PRAYER

TLE 807 CONSUMER EDUCATION

UNIVERSITY OF CALOOCAN CITY
CONSUMER EDUCATION
TLE 807

ECONOMICS OF CONSUMER
• CONSIDERATION OF GROWING
NEEDS FO CONSUMER
EDUCATION
• FORMS OF CONSUMER
• CONSUMER ANALYSIS
• VALUES, GOALS AND STANDARD
 OVERVIEW OF THE TOPIC
‘Know your priorities!’ a quote that you can always
hear and probably one of the most hackneyed advice
from your close friends or relatives. But, what does it
mean? How do we prioritize something? Does it
pertains to our desire? Or our needs? In purchasing
products, people should be rigorous in checking the
quality and purpose of the item to avoid conspicuous
consumption. In this module, you will understand your
needs and wants as a person and as a consumer. This
self-paced module entails the following lessons:
TLE 807 CONSUMER EDUCATION
 OVERVIEW OF THE TOPIC
Lesson 1 - Consideration of growing needs for consumer
education
Lesson 2 - Forms of consumer
Lesson 3 - Consumer analysis
Lesson 4 - Values, Goals and Standard
You will be given a week to acquire the learning objectives
that each lessons encompasses. Through this module you are
expected to learn how to: create a budget plan according to
your salary/savings, needs and wants, familiarize yourself to
the different forms of consumer and set standards according to
your values and goals.

TLE 807 CONSUMER EDUCATION

 LEARNING OUTCOMES

At the end of the unit, the students

should be able to:
a. demonstrate concrete knowledge and
understanding of the growing needs of
consumer at its forms; and
b. contextualize the knowledge of
consumer on values, goals and standards.

TLE 807 CONSUMER EDUCATION

 LEARNING OBJECTIVES
Each lesson presented in this module aims to attain some learning
outcomes.
Lesson 1 - Consideration of Growing Needs for Consumer Education
LO 1 – Cite the needs of the consumers
LO 2 – Recognize the growing needs for Consumer Education
Lesson 2 - Forms of Consumer
LO 1 – Describe the forms of consumers
Lesson 3 - Consumer Analysis
LO 1 – Conduct a consumer analysis
Lesson 4 – Human Needs, Values, Goals and Standard
LO 1 – List values, goals and standards
LO 2 – Criticize one’s values, goals and standard
LO 3 – Value the purpose of having values, goals and standard

TLE 807 CONSUMER EDUCATION

 ENGAGE

What’s in the Pic?

Directions: Guess the word that

is being shown through the
rebus puzzle.
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 ENGAGE

Hermes
bag
ry= mes

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 ENGAGE

gadgets

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 ENGAGE

Designer
clothes

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 ENGAGE

House

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 ENGAGE
GUIDE QUESTIONS

1. What are those pictures?

2. Do you want to achieve those
things?
3. How will you achieve those things?
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 EXPLORE
FAKE VS REAL

Directions: Look and analyze the two pictures on

each item. Identify which is the authentic product.

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 EXPLORE

A B
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A B
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A B
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A B
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Guide Questions:

1. How did you know which is

real and fake item?

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 EXPLAIN
Consumer education

It equips an individual to be capable of making

informed decisions when it comes to purchasing
products. It is also a way of informing the
consumers about their rights so they can protect
themselves when they are dealing with bogus
sellers.
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 EXPLAIN
TWO FORMS OF CONSUMER EDUCATION

Formal Consumer Education - In this form the consumer will

attend formal training, seminars and programs that will help
them to understand their rights as a consumer.

Non-Formal Consumer Education – It forms the consumers in

a form of articles, advertisements, tests and special exhibit.

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 EXPLAIN
Advantages of Consumer Education
1. Consumer education helps a person in
making proper purchase. It enables the
consumer in making right selection.

2. Consumer education familiarizes the

consumer with the problems which he faces
while making purchases. This education
inculcates the logical viewpoint in him.
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 EXPLAIN
Advantages of Consumer Education
3. Consumer education provides the con­sumer full
information of marketing con­ditions like various sources of
purchasing a particular commodity, from where to get cheap
and best goods, the shops providing additional facilities, and
to latest products. All these information enables him in taking
right decision regarding shopping.

4. Consumer education familiarizes the consumer with

various standards of standardization and their markings.

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 EXPLAIN
Advantages of Consumer Education

5. One of the most important uses of con­sumer

education is that it familiarizes the consumer
about the various acts enacted by the
Government from time to time. Consumer
education helps the consumer in getting
maximum satisfaction by proper utilization of
his money and leads a better living standard
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 EXPLAIN
Possible Mistreatment Cases to the Costumer
1. Frauds are committed against consumers like adulteration,
misbranding, deceptive labelling and untruthful advertising.
 Adulteration - the act of debasing a pure or genuine product
by imitating or counterfeiting it or substituting an inferior
article for a superior one.
 Short weighing - or short-contents- involves manipulation of
scales for weighing.
 Mislabeling or misbranding- exist when deceptive information
is displayed or written or upon product’s immediate container,
package or wrapper; or when analysis of the contents shows that
these do not conform to what appears on the label.
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 EXPLAIN
Possible Mistreatment Cases to the Costumer
2. Business organizations, on the majority,
ignore consumer interest.
3. Selling and advertising appeals are too
emotional.
4. Buying process.
5. The existence of communication gap between
manufacturers and consumers on the use, care,
performance and quality of the product.

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 EXPLAIN
Forms of Consumers
Direct Consumers
History tells us that at the very early stage of
civilization producers produced all the basic needs of
life for themselves and their families. All the basic
needs like food, clothing and shelter they produced
for their own and their family’s consumption. Hence,
the producers were producing goods for their self-
consumption. Thus, they were called as direct
consumers or direct producers also.
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 EXPLAIN
Forms of Consumers
Consumers by Exchanging Products

With passage of time and civilization people

understood the benefits of exchange. Hence, they tried
to specialize on a particular or few products and then
tried to exchange the product with the other
product(s). The exchange started with barter system
and now continuing with monetary system.

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 EXPLAIN
Forms of Consumers
Modern Consumers

These consumers only go to the market to buy the

goods and services available in the market through
money only. Here, the producers are also producing
goods or services directly sent to the market for the
consumers. These consumers buy all the goods and
services in lieu of money. The modern consumers are
the outcome of monetary system.
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 EXPLAIN
IMPORTANCE OF CONSUMERS
Encourage Demand

Consumers are the main source of demand for all the goods.
The producers of industrial goods or the producers of
agricultural products are all producing the various items
according to the demand in the market. According to Prof.
Marshall, it is the demand which controls the production or
market. Hence, the consumers create demand in the market
and producers produce goods or services accordingly.

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 EXPLAIN
IMPORTANCE OF CONSUMERS

Create Demand for Various Products

The different consumers have different types of

demand or a single consumer can also demand
different types of products. These will
encourage the producers to produce various
types of products in the market.

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 EXPLAIN
IMPORTANCE OF CONSUMERS
Increase Demand for Consumer Goods

Consumers create more demand for all the types of consumer

goods, like durable, semi- durable and perishable goods.
Durable consumer goods include furniture, utensils,
televisions, etc. and for semi-durable goods like clothes,
books, shoes etc. On the other hand, perishable goods like
bread, butter, vegetables, fruits etc. are all demanded by the
consumers for their consumption purposes. Naturally, all
these create an atmosphere to increase demand for consumer
goods.
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 EXPLAIN
Positive Responses of Companies to Consumerism

 Better communication with consumers.

 Consumer's "Right to be heard"
 More and better information for
consumers.
 Product improvements.
 More carefully prepared advertising.

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 EXPLAIN
CONSUMER RIGHTS
1. The right to basic needs
This right guarantees survival, adequate food,
clothing, shelter, healthcare, education, and
sanitation.

2. The right to safety

This is the right to be protected against the
marketing of goods or the provision of services that
are hazardous to health and life.
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 EXPLAIN
CONSUMER RIGHTS
3. The right to information
This is the right to be protected against dishonest
or misleading advertising or labeling and the right to
be given the facts and information needed to make an
informed choice.

4. The right to choose

This is the right to choose products at competitive
prices with an assurance of satisfactory quality.
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 EXPLAIN
CONSUMER RIGHTS

5. The right to representation

This is the right to express consumer interests in
the making and execution of government policies.

6. The right to redress

This is the right to be compensated for
misrepresentation, shoddy goods or, unsatisfactory
services.
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 EXPLAIN
CONSUMER RIGHTS

7. The right to consumer education

This is the right to acquire the knowledge and
skills necessary to be an informed customer.

8. The right to healthy environment

This is the right to live and work in an environment
that is neither threatening nor dangerous and, which
permits a life of dignity and well-being.
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 EXPLAIN
CUSTOMER ANALYSIS
STEP 1: You first need to identify who your
current customers are. The more detailed
understanding you have of your customers the
better. This one group of customers should then
be split into sub-groups that have similar traits
and motivations. You can also identify target
customers you are not yet reaching.
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 EXPLAIN
CUSTOMER ANALYSIS
STEP 2: Customer analysis must then show
what the needs of these different customer
groups are.
STEP 3: You then need to work out what bridges
these two, identifying how the company’s
products meet the needs of each customer
group. How do you provide solutions to their
pain points?
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 EXPLAIN
SEGMENT THE GROUPS
You cannot undertake an accurate customer analysis
without segmenting your audience into groups whose
members are homogenous while being distinct from
other groups. Your segmentation criteria should be:

Measurable: Your analysis should identify the size

of a market segment so that you can decide to what
extent efforts should be focused on the segment
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 EXPLAIN
SEGMENT THE GROUPS
Distinguishable: Observable differences that are
clearly defined must exist in order to characterize
segments

Substantial: The market needs to be large enough to

justify segmenting, with each segment substantial
enough to make it worthwhile

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 EXPLAIN
SEGMENT THE GROUPS
Financial: There will be additional costs when
marketing to multiple, separate groups, so the
predicted income must exceed these costs

Accessible: Your marketing messages should be

accessible to each market segment. Different groups
will respond better to different forms of advertising

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 EXPLAIN
HUMAN NEEDS, VALUES, GOALS, AND STANDARDS

Consumers purchase products according to their

needs and wants. In order to understand this behavior
one must deal with how the human mind works.
Consumers may vary in their shopping habits,
standards or budget but they will still end up
purchasing certain needs. This was proven true by the
research conducted by some famous psychologists.

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 EXPLAIN
ABRAHAM MASLOW
Abraham Maslow was a psychologist, the title derived from
the Latin word “psyche”, meaning mind. A psychologist asks
questions and makes observations to determine how a person
thinks and how they behave.

With this, Abraham Maslow was able to come up with the

hierarchy of needs. According to Merriam Webster Dictionary,
Hierarchy is a graded or ranked series. This term was
combined with the word needs which means necessary or
necessities.

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 EXPLAIN

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 EXPLAIN
SIGMUND FREUD
Sigmund Freud, the father of psychoanalysis, was a
physiologist, medical doctor, psychologist and influential
thinker of the early twentieth century.
He referred to a person’s needs and instincts as their id. The
action they took to satisfying those needs was called the ego.
Their conscience, which guided the action of the ego, was
called their superego. Freud argued that the 3 parts should
always be in a state of dynamic equilibrium (balance) and if
they became unbalanced the person might suffer from
psychological difficulties or even mental illness.

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 EXPLAIN

Values was defined as the principles that help

you to decide what is right and wrong, and how
to act in various situations. Sigmund Freud,
Jean Piaget and Lawrence Kohlberg share their
theories to show how people act according to the
values they have.

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 EXPLAIN
JEAN PIAGET
Psychologist Jean Piaget, developed a two part theory on how
morality develops.
Part 1: The first stage of moral development, called moral
realism, emerges during middle childhood. Rules are real, and
must be followed strictly as if they are ‘set in stone’. Rules
are ‘black and white’.
Part 2: The second stage is called moral relativism and
develops later. At this stage, children understand that rules
are created and agreed upon cooperatively by individuals…
and can be changed if necessary. Rules may have some
‘shades of gray’.
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 EXPLAIN
LAWRENCE KOHLBERG
Psychologist Lawrence Kohlberg, 1927-1987, expanded Piaget’s work into his own 6
stage theory. In his research, he read stories to individuals and asked them to judge
the character’s behavior as moral or immoral.
Level A: Pre-Conventional Moral Reasoning
Stage 1: Obey rules to avoid punishment’
Stage 2: Obey rules to have favors returned
Level B: Conventional Moral Reasoning
Stage 3: Conform to win the approval of others
Stage 4: Conform to avoid disapproval of others
Level C: Post-Conventional Moral Reasoning
Stage 5: Abide by laws for the community’s welfare
Stage 6: Abide by ethical principles that may exceed society’s laws or
expectations
Kohlberg believed less than 25% of all people reach level 6. He gave Jesus, Gandhi,
and Martin Luther King, Jr. as examples

TLE 807 CONSUMER EDUCATION

 EXPLAIN

What are "goals"? A goal is some point you want to reach

within your value system.

There are 2 types of goals:

1. long term goals; they make take months or years to

achieve
2. short term goals; they may be accomplished in hours or
days

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 EXPLAIN

TO ACHIEVE GOALS, MANAGE RESOURCES!

There are three categories of resources available to you to use
in reaching your goals:
a. HUMAN RESOURCES
b. MATERIAL RESOURCES (things)
c. COMMUNITY RESOURCES

Procrastinate means to “put things off” until another time.

Procrastination stands in the way of reaching goals.

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 EXPLAIN

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 EXPLAIN
Standard is defined as a rule or principle that is used as a
basis for judgment or it could be something or someone
considered by an authority or by general consent as a basis of
comparison; an approved model.
PRODUCT STANDARDS: ITS OBJECTIVES
 To upgrade the quality of Philippine products.
 To protect and safeguard the interest of consumers and
public.
 To promote and improve manufacturing efficiencies.
 To instill standards and quality consciousness among the
Filipino people.

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 EXPLAIN
BENEFITS OF STANDARDIZATION
 Defines fitness for use.
 Enhances product competitiveness.
 Increases domestic and export trade.
 Protects consumers and environment.
 Promotes product interchangeability.
 Simplifies communication.
 Promotes economy in use of resources.
 Facilitates transfer of technology.
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