EFM! Consumer Basics

Why should you work to be an informed consumer?

• To stay informed about trends

• To get the most value for your money

• To ensure you pay the right sales tax

• To spend the least amount of money

A 10-ounce bottle of your favorite lotion that you use each day costs $9.50. The 5-ounce bottle only costs $5. Which is the better deal and why?

• The 5-ounce bottle is a better deal because it costs less.

• The 5-ounce bottle is a better deal because you don't need that much.

• The 10-ounce bottle is a better deal because the price per unit is lower.

• The 10-ounce bottle is a better deal because you use it every day.

Which of the following is accurate about the benefits

and risks of using credit cards to make purchases?

• Credit cards come with fraud protection, but credit card numbers can be copied by identity thieves.

• While credit cards are accepted almost everywhere, they put you at higher risk of being overcharged at the cash register.

• Credit cards allow you to pay for items later, but may cause you to miss out on better deals.

• Credit cards allow you to spend as much as you want, but are not accepted for most transactions

Which of the following are things a skilled consumer does?

• Research before buying, buy only from clearance sales, avoid using credit, consider unit prices

• Research before buying, buy only what you need, consider unit prices, choose the best payment method

• Buy only what you need, shop locally, avoid using credit, buy only from clearance sales.

• Buy only from clearance sales, pay in cash, consider unit prices, buy only local goods

Which is a good way to make an informed decision about a purchase?

• Buy the highest priced item

• Buy the Reviews if you'd like to review. lowest priced item

• Read the product descriptions online

• Read reviews from other consumers

Are sponsored reviews or verified purchaser reviews more reliable? Why?

• Sponsored reviews are more reliable because the reviewer is an expert in the field.

• Sponsored reviewers are more reliable because the reviewers is being paid for their honest opinion of the product

• Verified purchaser reviews are more reliable because the reviewer isn't being paid for a positive review

• Verified purchaser reviews are more reliable because the reviewer knows more about the product.

What is a risk of using cash?

• Not having fraud protection

• Not being able to shop in stores

• Paying more for purchases

• Paying interest on purchases

What Does BBB stand for?

Hint: It does not stand for BIG anything :)

Name 3 things the Better Business Bureau does

. Which review of an online clothing store is more trustworthy and why?

Review A states: “All 5 of the shirts were high quality but small. Order a size up” (verified purchase).

Review B states: “I love everything from this site. Don’t miss out on their great sales” (sponsored review)

• Review A is more trustworthy because they gave more details about their purchase.

• Review A is more trustworthy because it was a verified purchase.

• Review B is more trustworthy because they let you know about sales that can save you money.

• Review B is more trustworthy because the company spent money paying them to leave a review.