Consumer Right and Shopping Tips – JSS2 Business Studies Lesson Note (Second Term)

Consumer rights are the things a buyer is morally, legally and socially allowed to have or do when buying goods and services.

Behavioural objectives

By the end of the lesson, students should be able to:

1. explain consumerism and the meaning of a right and of consumer rights;
2. list the rights and responsibilities of a consumer;
3. state the difference between needs and wants;
4. explain impulse buying and its effects;
5. give good shopping tips;
6. explain after-sales service, warranty and installation.

What is consumerism?

Consumerism is the protest of consumers against unfair business practices and business injustices that cause consumer dissatisfaction in buying and selling.

• Useful information: consumerism makes sure businesses give buyers the facts they need about a product.
• Value for money: consumerism makes sure consumers get quality for what they pay.
• Protection: consumerism guards buyers against cheating, such as false weights, fake goods and misleading adverts.

What are consumer rights?

Consumer rights are the rights of a consumer to be satisfied, to be informed, to choose and to give manufacturers information about their products.

What is a right?

• Right: something a person is morally, legally and socially allowed to do or have.
• Source: rights are social, legal and fundamental principles of what a legal system allows people.

What are the rights of a consumer?

A consumer has eight main rights, listed below.

• Right to safety and hygienic products: goods and services must not harm the buyer’s health or life.
• Right to be informed: the buyer must be told the price, quality, quantity, ingredients and expiry date.
• Right to be heard: the buyer can speak out, and the seller must listen to complaints and suggestions.
• Right to choose: the buyer is free to pick from different goods, brands and sellers.
• Right to seek redress: the buyer can ask for a repair, replacement or refund when a product is faulty.
• Right to consumer education: the buyer can learn how to make wise buying decisions.
• Right to a healthy environment: the buyer has the right to live and work in a clean and safe surrounding.
• Right to basic needs: every person can get food, clothing, shelter, health care and education.

What are the responsibilities of a consumer?

Consumer responsibilities are the duties a buyer must carry out, because rights and responsibilities go together.

• Give adequate information: tell the seller exactly what you want to buy.
• Exercise caution in purchasing: check goods carefully before paying.
• File a complaint: report genuine grievances to the seller or the proper authority.
• Be quality conscious: look for quality marks and do not buy only because a product is cheap.
• Exercise legal rights: use your rights when you are cheated.
• Beware of false adverts: do not believe every claim made in an advertisement.
• Insist on a cash memo or receipt: a receipt is proof of purchase when you need to complain or claim a warranty.
• Social concern: do not buy goods that harm other people or society.
• Environmental awareness: avoid litter and waste, and choose goods that do little harm to the environment.

What is the difference between needs and wants?

Needs are things people cannot do without, while wants are things people would like to have.

• Needs: things needed to satisfy basic requirements, such as food, water, shelter and clothing.
• Wants: goods and services that are not necessary for survival, but which we desire, such as a new phone or designer shoes.

• Needs are fundamental to human survival.
• Wants are extra things a person desires after satisfying his or her needs.
• All business activities should aim to satisfy the customer, so businesses must study the needs and wants of consumers.

What is impulse buying?

Impulse buying is buying things without planning to do so.

What causes impulse buying?

• Attractive displays: goods arranged at the shop entrance or till catch the eye.
• Discounts and sales: low prices make buyers feel they must buy now.
• Advertisements: adverts make people want goods they did not plan to buy.
• Shopping without a list: a buyer with no plan buys whatever looks good.

What are the effects of impulse buying?

• Damage to the family budget: money meant for important items is spent on other things.
• Unneeded goods: the buyer often buys things that are not needed.
• Over-stocking: the buyer stocks up more than is needed, and some goods may spoil.
• Lack of savings: money that could have been saved is spent.

What are good shopping tips?

Good shopping tips are simple habits that help a buyer spend wisely and avoid being cheated.

• Plan a budget: decide how much you can spend before you leave home.
• Make a shopping list: write down what you need and buy only those items.
• Avoid impulse buying: leave out items that are not on your list.
• Compare prices and quality: check more than one shop or brand before you buy.
• Check the label: look at the expiry date, ingredients and the NAFDAC registration number on food and drugs.
• Inspect the goods: check for damage, correct size and correct quantity before paying.
• Ask for a warranty: ask for it on items such as electronics and appliances.
• Collect a receipt: keep it safely as proof of purchase.
• Do not be misled by adverts: test claims against the real product.

What is after-sales service?

After-sales service is any help a seller gives to a buyer after goods or a service has been sold.

• Purpose: it ensures the buyer is satisfied with the product or service purchased.
• Examples: free delivery, repairs, free servicing, replacement of faulty parts and handling of complaints.

What are the benefits of after-sales service?

• Customer loyalty: it builds and keeps customers.
• Selling point: free service during the guarantee period attracts buyers.
• Sales campaigns: they are more likely to succeed.
• Goodwill: it builds and maintains the seller’s good name.
• Complaints: grievances about service are dealt with promptly and efficiently.

What is a warranty?

A warranty is a written promise from a seller or company to a buyer that a faulty product or service will be replaced, repaired or refunded within a stated period.

• Assurance: it assures the buyer of the quality, service and performance of the product.
• Proof: the buyer usually needs the receipt and warranty card to make a claim.

What are the types of warranty?

Three types of warranty are warranty against defects, express warranty and extended warranty.

• Warranty against defects: covers faults in materials or workmanship found within the stated period.
• Express warranty: a clear promise stated by the seller, in writing or in words, about the product.
• Extended warranty: extra cover that continues after the normal warranty period ends, often at an added cost.

What is installation?

Installation is setting up a system or machine so that it is ready for use.

• Examples: fixing an air conditioner, setting up a generator or connecting a satellite dish.
• Free installation: some companies install the product at no cost.
• Paid installation: other companies charge the customer for it.
• Tip: ask before you buy whether installation is free.

Evaluation

1. What is consumerism?
2. List five rights of a consumer.
3. State two differences between needs and wants.
4. What is impulse buying, and how does it affect the family budget?
5. What is a warranty?

Assignment

List five responsibilities of a consumer and state three benefits of after-sales service.