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Consumer - Any individual or institution that uses goods and services Budget A plan/ statement outlining a consumers income and expenditure for a specific period. Budgeting The process of balancing income with expenditure Saving the unused portion of the income of an individual, business or government Goods Any product that can be used to satisfy some desire, needs or wants. Services Intangible products that are not goods such as Education, Medical Treatment, Transportation, Banking etc... Demand The amount of goods which consumers are prepared to buy at a given price at any given time. Supply The quantity of goods and services which sellers put on the market at a given price Disposable Income the money remaining for an income earner to spend on goods and services after taxes and other compulsory payments have been deducted. Income The payment one receives for ones services, labour, property or investments. Investment The act or process of using ones money to buy bonds, shares, mutual funds, stocks, life insurance, and land in an attempt to make a profit in the future. Bonds Long-term loans to a government or business Ownership Exclusive right to enjoy, occupy, possess, rent, sell, use, or even destroy an item or property Pricing Fixing a money value to a thing to be bought or sold. Marketing The act of engaging in activities that educates consumers about goods and services in order to persuade them to buy them. Thrift the wise and careful use of money and possessions in order to get the maximum benefits from them. Credit union a financial institution owned and controlled by its members with the purpose of providing credit/loans at competitive rates and offering other financial services to its members.
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Black market A system used by people to illegally buy and sell goods that are otherwise scarce, banned or difficult to get hold of. Hire purchase A system or method of buying goods through making regular installments while enjoying the use of the goods. However, ownership of the goods does not pass to the buyer until full payment of the loan. Dumping the act of a manufacturer in one country pricing a product below its cost of production in another country. Electronic Commerce (E-commerce) transactions in which consumers and businesses order and pay for goods and services on the internet. Securities are usually negotiable financial instruments representing financial value, for example, bonds, common stocks, shares and treasury bills. Dividend A share of profits issued to share- holders Exchange rate The value of the money of one country compared to the money of another country. Devaluation an official reduction or substantial drop in the exchange value of a currency by lowering its value relative to the currencies of other countries. Inflation The persistent

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Goods can be categorized as free, economic, consumers or producers goods. Free goods - These are goods that are available in unlimited quantities and do not command a price; sunlight, air, rain, water are all examples.

Personal Loans Loans are sums of money that has to be repaid in regular installments with interest. Loans most time takes the form of cash, but also may be in the form of overdraft. Loans are usually obtained from institutions such as banks, finance corporation or credit unions. Note however that there are some basic criteria that one must satisfy in order to be qualified for a personal loans, the varying institutions usually draft their own criteria.

Credit Card A small plastic card issued by a financial institution which enables the consumer to purchase goods and services or pay bills electronically without paying cash or a cheque at the point of purchase. All credit cards are so designed that when swiped in a machine, it is instantly linked by a telephone line to the card holders bank. Each card holder is entitled to a specific amount of credit from the bank, hence, if the credit limit is exceeded, the card will automatically declined. If the card is accepted at the point of transaction, a statement will be issued, requiring the holder of the card to sign receipt of the credit. The value of the purchase will then be automatically credited to the sellers account. It is important that one be aware that interest will be charged to the credit card holder if the monthly balance on the account is not paid on or before the due date.

Hire purchase agreement This is a contractual agreement between two parties; a) b) the hirer the person who takes the goods for use the owner the person who lends or rent the goods.

Under this arrangement, the consumer hires a good for a fixed period of time by paying a deposit on the good and agrees to pay the balance of the purchase price with the interest in regular installments over a period of time. The goods become the property of the hirer upon full payment for them.

Factors which Influence Consumer Demand for Goods and Services

Size of income: It is no surprise that the size of the consumers income will influence the demand for goods and services. There is direct co-relation between an increase in the level of income and an increase in the demand for goods and services. The consumers disposable income plays a major role in determining what to buy and in what quantity. As a consumer income rises, the result will more than often be a rise in consumption as the consumer will be able to buy more. Taste patterns: demand heavily rely on the taste patterns of people. A change in taste will bring about a change in the demand for goods and services. In Jamaica, many of the people has a overwhelming taste for jerk chicken, if the consumers develop a greater taste for barbecued chicken, then the demand for jerk chicken will decrease and an increase for barbecued chicken. Hence, the taste patterns of the consumers heavily influence the demand for goods and services.
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Savings: A consumer who is committed to savings will always think twice before spending. It is therefore safe to surmise that ones saving pattern affects his/her demand for goods and services. A consumer committed to savings will be more a tuned to buying the necessities needed for everyday survival , rather than spending randomly. Credit facilities and conditions: The presence of credit facilities will influence the customer buying decision and afford him /her the opportunity to purchase goods and services on credit without having to consider his/her financial constraints or low income. Fluctuations in supply: Expectations of consumers regarding the supply of goods also influence their demand. If consumers anticipate a shortage in supply due to some reason, the demand for the goods will rise. Contrarily, if consumers expect an increase in supply, the demands for the good will fall. Pricing: Pricing is one of those most important factor that influences demand for goods and services. It is a general attitude for the demand for a particular good or service to increase when the price falls, contrastingly, if the same price for the said goods and services increases, the demand for the commodity contracts. This is however not a general rule as it relates to pricing and consumer demands. Advertising: Advertising provides information to consumers particularly through the mass media. Consumers are therefore treated to an array of choices about goods and services. Advertisement therefore increases the demand for goods and services through its persuasive nature and creates demand for new products on the market by providing valuable information to the public. Advertising is one of the most effective tools used by manufacturers/producers to increase the demand for their goods and services. Consumer Expectations: Consumers expectation, regarding future prices of goods and services influence their demand to a large extent. If consumers anticipate an increase in the prices of goods and service due to some reasons, the demand for those goods and services will rise to avoid more prices in the future.

How Consumers use Modern Technology to Conduct Transactions.

Consumers use the following modern technology to conduct business transactions: Tele-banking; ATM; E-commerce; Internet banking; Debit and credit cards. Tele-banking: Some customers cannot be bothered with going into a financial institution to transact businesses, instead, they make use of the telephone to check on account balances and last transactions, transfer funds between accounts, make credit card payments and make payments of bills. This service offered by financial institutions constitutes. ATM automated teller machine. These are computerized telecommunications devices that make it possible for the clients of financial institutions to perform financial transactions in public space twenty four hours a day without the need for a bank teller or cashier. ATMs are also called automatic banking machines (A.B.M).

Individuals who hold an ATM card issued by their banks are identified by inserting the plastic ATM card with a chip that contains a unique card number with security information. The user upon inserting the card into the machine will be required to enter his / her Personal Identification Number(PIN) which will then allows the user to access his/her account. The ATM affords the customer the following benefits upon accessing their bank accounts:
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Cash withdrawals Deposit money to account Credit card cash advances Purchase pre-paid cell phone credit Check in on account balances

E- commerce: This has become and becoming a booming trend in todays society. Electronic commerce is not merely confined to financial and commercial transactions of buying and selling products or services over the internet and other computer networks. Its goes much further to include the processes of developing, marketing, selling, delivering , servicing and paying for products and services over electronic systems internet and other computer devices. Consumers are making extensive use of this modern technology because of its 24-hour availability and global reach, right inside their home.

Internet banking: This is a system that allows customers to conduct financial transactions on a secure website operated by their virtual bank, building society or credit union.

There is a steady increase in internet/online banking because customers can:

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Check their balance this allows for the customer to check on his/her account balance at any time, making him/her aware of how much money is at his/her disposal. This service is made available to members of financial institutions after signing up with the institution for online banking. Transfer funds: Some customers open different types of accounts connected with their online banking services. They may have a checking account and a savings account. Here the customer can transfer funds between the accounts at anytime without interference from the human resource (bank teller). The customers navigate through the accounts and select the transfer button which will open up an application that will lead the customer through the process. Pay Bills: Online banking presents a great convenience for customers to set up accounts and add the relevant account numbers and addresses of their respective billers so that they can send whatever amount they owe. Pay credit card bills: Customers sometimes make use of the online banking service to pay their credit card bills in an effort to circumvent the process of going into the bank.

Debit Cards: These are plastic cards issued by financial institutions to their customers for easy access to their bank accounts. Debit cards allow for instant withdrawal of cash, usually from a automated teller machine located in public places. These cards are also used to make purchase of goods and services by swiping the card in a machine at the retailer; unlike the credit cards, the goods or services paid for using debit card is transferred immediately from the card holders account.

The Role of Government and other Agencies in Protecting and Educating Consumers

Bureau of Standards: This organization is primarily concerned with setting standards that will benefit and serve the best interests of the consumers. Some of those standards include, but not limited to:

THE COMPULSORY
standards for labelling and packaging of goods outlined by the Bureau of standards include: Label must be in English; Brand name of product clearly identifiable; Indicate size, weight; Show contents or composition of the product; Name and address of the manufacturer.

The Bureau of standards seek to protect the unsuspecting consumers by making checks on products that are sub-standard entering the country, resulting in hundreds of products being disposed of before reaching the shelves.

There are varying devices used by manufacturers or suppliers to exploit consumers. The following are some of those devices and knowing about them will reduce the likelihood of such to happen to you:

False Claims on Advertisement Manufacturers will do just about anything to have their products sold, advertisement is one sure way of luring customers to their shelves. This they do by making claims in the advertisement that is very enticing such as making their products more that what they actually are. The customer who falls to such advertisement eventually realize that all the claims mentioned in the advertisement is far from the truth. This constitutes false claims on advertisement. False Sales This scheme is devised with the intention of having the consumers purchasing goods or services that they do not really need. This is done by offering reduced prices on goods and services, when the sale price might still be higher than the price before the sale was announced. Black Marketing This is an unfair act where goods with ceiling prices established by law are sold above the control price. Hoarding In a situation where goods are in short supply, sellers remove the scarce goods from the shelves and sell to consumers who are willing to buy above certain amount. This practice sometimes influences price increase. Bait-and-switch Consumers suffer exploitation when sellers intentionally advertise goods at a low low price and upon enquiry of the said goods, are informed that they are no longer in stock, thus giving the seller an opportunity to persuade the consumer to buy a substitute, usually at a higher price.

CONSUMER RIGHTS AND RESPONSIBILITIES RIGHTS Right to safety- protection from products and services that can prove harmful to the consumers health Right to Choose to access a variety of goods and services at competitive prices Right to be informed the right to information that ensures that all product statements are accurate and truthful RESPONSIBLITIES The consumer has the responsibility to use the products and services safely, following all necessary instructions and guidelines The customer has the responsibility to choose wisely The customer has the responsibility for analyzing and using information about products wisely

Right to consumer education to have access to programs and information that help make better buying decisions. The right to be heard- by government in the creation of laws and regulations that may affect the consumer Right to a healthy environment- to live and work in an environment that does not endanger their health

The customer has the awesome responsibility of learning about the changing nature of products

The consumer has the responsibility of expressing concerns to those who can help The consumer has the responsibility of making choices that minimize the environmental impact of their purchase on others.

Shopping wisely for goods and services Caribbean families have adopted good shopping and spending practices in order to become shifty. Good spending and shopping habits will go a far way in helping the consumers to get the maximum benefit from their money. Let us go shopping!
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Distinguish between needs and wants; Before going shopping, make a list of the goods you need so as to avoid impulsive buying; Make a budget and carry a pencil and or calculator to ensure that you remain within your budget; Avoid shopping too late , instead shop early in the morning so as to get the best in perishable foods; If possible, buy items in bulk; Check carefully the weighing and measuring equipment to ensure you get the quantity that you paid for;
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Watch the cash register at the check out counter and take time to count your change properly; Ensure that you collect your receipts and warranties on goods in the even t that the good is faulty and you want redress; Check expiry dates on goods before purchasing them; Compare prices; Avoid too much credit as a result of impulsive buying; Carefully examine goods and their packaging to ensure that they have not been damaged or tampered with; Ensure that as you shop, you save a portion of your income for unforeseen expenditure.

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Remember, a thrifty consumer save more, get value for their money become more responsible and enjoy a better standard of life.

Use and Care of Possessions A thrifty consumer understands the concepts of using wisely and caring for possessions; the lack thereof will lead to continuous replacement and depletes the disposable income available. Hence, consumers are advised to use and maintain possessions properly by following the manufacturers instructions for the care and use of the items.

Conservation and Recycling Conservation and recycling are two very important tools employed by thrifty consumers. In fact, every unique member of the family, children and parents, ought to explore conservation and recycling strategies at home and in their neighborhood to avoid wastage. The following are strategies that can be employed in and around the home: In the Kitchen
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Use cloth napkins and table cloths instead of paper; Use leftover foods to create tasty dishes and fabrics to make dcor; Reduce wastage of utilities by ensuring that pipe taps are properly secured, turning off taps when not in use and unplugging electrical wires when out of use;
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Buy a set of plastic cups and dishes for outdoor so you dont have to buy paper plates and cups for outdoor parties;

In the Bathroom
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Purchase and use toilet paper that is made from recycled content; Install a showerhead and toilet that conserve water; Depends on what you are doing, if washing, use a container to hold the water so as to avoid wastage.

Dining/Living/Family Room
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Use scrap paper or waste paper to write notes or take message; If you are printing or copying something for personal use, which does not have to be clean and immaculate, consider using the flip side of an old document or letter you got in the mail; If you are writing a research paper, letter or some other important school paper, do your proof reading and spell check on the screen before printing the document. This is a sure way of avoiding wastage of material; Purchase recycled paper and office supplies such as toners which can be refilled instead of buying a completely new one; Pass on used clothing to younger siblings; Maintain possessions in the room by properly following the manufacturers manual for care and service.

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On the Streets
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Drive your car at or below the speed limit to conserve fuel Check to ensure your car tires are filled to the appropriate pressure as stipulated by the manufacturers or user manual. Service vehicle as recommended by the car specialist

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The following strategies could be pursued in an effort to deal with the problem:
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Home gardening produce more of their own food rather than purchasing everything. Explore self employment such as identifying and offering a needed good or service in their neighbourhood or community lawn maintenance, baby sitting, small business, etc. Reduce expenditure to this speaks to purchasing things that are necessary needs, as opposed to buying that which is wanted (something you can do without). Practice recycling of household products/items.

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THE EFFECTS OF GLOBALIZATION AND TRADE LIBERALIZATION

The effects of globalization and trade liberalization can prove advantageous as well as disadvantageous for consumers. The two terms/issues are interrelated. Globalization is highly facilitated by technology across the world. One would therefore agree to the following as being vehicles for globalization:
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Internet Music Television Fads and fashion

Consumers have a major role to play if they intend on reaping the benefits of globalization. The responsible consumer should:
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Seek information on globalization and trade liberalization; Be informed and educated on responsible consumerism Examine dominant foreign cultures and traditions and strive to preserve and maintain aspects of their own Consume in a sustainable manner

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HOW CONSUMERS CAN CONTRIBUTE TO THE SUSTAINABLE DEVELOPMENT OF THE REGION

The consumers have a very important role to play in the sustainable development of the Caribbean region. The following are ways in which the common person can play his/her role:

Every man, woman, boy or girl has a unique role to play in the integration process. It is in this regard that being informed on the importance of cooperation within the region becomes paramount. Therefore, an informed citizen will see to the achievement of regional integration especially as it relates to sustainable developments.

An external factor in the integration process is the challenges of trade liberalization. This has allowed the floodgate to be opened for extra-regional imports to the Caribbean, in this regard, the Caribbean people must therefore and is required to support regional producers in order to ensure their survival and the economic development of the region.

As a concerned citizen of the Caribbean community, it is ones role to foster the continued development of local and regional businesses by investing time and capital. Such facilitates the development of the region.

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Every individual has a key role to play in the conservation process of our region. The Caribbean is blessed with precious resources inclusive of land, water, sunlight, minerals, fauna and flora, among others, but there has been a steady decline in its correct usage. It is dependent upon this generation to ensure the sustainable development of our precious resources.

Other ways in which the consumer can contribute to sustainable development in the region includes

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