FCS 391 Exam 1
According to the textbook, it is estimated that ___ percent of purchased products are never used.
12
The Consumer Price Index (CPI) sets a base year equal to 100 for comparison. The current base year is ____
1982
Consumer durables are products bought by consumers that are expected to last __ years or more.
3
The Consumer Expenditure Survey is collected from a national sample of _______ families and provides detailed information on _________.
30,000; Spending Habits
Approximately ____% of all US families are considered 'traditional households' by the US Census Bureau
35
The Consumer Price Index (CPI) measures price each month of a fixed basket of _____ durable and non-durable goods.
400
In the US, women account for approximately ______ percent of spending
80
It is estimated that ______ percent of new products fail.
90
______ percent of Americans state they have a religious affiliation
90
Scarcity
A condition in which there is an insufficient amount of supply or a shortage
Depression
A drastic and long-lasting decline in the economy with high unemployment, falling prices, and decreasing business activity
Poison Squad
A group made up of young adults who ate unadulterated food and also ate food with additives over a five-year period
Public Policy
A plan or decision by government to act in a certain way or direction such as to keep products safe or open up competition
Consumers Union Web Watch
A project to make web sites more accountable for that accuracy off their information
Good
A tangible object, something you can see and feel, like soap
Environmentalism
Concern for the environment
In a _______ economy, most decisions about what, how and for whom to produce are made by those who control the government.
Command
Consumer confidence is reported by the __________ Board and the _______________.
Conference; Survey Research Center
President Kennedy
Considered a strong pro-consumer president
Three of the Most Prominent Consumer Organizations
Consumers Union; National Consumers League; American Association of Retired Persons (AARP)
Consumer Sovereignty
Consumers decide which goods will survive and producers can't dictate consumer tast
Consumer-In-Control Movement
Consumers want more say about products and services
Where does consumption take place?
In a variety of places
Consumerism
The belief that goods give meaning to individuals and their roles in society
Economic/Financial Well Being
The degree to which individuals and families have economic adequacy and security
Harvey Wiley
The father of modern economics
Pure Food and Drug Act
The first federal law specifically enacted to protect consumers
Echo Boomer Generation
The people born between 1977 and 1994
Socialization
The process of learning to interact with others, forming cooperative relationships, participating in society, and learning the ways of daily life.
The Gilded Age
The turn of the 19-20th century was a great time of promise
Level of Living
The way consumers are actually living
Monopoly
There is only one producer and no substitute
Needs
Things that are deemed necessary
Wants
Things wished for or desired
What do Consumer Organizations have in common?
To assist and protect consumers and provide consumer advocacy
Food and Drug Reform
Harvey Wiley's work paved the way for it
Non-Traditional Households
Have Unmarried or Single Parents
Theory of Mental Accounting
How people frame or put into context their buying and selling
What quantifies well-being?
Human Development Index (HDI)
Technological Obsolescence
If a product outdates soon after purchase or before it is worn out
Cosmers
Individuals or groups such as families who obtain, use, maintain, and dispose of products and service, to increase life satisfaction and fulfill needs are known as
Service
Intangible actions like work done to satisfy or provide for others
What are some of the characteristics of Generation X's consumer behavior?
Likes low prices and a functional look
In a ____________ economy exchanges are controlled by marketplace forces of supply and demand, rather that outside forces such as government control.
Market
Capitalism
Market Economy
The Goal of Business
Maximize Profits
Caveat Emptor
May the Buyer Beware
Demographics
Refer to the data used to describe populations or subgroups
An Example of Opportunity Cost
Rent instead of movies
Rights in Kennedy's Consumer Bill of Rights
Safety Be Heard Choose Information
Unlimited wants combined with limited supplies create _______, a condition in which there is an insufficient amount or supply.
Scarcity
E-Merchandise
Selling goods online
Consumer Power Model
Shows how all the components including the consumers, markets, public policy, and media fit together
Conspicuous Consumption
Someone pays an extremely high price for a product for its prestige value, leading to a much higher demand than a simple price-demand relationship would indicate
Economics
Study of or the science of production, distribution, and consumption
Two Parts of Enviornment
Technology and Economy
Adam Smith
The Founder of Modern Economics
The Jungle lead to
The Meat Inspection Act
Scientific Method
The application of scientific knowledge to useful purposes
Physical Well-Being
The right to safety and to goods and services that provide for one's physical needs
Consumer Economics
The study of how people deal with scarcity, fulfill needs, and select among alternatives goods, services, and actions
Demography
The study of human populations including characteristics such as size, growth, density, distribution, movement, and other vital statistics
Pollution
The undesirable change in biological, chemical, or physical characteristics of air, land, or water that harms activities, health, or survival of living organisms
What distinguishes the Echo Boomer Generation?
Their computer fluency
A person acting in his/her own rational self interest is selfish
True
Economist generally agree that consumers are rational and acquisitive.
True
Information search is a good idea but can be costly
True
Public policy anticipates potential areas of conflict and deals with them before, during, and after they have happened
True
Theories can be measured
True
There is a ______ trend in buying online.
Upward
Mass Consumption
When millions of consumers make similar choices
Rational Self Interest
When people make choices that will give them the greatest amount of satisfaction at a particular time based on the information they have at their disposal
Upton Sinclair
Wrote The Jungle
Ralph Nader
Wrote the book "Unsafe at Any Speed"
Five Parts to the Consumption Process
Awareness Thinking Planning Implementing Activity Evaluation
Inflation
A steady increase in prices
Who came up with the 'invisible hand' theory?
Adam Smith
Communism
An economic system in which nearly all capital is collectively owned
Cease and Desist Order
An order to a business calling to cease "unfair or deceptive acts or practices"
Under George W. Bush, mergers escalated for several reasons
Antitrust legislations was less informed Deregulation spread Larger companies benefited from mergers A weekend economy made small companies willing to sell
Law of Supply
As the supply of a good or service goes up, the price comes down
Theory of Reasoned Action
Behavioral Intentions are based on a combination of the attitude toward a specific behavior, the social or normative beliefs, and the motivation to comply with the normative beliefs.
Rachel Carson
Biologist and author of Silent Spring, is the founder of the modern environment movement
Consumer Mediated Environments (CME)
Buying/Selling over the internet
The two parts of E-Commerence
E-Merchandise E-Finance
Consumer Style (Seven Factors)
Economics History Culture Personality Biology/Environment Technology Politics
What are the three qualities of a successful entrepreneur?
Energy, Foresight, and Sheer Drive
Lyndon B Johnson appointed ________ to the newly created post of special assistant for consumer affairs.
Esther Peterson
Parts of the Business Cycle
Expansion, Recession, Recovery
President Clinton signed _____________ which had a large impact on trade and employment in certain industries, as well as an impact on prices
North American Free Trade
Opportunity Cost
One alternative is chosen the other
E-Finance
Online Banking
Generation X
People born between 1965 and 1976
Bricks and Clicks
Physical and online stores
Maslow's Hierarchy of Needs
Physiological Needs-> Safety -> Belonging and Love -> Esteem-> Self-Actualization Lower needs have to be met before higher needs
Consumer Movement
Policies aimed at regulating products, services, methods, and standards of manufacture, selling, and advertising in the in the interest of the buyer
Antitrust Laws
Prohibit business monopolies and are aimed at establishing and maintaining competition so consumers get a fair price
What is behavioral economics or behavioral finance or neuroeconomics?
Psychological Buying
Bureau of Labor Statistics (BLS)
Publishes the CPI