Eco report


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Eco report

  1. 1. Consumption
  2. 2. The Theory of Consumer Behaviour The idea behind the theory of consumer behaviour is that consumer make their choices based on their incomes, the prices of the goods, and their own preferences
  3. 3. Factors that Affect Consumer Behaviour * wealth- more wealth tends to lead to higher consumption * income- the amount of earnings that consumers get from their work or business activity also affects their spending or consuming habits.
  4. 4. Factors that Affect Consumer Behaviour prices- the prices of goods and services also have considerable effect on the consuming habit of people. Generally people purchase lower- priced products, but other factors such as the quality of the products or it attraction to the consumer could affect the price, even if it is low or high
  5. 5. Factors that Affect Consumer Behaviour * psychological factors- these also come into play as the consumer decides which goods to consume. Among these are the consumer's desire to get the most for their money or utilize it to the fullest.
  6. 6. Advertising and Consumption Advertising- is any paid information or message that promotes a belief, products or services.
  7. 7. Reasons for advertising 1. to increase sales
  8. 8. Reasons for advertising 2. to defeat competitors in the market. The one with more and better advertising would have an advantage.
  9. 9. Reasons for advertising 3. T continue brand loyalty- companies o sell their products using brand names and consistent advertising ensures that the brand is sustained in the mind of the consumers.
  10. 10. Reasons for advertising 4. To maintain company reputation and Standing – companies use advertising to to ensure that they maintain a particular standing in the business community.
  11. 11. Reasons for advertising 5. T promote corporate values o Organization and corporation may have a particular value or advocacy that they want to promote to the general public and they utilize advertising for this purpose.
  12. 12. Reasons for advertising 6. T create new products- to inform o the consuming public about the new products and what it offers before.
  13. 13. The Good and Bad Side of Advertising GOOD SIDE * Advertising informs consumers about a product; what it offers and its features, making them able to compare similar products and helping them make wise and informed decisions about what to purchase.
  14. 14. The Good and Bad Side of Advertising * Advertising create a totally independent advertising industry which gives opportunity for people to be creative and have jobs, in effect, providing a benefit to the economy.
  15. 15. The Good and Bad Side of Advertising * Advertising allows the communication of a message (with political or commercial values) in a way that could be subtle, direct, or point- blank, which cannot be communicated in an ordinary manner.
  16. 16. The Good and Bad Side of Advertising * Advertising provides income and incentives to media particularly the television and radio broadcast industries, which rely on advertisement to fund program so that these can be provided free to the general public; and the print media which rely on print ads to provide a cheaper price for their publication
  17. 17. The Good and Bad Side of Advertising BAD SIDE *Advertising provides disinformation by extremely exaggerating and enhancing the features and qualities of their product, while at the same time, in some cases destroying even the name, image or product of its competitors
  18. 18. Bad side of advertising
  19. 19. The Good and Bad Side of Advertising * Advertising promote wrong values. Liquor and cigarette advertising. * Advertising is too expensive. They imply that the high cost of advertising increases production costs and leads to higher prices for goods and services.
  20. 20. Knowing About False Advertising 1. Take note all the facts that are Being Said, shown, or revealed in the ads. 2. See if the advertisement comes with exaggerated appeal to emotional and basic instinct.
  21. 21. Knowing About False Advertising 3. Be informed about the latest news and technologies. 4. In general, look at any advertisement with an open mind and a grain of salt. Remember that the main purpose of advertisement is to entice consumers to buy, and that includes you.
  22. 22. Protecting the Consumer Republic Act 7394, the Consumer Act Of the Philippines, was specifically Enacted by Congress to protect the Interest and general welfare of the Consumer. Among its basic policies Which are included in the general Provision of the Acts are the following
  23. 23. Protecting the Consumer 1.Protection against hazards to health and safety 2. protection against deceptive, unfair and un-conscionable sales act and practices. 3. provision of information and education to facilitate sound choice and the proper Exercise of rights by the consumer.
  24. 24. Protecting the Consumer 4. provision of adequate rights and means of redness and 5. involvement of consumer representative in the formulation of social and economics policies
  25. 25. Responsibilities of a Consumer  critical awareness which is the responsibility to be alert and questioning about the use of the price and quality of goods.
  26. 26. Responsibilities of a Consumer   Assertiveness which is the responsibility to assert himself and act so he is assured of a fair deal, aware that for as long as he remains to be a passive consumer he will continue to be exploited
  27. 27. Responsibilities of a Consumer  Social concern which is the responsibility to be aware of the impact of his consumption on other citizens, especially thee advantaged.
  28. 28. Responsibilities of a Consumer  Environmental awareness which is the responsibility to understand the environmental consequences of his consumption recognizing his individual and social responsibility to conserve natural resource for future generation.
  29. 29. The Rights of the Consumer   Right to basic needs- right to basic needs such as sufficient food and water, clothing , shelter, health, education and basic services. Right to safety- consumers should be assured that products in the market are
  30. 30. The Rights of the Consumer protected from any product or good that may do harm to health or life. Right to inform consumers should be informed about any news or issues regarding a product, service or anything that has do with consumption.
  31. 31. The Rights of the Consumer  Right to be heard- the voice of the consumer, his opinions and comments regarding a product or consumer policy, should be heard in any forum and consumer input should be respected and used as basis for consumer policy.
  32. 32. The Rights of the Consumer   Right to complain- complain about overpricing, substandard quality of goods or services or any other matter that would jeopardize a fair deal for him. Right to choose- the right which product they will choose among two or more competing products.
  33. 33. The Rights of the Consumer  Right to consumer educationconsumers have a right to be given consumer education where they will learn their responsibilities their rights and the actions that they should take regarding any issues on consumption.
  34. 34. The Rights of the Consumer  Right a safe environment- the buying of foods should be done in the safest environment as possible free from crime or unsafe conditions so that consumers will not fear anything while they are doing their purchasing of products.
  35. 35. The Consumer and Daily life   1. how to get the best quality products without being defrauded 2. how to spend wisely and budget the money he has properly earned
  36. 36. Guarding Against frauds and Scam    Fraud are acts of deception that victimize the consumer, while scams are schemes that promise a gain.
  37. 37. Guarding Against frauds and Scam  The following are some of the more common frauds and scams that victimize consumers:   1. shortchanging seller sometimes shortchange the buyers, sometimes by a big amount.
  38. 38. Guarding Against frauds and Scam   The schemes is done using the quick hands of the seller and when the change is given the consumer will go home thinking he has the right change but he actually has less Consumer action consumer should state the amount they are paying
  39. 39. Guarding Against frauds and Scam   2. Defective weights- some weighing scales are not up to standards and many have been tampered to gain some weight in favor of the seller. Consumer action; in this case always try to use the common weighing scale located in markets which is provided and approved by the local government.
  40. 40. Guarding Against frauds and Scam   3. Adulterated and unfit goods- some sellers try to sell goods which have already expired or are past their period of freshness Consumer Action; use common sense when looking at a products. DON’T BUY ANYTHING IF YOU HAVE DOUBTS!
  41. 41. Guarding Against frauds and Scam  4. False information- false information on products or services may come in the form of fraudulent advertising wild claims half-truths and misleading brands that copy or imitate the logo or brand name of leading products.
  42. 42. Guarding Against frauds and Scam   Consumer Action; keep the product as well as the packinging and the reciept as these will be the basic of you complaint. Go to the nearest DTI office and file it.
  43. 43. Guarding Against frauds and Scam  The government through the Consumer Act, protects consumers against deceptive, unfair and unconscionable sales acts or practice. In particular, Article 48 Of the Act declares that an act or practice is unfair or unconscionable under the following circumstances;
  44. 44. Guarding Against frauds and Scam  1. that the producer, manufacturer, distributor, supplier or seller took advantage of the inability of the consumer to reasonably protect his interest because of his inability to understand the language of an agreement or similar factors;
  45. 45. Guarding Against frauds and Scam  2. that when the consumer transaction was entered into, the price grossly exceeded the price at which similar products or services were readily obtainable in similar transaction by like consumers;
  46. 46. Guarding Against frauds and Scam  3. that when the consumer transaction was entered into the consumer was unable to receive a substantial benefit from the subject of the transaction.
  47. 47. Guarding Against frauds and Scam  4. that when the consumer transaction was entered into the seller or supplier was aware that there was no reasonable probability or payment of the obligation in full by the consumer and
  48. 48. Guarding Against frauds and Scam ● 5 that the transaction that the seller or supplier induced the consumer to enter into was excessively one sided in favor of the seller or supplier
  49. 49. LEARNING TO SPEND WISELY ● ● 1 EXTRAVAGANT CONSUMPTION – this is consumption of expensive goods, high above the means of the consumer. 2 HARMFUL CONSUMPTION – pertains to the consumption of cigarettes, liquor or even illegal drugs which are actually harmful to the consumer.
  50. 50. ● ● 3 WASTEFUL CONSUMPTION – this is about buyimg things for the sake of buying and not using the things bought. 4 WISE CONSUMPTION – this is about spending money to its fullest capacity, which means that the consumer get his moneys worth and uses resources to his advantage.
  51. 51. Some measures that could be taken by the consumer ● WANTS AND NEEDS – needs are something that we must have while wants are something that we would like to have. ● ● LIST OF ITEMS TO BUY – a consumer should have a list of items to nuy before going to the market or grocery.
  52. 52. COMPARISON OF PRICES – if at all the consumer would spend time in the market, then it should be to compare prices of related items to be able to see what product would he gain most.
  53. 53. BULK BUYING – the consumer is sure that he will be using a particular product for a long time, then he may consider bulk buying, simply because bulk prices are lower.