bluuebunny/crossref_metadata_2025 huggingface dataset:
Effects of Consumption Frequency on Believability and Attitudes Toward Alcohol Warning Labels
Authors: ANDREWS J. CRAIG , NETEMEYER RICHARD G. , DURVASULA SRINIVAS
Published: July 2010

Alcohol consumption frequency and alcohol warning label type are examined for their influence on label believability, attitude toward the label, and attitude confidence. Findings from a convenience sample of students indicate a differential impact among five warning labels on label believability and label attitudes. As expected, frequent alcohol users find the labels to be significantly less believable and less favorable than occasional/nonusers of alcohol. However, occasional/nonusers of alcohol hold more confident attitudes toward the labels than frequent alcohol users.
Extended Warranties: Consumer and Manufacturer Perceptions
Authors: KELLEY CRAIG A. , CONANT JEFFREY S.
Published: July 2010

Extended warranties are becoming increasingly popular, both among consumers and manufacturers. In this study, consumer and manufacturer perceptions of why extended warranties are bought and sold are evaluated and compared. The results indicate that consumers seem to view extended warranties as a way of reducing perceived risk. Manufacturers reveal that they market extended warranties both to generate revenue and to provide service to customers. Marketing management and public policy implications are examined and research directions identified.
Risks, Benefits, and Generic Substitution
Authors: CARROLL NORMAN V. , WOLFGANG ALAN P.
Published: July 2010

Consumers would save on prescriptions if pharmacists dispensed generic drugs more frequently. This study examined the relationship between pharmacists' perceptions of risks and benefits of generic substitution and their substitution behavior. Data gathered by a mail survey indicated that pharmacists' perceptions of probabilities of benefits and risks were significantly related to substitution behaviors. Pharmacists were most concerned with performance and psychological risks and financial and psychological benefits.
Manufacturer Responsiveness to Consumer Correspondence: An Empirical Investigation of Consumer Perceptions
Authors: SMART DENISE T. , MARTIN CHARLES L.
Published: July 2010

Although there is general agreement on the importance of the consumer correspondence handling function, specific steps businesses can take to satisfy consumers are relatively unexplored empirically. This study examines 300 consumers’ responses to actual manufacturers' letters addressing complaints and compliments. The discussion focuses on understanding the components of consumer satisfaction to manufacturers'responses and provides suggestions to businesses to increase that satisfaction level.
Consumer Decision‐Making Styles: Comparison Between United States and Korean Young Consumers
Authors: HAFSTROM JEANNE L. , CHAE JUNG SOOK , CHUNG YOUNG SOOK
Published: July 2010

The purpose is to identify decision‐making styles of young consumers in Korea and to find if these styles are similar to those of U.S. young consumers. An instrument, based on previous research in the United States, was administered to 310 college students in Korea. Data are factor analyzed and alpha coefficients are computed for scale reliability. Findings indicate the generality of some consumer decision‐making styles. Similarities and differences between cultures are discussed, and implications are provided.
Product Liability in the European Community: The Legislative History
Authors: GREER THOMAS V.
Published: July 2010

This article analyzes the complex history of the important new product liability directive of the European Community. The member countries must amend their laws and meet the directive's proconsumer standards and spirit. The lengthy political evolution of this policy involved many aggressive constituencies, including nations, parts of the European Community governance structure, business federations, consumer organizations, and other functional interest groups.
The New Zealand Fair Trading Act of 1986: Deceptive Advertising
Authors: LYSONSKI STEVEN , DUFFY MICHAEL F.
Published: July 2010

In 1986, New Zealand introduced the Fair Trading Act, legislation aimed at consumer protection. This act was modeled after similar Australian legislation, while taking into account the legislation and precedents of other countries including the United States, England, and Canada. Although wording of different nations' legislation is often similar, unique national conditions may give rise to different interpretations. The emergence of the Act may indicate a movement toward minimal international standards in consumer protection legislation among common law countries and to a lesser extent, a large number of Western nations. This paper examines the content and performance of the Act concerning deceptive advertising. Available evidence suggests that the frequency and severity of deceptive advertising has declined. Knowledge of the New Zealand experience provides insight into the evolution of consumer protection legislation and insight for American firms planning commerce there.
Consumption Theories and Consumers' Assessments of Subjective Well‐Being
Authors: MACDONALD MAURICE , DOUTHITT ROBIN A.
Published: July 2010

The purpose of this research is to examine the relationship between psychological well‐being and objective, economic well‐being as measured using three different economic theories of consumption behavior. The theories examined are the life cycle income hypothesis, the relative income hypothesis, and a resource deficit hypothesis. The results from analyses of the Wisconsin Basic Needs Study data demonstrate the importance of careful economic variable construction and support the economic presumption that income and life satisfaction are positively related. The relative income hypothesis model accounts for the greatest explained variance and is also superior in that it is easier to specify.
An Alternative Model of U.S. Clothing Expenditures: Application of Cointegration Techniques
Authors: MOKHTARI MANOUCHEHR
Published: July 2010

In this paper, an Error Correction Mechanism model of U.S. clothing expenditures for the period 1929–1987 is estimated using recent developments in modeling nonstationary variables. Using clothing expenditures as an example, the pitfalls of conventional modeling of nonstationary variables and the advantages of a new modeling procedure that takes into account the properties of data for valid inference about population parameters are pointed out. The basic findings obtained by estimating an Error Correction Mechanism model of clothing expenditures are (1) the demand for clothing is income inelastic both in the short run and in the long run; (2) the price elasticity of demand is unitary in the long run but greater than unity in the short run; (3) an increase in the unemployment rate reduces U.S. clothing expenditures both in the short run and the long run; and (4) an increase in the number of elderly (above the age of 65) increases clothing expenditures in the short run and reduces expenditures in the long run. However, the shortrun impact of an increase in the elderly population on clothing expenditures is statistically insignificant.
Understanding Public Concerns About Pesticides: An Empirical Examination
Authors: DUNLAP RILEY E. , BEUS CURTIS E.
Published: July 2010

Public concern over pesticides has emerged as a major issue in recent years, but has received relatively little attention from researchers. This paper reports the results of a 1990 telephone survey of a representative sample of residents of the Pacific Northwest concerning a range of pesticide issues. The results indicate a moderately high level of concern over the safety of pesticides, but recognition that some degree of pesticide use is probably necessary. A factor analysis reveals the existence of three underlying dimensions of pesticide attitudes: two very clear dimensions reflecting attitudes toward the “safety” and the “necessity” of pesticide use and a less distinct dimension primarily reflecting “trust” in the food industry's use of pesticides. Although demographic variables are, in general, poor predictors of pesticide attitudes, correlations vary considerably across the dimensions (e.g., women are significantly more concerned about the safety of pesticides, but no more likely to think that pesticide use is unnecessary, than are men). Suggestions for research which could build upon the findings are offered.
Consumer Views of the Need for Government Intervention in the Airline Market
Authors: BURTON JOHN R. , ZICK CATHLEEN D. , MAYER ROBERT N.
Published: July 2010

Throughout the 1980s, policymakers debated the merits of continuing deregulation of the commercial airline industry. In this exploratory study, public opinion regarding the need for renewed government intervention is analyzed. Particular atteention is given to the roles that respondent characteristics and local airline market conditions play. Opinions about industry performance and the need for government intervention are related to local market conditions and to perceptions of trends in airline safety. Findings indicate the majority of consumers favor neither government intervention in the setting of air fares nor in determining routes.
Quantity Surcharges on Groceries
Authors: AGRAWAL JAGDISH , GRIMM PAMELA E. , SRINIVASAN NARASIMHAN
Published: July 2010

A quantity surcharge exists when the unit cost of a given brand is higher for a large package than for a small one. This paper examines some product and household characteristics that influence observed quantity surcharging practices. Results indicate that the propensity to buy a large package of a product is positively influenced by the extent of a household's usage of that product, procurement cost, and carrying capacity and is negatively influenced by the propensity to price search. A retailer's decision to levy a quantity surcharge is, in turn, influenced by demand for the product, the propensity to buy large packages, and to some extent the product's carrying cost.
Simultaneous‐Equation Model for Estimating Consumer Risk Perceptions, Attitudes, and Willingness‐to‐Pay for Residue‐Free Produce
Authors: HUANG CHUNG L.
Published: July 2010

The study develops a theoretical model, which posits a simultaneous structure among three psychological and behavioral constructs, to analyze consumer risk perceptions, attitudes, and behavioral intentions. Results suggest that risk perceptions have a positive and significant effect on consumers' attitudes toward pesticide use, which in turn influence their risk perceptions and willingness‐to‐pay for residue‐free fresh produce and vice versa. The linkage between risk perceptions and willingness‐to‐pay, however, is not empirically significant as expected. Results suggest that education programs which address the food safety issues need to target female, black, middle‐aged, and less educated consumers.
Investigation of Products Liability Attitudes and Opinions: A Consumer Perspective
Authors: DARDEN WILLIAM R. , BABIN BARRY J. , GRIFFIN MITCH , COULTER RONALD
Published: July 2010

The area of product safety and products liability legislation has been the subject of a great deal of academic research. Policymakers and business executives have been surveyed to determine their attitudes toward liability and product safety concerns. In addition, a substantial amount of research has focused on the impact of products liability trial outcomes on business and public policy. However, there are relatively few studies reporting opinions, attitudes, and predispositions of consumers regarding relevant liability topics. This article explores the consumer perspective on several critical questions relating to products liability and product safety. The results indicate a wide divergence of opinion exists among consumers on key issues shaping current trends in the products liability legal environment. Implications for consumers, business, and public policy are discussed.
Consumer Preferences for Japanese Automobiles
Authors: DARDIS RACHEL , SOBERON‐FERRER HORACIO
Published: July 2010

This paper investigates the relationship of automobile attributes and household characteristics to consumer preferences for Japanese cars. The analysis was confined to households that purchased new cars in 1986 and employed two‐stage probit analysis. Results indicate that the coefficients of five automobile quality attributes are statistically significant while the coefficients of most household characteristics are not significant. Households interested in more fuel efficient and heavier cars as well as cars with lower depreciation rates and a lower frequency of repair are more likely to buy Japanese than non‐Japanese cars. The fact that households buy Japanese automobiles because of quality considerations not because they are small has implications for the U.S. automobile industry which faces increased competition in a global economy.
Serving Two Masters: Center for Consumer Research at the University of California, Davis, 1976‐1992
Authors: SOMMER ROBERT
Published: July 2010

Faculty at research universities face the challenge of doing research that both interests consumer agencies and possesses academic credibility. The Center for Consumer Research at the University of California, Davis, evolved an approach for doing this based on ecological methodology, an action research model, multi‐channel dissemination, and post‐research evaluation. The lessons learned during the 16‐year history of this nondepartmental center should be of interest to consumer researchers.
Demand for Lottery Products in Massachusetts
Authors: JACKSON RAYMOND
Published: July 2010

The characteristics of demand are examined for the state lottery in Massachusetts, which leads the nation in per capita sales. Cross‐sectional OLS regressions of sales per capita are calculated for 1983 and 1990 for each lottery product using explanatory variables representing education, income, race, ethnicity, and age. The results suggest that the lottery no longer exhibits the degree of tax progressivity it had in earlier years and is currently a regressive source of government revenue. While sales of all lottery products consistently decrease with increasing education levels, this inverse relationship has moderated over time. Ethnicity and race are also becoming less of a factor though race is perhaps still important for lottery products combining relatively small payoffs with a high probability of winning. From 1983 to 1990, the 65 and over age group became a significant factor in raising per capita sales of the Massachusetts lottery, thus raising issues of generational and distributional equity.
Evolution and Applications of the Term Consumerism: Theme and Variations
Authors: SWAGLER ROGER
Published: July 2010

The term CONSUMERISM has had a variety of meanings over its relatively brief history. Coined in obscurity, the word was given negative connotations by business apologists before finally being adopted by the consumer movement to describe its activities. However, an unrelated and highly prejudicial meaning has been gaining currency. As a result, there are increasing possibilities for misunderstanding and negative responses to the term CONSUMERISM from the public.
Effect of a Class Action Suit on Consumer Repurchase Intentions
Authors: PEYROT MARK , VAN DOREN DORIS
Published: July 2010

This study examines willingness to repurchase a Toyota among 335 Toyota owners, 246 who had participated in a class action suit against Toyota and 89 who had not participated. It also examines attitudes toward auto dealers and manufacturers and includes a psychographic measure of global consumer loyalty. Respondents were interviewed one to two years after participants had received a cash settlement to compensate for illegal overcharging. Multivariate analysis indicates that compared to nonparticipants, settlement participants, especially those satisfied with the settlement, were more willing to repurchase a Toyota and were less positive in their attitudes toward the Toyota manufacturer. Positive attitudes toward the Toyota manufacturer and dealers were associated with higher repurchase willingness, while positive attitudes toward other dealers and manufacturers were associated with lower repurchase willingness. Consumer loyalty was associated with higher repurchase willingness. These findings and their implications are discussed in terms of several theoretical frameworks.
Quality, Choice, and the Economics of Concealment: The Marketing of Lemons
Authors: KERTON ROBERT R. , BODELL RICHARD W.
Published: July 2010

The quantity of hazardous or ineffective products on national and international markets is higher than can be explained by current theory. Research has shown that “lemons” can indeed occur and it has specified roles for (a) potential future purchases and (b) seller reputation. This paper explores incentives facing sellers of goods containing one or more negative characteristics. The economics of concealment provides the conditions under which some sellers use resources to interfere with quality signals. This allows, at the extreme, a class of product which is a “pure lemon” in that its very existence would not be justified if consumers were fully informed. The paper identifies important variables which have direct policy implications for regulation and for consumer welfare.
Consumer Willingness to Pay for Seafood Safety Assurances
Authors: WESSELLS CATHY ROHEIM , ANDERSON JOAN GRAY
Published: July 2010

Despite its many health benefits, seafood consumption has declined partially due to consumers' safety concerns. Efforts to provide safety assurance to consumers have focused on provision of government inspection programs; programs that both consumer groups and the seafood industry have called inadequate. This study explores consumer preferences for a wide array of alternative safety assurances. Consumers' selection of and willingness to pay for seafood safety assurances were elicited using an in‐person market‐like experiment. Results indicate that consumers are able to demonstrate clear preferences and values for alternative assurances. This indicates further consumer research is warranted to provide a basis for public policy recommendations regarding seafood safety assurances.
Middle‐School Children's Sources and Uses of Money
Authors: DOSS VONDA S. , MARLOWE JULIA , GODWIN DEBORAH D.
Published: July 2010

Despite their growing economic power, children's acquisition and use of money rarely has been investigated in academic research, although it has been a frequent topic in the media. This study (1) describes sources and uses of money children (age 10–15) receive; and (2) investigates the association of children's uses of money with their age, gender, family structure, and sources of money. The sources of money are associated with children's uses of it, but age, gender, and family situation do not relate to the way they use money. Consumer education should focus on the sources of children's money in relation to the way they use it.
Consumer Utilization of Food Labeling as a Source of Nutrition Information
Authors: WANG GUIJING , FLETCHER STANLEY M. , CARLEY DALE H.
Published: July 2010

The factors which influence consumer usage of food labels are investigated by a qualitative response model using the 1987–1988 Nationwide Food Consumption Survey data. Econometric results show that economic, sociodemographic, and consumer health awareness variables are determinants of food label usage. The implications of these findings include formulating government food labeling regulations and consumer educational programs and evaluating consumer health benefits of using food labels.
Implicit Tax Rates of the Expanded Earned Income Tax Credit for Welfare Recipients in North Carolina
Authors: WALDEN MICHAEL L.
Published: July 2010

High implicit tax rates for welfare recipients have been cited as a deterrent to additional work effort by these households. The expanded earned income tax credit (EITC), passed by Congress in 1993, was enacted in part to reduce the implicit tax rates and increase work effort by very low income households. This paper calculates implicit tax rates for a typical welfare family in North Carolina before and after the expanded EITC. Although the expanded EITC reduces implicit tax rates for the typical welfare household at very low levels of earnings, implicit tax rates are still found to be substantial, especially when work and child care costs are included.
Bank Credit Cards: Consumer Irrationality versus Market Forces
Authors: CARGILL THOMAS F. , WENDEL JEANNE
Published: July 2010

Why are bank card interest rates sticky? One explanation is bank card consumer irrationality, a potentially significant market failure requiring government intervention. Alternate explanations focus on efficient market forces. The 1989 Federal Reserve Survey of Consumer Finances data are not consistent with the consumer irrationality hypothesis. The data are consistent with a market‐based model of demand for balances and suggest that consumers may rationally eschew search because small outstanding balances imply low returns to search.
Out‐of‐Pocket Home Care Expenditures for Disabled Elderly
Authors: STUM MARLENE S. , BAUER JEAN W. , DELANEY PAULA J.
Published: July 2010

Levels and predictors of out‐of‐pocket home care expenditures for the disabled elderly are examined using a sample of users of home care with out‐of‐pocket expenditures from the 1984 National Long Term Care Survey (N = 856). Multiple regression results indicate need, specifically functional ability, adds the most explanation to out‐of‐pocket home care expenditures. Education, marital status, asset availability, prior nursing home use, and population density, while significant, add relatively little explanation to the total variance. Implications for prevention education and long‐term care policy are discussed.
Age, Product Nutrition, and Label Format Effects on Consumer Perceptions and Product Evaluations
Authors: BURTON SCOT , ANDREWS J. CRAIG
Published: July 2010

Nutrition label format effects across different levels of product nutrition value and groups of younger (under 58 years; average 46 years) and older consumers (58 years or more; average 70 years) are examined using a 3 × 2 × 2 experimental design. Age interacts with nutrition level in affecting nutrition evaluation measures with older consumers displaying smaller differences in nutrition attitude and purchase likelihood for a low versus a high nutrition value product. Older consumers also perceive all labels as more difficult to understand. Consumer performance on judgment tasks vary across label formats and nutrition value manipulations. Implications for consumer welfare and future research are offered.
Consumer Household Materials and Logistics Management: Inventory Ownership Cycle
Authors: BOYD THOMAS C. , McCCNOCHA DIANE M.
Published: July 2010

This paper examines the various stages and activities of consumers' management of owned possessions including acquisition, ownership, and disposition. Using a materials management perspective, more frequently found in industrial marketing, the authors develop a consumer model of management of household goods. Stages of the model are illustrated using consumer anecdotes collected as exploratory research. Implications for researchers, practitioners, educators, and policy makers are discussed in terms of how the materials management perspective can be used to help deliver better value in products and services to consumers by understanding the activities in each stage of ownership.
Consumer Perceptions of Health Claims in Advertisements and on Food Labels
Authors: MAZIS MICHAEL B. , RAYMOND MARY ANNE
Published: July 2010

It has been hypothesized that consumers are more skeptical of health claims made in food ads than of health claims made on food labels. Therefore, the current research explores consumers' skepticism of health claims when the source of such claims is identified as a food ad or a food label. The study also examines whether consumers' beliefs are affected by nutrition information on food labels and whether health claims that have been challenged by the Federal Trade Commission (FTC) and by consumer groups are more likely to affect consumers' beliefs than are unchallenged health claims. The findings have implications for understanding the role of education in reducing consumer misperceptions of health claims.
Retail Stores in Poor Urban Neighborhoods
Authors: ALWITT LINDA F. , DONLEY THOMAS D.
Published: July 2010

This paper examines several hypotheses about access to different types and sizes of retail establishments by residents of poor and non‐poor urban neighborhoods, using Chicago as a case study. As expected, poor zip code areas in Chicago have fewer and smaller retail outlets overall than nonpoor areas, including fewer supermarkets, banks, and large drug stores. After controlling for purchasing power, poor areas still lack large drug stores but, surprisingly, not banks and supermarkets. Residents of poor neighborhoods must travel more than two miies to have access to the same numbers of supermarkets, large drug stores, banks, and other types of stores as residents of nonpoor areas.
The Development and Testing of a Measure of Skepticism Toward Environmental Claims in Marketers' Communications
Authors: MOHR LOIS A. , EROǦLU DOǦAN , ELLEN PAM SCHOLDER
Published: July 2010

Marketers' claims about the environmental effects of products and their packaging are becoming more pervasive. Consumer organizations, government, and marketers have long realized that consumers receive such claims with some degree of skepticism. An investigation of how consumer skepticism affects the response to “green” marketing claims would be facilitated by a reliable and valid measure of skepticism. This paper describes a two‐stage research project and the resulting four‐item measure of skepticism toward environmental claims made in advertising and on packages. The scale has acceptable levels of reliability and validity.
A Bayesian Approach for Analyzing the Services of Banking Institutions
Authors: LEPAK GREG M.
Published: July 2010

This study illustrates an adaptive Bayesian framework for examining consumers' perceptions of the services of banking institutions in a target market. The approach uses multiple‐measures data to estimate the significant determinants of consumers' preferences for competing banks in the market. This is accomplished essentially by incorporating prior structural information into analyses, information that is used to obtain a stabilized version of the observed predictor‐criterion covariance matrix. Bayesian structural regression estimates are shown to provide a banking institution with reliable information for use in positioning itself in its financial marketplace. The paper also provides a number of implications for the use of the methodology practical marketing response applications.
Enhancing Consumer Choice: Are We Making Appropriate Recommendations?
Authors: LEE JINKOOK , GEISTFELD LOREN V.
Published: July 2010

To reduce information search costs, consumers often use choice‐making aids. If these aids are to help consumers make choices consistent with their own preferences, as well as reduce search effort, they must be based on choke models consistent with consumers' true preference sets. This study used conjoint analysis to identify these ideal choice models. Thirty‐six percent of the subjects were found to use compensatory choice models and 64 percent noncompensatory models. The results suggest a need to base choice‐making aids on ideal choice models if the aid is to lead consumers to decisions consistent with true preferences.
Consumer Decision‐Making Styles of Young‐Adult Chinese
Authors: FAN JESSIE X. , XIAO JING J.
Published: July 2010

The dimensions and profiles of consumer decision‐making styles of young‐adult Chinese are investigated using a modified model of consumer decision‐making styles and data recently collected from five Chinese universities. The results are then compared with those of similar studies using American and Korean data. While the dimensions of consumer decision‐making styles are similar in these three countries, differences in consumer purchasing power and, maturity of the consumer market may contribute to the differences in consumer decision‐making styles.
The Dangers of Educational and Cultural Populism: Three Vignettes on the Problems‐of Aesthetic Insensitivity, the Pitfalls of Pandering, and the Virtues of Artistic Integrity
Authors: HOLBROOK MORRIS B.
Published: July 2010

This essay applies the method of Subjective Personal Introspection (SPI) to a presentation of three vignettes that bear upon the dangers of educational and cultural populism. The story of Father White illustrates the problem of aesthetic insensitivity. Revisiting Mr. Holland indicates how this fictional music teacher panders to his students in a way that ensures their lack of aesthetic discrimination. Meanwhile, Nancy LaMott serves as a counterexample to underscore the value of musical training, hard work, and discerning judgment in the pursuit of artistic integrity. A concluding section draws implications for public policy and other concerns related to consumer affairs.
The Role of Qualifying Language on Consumer Perceptions of Environmental Claims
Authors: MARONICK THOMAS J. , ANDREWS J. CRAIG
Published: July 2010

A copy‐test of seven environmental claims on aerosol packages shows that consumers interpret general, unqualified claims (e.g., environmentally friendly or ozone friendly) as meaning the product is safe for the environment in both an absolute (safe) and a relative (safer) sense. These perceptions of environmental safety are enhanced by specific qualifiers for general claims such as No CFCs and general qualifiers for specific claims. In addition, the results show that almost all specific environmental claims improve consumers’ perceptions of the aerosol product relative to general claims for environmental benefits of the product. Implications for marketing and public policy professionals are presented.
A Life‐Course Approach to Measuring Household Wealth
Authors: HATCHER CHARLES B.
Published: July 2010

This paper illustrates how to measure per‐period wealth and compares per‐period wealth to more traditional measures, such as current net worth (current assets minus current liabilities). Per‐period wealth differs from net worth in two major ways. First, per‐period wealth adds future entitlements that are contingent upon survival, such as the present value of defined benefit pension and Social Security entitlements. Second, the wealth measure used here is measured as a flow instead of a stock. It is the amount of income that the present value of assets, liabilities, and contingent claims would earn each year in order to draw this present value down to exactly zero at the end of an individual's life. Three alternative strategies for calculating per‐period wealth are illustrated in detail. Using the 1992 Survey of Consumer Finances, the U.S. distribution of per‐period wealth is estimated using all three models and is contrasted against the distribution of conventional net worth. Furthermore, the sensitivity of the estimates with respect to the parameters of the model is discussed. The results suggest that the distribution of per‐period wealth is less evenly distributed than the distribution of net worth.
Linking Consumer and Lender Perspectives in Home Buying: a Transaction Price Analysis
Authors: HEMPEL DONALD J. , PUNJ GIRISH N.
Published: July 2010

The linkage between consumer and lender perspectives in home buying is explored. The realized transaction price in the home buying exchange is used to conceptualize this association. A framework for modeling the home purchase decision from the perspective of both lenders and buyers is presented. Data from a sample of home buyers in the northeastern United States is used to test the models. Results indicate the lender and consumer models developed provide complementary insights into the market determination of homeownership. Findings highlight the emerging significance of psychological expectations and perceptions in the homeownership decision in addition to known income and demographic effects. Implications for public policy on housing are offered.
Product Knowledge and Product Involvement as Moderators of the Effects of Information on Purchase Decisions: A Case Study Using the Perfect Information Frontier Approach
Authors: BEI LIEN‐TI , WIDDOWS RICHARD
Published: July 2010

This study ascertains the extent to which consumers achieve highest value‐for‐money under different conditions. Perfect Information Frontier Approach is applied to examine the influences of providing consumers with information on their purchase decisions, with allowance for the joint effects of prior product knowledge and product involvement on the provided information. A 2 (provided information: simple vs. complex) × 2 (prior product knowledge: novice vs. expert) × 2 (involvement: high vs. low) factorial design was employed. Data from 282 survey respondents illustrate that experts were more likely to be persuaded by complex product information than by simple information, while novices reacted similarly to both simple and complex information. The effects of providing complex information to involved novices and providing simple information to involved experts showed the least impact.
Why Consumers Choose Managed Mutual Funds Over Index Funds: Hypotheses from Consumer Behavior
Authors: LICHTENSTEIN DONALD R. , KAUFMANN PATRICK J. , BHAGAT SANJAI
Published: July 2010

Much evidence exists which suggests that the vast majority of equity mutual fund managers do not possess differential information (or skills) which allow them to achieve above average market returns for their investors. Thus, when investors pay fees to equity mutual fund managers for investment advice and management, the very probable outcome is that they are reducing the return that they would otherwise achieve by investing in a nonmanaged index fund that tracks the total stock market (e.g., Wilshire 5000) or some significant portion of it (e.g., the Standard & Poor's 500). The long‐term negative consumer welfare implications are large, very possibly in the hundreds of thousands of dollars for individual consumer investors. Drawing largely on insights from the psychology, consumer behavior, and behavioral finance literatures, we offer a series of hypotheses that may partially account for such consumer choices. We conclude with a call for increased government‐ and employer‐sponsored education programs aimed at creating a more informed consumer investor.
The Food Stamp Program in an Era of Welfare Reform: Electronic Benefits and Changing Sources of Cash Income
Authors: WILDE PARKE E. , ANDREWS MARGARET S.
Published: July 2010

Linked survey data and Electronic Benefit Transfer (EBT) records are used to investigate the distinct roles played by food stamp benefits and cash income in the household budget at different times of the month. Using data from Maryland in 1993, household budgets and food spending patterns are found to differ qualitatively, depending on whether the main source of cash income is welfare benefits, Social Security or Supplemental Security Income, or labor market earnings. These differences have implications for understanding the Food Stamp Program during the welfare reform period as many households move from welfare to work.
Leaving Welfare: Independence or Continued Vulnerability?
Authors: LITT JACQUELYN , GADDIS BARBARA J. , FLETCHER CYNTHIA NEEDLES , WINTER MARY
Published: July 2010

Data from two semi‐structured interviews gathered approximately six months apart from seven women who were receiving cash welfare benefits at the time of the first interview and were not receiving benefits at the second interview were used to analyze the experiences of leaving welfare. Emergent themes about the post‐welfare experience are: (1) the low wages and lack of advancement opportunities in jobs, (2) confusion related to program administration, (3) the continued reliance on income support programs and kin, and (4) the banking of cash benefits under the five‐year time limit as a new safety net.
Nutrition Knowledge, Gender, and Food Label Use
Authors: NAYGA RODOLFO M.
Published: July 2010

This paper empirically explores the relationship between nutrition knowledge, gender, and food label use. The econometric approach treats both nutrition knowledge and label use as endogenous variables when estimating the model for food label use. The results suggest that nutrition knowledge does not have an effect on label use, confirming the weak link hypothesis between knowledge and behavior. Gender effect is mainly due to differences in nutrition knowledge levels.
Out‐of‐Pocket Health Care Expenditure Patterns and Financial Burden across the Life Cycle Stages
Authors: HONG GONG‐SOOG , KIM SOO YEON
Published: July 2010

This study examines out‐of‐pocket health care expenditure patterns of households and the financial burden of health care costs over the stages of the household life cycle, using the 1995 Consumer Expenditure Survey. The elderly households not only spend more for health care, but they also experience higher financial burdens than other households. Insurance status, liquid assets, life cycle stage, household size, education, and self‐employment status are significant factors affecting the household budge share of health care expenses.
Characteristics of Consumer‐Preferred Labeling Policies: Experimental Evidence from Price and Environmental Disclosure for Deregulated Electricity Services
Authors: ROE BRIAN , TEISL MARIO F. , RONG HUAPING , LEVY ALAN S.
Published: July 2010

This study gauges how different information disclosure policies impact consumer understanding, performance, and satisfaction during the choice of a deregulated electricity supplier, and it explores how the market share of each firm responds to different policies in a hypothetical market. Compulsory disclosure of detailed price and environmental attribute information yields high consumer satisfaction and minimizes most types of information processing errors. The implications for disclosure policy and firm‐level market share are discussed.
Do Consumers Expect Companies to be Socially Responsible? The Impact of Corporate Social Responsibility on Buying Behavior
Authors: MOHR LOIS A. , WEBB DEBORAH J. , HARRIS KATHERINE E.
Published: July 2010

Companies are facing increasing pressure to both maintain profitability and behave in socially responsible ways, yet researchers have provided little information on how corporate social responsibility impacts profitability. This paper reports the findings from in‐depth interviews of consumers to determine their views concerning the social responsibilities of companies. A typology of consumers whose purchasing behavior ranges from unresponsive to highly responsive to corporate social responsibility was developed from the analysis.
State Curriculum Mandates and Student Knowledge of Personal Finance
Authors: TENNYSON SHARON , NGUYEN CHAU
Published: July 2010

This study analyzes the relationship between high school students’ scores on a test of personal financial literacy and their state's personal finance curriculum mandate. At the time of the testing, twenty of the thirty‐one states included in the study had some kind of educational policy in the area of personal financial management. The results of the study show that curriculum mandates, broadly defined, are not generally associated with higher students’ scores. However, students in states that required specific financial education course work scored significantly higher than those in states with either a general mandate or with no mandate.
Comprehension of Warnings and Resulting Attitudes
Authors: LEPKOWSKA‐WHITE ELZBIETA , PARSONS AMY L.
Published: July 2010

This study demonstrates that education level and warning vocabulary affect consumer reactions to warnings. Consumers who did not complete high school were not able to comprehend warnings that contained difficult vocabulary as well as warnings with simple words. They perceived products that carry warnings with simple words as safer than products labeled with warnings containing difficult words. Finally, consumers with more education were found to have more negative attitudes toward warnings with difficult words than warnings with simple words despite understanding the warnings equally well.
Reaching Insomniacs with Television PSAs: Poor Placement of Important Messages
Authors: LANCASTER ALYSE R. , LANCASTER KENT M.
Published: July 2010

Most of the research conducted on the effectiveness of public service announcements has focused on improving internal characteristics of advertisements, such as message design and appropriate targeting. Scant research has been conducted on PSA effectiveness in terms of media placement. The purpose of this study is to estimate the audience coverage achieved by the broadcast television portion of the Ad Council's drunk driving prevention campaign. The results show that on average, only 11.2% of households in the top 30 markets were exposed to at least one of the PSAs in a monthly campaign. Almost half of the total 902 advertisements were aired during late night (1:00 a.m.‐6:59 a.m.) whereas fewer than 10% were aired during prime time. Overall, the data suggest that despite the seemingly large amount of airtime and media dollars donated to PSAs by television stations, the advertisements are reaching a very limited number of people. Since most public service messages are important, failure to reach consumers with these PSAs due to poor placement is a problem that broadcasters must continue to address.
Will Consumers Pay a Premium for Eco‐labeled Apples?
Authors: LOUREIRO MARIA L. , MCCLUSKEY JILL J. , MITTELHAMMER RON C.
Published: July 2010

Farmers and other producers are responding to consumer concerns about pesticides by creating new marketing opportunities for products grown with environmentally sound practices. The eco‐label analyzed in this study is certified by The Food Alliance (TFA), a non‐profit third‐party certifying organization based in Portland, Oregon. We assess the mean willingness to pay (WTP) for eco‐labeled apples using a double‐bounded logit model. We conclude that female respondents with children, and strong environmental and food safety concerns are more likely to pay a premium for eco‐labeled apples. However, the estimated premium is small (about 5 cents per pound over an initial price of 99 cents), reflecting the overall difficulty with garnering a premium based on “environmentally sound”practices.
Jury Decisions and Awards in Personal Injury Lawsuits Involving Foodborne Pathogens
Authors: BUZBY JEAN C. , FRENZEN PAUL D. , RASCO BARBARA
Published: July 2010

A study of food poisoning jury verdicts in 32 states (1988–1997) revealed that plaintiffs won awards in food poisoning jury trials 31% of the time, and received a median award of $25,560. Multivariate analyses were performed to examine the effects of various factors on food poisoning jury verdicts and on the size of the award. The odds of a plaintiff victory increased if a foodborne pathogen or illness was specified, and decreased if defendants had “deep pockets”or used medical expert testimony. Illnesses involving hospitalization, death, or chronic complications received higher awards than other illnesses.
Single Mothers, Emergency Food Assistance, and Food Stamps in the Welfare Reform Era
Authors: BARTFELD JUDI
Published: July 2010

This article documents the characteristics, circumstances, and factors linked to concurrent use of food stamps among single‐mother food pantry clients in Wisconsin in 1999. Most of these mothers use food pantries as an alternative, rather than a supplement, to food stamps, despite appearing to meet food stamp income criteria. Concurrent food stamp use is more common among mothers with weaker employment ties, more recent welfare involvement, and residence in a county that experienced smaller food stamp caseload declines in the welfare reform years.
How Do Front and Back Package Labels Influence Beliefs About Health Claims?
Authors: WANSINK BRIAN
Published: July 2010

One dilemma with health claims is that too much information can confuse consumers and too little information can mislead them. A controlled study is used to examine the effectiveness of various front‐sided health claims when used in combination with a full health claim on the back of a package. The results indicate that combining short health claims on the front of a package with full health claims on the back of the package leads consumers to more fully process and believe the claim. The basic finding that using two sides of a package (short claim on front; long on back) increases the believability of health claims is relevant for policymakers, consumers, and researchers.
Double‐Cola and Antitrust Issues: Staying Alive in the Soft Drink Wars
Authors: WOLBURG JOYCE M.
Published: July 2010

This case study is the story of the underdog in the soft drink wars. It is a testament to the meaning of brands and the lengths that loyal consumers go to for Double‐Cola, one of many small regional brands that struggle to compete against industry giants. It also offers insights into current antitrust issues within the regulatory environment and the lack of protection given to small brands in their fight to stay alive. Consequences for consumers, bottlers, and small manufacturers are explored.
How Well Do Consumers Protect Themselves from Identity Theft?
Authors: MILNE GEORGE R.
Published: July 2010

Identity theft is a serious and increasingly prevalent crime, and consumers need to take preventative measures to minimize the chance of becoming a victim. In an effort to assess consumer preparedness, this exploratory study measured the self‐reported behavior of 61 college students and 59 non‐students on thirteen identity theft preventative activities that were suggested by the Federal Trade Commission. Consumer education appears to be adequate for several identify theft preventative behaviors, but not for others. In addition, students and non‐students demonstrated some interesting divergencies in behavior. Based on these preliminary findings, areas for increased consumer education and future research are recommended.
Consumers’ Protection of Online Privacy and Identity
Authors: MILNE GEORGE R. , ROHM ANDREW J. , BAHL SHALINI
Published: July 2010

This article examines online behaviors that increase or reduce risk of online identity theft. The authors report results from three consumer surveys that indicate the propensity to protect oneself from online identity theft varies by population. The authors then examine attitudinal, behavioral, and demographic antecedents that predict the tendency to protect one's privacy and identity online. Implications and suggestions for managers, public policy makers, and consumers related to protecting online privacy and identity theft are provided.
Voters’ Response to Labeling Genetically Engineered Foods: Oregon's Experience
Authors: GROBE DEANA , RAAB CAROLYN
Published: July 2010

Oregonians voted on Measure 27, a measure to label genetically engineered foods, in November 2002. A follow‐up survey of 801 voters was conducted to explore how consumers voted in an actual election on this issue, who voted for and against this measure, and why they voted the way they did. The results revealed that the measure did not pass for a variety of reasons. Those included concern with costs, questions about necessity of the labeling in view of safety assessments by the FDA, concern with how the measure was worded, and the impact the measure would have on farmers. The majority of respondents supporting the measure wanted to know what is in the food they are eating.
Linking Tax Refunds and Low‐Cost Bank Accounts: Early Lessons for Program Design and Evaluation
Authors: BEVERLY SONDRA G. , TESCHER JENNIFER , ROMICH JENNIFER L.
Published: July 2010

This article describes a pilot program encouraging low‐income workers to have their tax refunds directly deposited into low‐cost bank accounts. Although the program did not lead to substantial saving in the short‐term, it did seem to facilitate account ownership among the unbanked and to serve as a bridge to other financial services and products. Early lessons for the design and evaluation of related programs are discussed.