HACE 3100: Test 1 Notecards
89 Cards in this Set
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Injurious Consumption
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happens when individuals or families make consumption decisions hat will have negative consequences, affeting their quality og life in the long run.
--over 10 million people lose money because of gambling addiction, 10 million alchoholics, 80 million smoker,s
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Caveat Emptor
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May the buyer beware
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Abraham Maslow
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(1954) Humans have basic needs that have to be met before moving to higher order needs (see figure 1.1). In this hierarchy of needs, phsysiological needs such as hunger and thirst have to be met before safety, love, belingingess, esteerm
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Mark Olesen
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there is a relationship between money attitude and maslow's hiercarchy of needs. In each level of needs, has a money attitude related to it. For example:having money effects our esteem and safety.
---Not all individuals will have th same needs or combination of needs at the same time.
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What the last census revealed
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over 301 millions people in US and over 80 million households. Less than half are married,
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household
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all related family member and non related members share a housing unit.
--traditional (house wife kids under 18)= less than 35% of all US families
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fastest growing cities are far as population
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las vegas, phoenix, orlando
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Demopgraphy
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The study of human populations including characteristics such as size, growth, density, distribution, movement, and other vital statistics.
world pop.- 6.6 billions
demographics: data used to describe populations
US pop. from 2004-2005:
grw 4% overall
blakcs grew 5%
Asians grew 15%
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consumer style
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patterns of behaving or ways of making financial decisions and acting on them.
7 factors:
1. Economics:
2. Histry
3. Culture
4. Personality (traits)
5. Biology of the environment (physiological needs)
6. technology
7. polotics (polies affect consumption)
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Business Cycle:
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3 Parts:
1. Expansion -period of prosperity and growth, higher output, low unemploymentm, increased retail sales
2.Recession- temporary or moderate decline in the economy, defined as recurring period of decline in total output, income, employment, and trade (6 months to a year)
3. Reco…
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important rates that express condition of national and worldwide economies
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unemployment rate, interest rates, inflation rates
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law of supply
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as the supply of a prdocut increases, the price will decrease
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law of demand
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as the price of a good or service goes up, the quantity demanded of that good or service falls
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risk
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the psossibility or perception of harm, suffering, danger or loss.
(fear of losing money int he stock market)
-Time risk
-security risk
-privacy risk
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loss aversion
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a fear of loss
--women avoid risk more than men when it comes to investments
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Opportunity
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a favorable outlook, a chance for profress, advancement and action.
Opportunity cost- to select one choice means to give up another, this is the value of that undecided upon choice--> related to trade offs: to get something that is desired, it is neccessary to sacrifice somethign else, a…
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3 questions:
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1. what is to be produced?--> products=anything a consumer acquires or percieves to need.
2. How are these goods produced? ex.-what companies, what type of factories, and how much equipment.
3. For whom are the good produced?
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hucksterism
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food fads, extreme promotion of foods
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mucrakcer
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term for writers, politicians, journalists and public speakers who search out and expose political or commercial corruption.
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Theodore roosevelt
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pure food and drug act, meat inspection act of 1906
-founded the bureau of corporations to get them to open their books,
--repowered the sherman antitrust laws--> prevented businesses from price fixing and made them maintain quality products
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Federal Trade Commission Act
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1914. can issue a cease-and-desist order, an administrative or judicial act forcing the business to stop their deceptiv acting
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interstate Commerce Act
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1887, power to regulate commerce was reserved to states
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Shermn Anti-trust
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1890, prohibitted monopolies
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Pure Food and drug Act
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1906
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meat inspection act
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1906
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Better Business Bureau
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Established in 1912, discouraged dishonoest business practices
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16th amendment
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1913, could collect income tax
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FDR
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president in 1933-1945
-New Deal---took Keynes approach and made the government intervene
-Fair labor Standards Act of 1938, 44 hour workweek and in 1941 became 40 hour workweek
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Food Drug and Cosmetics act
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1938, ---> amended 1906 act by adding cosmetics, allowing inspectors to remove dangerous products fromstores
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Federal trade commission act
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1938, updated 1914 act and prohibits deceptive and unfiar trading practices
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Wool Products labeling act
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1939
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Fur products Labeling Act
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1951
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Flammable fabrics Act
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1953
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poultry Products Inspection Act
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1957
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Textile Fabrics Identification Act
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1958
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hazardous substances labaling act
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1960
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Civil Rights Act
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1964
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Cigarrette Labeling Advertising Act
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1965
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Immigration and nationality Act
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1965
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Child protection and toy safety act
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1966, requires special labeling
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Fair Packaging and labeling act (Truth in PAckaging Act)
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1966--comparison shopping
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National traffic and Motor vehicle safety act
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1966
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Wholesale Meat Act
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1967, higher standards for slughterhouses
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Interstate Land Sales Full disclosure act
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1968
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Concumer Credit protection Act (truth in lending act
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-1968, protects and regulates credit transaction , interest rates
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Public Health Cigarrette Smokign Act
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1970, prohibits radio and television advertising
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Fair Credit reportign Act
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1970, protects consumer credit reports
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Clean Air Act
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1970.reduce pollution emissions by 90% in five years
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Bank Secrecy Act
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1970
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Consumer Product Safety Act
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1972, regulates hazardous items, expecially toys and baby stuff
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Odometer Act
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1972
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Water Pollution Control Act
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1972
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FTC Door to Door Sales Rules
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1973
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FTC Rules of Negative Options
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1973, spells out FTC rules regarding book and record clubs
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Real EstateSettlement Procedures Act
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1974
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Equal Credit Opportunity Act
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1974, prohibits discrimination
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Fair Credit Billing Act
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1974
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magnuson Moss warranty act
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1975, governs content of warranties
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Fair Debt Collection practices act
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1977, limits debt collectors in methods and harrassments
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Richard Nixon
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signed numerous pieces of consumer legislation into law and led the way to the development of smal claims courts throughout the US
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Jimmy Carter
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conservation and reductionf of energy consumption
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Gerald Ford
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Consumer protections
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FTC Used- Car Rules
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1981, used car dealers had to disclose more information
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FTC Funeral Home Rule
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1984
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Counterfiet Access Device and Computer Fraud ABuse Act
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1984
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Automobile retraints
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1984
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Toy Safety Act
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1984
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Generic Drug Act
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1984, allows the speed up of acceptance of generic drugs
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Smokeless Tobacco Act
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1986
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Home Equity Loan Consumer Protection Act
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...
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Clean Air Act
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1990, updates 1970 and new pollution limits for automobiles
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Children's Advertising Act
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1990
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Food Labeling Act
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1993
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Truth in Saving Act
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1993, APY reported the same way
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Dietary Supplement Health and Education Act
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1994
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North American Free trade Agreement (NAFTA)
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1994
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Digital Millennium Copyright act
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1988
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US patriot Act
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2001, every bank has to adopt a customer identification program
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message framing
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when advertisements dictate that youll be happy if you buy this and sad if you don't
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reactance
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like a warning sign on a roller coaster, a warnign or negative message can have a boomerang effect and make the consumer want it even miore
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theory of mental accounting
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people frame or put into context their buying and selling (Thaler)
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Innovators
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earliest buyers of new brands, services, products, and store or other market offerings, and they like new ideas and technology as well.
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models
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representations or schematics or illstrations of relationhips
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consumer market conflict
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when a consumer market exchange goes wrong
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public policy
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plan or desicion by the government to act in a certain way or go in a particular direction such as to keep products safe or opening the space program
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Consumer Organization
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see Box 3.1 on page 76
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regional subcultures
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exist in Us due to different natural environments, rescources, characteristics of immigrant groups, and other social forces--> leads to targeted advertising
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Human Development Index
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puts a number on well being by combining several measures of human well being, broader than consumer well being but does touch on it
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Consumer Confidence
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measured and reported by:
1. conference board (Ny based org.)
2. Survey research Center (University of Michigan Ann Arbor)
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HACE 3100: Exam 3 Ch. 12: Housing