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