SS.912.FL.2.3 Discuss that when buying a good, consumers may consider various aspects of the product including the product’s features. Explain why for goods that last for a longer period of time, the consumer should consider the product’s durability and maintenance costs.
SS.912.E.1.4 Define supply, demand, quantity supplied,and quantity demanded; graphically illustrate situations that would cause changes in each, and demonstrate how the equilibrium price of a product is determined by the interaction of supply and demand in the market place.
Samsung Electronics said Friday that the discontinuation of the Galaxy Note 7 would cost the company about $3 billion during the current and next quarters, bringing the total cost of the recall to at least $5.3 billion. The Note 7 discontinuation will cost close to $1 billion during the October-December period and an additional $884 million during the January-March quarter, the company said in a statement. [Associated Press]
You may have heard about the discontinuation of the phones that were catching on fire. What do you think about the company's decisions? How does this news affect your buying decisions? How does the media help protect consumers against faulty goods? How do government institutions help protect consumers against faulty goods? Read the following articles and consider the financial implications.
Consider the timeline of the company's response to the problems. Now conduct more online research. Check your sources. What do you conclude? Did they make a good decision to recall the phones?
SS.912.FL.2.3: Discuss that when buying a good, consumers may consider various aspects of the product including the product’s features. Explain why for goods that last for a longer period of time, the consumer should consider the product’s durability and maintenance costs.
SS.912.FL.2.7: Examine governments establishing laws and institutions to provide consumers with information about goods or services being purchased and to protect consumers from fraud.
Deborah Kozdras, Ph.D.