for complaints
and injuries)• Consumer education
Food, Drug, and Cosmetic Act of 1938
• Safe, pure, and wholesome
Hazardous Substances Act of 1960
• Warning labels
HIPAA of 1996
• Limit access to health and medical billing
Federal agencieso Examples: USDA, FDA, CPSC, FTC, SEC
State and local assistance
Public Officials
Private Organizations
Bait and Switch
Fake Sales
Low-Balling
Pyramid Schemes
Ponzi Schemes
Infomercials
• Identify deceptive practices
• Shop smart
• Stay informed
• Seek redress (remedy the problem)
Group Activity
• Fill in the blank activity