Sales and marketing Consumer responsibilities Goals Describe deceptive practices used to defraud consumers Discuss how to be a responsible consumer Consumer Responsibilities Deception occurs when false or misleading claims are made about the quality the price or the purpose of a par ID: 636664
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Slide1
Presented by:Mrs. Flowers
Sales
and marketing
Consumer responsibilitiesSlide2
GoalsDescribe deceptive practices used to defraud consumers.
Discuss how to be a responsible consumer.
Consumer ResponsibilitiesSlide3
Deception occurs when false or misleading claims are made about the quality, the price, or the purpose of a particular product.
In a market economy, consumers must educate themselves to recognize a potential fraud before they become victims.
Fraudulent and Deceptive Marketing PracticesSlide4
A fake sale is when a merchant advertises a big sale but keeps the items at regular price or makes the price tags look like a price reduction when there actually is none.
Often the merchant increases the prices just prior to the sale and alters the price tags to show the so-called markdowns.
Fake SalesSlide5
Low-balling is advertising a service at an unusually low price to lure customers and then attempting to persuade them that they need additional services.
Low-BallingSlide6
Pyramid schemes are mostly illegal multilevel marketing plans that promise distributors commissions from their own sales and those of other distributors they recruit.
Pyramid SchemesSlide7
The term pigeon drop refers to any method used by experienced con artists to convince vulnerable people to invest in phony investments, swampland real estate, or other swindles.
Pigeon DropSlide8
Telephone or door-to-door solicitations made by people who claim to represent well-known companies or charities are another type of swindle.
Consumers buy products and then learn that the products have been rebuilt, stolen, or made of inferior quality with a reputable brand name label applied to them.
Fraudulent RepresentationSlide9
A common type of swindle involves deceptive advertising for expensive “miracle” pills, creams, and devices to enhance the consumer’s health and beauty.The ads are designed to appeal to the typical consumer’s desire to be healthy and attractive.
Health and Medical Product FraudsSlide10
An infomercial is a lengthy paid TV advertisement that includes testimonials, product demonstrations, and presentation of product features.
While the product may be reputable, there is no guarantee, and claims about results may be greatly exaggerated.
InfomercialsSlide11
On the Internet, fraudulent businesses can appear genuine. You may order and pay for goods and never receive them.
When you give credit card numbers and other personal information to these scam artists, you may become a victim of identity theft.
Internet FraudSlide12
Identity theft involves stealing personal information, such as credit card numbers and Social Security numbers, to gain access to a person’s finances, often to make purchases with credit.
Identity TheftSlide13
“Free” prizesForeign lotteriesFraudulent sweepstakes
Fake charities
Telemarketing FraudSlide14
Identify deceptive practices.Shop smart, including online.Stay informed.
Seek
redress
—a remedy to a problem.
Being a Responsible ConsumerSlide15
What is a “fake” sale?
Locate a product advertisement with an unusually low price or claim to perform in extraordinary ways. Explain the appeal that leads to consumer deception.
Perform research on the internet for a recent news story about a business that used deceptive marketing practices.
List the website
Name of the company
Explain what happened
Outocme
AssessmentSlide16
Select a product you are interested in buying. Research the internet for retailers that sell this product.
What are the features of this product?
How much does it cost?
What store or website can you buy this at?
Would you still but it now, based on your research?
Research the internet for the following offers:
Something for nothing….Free
Bonus for early reply
Gifts or free prizes
Assessment