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What Role Should Consumerism

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?

Todays 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
They devoted themselves to the apostles' teaching and to the
42

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 Two
You 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 $$?


Lets 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
Canadians quality of life is defined by the
limits of the individuals 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.