HDFS 357 1st Edition Lecture 12 Outline of Last Lecture I II Practical Purchasing Strategies Opportunity Costs Outline of Current Lecture I II Consumer Complaints Major Consumer Purchases Current Lecture LECTURE 12 Consumer Complaints o Most common Defective Products Low Quality Short Product Life Deceptive Pricing Unexpected Costs Poor repairs o Step 1 Return to the Place of Purchase Most issues resolved at original sales location Business are concerned about their reputation Avoid yelling or making unreasonable demands Calm rational and persistent approach o Step 2 Contact Company Headquarters Take dissatisfaction to a higher level E mail call letter Be detailed Have evidence to explain issue and attempt s at resolution o Step 3 Obtain Consumer Agency Assistance Better Business Bureau Minnesota North Dakota Hold businesses accountable for their actions ND Attorney General Consumer Protection Division o Step 4 Take Legal Action Small Claims Court Personal claims lower than a certain dollar amount Usually takes place without a lawyer Class action suit Legal action taken by a few individuals on behalf of all people who have suffered the same injustice Hire a lawyer Can be expensive weigh the cost with possible reward Major Consumer Purchases Buying Motor Vehicles o Phase 1 Pre shopping Activities Information Gathering Evaluating Finances o Phase 2 Evaluation of Alternatives Selecting vehicle options Mechanical Devices engine Convenience Options heated seats Aesthetic Features what it looks like o Phase 3 Determining Purchase Price Negotiate Know necessary information about the product and deal with person who can make decisions Check with Kelly Blue Book Compare financing alternatives Consider the APR total finance charge