Economics: Notes on Consumer Role, Buying Principles & Consumerism

Resources available to consumers about a product

Internet, store, Tv ads, and magazines

Two types of resources

income and time

Discretionary Income

Money income a person has left to spend on extras after necessities have been bought.

Bait and Switch

An ad that attracts consumers with a low-priced product, then tries to sell them a higher-priced product.

Consumer rights

The right to safety, the right to be informed, the right to choose, the right to be heard, and the right to redress.

comparison shopping

Getting information on the types and priced of products from different stores and companies

Rational Choice

Choosing the alternative that has the greatest value from among comparable-quality products

Consumerism

Movement to educate buyers about the purchases they make and to demand better and safer products from manufacturers.

Competitive Advertising

Advertising that attempts to persuade consumers that a product is different from and superior to any other.

Informative Advertising

Advertising that benefits consumers by providing useful information about a product

Ethical Behavior

Acting by moral convictions about right and wrong

Consumer

Any person or group that buys or uses goods and services to satisfy personal needs and wants.

Generic Brand

General name for a product rather than a specific brand name given by the manufacturer.

Brand Name

Word, picture, or logo on a product that helps consumers distinguish it from similar products.

Warranty

Promise made by a manufacturer or a seller to repair or replace a product within a certain period if it is found to be faulty.