What Role Should Consumerism What Role Should Consumerism Play in the Economy?Play in the Economy?

Unit 8 – Economics and Consumerism

Chapter 7 Focus Questions

• What role should consumerism play in an economy?

• How does consumer behavior affect quality of life for individuals and groups?

• What affects the impact of consumerism on the economies of Canada and the U.S.?

What is the message?

Today’s Lesson

• Review the principles of Supply & Demand• Define and evaluate the relationship between

consumerism, consumer behavior, and quality of life.

• Appreciate the influence and limitations that individuals in Canada have as a consumer.

• Discern three techniques used in marketers in creating media messages that target particular consumers.

Turn and Talk

“The more people buy, the better it is for the economy and the society.”

Turn and Talk - Do you agree or disagree totally with this statement? Why or why not?

Acts 2

• The Fellowship of the Believers •  42They devoted themselves to the apostles' teaching and to the

fellowship, to the breaking of bread and to prayer. 43Everyone was filled with awe, and many wonders and miraculous signs were done by the apostles. 44All the believers were together and had everything in common. 45Selling their possessions and goods, they gave to anyone as he had need. 46Every day they continued to meet together in the temple courts. They broke bread in their homes and ate together with glad and sincere hearts, 47praising God and enjoying the favor of all the people. And the Lord added to their number daily those who were being saved.

Choices!

The decisions we make as consumers have consequences

for the quality of life, citizenship, and identity of ourselves

and others. It can impact economies and societies very

differently.

Example: Bottle Water creates new jobs in a rural

community however, consumer choices to buy will create

by-products such as waste (plastic) which impacts the

environment for everyone.

Supply and Demand

Consumer, Consumerism and Consumer Behavior

• Anyone that uses products or services in a society is a consumer

• Consumerism is an economic theory that links prosperity to consumer demand for goods and services and makes consumer behavior central to economic decisions.

• Consumer Behavior is the study of when, why, how, where and what people do or do not buy products.

Activity One

• Consider all the things you have purchased in the last 72 hours (e.g., pop, hamburger, DVD, ITunes, etc). Beside each example, write down what influenced your decision to purchase the items (e.g., it was on sale, you needed it, you saw advertized, it was popular item).

• After you have listed them, move into groups of three or four and compare and discuss similarities and differences in reasons behind your purchase.

Have you ever considered what influences you as a consumers? What relationship exists between consumer

behavior and quality of life?

The decision we make have consequences for the quality of life, citizenship and identity of

ourselves and others.

What affects the impact of consumerism on the economies of Canada?

• A society is affected by the wealth and financial limitations of the consumer to impact economic decision making, thus controlling what and how much is produced.

• Consumer behavior, underlying societal values, and government decisions can play a significant role in affecting quality of life for citizens in society. (i.e. higher taxes on imported goods)

Activity TwoYou are in-charge of taking care of your family (4)

budget for the next three months.

• Step 1 - Accumulate a list of items that you will need to pay for, include as many incidentals and utilities you can think of and their approximant value/cost. How much do you estimate that it cost to run a household?

• Step 2 - If your household has $500 in disposable/

discretionary income at the end of the month, how would you spend it?

Disposable/Discretionary Income

• Disposable/Discretionary income is income after subtracting taxes and normal expenses from gross (such as rent or mortgage and food) to maintain a certain standard of living. It is the amount of an individual's income available for spending after the essentials (such as food, clothing, and shelter) have been considered

How do producers get your $$?

• Let’s watch the following commercials and identify some of the techniques used by marketers to get your attention and your business?

• http://www.youtube.com/watch?v=jvCTaccEkMI&feature=related

• http://www.youtube.com/watch?v=B9cmph9yFoY

• http://www.youtube.com/watch?v=xFydzXFcA-Y

How do producers get your $$?

• Band Wagon – Encourages you to buy or sell a product because everyone else is.

• Testimonial – Uses celebrities or experts to speak for a product.

• Scientific Appeal – Uses statistical or scientific data to persuade consumers to buy a product or service.

Marketing

Is the skill/art of having individuals consume

as much of their Disposable income on a product

• Marketing activities include market research to find out, what groups of potential customers exist, what their needs are, which of those needs you can meet, how you should meet them, etc.

Review

Supply and Demand Principle (True or False)

1.If demand for a product is high, the price will rise?

2.If the supply of a product is high, the price will drop?

3.If the demand is high, but the price is low, the supply will drop?

Review

• The decision we make have consequences for the quality of life, citizenship and identity of ourselves and others. What factors. What factors shape your consumer behavior?

Review

• Match the definition with the correct term

Consumerism A. Anyone that uses products or services in a society.

Consumer Behavior B. An economic theory that links prosperity to consumer demand for goods and services and makes consumer behavior central to economic decisions.

Consumer C. The study of when, why, how, where and what people do or do not buy products.

Review

• Canadian’s quality of life is defined by the limits of the individual’s disposable income. Define disposable income?

Review

• List and explain three techniques in which marketers create demand for their product?

Activity Three

It is your turn….• Retrieve the document – Business Marketing Plan

from the Shared Folder and develop your own marketing and advertizing plan to persuade potential costumers that your product is the best.