Consumer Econ Survey

All of the following are examples of national consumer organizations

-ACCI -AARP -SOCAP

Which of the following is a reason that mergers escalated during the early 2000s?

-antitrust legislation was less enforced -deregulation spread -large companies benefited from mergers -a weakened economy made smaller companies more vulnerable and willing to sell

Which of the below components is a part of the exchange process between consumers and markets.

-consumer actions affects markets -consumers -markets

Information process order

-information sent -information received -transaction negotiated -transaction completed

1993 Truth in Savings Act

-requires that financial institutions report annual percentage yield (APY) in the same way

Four Stages of Product Development

1. Introduction 2. Growth 3. Maturity 4. Dormancy/Decline

FTC Act

Act prohibits the deceptive advertising and unfair and deceptive trade practices. The FTC Act was used in the battle against trusts. Examples of early trusts (combinations of firms that got together to reduce competition and control supplies and/or prices in an industry or region) included sugar, whiskey, matches, and fuel.

Who is the father of modern economics?

Adam Smith

Consumption Process

Awareness, thinking, planning, implementation/acting, evaluation

____________________ is the perceptions that consumers have formed about a brand, such as a brand being perceived as targeting the young.

Brand Image

____________________ is the tendency to accentuate the benefits or reinforce information that the consumer made a good purchase and to downplay the deficits.

Cognitive dissonance

Life Stage 1

Consists of unmarried and married individuals under 35. This can be further subdivided into those under age 25 and those between 25 and 35 years

means the complex purchasing behavior of consumers—the individuals, families, & households that buy goods and services for their personal consumption.

Consumer Behavior

____________ is the total cost involved in owning or using a product. It is also considered the non-price cost.

Consumer Cost

_______________ is most common in countries that do not honor international trademark/copyright laws.

Counterfeiting

Describes those whose prime age is 18-35, with the philosophy of buying from companies that are transparent about: how and where their products are made, promote the environment and recycling, support causes.

Ecoshopper

Life Stage 2

Encompasses married or single parents with youngchildren. Whether by adoption, birth, or remarriage, adding children brings with it changes in lifestyle and consumption

This act requires that consumer goods be clearly identified in easily understood terms.

Federal Fair Packaging and Labeling Act of 1966

Examples of Piracy

File Spoofing Redirection Interdiction

Which of the following is NOT a type of relationships that individuals form with products?

Independence

want to know consumer purchase intentions so that they can make a forecast of sales of existing products or demand for those in development

Marketers

______________ reflects an individual's internal sense of autonomy and power and of what is right vs. wrong.

Political well being

1887 Interstate Commerce Act

Powers to regulate commerce was reserved to the states

concentrates on what consumers are thinking about & how they are behaving leading up to actually procuring a product.

Prepurchase

What stage of business cycle immediately follows a recession

Recovery

____________________ are collections of people that influence your decisions and behavior.

Reference groups

Life Stage 3

Security, safety, and a sense of community are high priorities. Middle aged single or married individuals, with or without children, make up this stage

Which of the below terms describes the largest, most likely group to purchase

Target Market

consumer price index

The ______________ measures prices each and every month of a fixed list ("market basket") of 400 goods and services (durables and nondurables) bought by the typical consumer.

economic or financial well being

The degree to which families and individuals have economic adequacy and security

psychological well being

The mental state of an individual within the family or other groups

physical well being

The personal safety and goods & services that provide one's physical needs

Social well being

The space of the family or the group provides for a sense of emotional well-being, caring, and working together.

consumption

The using up of products or goods is called ______________.

During times of war, concerns about consumerism typically take a backseat as the focus shifts from domestic policy to foreign policy

True

Sleeping giants are groups of people that are rapidly growing but have been mostly ignored by retailers.

True

Lifestyle

____________________ is how one lives their life and includes patterns of time use and living space. The term also involves what one thinks is important and how one spends their money.

Entrepreneurs

_____________________ pursue new business opportunities relentlessly without becoming deterred by the limited resources they initially controlled

Cybersquatting

_is the practice wherein deceptive people attempt to purchase and control websites that look like commercially legitimate sites.

Social Cognition

a type of awareness, examines the way individuals and governments regulate themselves and their behaviors.

Theory of Reasoned Action

behavioral intentions are based on a combination of the attitude toward a specific behavior, the social or normative beliefs about the appropriateness of the behavior, and the motivation to comply with the normative beliefs.

Rachel Carson

biologist and author of Silent Spring, is the founder of the modern environmental movement.

A _______________ is a unique name that identifies a product or a manufacturer.

brand

environmental, poltiical, spiritual well being

captures a layer of well-being, a sense of insight, and ethereal, intangible evolution not readily imparted by either social or psychological well-being as conventionally defined

refers to the premise that consumers decide which goods will survive and that producers cannot dictate consumer tastes.

consumer sovereignty

1998 children's online privacy protection act

establishes rules governing online activities

h

h

Conspicuous consumption

happens when a person pays an extremely high price for a product for its prestige value, leading to a much higher demand than a simple price-demand relation would indicate.

A _________________ may be made up of one person or many, but the trend is for the size to be smaller.

household

Technology

is the application of scientific knowledge to useful purposes.

caveat emptor

let the buyer beware

exchanges are controlled by marketplace forces of demand and supply rather than by outside forces such as government control.

market economy

exists when there is only one producer and there is no substitute, such as there being only one airline or cruise ship line.

monopoly

Life Stage 4

older married persons and singles in the 65 years and older group are in this stage. Most are now on their own, with the exception of grandparents who are taking care of grandchildren full-time and those elders who are living with adult children

Every choice made means that something else is given up.

opportunity cost

Hierarchy of Needs most basic need

physiology

Theory of Mental Accounting

posits that people frame or put into context their buying and selling

Firms can use __________________ to give brands a specific and unique image or position in the minds of consumers within a target segment

product positioning

The role of ______________ is to make sure that exchanges are fair in terms of competition, labeling, advertising, access, and pricing.

public policy

In general, economist agree that consumers behave with ______________, the ability to reason, and _______________, a strong desire for ideas, things, and information.

rationality ; acquisitiveness

Ways that companies typically respond to competition include all of the following:

reduce prices introduce new product

Muckraker

refers to journalists, politicians, writers, and public speakers who search out and expose political or commercial corruption

Consumer Movement

refers to policy efforts aimed at regulating products, methods, services, and standards of manufacture, selling, and advertising in the interests of the buyer.

1986 Smokeless Tobacco Act

requires labeling of hazards on smokeless tobacco products and prohibits advertising of these products on television and radio

Unlimited wants combined with limited supplies create

scarcity

Demography

study of human populations, including characteristics such as size, growth, density, distribution, movement, other vital stats

Choice

the act of selecting among alternatives

Consumerism

the belief that goods give meaning to individuals and their roles in society

Philosophical well being

the healthy state of one's ability to think, acquire, reason, critique, & apply knowledge and paradigms

Consumer Economics

the study of how people deal with scarcity, fulfill needs, and select among alternative goods, services, and actions

A _____________ is a coordinated system of ideas and/or beliefs that can be measured.

theory

A ____________________ is a legal term that includes words, marks, or symbols that are legally registered for use by a particular company.

trademark

Prospect Theory

tries to explain choice under uncertainty and led to the idea of an aversion to loss

1990 Clean Air Act

updates 1970 act and establishes new pollution limits and standards for automobile, power plant, and cancer causing substance emissions

injurious consumption

when individuals or groups make consumption decisions that have negative consequences for their long-run well-being