Grade 8 consumerism

Social Studies Grade 8 Mrs Williams and Ms Bromfield 2020
TOPIC: CONSUMERISM
Introduction to consumerism
Objectives
1. Define and use correctly key terms: goods, services, consumer, consumption,
consumerism, needs, wants, budget, income, expenditure, globalization,
producer
2. Distinguish between consumers and producers
3. Classify types of consumers
4. Analyse the factors which influence consumer demand
5. Design a product, develop plan to market the product and design success
criteria
VOCABULARY
1) Goods: A commodity, or a physical, tangible item that satisfies some human
want or need, or something that people find useful or desirable and make an
effort to acquire it.
2) Services: the action of helping or doing work for someone; a system supplying a
public need such as transport, communications, or utilities such as electricity and
water.
3) Producer: a person, company, or country that makes, grows, or supplies goods or
commodities for sale.
4) Consumer: a person who purchases goods and services for personal use.
5) Supply: The total amount of a product (good or service) available for purchase
at any specified price.
6) Demand:economic principle referring to a consumer's desire and willingness to
pay a price for a specific good or service
7) Income: money received, especially on a regular basis, for work or through
investments.
8) Expenditure: an amount of money spent.
9) Globalization: the process in which people, ideas and goods spread throughout
the world, spurring more interaction and integration between the world's
cultures, governments and economies.
10)Consumption: is the way that consumers and markets exchange, use, and
destroy goods and services.
11)Consumerism: the protection of the rights and interests of the general pool of
buyers, or an obsession with buying material goods or items.
12)Needs: Require (something) because it is essential or very important rather than
just desirable.
13)Wants: Have a desire to possess or do (something); wish for.
14)Budget: A plan to show how much money a person or organization will earn and
how much they will need or be able to spend:
GOODS AND SERVICES
 Activity
Create a budget for a family for a month that is on a fixed salary. Students will also
create a table of wants and needs for the month. They will itemize the expenditure for
the month and show this information on a pie chart. Students will have to justify their
wants, needs and budget. (20 marks)

TYPES OF CONSUMERS
a. Consumer of Goods
b. Consumer of Services
c. Consumer of Credit (personal loans, credit cards, hire purchase, mortgages)
What affects the consumer?
Tastes and Preferences of the Consumers
The changes in demand for various goods occur due to the changes in fashion and
also due to the pressure of advertisements by the manufacturers and sellers of different
products.
Income of the People
The greater the incomes of the people, the greater will be their demand for goods. The
greater income means the greater purchasing power. Therefore, when incomes of the
people increase, they can afford to buy more
Changes in Prices of the Related Goods
The demand for a good is also affected by the prices of other goods, especially those
which are related to it as substitutes or complements. When the price of a substitute for
a good falls, the demand for that good will decline and when the price of the substitute
rises, the demand for that good will increase. For example, when the price of cars falls,
the quantity demanded of them would increase which in turn will increase the demand
for petrol.
Advertisement Expenditure
Advertisement expenditure made by a firm to promote the sales of its product is an
important factor determining demand for a product. When advertisements prove
successful they cause an increase in the demand for the product.
The Number of Consumers in the Market
The greater the number of consumers of a good, the greater the market demand for it.
Consumers’ Expectations with Regard to Future Prices
If due to some reason, consumers expect that in the near future prices of the goods
would rise, then in the present they would demand greater quantities of the goods so
that in the future they should not have to pay higher prices. Similarly, when the
consumers expect that in the future the prices of goods will fall, then in the present they
will postpone a part of the consumption of goods with the result that their present
demand for goods will decrease.
Guidelines for Designing a product
1. Product Concept: Think about what you want your product to be, what its use is,
and who would use it?
2. Research: Will your product solve a problem, are a lot of people looking for a
solution to that problem? Can you see a gap that is desperate to be filled? Are
there products out there already that are similar to yours? If so, it doesn’t
necessarily mean your idea won’t be a success, but how will you improve on
what is already available?

3. Development: Develop your product design.
4. Marketing: It’s time to turn your attention to marketing, and the practical side of
getting it into the hands of customers.
5. Determining Success: How are you going to decide whether or not the product is
successful?
CONSUMER RIGHTS
Consumer rights are the legal and moral duties of protection owed to a
purchaser of goods or services by the supplier/producer.
1) Right to Safety
Consumers should be protected against injuries caused by products other
than automobile vehicles, and implies that products should cause no
harm to their users if such use is executed as prescribed.
2) Right to Be Informed
Businesses should always provide consumers with enough appropriate
information to make intelligent and informed product choices. This right
aims to achieve protection against misleading information in the areas of
financing, advertising, labeling, and packaging
3) Right to Choose
The right to free choice among product offerings states that consumers
should have a variety of options provided by different companies from
which to choose. This helps to ensure the availability of a healthy
environment open to competition and prevent monopolistic business
practices.
4) Right to Be Heard
This right asserts the ability of consumers to voice complaints and
concerns about a product in order to have the issue handled efficiently
and responsively.
5) The Right to Redress
To receive a fair settlement of just claims, including compensation for
misrepresentation, shoddy goods or unsatisfactory services.
https://www.youtube.com/watch?v=abyRGns4cgg
6) Right to a Healthy Environment
To live and work in an environment which is non-threatening to the well-
being of present and future generations.
Activity
Have you or a family member ever complained about any goods /services?
Share your experience by writing a paragraph about it on the colored card.

On a different card offer a solution to the problem and identify a right in
which the complainer could have exercised.
What can I do to keep myself protected?
CONSUMER RESPONSIBILITY
1) Be aware of goods and services available before making a choice
2) Any standardized goods should be checked for quality assurance
3) A consumer must know about the risk associated with the product
for ex. Cigarettes follow manufacture instruction
4) read instructions on product labels or in the store
5) ensure he gets a fair deal by purchasing legal goods and service
and avoid black marketing
6) ask for receipts as a proof of purchase
7) Make complaints in an appropriate forum on the quality of goods
and the shortcoming of the service.
8) be aware of consumer organizations that actively ensures and
educates consumers of their rights.
CONSUMER PROTECTION AGENCIES
Consumer protection consists of laws and organizations designed to ensure
the rights of consumers, as well as fair trade competition and the easy access
to truthful information in the marketplace.
Activity
Design a Shoppers Rights’ poster to display on notice board with a suitable
caption and information bites.
1) National consumers’ League of Jamaica- NCL
The mission of the National Consumers’ League of Jamaica is to advance
consumer knowledge, awareness about products, services, prices, market
trends, their rights and responsibilities to enable them to make informed
choices in a liberalizing economy.
The NCL represents the interests of consumers at all levels and supports them
by:
a) registering and aiming to resolve consumer complaints with the
Government, manufacturers and traders concerning any matter.
b) provides the opportunity for the discussion of a wide range of problems
c) collects information on technical and other matters in order to assist
consumers.

2) Bureau of Standards Jamaica
Its purpose is to promote and encourage standardization in relation to
commodities, processes and practices. Meaning that they try to ensure that
manufactured products are of a particular standard before they get to the
consumer.
3) Consumer Affairs Commission
The Consumer Affairs Commission is a government agency established to
inform, educate and empower consumers to protect themselves in the
marketplace.
a) They engage in market research, provide complaint resolution services
and run a vibrant consumer education programme.
4) Offices of Utilities Regulation
To provide an Avenue of Appeal for consumers who have grievances with
the utility companies. They ensure that consumers of utility services enjoy an
acceptable quality of service at reasonable cost. As well as establish and
maintain transparent, consistent and objective rules for the regulation of utility
service providers.
ACTIVITY
Answer the following questions:
1. Which group provides an Avenue of Appeal for consumers who have
grievances with the utility companies?
2. List the names of two (2) utility companies operating in Jamaica
3. What does the CAC stand for?
4. Which protection group encourages standardization in
relation to commodities, processes and practices among manufacturers?
5. Why was the CAC established?
HOME WORK
Take five advertisements from newspapers or magazines 10 marks
ACTIVITY 1
Janet and Dave are thinking of changing banks as they are not pleased with
their current banking provider. Pretend you are an agent of another bank
persuade Janet and Dave to take their business to your bank. Ensuring to

include the products and services offered at your bank. Your persuasive speech
to them must be two to three paragraphs. TOTAL (15 marks)
ACTIVITY 2
1. Define the term institutions. (1 mark)
2. Identify characteristics of institutions. (4 marks)
3. Distinguish among the types of institutions. (3 marks)
4. State two examples of each type of institution. (6 marks)
5. Evaluate the importance of institutions to the development of
Jamaica’s society, ensure to include examples (6 marks)
TOTAL: 20 Marks
ACTIVITY 3
Create a glossary defining the following term economic institutions, credit,
insurance, insurance company, thrift, bank, building society, credit union, credit,
loan, goods, needs, wants, services, producer, consumer, supply and demand.
Definitions – 18 marks
Creativity- 4 marks
Organization- 3 marks TOTAL: 25 Marks
ACTIVITY 4
• Have you or a family member ever complained about any goods
/services?
• Share your experience by writing a paragraph about it
• In a new paragraph, offer a solution to the problem and identify a right in
which the complainer could have exercised.
TOTAL: 15 marks
ALL ACTIVITIES SHOULD BE COMPLETED BY APRIL 8, 2020 AND SUBMITTED VIA EMAIL TO
2J, 2S,2P – cwalker@msjchs.com - Mrs. Williams
2O, 2E, 2H – sbromfield@msjchs.com – Ms. Bromfield
CONSUMER EXPLOITATION THROUGH ADVERTISEMENT
OBJECTIVES
1) Explain the two types of advertisements
2) Give examples of types of advertisements
3) Identify the different avenues for advertising an d the chain of distribution
4) List the type of person who advertises

What is the chain of distribution?
The chain of distribution is the method used by a firm to get the good or service
they have produced to the consumer. It is the route the good or service takes to
get to the consumer.
PRODUCER WHOLESALER RETAILER CONSUMER
WHAT IS AN ADVERTISEMENT?
A notice or announcement in a public medium promoting a product,
service,information or event or publicizing a job vacancy.
TYPES OF ADVERTISEMENT
1. Persuasive – These are used to encourage consumers to buy goods and services
they would probably not think of buying at all. Such advertisements use
strategies such as: the before and after approach, endorsement by famous
person, upper middle class way of life.
2. Informative – These are used to notify consumer that a good or services is now
available. Eg. Job vacancies
ACTIVITY:
a) STATE TWO WAYS PEOPLE MAY ADVERTISE THE FOLLOWING
PRODUCTS/SERVICE/BUSINESS:
BANANA CHIPS
BANK
RETAIL STORE
SMALL BOUTIQUE
b) STATE ONE BENEFIT OF ADVERTISING FOR BUSINESSES
WHO ADVERTISES?
1. Manufacturers
2. Wholesalers
3. Retailers
4. Individuals
5. Voluntary Organizations
6. Business- Public Sector and Private Sector
AVENUES or WAYS ADVERTISING CAN BE DONE
1) MASS MEDIA
2) BILLBOARDS
3) WINDOW DISPLAYS
4) TRANSAD
5) T-SHIRTS AND GROCERY BAGS

6) POSTERS, PAMPHLETS AND HANDBILLS
THE MEDIUM CHOSEN BY THE ADVERTISER DEPENDS ON THE NATURE OF THE BUSINESS:
 A SMALL RETAIL STORE WHICH TARGETS ITS CUSTOMERS FROM THE IMMEDIATE
NEIGHBOURHOOD MAY CHOOSE ATTRACTIVE WINDOW DISPLAY OR PLACE A
SMALL AD IN THE NEWSPAPER.
 A LARGE DEPARTMENT STORE ON THE OTHER HAND WHICH DRAWS CONSUMERS
FROM VERY WIDE AREAS MAY CHOOSE THE TELEVISION, RADIO AND NEWSPAPERS
BECAUSE THE AUDIENCE/ READERSHIP SPANS THE LENGTH AND BREADTH OF THE
COUNTRY
PURPOSES OF ADVERTISING ?
1) To Inform
2) To Persuade
3) To Remind
TYPES OF ADVERTISEMENTS
 INFORMATIVE ADVERTISEMENT
This type of advertisement gives information about a good or service- brand
name, price, where it is available, uses etc.
In some circumstances a business might be required to run informative
advertising as part of resolving a lawsuit. Tobacco companies are one of the
more notable examples of this. Government’s agencies use this form of
advertising in campaigning.
 PERSUASIVE ADVERTISEMENTS
This type of advertisement is usually presented in vivid and emotional language
aimed at stimulating and encouraging people to buy a product order a service or
support some cause or situation
Techniques used in Persuasive Advertising “
 Appeal to ‘instantness’
 Sex appeal
 Appeal to authority
 Appeal to the ‘good life’
 Appeal to emotions
ACTIVITY
WATCH THE FOLLOWING VIDEOS
https://www.youtube.com/watch?v=Y7voE2B_sfk – Icool Water
https://www.youtube.com/watch?v=mkTcKY24g8o- Grace Mackerel
https://www.youtube.com/watch?v=IHcWPVbDArU- Nike
AND…
A. Summarize what the advertisement is about

B. Identify the techniques that are being used in the advertisements.
ACTIVITY : ANSWER THE FOLLOWING QUESTIONS BELOW:
1. Define the term advertisement
2. List four persons/groups who may advertise
3. What is the difference between a persuasive advertisement and an
informative advertisement?
4. State what type of advertisements would be MOST appropriate for the
following:
1. Covid 19 alert
2. Kentucky fried Chicken
3. Bank of Nova Scotia
4. Fashion Nova Clothing store
ACTIVITY
Sunny Snacks has just created a new Animal Crackers, create a poster/ billboard
adverting the product. You should state what type of advertisement you are creating
and Identify one technique that you will be using
BEST CAMPAIGN AND DESIGN WINS A PRIZE!!
ADVANTAGES & DISADVEANTAGES OF ADVERTISING
ADVANTAGES
 Provides information to consumers in the comfort of their own homes, particularly
through mass media.
 Advertising helps to increase demand for existing goods through its persuasive
nature and creates demand for new products
 Provides employment for a significant number of people. An advertising agency
employs artists, layout men, audio-visual technicians, accountants, secretaries,
etc
 It encourages competition among firms selling similar products
DISADVATNAGES
 By its very persuasive nature, advertisements encourage consumers to spend
money on items which they do not need.
 Advertisements may encourage unhealthy habits. Eg Smoking. Some
countries have taken action to ban the advertising of cigarettes.
 Advertising is expensive and this expense may be passed onto the consumer
who will have to buy the good or service at an additional cost.

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