General Information

Title: Consumer Sovereignty

Subject Area: Social Studies/Economics

SOL 7.6 - Virginia Standards of Learning

The Students will explain the structure and operation of the United States economy as compared with other economies, with emphasis on:

• the basic concepts of free market, as described by Adam Smith, and of communism, as described by Karl Marx;
• the concepts of supply and demand, scarcity, choices, trade-offs, private ownership, incentives, consumer sovereignty, markets, and competition;
• private and public financial institutions
• the economic impact of consumption, saving and investment, and borrowing by individuals, firms and governments; and
• the differences between free market, centrally planned, and mixed economies.

Grade Level: 8

Lesson Topic: Consumer Sovereignty

Descriptive Overview: In a free enterprise system, the consumer determines whether any business succeeds or fails. Therefore, businesses compete with each other for the consumer-driven market of goods and services.

Advantages of Medium: The PowerPoint presentation will enhance the power of the customer.

Lesson Specifics

Lesson Objectives/Goals: The student will:

• restate the value of consumer sovereignty;
• give examples of the "power of the customer/consumer"
• understand the value of continuous improvement in business.

Assumed Skills or Prerequisite Skills:

• Students must be familiar with the unit vocabulary
• Students must know and understand the concept of a free enterprise system

Learning Environment: One computer for PowerPoint presentation.

Instructional Set

The teacher will facilitate the discussion and the brainstorm exercise. Students will participate in classroom discussion and brainstorm reasons why businesses must understand "consumer sovereignty" (and this, customer relations).

Gaining Attention: Not applicable

Orienting the Lesson: Not applicable

Stimulating Recall of Prerequisites: Not applicable

Key Questions:

1. What factors must businesses consider to attract customers and why?
2. What is the cost of poor customer relations?
3. What are some general improvement strategies businesses can practice on a continuous basis?

Teaching Strategies

1. Define consumer, customer, sovereignty, and status quo.
2. Brainstorm business strategies used to attract customers.
3. Discuss and list advantages that some businesses have when they practice improvement strategies to increase sales to those businesses that practice the status quo.
4. Discuss and list consequences of poor customer relations.
5. Discuss the slogan "The Customer Is Always Right" and its flexible meaning from a customer's and producer's perspective.

Terminology/Vocabulary:

Consumer
Sovereignty
Status Quo
Free Enterprise
Continuous Improvement
Customer

Practice: Students will maintain two column notes of the factors of successful business - customer relations.

Assessment:

• Classroom discussion on the concept of consumer sovereignty.
• Answer the "Key Questions."
• Student participation in the Customer Relations Worksheet.

Enhancements

Query local businesses, both large and small, and ask how they handle customer relations.
 

Extensions

Not applicable