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Effective Shopping Practices

Effective Shopping Practices

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Effective Shopping Practices

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  1. Effective ShoppingPractices PF Objective 6.01- Students will understand the basic shopping options and use effective shopping practices.

  2. ESSENTIAL QUESTIONS • Where can consumers go to shop for goods and services? • What are the pros and cons of shopping options? • What practices help consumers make wise decisions when they shop?


  4. Rule #1 • PLAN BEFORE YOU SHOP Decide whether to shop at home or in a store When there is a choice, decide whether to purchase goods or services Check reliability and services of stores and distance-sellers Decide when to buy video link: tips for grocery shopping

  5. Plan Before You Shop Details • 1. Decide if shopping at home or shopping in stores is most appropriate • Time, cost, available goods, returns • 2. Where there is a choice, decide whether it is advisable to purchase goods or services • Choose the best for your situation • Goods have prices; service prices may be harder to determine • Quality of goods can be reviewed & rated before buying • Quality of services is reflected by performance after purchase 3.Check reliability and services of stores and distance-sellers • Respectable businesses will back up their claims • ex: if there are product or service problems, how easily will they be resolved? • Services: what payment methods, return & refund policy, knowledgeable sales staff, special services like gift wrap, special orders, delivery, repair & maintenance 4.Decide when to buy • Cash or credit now, save for purchase later • Avoid impulsive purchasing decisions • When possible, wait for a sale • Promotional sale, tax free weekends, clearance, pre-holiday, cash or credit

  6. Shop in stores or at home? • Let’s review the pros and cons of shopping in a store • Let’s review the pros and cons of shopping at home a 6.01- Shopping Options

  7. Buy goods or services? • Sometimes you have an option of whether to purchase goods or services • Example 1: Buy a ready-made prom gown, or pay someone to make you a gown? • Example 2: Buy a new motorcycle or pay someone to fix up the used cycle you have? 6.01- Shopping Options

  8. Buy goods or services? • Goods have clearly identified prices, while prices of services may be harder to determine. • Quality of goods can be reviewed and rated; quality of services is best reflected in performance. 6.01- Shopping Options

  9. Check reliability and services • Only respectable businesses back up their claims • Services • Methods of payment accepted • Return/refund policies • Knowledgeable sales staff • Special services • Gift wrap • Special orders • Delivery • Repairs/maintenance 6.01- Shopping Options

  10. Decide when to buy . . . • Buy now with cash or credit • Save for purchase at a later time • When possible, wait for a sale • Avoid impulse buying 6.01- Shopping Options

  11. Rule #2 • COMPARISON SHOP • Products • Research the product • Compare products • Understand warranties • Talk to people who have made the same purchase • Check the Internet 6.01- Shopping Options

  12. Research the product • Do your homework --- become familiar with the product • Compare products --- brand name, store brands, and generics; size of packages, features • Talk to people who have made the same purchase • Check Internet for consumer information, magazines, other publications • Understand warranties that guarantee quality standards of products 6.01- Shopping Options

  13. Compare products • Brand names, store brands, and generics • Size of package • Other product features 6.01- Shopping Options

  14. Understand warranties • Implied warranty – product is in proper condition and does what it is intended to do • Example: Hair dryer blows and dries hair 6.01- Shopping Options

  15. Understand warranties • Written warranty – goes beyond implied warranty by providing a written guarantee • Full warranty – according to law, must provide all 5 standards stated by Magnuson-Moss Act • Limited warranty – provides 1-4, but not all, of standards in Magnuson-Moss Act • Standards of Magnuson-Moss Act • Warranty extends to any owner of product, not just original owner • No cost for warranty • Nothing to do to receive warranty • Guarantees refund or replacement • Does not limit time period of implied warranty 6.01- Shopping Options

  16. Understand Warranties • Implied warranty- • Product is in proper condition and it will perform intended purpose • Ex: sailboat sweater • Express warranty- uses words to guarantee • Written • Verbal • Full warranty • Must provide all standards Magnuson-Moss law requires • Limited warranty • May be • limited time • limited parts • limited labor

  17. COMPARISON SHOP • Services Rule #2 • Identify a person(s) or business(es) that provide the desired service • Check qualifications • Interview; ask for demos/samples • Check references • Check licensing, bonding, insurance • Pay close attention to agreements 6.01- Shopping Options

  18. Comparison Shop for Services • Identify providers- who are the person(s) or business(es) that provide the desired service? • Check qualifications --- What are their skills, reliability, and professional ethics? • Interview the service-provider; ask for demonstrations/work samples • Check the provider’s references and his/her record with the Better Business Bureau • Check to see if provider is licensed, bonded, or insured • Pay close attention to terms of agreements, and read carefully before signing (* see next slide)

  19. Pay close attention toterms of agreements • Estimate --- a total expected cost, in writing, for performing a service • Work order --- gives authority to the provider to perform services • Contract --- a legally binding agreement between a service provider and a consumer • Service warranty --- a guarantee of quality standards for performance video link: charlie brown's contract

  20. Question? The bricklayer gave Mr. Smith an itemized list of costs for the proposed job of building a wall around his property. This is an example of which type of service work agreement? A. Contract B. Estimate C. Service warranty D. Work order 6.01- Shopping Options

  21. Consider the value of time and energy, as well as money Handle money, cash, and credit cards with care Get receipts and sales slips; file carefully Deal fairly and honestly with others in the marketplace Report unfair/dishonest practices to the proper authorities • SHOP WISELY • In Stores Rule #3 video link: shopping in Kissimmee

  22. OPTIONS FOR SHOPPING IN STORES • Retail stores obtain goods from wholesale sources and sell directly to consumers • Department stores sell a wide variety of goods and services • men’s, ladies, shoes, house wares, children’s sections • Attractive displays • Cashiers in sections to assist customers • Warehouse clubs and superstores offer price advantages and wide product selection Buy in bulk, lower per unit price Limited options available • Factory outlet stores are owned by the manufacturer or distributor of the merchandise

  23. OPTIONS FOR SHOPPING IN STORES • Discount stores sell certain lines of merchandise at lower prices • Consignment or thrift stores sell used merchandise at greatly reduced prices. • Consignment: seller provides product, if it does not sell, may be returned • Thrift store: merchandise is donated for a good cause; ex: Salvation Army, Value Village • Specialty stores sell specialized goods/services --- e.g., shoe shops and gas stations.

  24. Question? Hank wants to shop for holiday gifts for his family members in just one store. What type of store would MOST LIKELY be the best place to shop? A. Consignment store B. Department store C. Specialty store D. Thrift shop 6.01- Shopping Options

  25. Pros and Cons of Shopping in Stores PROS • Variety of merchandise in one area or under one roof • Close to home for last-minute or emergency shopping • Offers special prices with a membership card • Malls offer special attractions and promotions for customers • Can try on clothes • Items are easy to exchange •  Offer payment plans •  Offer store credit cards •  Can work with knowledgeable sales people •  Stores offer special services---e.g., gift wrapping

  26. Pros and cons of shopping in stores CONS Must find a place to park Picked-over merchandise Large crowds on sale days and weekends Limited space

  27. Know name, location of seller Understand what you are buying Compare prices with other retailers Only buy from secure sites Check seller’s privacy policy Pay by credit card Find out delivery date, return and refund policy Shipping policy and cost Check product promptly when delivered • SHOP WISELY • At Home Rule #3 video link: shopping for clothes online

  28. OPTIONS FOR SHOPPING AT HOME • Door-to-door---salesperson comes to home, either by invitation or not • Catalog shopping --- shopper calls on telephone to buy goods listed in a catalog • Telemarketing – seller calls on telephone to sell goods or services • T-commerce – shopping in response to ads on television • E-commerce – buying goods and services on the Internet, including Internet auctions

  29. Question? Buying a baby bed as the highest bidder on an online shopping site is an example of which type of home shopping? A. Door-to-door B. Internet auction C. T-commerce D. Telemarketing 6.01- Shopping Options

  30. Pros and Cons of Shopping at Home PROS • Buy any time seven days a week • Can obtain special orders • Will deliver • Can purchase on the spot with TV remote control or computer mouse • Buy from the comfort and convenience of home • Can buy from a worldwide market

  31. Pros and Cons of Shopping at Home CONS Must have a credit card to pay Must check seller’s privacy policy before giving personal/financial information Offers that sound too good to be true may not be Must keep a complete record of each transaction Must check exchange policies; may be more costly or difficult to exchange items May not know the physical location of the seller May not understand exactly what is being bought Cannot see or feel quality, size, and/or true color Will have shipping and handling costs added Must check reliability, legitimacy, and security of sellers before buying

  32. Question? Jerry purchased a used golf cart on an Internet auction. When the golf cart arrived, he discovered that the cart was damaged and did not contain the battery. Which pro or con of shopping at home does this illustrate? A. Con---may have shipping and handling costs added B. Con---may not understand exactly the condition of what is being bought C. Pro---can purchase on the spot D. Pro---will deliver 6.01- Shopping Options

  33. Shop in stores or at home? • Let’s review the pros and cons of shopping in a store • Let’s review the pros and cons of shopping at home 6.01- Shopping Options

  34. Question? Regina interviewed several painting contractors before selecting one to paint her house. Which effective shopping practice is this? A. Plan before you shop B. Comparison shop products C. Comparison shop services D. Shop wisely in stores 6.01- Shopping Options