Chapter 7 - Consumerism

What is consumerism?

An economic theory that suggests the more people buy, the better it is for the economy.

How does consumerism influence society?

It influences the decision making process of the gov., buyer, and seller.

What type of economies rely on consumerism to survive?

Capitalist economies (both mixed and market).

What are some factors that guide your behavior as a consumer?

Identity, values, health, safety, environmental impact, marketing, and job effects.

Cause Marketing

A promise to give money to Charities

Direct Selling

Take the store or the "Middle Man" out

Co-branding

Two brands agree to work together to market a new product

Earned Media

Unsolicited marketing publicity that can only be gained organically and is not paid for.

Standard of Living

Based on data and information that is quantifiable.

Quality of Life

More subjective and less easy to quantify. Is often taken for granted.

What is the difference between standard of living and quality of life?

Standard of living is based on measurable data (income, employment), while quality of life is more subjective (mental health, rights, relationships).

What is the role of government in health and safety regarding consumer goods?

Federal law requires health warnings to inform consumers and protect producers from liability.

What is the Canada Consumer Product Safety Act (CCPSA)?

A law that regulates consumer products that may pose health or safety dangers.

How does consumerism affect employment?

Purchases support jobs in production, supply chains, and retail sectors.

How does consumerism impact the environment?

It increases waste and pollution and can lead to environmental stress and resource overuse.

What is the sharing economy?

A system where access to goods/services is shared via online platforms (e.g. Uber, Airbnb).

What is a boycott?

Purposefully avoiding a product or company as a protest.

How does consumerism differ between Canada and the USA?

Canada has more market regulations; the USA has less intervention and more consumer choice.

What is GDP per capita?

The average economic output (goods/services) per person in a country.

What is Purchasing Power Parity (PPP)?

A comparison of standard of living between countries by assessing how much each currency can buy.