3. 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
4. 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.
5. 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
6. 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.
9. Reasons for advertising
2. to defeat competitors in the market.
The one with more and better
advertising would have an advantage.
10. 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.
11. 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.
12. 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.
13. Reasons for advertising
6. T create new products- to inform
o
the consuming public about the new
products and what it offers before.
14. 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.
15. 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.
16. 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.
17. 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
18. 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
20. 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.
21. 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.
22. 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.
23. 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
24. 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.
25. 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
27. 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
28. 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.
29. 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.
30. 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
31. 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.
32. 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.
33. 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.
34. 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.
35. 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.
36. 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
37. Guarding Against frauds
and Scam
Fraud are acts of deception that
victimize the consumer, while scams
are schemes that promise a gain.
38. 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.
39. 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
40. 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.
41. 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!
42. 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.
43. 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.
44. 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;
45. 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;
46. 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;
47. 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.
48. 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
49. 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
50. 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.
51. ●
●
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.
52. 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.
53. 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.
54. 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.
