bluuebunny/crossref_metadata_2025 huggingface dataset:
An Argument Against Abridging Consumer Right of Bankruptcy
Authors: MORS WALLACE P.
Published: July 2010

As our economy now operates, consumer credit is an essential ingredient in the mass merchandising of goods and services, credit sources and users share a joint responsibility in orginating credit and both share in its beneficial effects. Thsoe had debt losses which occur are small relative to sales and are absorbed by consumers who pay in full. In this mileu, abridging the right of bankruptcy would provide negligible benefits to consumers as a whole and to the economy. It would create serious inequity between (1) consumers who avoid debt through procrastination and those who avoid it through bankruptcy and (2) consumers and business firms. The first inequity would be accentuated by present differences in state laws governing debt collection. It would still exist, however, if all states had a uniform collection law. Consumer right to bankruptcy is a needed safety‐value in our credit‐oriented economy.
The Response of Canadian Business Schools to Consumerism
Authors: SARKAR ASIT K. , SALEH FAROUK A.
Published: July 2010

Of the major issues dominating the public interest in recent times, perhaps consumerism is by far the most vital one. Reaching the forefront during the second half of the past decade, consumerism has drawn considerable attention from virtually all groups having a stake in the performance of the market place. The interest of the academic community in consumerism is no exception. For business educators, the prevalence of consumer protests and dissatisfaction with the market behavior yields a number of compelling but, nonetheless, crucial issues. For instance, should a business school try to improve its existing image—that of preparing its student to be a shrewd businessman with one pervasive criterion in mind, namely, profit maximization? Or, should business schools adopt the concept of training its graduate to be an enlightened businessman who attempts to maximize the profit of his firm, but in the context of what is best for the whole society? Should a business school play the role of a mediator between consumers and the business sector at large? It is to these and similar questions that the present investigation is directed.
Economics of Consumer Class Actions*
Authors: LANE SYLVIA
Published: July 2010

The consumer class action has been hailed as the ultimate consumer remedy. It permits economies of scale in some legal proceedings which may benefit the consumer. Moreover, government agencies will not ordinarily bring suit on behalf of one of these consumers but they will, in some cases, sue on behalf of the class. In the case of a harmful commodity, if a class action is successfully adjudicated disutility is lowered for those harmed and social benefits (i.e., collective benefits) may accrue in some measure to those for whom damage was averted. Whether in the short run or the extent to which in the long run prices will be increased as a result of the adjudication of a class action depends upon the degree of competition in the market in which the producing firm operates and on the level and elasticity of the relevant supply and demand curves for the product subsequent to the suit. Even without suit being brought the effect of the threat posed by the availability of the consumer class action will be a shift to a higher quality of product and more non‐price competition on the basis of quality or at least a reduction of fraud and of harmful product attributes. The overall effect of the class action being available as a legal tool should be a better performing market and better performing agencies serving the consumer. Though consumer economic welfare will not always be increased through the use of the class action, its increased use is important if we are to have a more equitable economy.
An Exception to the Law of Demand*
Authors: ROSS MYRON H. , STILES DONALD
Published: July 2010

The authors challenge the usual tenet of a downward sloping demand curve. Further, they explore differences between actual and perceived prices, quantities, and quality. Implications for economic theory are suggested.
Do Inner City Chain Stores Charge More?
Authors: SEXTON DONALD E.
Published: July 2010

Chain store executives state that their prices are centrally determined and are therefore uniform within a metropolitan area. Consumer groups charge that prices in inner city chain stores are relatively higher. This study examines evidence relevant to this debate.
Economics of The Low‐Income Mortgagor Counseling Program
Authors: LANE SYLVIA
Published: July 2010

The Section 237 Homeownership Counseling Program for lower and Moderate income household, whose applications for mortgage insurance have been rejected by the Federal Housing Administration, is a concession to the fact that members of this group may have acquired poor credit histories and still become responsible homeowners and credit users. Those being accepted for counseling are, for the most part, large younger families in the moderate income category. The program benefits mortgage‐lenders by reducing their collection, delinquency and foreclosure costs and enabling them to increase the number of loans granted and profits. It also benefits all others in the real estate industry deriving compensation or profit from the sale of houses to Section 237 counselees. Those who purchase homes under the program receive benefits but prices of qualified lower priced homes are increased because of the program. Agency efforts are having some effect. About half the interviewed counselees reported they had changed how they spent their money and planned because of the agency efforts. The program costs are, in the last analysis, being borne by taxpayers. However the program does redistribute some benefits (home ownership) not equally available to all in our economy.
Reasonable Consumer or Ignorant Consumer? How The FTC Decides
Authors: PRESTON IVAN L.
Published: July 2010

This article examines the alternatives which have been available to the Federal Trade Commission in deciding what members of the consuming public it is committed to protecting. The choice has been between the “reasonable man standard,” under which it protects only those who act reasonably in the marketplace and not those who act foolishly, and the “ignorant man standard,” under which it protects all consumers without regard for the reasonableness or foolishness of their behavior. A third possibility is a standard lying between these two, under which the Commission protects consumers acting foolishly provided such actions are committed not by stray individuals but by substantial segments of the population.
Financing Consumer Appliances: Two Alternatives
Authors: KREIDLE JOHN R. , PRAGER HENRY J.
Published: July 2010

Builders and sellers of new houses, condominiums and mobile homes have increasingly included household appliances and furnishings as an incentive to encourage consumers to purchase these housing units. Although the cost of appliances and accessories are added to the purchase price, they can many times be financed with additional mortgage funds. As a result of this, the consumer must make a decision on (1) whether to acquire them, and (2) if acquired, the method of financing. This paper examines the advantages and disadvantages of purchasing appliances from builders and first‐hand sellers of new houses and other types of living units and alternative methods of financing. The purchaser must decide whether the appliances should be financed through additional mortgage funds or through the more conventional consumer installment credit. A method of analysis is presented that can be used to determine which manner of financing produces the financing at least cost.
The Life Insurance Deficit of American Families: A Pilot Study
Authors: MAYNES E. SCOTT , GEISTFELD LOREN V.
Published: July 2010

To what extent do American families have a life insurance deficit, that is, fewer resources than desired to meet expressed family needs after death of wage earners? This pilot study indicates that perhaps 50 percent of families may suffer a serious life insurance deficit. Other families have life insurance surpluses. The deficit is affected by family net worth, educational objectives, age and number of children, age of household head and family income goals.
Consumer Education As A Means of Alleviating Dissatisfaction
Authors: SCHERF GERHARD W. H.
Published: July 2010

In this paper the traditional approaches to Consumer Education are analyzed with respect to their possible impact on the currently wide‐spread dissatisfaction among consumers. The argument is raised that the dissemination of knowledge of good buymanship alone cannot change the prevailing dissatisfaction because of the inevitable collective interdependency of consumers' fate in the marketplace and the economic benefits they can derive from their alternative role as producers, employees and wage earners.

On the other hand, it is shown that greater improvements could be obtained if some of the knowledge available from studies of job satisfaction could be applied to man's satisfaction in the consumer role. Such an endeavor would enlarge the present scope of consumer education from its sole concern with competitive economics into that of interpersonal relationships and other behavioral aspects of man's life as consumer.
Retail Grocer Pricing Responses to Manufacter‐Initiated Cents‐Off‐Package Promotions
Authors: SHOAF F. ROBERT , MELNICK EDWARD L.
Published: July 2010

Manufacturers' Cents‐Off promotional discounts are sometimes NOT passed on to the consumer. This survey over 240 stores across 8 SMSAs reveals the extent of this practice by various retailer “types” and provides suggestions for future research to monitor the effectiveness of FTC regulations.
Information Disclosure and Consumer Credit Knowledge: A Longitudinal Analysis
Authors: BRANDT WILLIAM K. , DAY GEORGE S. , DEUTSCHER TERRY
Published: July 2010

Early evaluations of Truth‐in‐Lending have observed impressive gains in consumer knowledge about interest rates. Contrary to original goals, consumers with more education, income, and debt experience have benefited far more than low‐income and minority consumers. How will these results change over time as consumers gain credit experience with the aid of disclosure? Has disclosure improved consumer understanding about finance charges, and what factors beyond socio‐economic status might have enhanced consumer knowledge of credit terms? These questions are addressed in this report of a large sample of California households surveyed at two points in time. The longitudinal analysis shows individual changes in knowledge, the effects of credit experience on learning, and a projection of future levels of credit knowledge.
The Food Co‐op Potential
Authors: MARION DONALD R. , AKLILU BISRAT
Published: July 2010

Consumer cooperatives are currently of greater interest in the U.S., than at any time in recent history, but the experiences of those recently established have been very mixed. There is a great need for factual information to record those experiences and identify factors and conditions that have led to success or failure. In addition, there are continuing serious deficiencies in the food distribution system that serves the inner‐city poor. This article deals with both of these problem areas in examining the role and potential for consumer food cooperatives, with special attention to low‐income, urban areas.
Demographic Characteristics of Canadian Consumer Complainers
Authors: LIEFELD J. P. , EDGECOMBE F. H. C. , WOLFE LINDA
Published: July 2010

A survey of over 17,000 Canadian consumers who had written a letter of complaint to one of several government or consumer service agencies in 1972 found that the average consumer complainer is a middle aged, well educated, affluent, managerial‐professional man or woman. The study also found that 49 percent of complaint letters are written by only 24 percent consumer of complainers and that consumers who write several letters of complaint are also well educated, affluent, and have managerial/professional occupations. These findings suggest that care must be taken in using consumer complaint data to identify the nature and severity of consumer problems in the marketplace or as a foundation for government policy and programs.
Pricing the School Lunch—A Consumer Problem
Authors: BRALEY GEORGE A. , NELSON PAUL E.
Published: July 2010

To what extent do rising prices for school lunches cause students to cease their purchases of the hot Type A lunch? How many who cease buying become eligible for free lunches? Will a high drop out rate for students who buy, accompanied by a moderate increase in the number receiving free lunches, lower Federal lunch costs? These and related questions, and implications are treated relying upon data from a study in Pittsburgh as a basis for discussion.
Consumer Attitudes and Food Faddism: The Case of Vitamin E
Authors: SAEGERT JOEL , SAEGERT MERRY MAYNE
Published: July 2010

Attitudes toward vitamin E were studied in an effort to gain insight into the variables associated with consumption of fad food products. Vitamin E was chosen as a typical fad food product because nutrition researchers and government agencies have generally agreed that supplementation is unnecessary in the normal human diet. A survey of 252 students revealed a 15% incidence of vitamin E use. The backgrounds, attitudes and self‐report personality inventories of the students did not support the view that use of such health products as vitamin E is necessarily associated with low socioeconomic status, lack of education, ageing, desperation associated with illness or bizarre personality traits. Vitamin E usage may be associated with such personality variables as personal disorganization or extroversion. Students are distrustful of the scientific community and Federal agencies as sources of product information. The need for consumer protection from misinformation provided by popular nutrition sources is discussed.
The Response of Consumers to Nutrition Labeling
Authors: DALY PATRICIA A.
Published: July 2010

Nutrition labeling is an example of product‐related information that manufacturers have recently been required to provide. This research sought to determine how central New York State consumers would benefit from such federal regulations. The concept of benefit was defined in terms of consumers' use and perception of labeling information. Attitudes toward nutrition labeling were found to be highly positive. However, the comprehension of the format and terms of the label disclosure was low, indicating that the immediate benefits of the policy will be attitudinal as opposed to behavioral and that consumer education will be essential if use benefits are to be derived.
California Remote Subdivisions: Policy Implications for Consumers and Rural Communities
Authors: HANSEN DAVID E. , JOHNSTON WARREN E. , DICKINSON THOMAS E.
Published: July 2010

Extensive subdivision development on remote rural lands during the early 1970's has generated considerable concern about possible long‐term consequences to purchasers and local government finances. This study of California's Northeastern Plateau region utilizes socio‐economic characteristics, purchase motivations, and use‐intentions of purchasers as the basis for examining possible local community and purchaser impacts. While purchaser characteristics indicate limited property use, expressed intentions to build or install residences prior to 1980 indicate a potentially dramatic impact on the region's population base. Although local government revenue impacts are impossible to assess conclusively, the results suggest local officials would be well advised to establish buildout policies for existing subdivisions prior to approving additional remote subdivisions. Expectations about property‐use and investment potential appear to be unrealistic and are attributable to buyers' inexperience, inadequate information, and sales misrepresentations. While suggesting that the “fair, just and equitable” determination be re‐examined for within‐state sales, the results also suggest other states should not become overly optimistic about consumer protection provided by California's Subdivided Lands Act.
Review of the Housing Allowance Program
Authors: MEEKS CAROL B.
Published: July 2010

Housing allowances are being touted as the popular solution to the low‐income housing problem. This article briefly examines the historical background, past research, factors, and issues which must be considered in designing an effective program. Major household concerns considered are: equity, eligibility and allowance formulas. Attention is given to program goals and their influence on the amount and kind of subsidy, definition of income and allowance formula selected. The response of the housing market to the new demand created is examined along with related factors such as requirements that recipients live in standard dwelling units and collusion opportunities for landlords and recipients. Based on research conducted on the food stamp program, household expenditure change is projected. Finally the impact of a housing allowance on other support programs and the need for program integration and administrative simplicity is considered.
Cost Benefit Analysis of Consumer Product Safety Standards
Authors: SMITH BETTY F. , DARDIS RACHEL
Published: July 2010

This paper investigates the role of cost‐benefit analysis in evaluating consumer product safety standards and applys such analysis to an evaluation of flammability standards for children's sleepwear. The cost of safety standards includes the costs of standard development and enforcement and the changes in producer and consumer surpluses due to product regulation. The benefits from safety standards are the reduction in product accidents and the direct and indirect costs of such accidents. The cost of the O‐6X Children's Sleepwear Standard was based on the change in consumer surplus since it was assumed that supply was perfectly elastic. The benefits were due primarily to the reduction in burn injuries. Cost‐benefit ratios ranged from 0.62 to 0.84 assuming that the standard provided 100% protection. The cost‐benefit ratios also indicate the degree of protection required by the standard. Thus a ratio of 0.62 implies that 62% protection is required if benefits are to equal costs.
Real Estate Agents As a Source of Information for Home Buyers
Authors: HOUSTON MICHAEL J. , SUDMAN SEYMOUR
Published: July 2010

The concern for the consumer's right to be adequately informed when making a purchase has provided an impetus for legislation and research in a variety of consumer decision areas. Absent from these efforts has been any examination of the most important consumer decision—the purchase of a home. This study examined the quantity and quality of information that a key marketing agent in the purchase of a home, the real estate broker, is capable of providing consumers. A variety of informational areas are examined with most of them centered on the quality of life in a community neighborhood. The results suggest areas where brokers can be better informed and thereby better serve their public as a source of information.
Factors Determining Credit Worthiness of Low Income Consumers
Authors: TABOR JOAN S. , BOWERS JEAN S.
Published: July 2010

The purpose of this study was to identify variables that can be used in granting credit to low income consumers. Credit behavior, as exemplified by loan repayment, was examined with respect to economic, demographic, and socioeconomic characteristics of borrowers from a credit union that had been established to serve low income people in Columbus, Ohio.

Findings indicate that early warning signals—default and delinquency—are given by borrowers when a loan is going bad. Consumer education and financial counseling might help eliminate this problem.
Toward A Framework for Consumer Policy Analysis
Authors: SHEPARD LAWRENCE
Published: July 2010

In this paper, an attempt is made to define the scope of the various subdisciplines of consumer studies. The topical relationships between these subdisciplines are also explored. From this basis, a framework is developed for investigating consumer issues and related policy questions.
The Effect of Debt on Perceived Household Welfare
Authors: KINSEY JEAN , LANE SYLVIA
Published: July 2010

Much of the traditional literature on consumer credit implies that using consumer credit will make families feel worse off but economic investment theory implies the use of consumer credit will not cause a decrease in utility. The effect of changes in debt‐asset ratios and other financial and demographic variables on perceived financial well‐being are investigated in this article. The results of the analyses indicate families' utility levels did not decrease when they used consumer credit to acquire commodities.
Evaluation of Energy Saving Investments
Authors: HANNA SHERMAN
Published: July 2010

The problem of consumers in evaluating energy saving investments suggests the need for a uniform disclosure method. Disclosure for energy conservation is related to the use of disclosure policies in Truth‐in‐Lending and other areas. Five methods of evaluating energy saving investments are analyzed: the apparent payback method, the present value method, the actual payback method, the loan payment method, and the rate of return method. The rate of return method is the only method that is both easy to understand and valid. The probable limitations in consumer understanding and use of information related to energy conservation, however, make it likely that a combination policy of disclosure, education, and product standards would be the most effective alternative for reaching energy conservation goals.
Consumer Complaints as Pre‐purchase Information: An Evaluation of Better Business Bureau Reports to Consumers
Authors: MUNNS JOYCE MATTHEWS
Published: July 2010

Consumer complaints can be used as pre‐purchase information. A major way in which this currently works is through Better Business Bureau reports to consumers on particular business firms. Case studies for the Consumer Complaint Study and two tests carried out in 1976 reconfirm the 1971 Rosenthal study conclusion that such BBB reports are “misleading, inaccurate, and incomplete.” The basic explanation of this poor quality of BBB reports continues to be the operation of BBBs in the interests of the conventional business world.
Consumer Education: Does It Change Students' Competencies and Attitudes?
Authors: LANGREHR FREDERICK W.
Published: July 2010

A number of states require or are considering the required teaching of consumer education in secondary schools. However, almost all previous research has found no difference in consumer economic competency between students who had taken a consumer education/economics course and students who had not taken the course. This research was conducted in a state that requires consumer education of all students to see if there was a change in competency level and attitudes toward business. Potential differences in types of courses used to meet the state requirements were also investigated. The basic finding is that students who took a course specifically designed to present consumer education topics did improve their consumer economics competency and developed a more positive attitude toward business.
The Cognitive Consumer Education Knowledge of Prospective Teachers: A National Assessment
Authors: GARMAN E. THOMAS
Published: July 2010

A nationwide assessment of the cognitive consumer education knowledge of prospective teachers being trained for all academic disciplines included 84 institutions of higher education and provided usable data on 4,309 respondents. The sample scored less than sixty percent correct on the Test of Consumer Competencies. Prospective teachers were most knowledgeable in the areas of Recreation, Clothing, and The Individual in the Marketplace; they scored lowest in the areas of Taxes, Food, and Savings and Investment. Those majoring in Social Studies, History or Geography, Science, and Home Economics scored highest on the average while those majoring in Physical Education, Art and Music, and Special Education scored lowest. The prospective teachers who had completed a consumer education related course, approximately twelve percent of the total, scored higher than those who had not.
An Investigation of Returns to Different Shopping Strategies
Authors: DEL HAWKINS I. , McCAIN GARY
Published: July 2010

This paper investigates five alternative shopping strategies for acquiring various shopping goods. Both transportation costs and time requirements are examined. The alternative strategies that are examined are based upon random search, minimum travel search, perceived low price, telephone search, and combinations of the above.
Price Variations for Refrigerators Among Retail Store Types and Cities
Authors: JUNG ALLEN F.
Published: July 2010

This study investigated differences in prices of refrigerators among 5 different types of retailers in 11 different major U.S. cities. Significant differences in price among retailers were found with appliance stores and furniture stores offering the lowest prices. Discount department stores quoted lower prices than did conventional department stores. Some cities had lower average prices than others. There were considerable variations in price among all classes of retailers and among all cities. Dealers that serviced appliances quoted prices similar to those quoted by dealers that did not service appliances. Prices did not vary by the size of the store.
Evaluating Consumer Protection Programs: Part I. Weak But Commonly Used Research Designs
Authors: PHILLIPS LYNN W. , CALDER BOBBY J.
Published: July 2010

In this two‐part article, current methodological approaches to the evaluation of consumer protection reforms are critically reviewed. In Part I, three quasi‐experimental research designs commonly used to evaluate consumer protection initiatives are examined. It is shown that these designs are inherently incapable of yielding strong conclusions about the effects of a law or regulation. In Part II, which will be published in the next issue, research designs which allow stronger causal inferences about the effects of a reform proposal are reviewed. Implications of the review are then discussed in terms of future public policy and evaluation research in the consumer protection area.
The Impact of the Rhode Island Catastrophic Health Insurance Plan
Authors: LORD BLAIR , LANE SYLVIA
Published: July 2010

Under Rhode Island's statewide Catastrophic Health Insurance Plan (CHIP) in effect since January, 1975, and similar to the Long‐Ribicoff National Health Insurance Proposal, Rhode Island pays catastrophic medical expenses over and above a “personal resource payment” (out‐of‐pocket expenses) that varies with income and amount and type of health insurance coverage. Those with qualified plans (plans providing more services) pay less out‐of‐pocket. Benefits accrue mainly to some middle income households. CHIP has increased demand for and prices for health insurance with qualifying coverage, and utilization of medical care. Similar impacts on a larger scale may be expected from any national health insurance program.
Affirmative Disclosure of Nutrition Information and Consumers' Food Preferences: A Review
Authors: TYEBJEE TYZOON T.
Published: July 2010

In order to evaluate a food advertising regulation proposed by the FTC, this paper examines some empirical studies of food marketing practices and their influence on consumer attitudes and behavior toward nutrition information and dietary habits. The requirement for affirmative disclosure of nutrition information may fall short of its intended goal because consumers have low motivation to use such information and inadequate comprehension of it. Moreover, the limited information processing capacity of the average person may preclude effective communication of nutrition information in a television commercial. The regulation's most likely impact would be to create awareness of nutrition information and increase the salience of nutrition in the consumer's food choices. Unless consumer education programs are coordinated with the regulatory efforts, lack of motivation and comprehension in the use of nutrition information will be a major barrier in achieving any significant improvement in the nutrition status of consumers.
Advertisers' Responses to Requests for Substantiation of Product Claims: Differences by Product Category, Type of Claim and Advertising Medium
Authors: CONEY KENNETH A. , PATTI CHARLES H.
Published: July 2010

A sample of major advertisers of durable and nondurable consumer products were asked to provide substantiation of scientific and puffery product claims made in television and magazine advertising. The companies were asked to respond directly to an interested consumer and the responses were evaluated on an “average man” basis. The results indicated that many advertisers cannot or will not successfully substantiate their product claims despite the efforts of the Federal Trade Commission's advertising substantiation program. One proposed remedy is to require advertisers to substantiate claims directly to consumers, on request.
Consumer Credit Use by Low Income Consumers Who Have Had a Consumer Education Course: An Exploratory Study
Authors: BOWERS JEAN S.
Published: July 2010

This research examines the use of bank credit cards by forty‐eight low income persons who successfully completed a consumer education course. Data for a twelve‐month period showed participants undertaking relatively high credit obligations in relation to repayment capabilities. Banking affiliation and knowledge concerning credit card accounts were significant in explaining variance in credit behavior. The findings suggest it may be useful to identify additional variables beyond those now used for evaluating credit risks among low income people.
“Economy Size” Labels and Consumer Welfare
Authors: WOLKEN JOHN D. , DERRICK FREDERICK W. , FISE MARY ELLEN
Published: July 2010

The main purpose of the Fair Packaging and Labelling Act (FPLA) as stated in the act is “… to promote labeling and packaging practices with respect to packaged consumer commodities which will facilitate value comparisons by consumers.” Justification and actual implementation of the portion of the FPLA dealing with economy size labels are analyzed from the consumer's point of view. Because of loopholes and the limitation of enforcement activity to the manufacturer‐level, the law fails to protect the consumer. Remedies to the existing situation are presented.
An Assessment of the Competency of Secondary School Teachers in in Consumer Education, Economics, and Personal Finance
Authors: LOFGREN WENDY L. , SUZUKI WARREN N.
Published: July 2010

This study investigated the competency of persons teaching consumer education in Oregon's public schools. A 50‐item instrument, based on concepts outlined in The Oregon Personal Finance Education Guide, was developed and used for the assessment. A comparison of competency according to teachers' subject‐matter backgrounds (business, home economics, mathematics and social studies) was made.

Item difficulty indices calculated on 185 completed instruments revealed a need for teacher upgrading in each of the four subject‐matter background groups studied. No significant differences were found in the total mean scores of teachers in the four groups. However, a significant difference between groups was discovered in the concept area dealing with money management.
Tribute to Colston E. Warne
Authors: NEWELL BARBARA WARNE
Published: July 2010

The daughter of Colston E. Warne reviews the social history of the consumer movement and her father's role in that movement. She speaks of her father's college days, his role as President of Consumers Union (CU) in the pre‐ and post‐war years, CU's role in the beginning of ACCI, and the development of an international consumer movement.
Evaluating Consumer Protection Laws: II. Promising Methods
Authors: PHILLIPS LYNN W. , CALDER BOBBY J.
Published: July 2010

Three quasi‐experimental research designs which promise the possibility of yielding strong conclusions about the effects of consumer protection initiatives are reviewed. The threats to internal validity which face these designs are described and illustrated with specific studies. The broader implications of evaluation research for consumer protection are discussed.
Types and Amounts of Information Used by Efficient Consumers
Authors: SPROLES GEORGE B. , GEISTFELD LOREN V. , BADENHOP SUZANNE B.
Published: July 2010

This paper describes a research methodology which assesses the efficiency of consumer decision‐making based on the types and amounts of informational cues used. A simple operational method is used to classify consumers into three levels of consumer efficiency based on how well they perform in assessing the optimal choice. The information chosen by perfectly efficient consumers, or those scoring at the maximum level of efficiency, is examined for indicators of optimal information seeking and decision‐making techniques.
Public Inputs in the Transportation Service Decision‐Making Process
Authors: BECKER BORIS W. , BROWN DANIEL J. , SCHARY PHILIP B.
Published: July 2010

This paper presents an empirical investigation of willingness to participate in public meetings to provide consumer inputs for designing public transportation services. The low levels of interest in participation among elderly, low‐income consumers and high levels of interest among consumers of specific transportation modes were critically evaluated.
Using Antitrust Law to Control Anticompetitive Real Estate Industry Practices
Authors: TROMBETTA WILLIAM L.
Published: July 2010

The structure of the real estate industry may work against the consumer's interest by maintaining artificially high commission rates and restricting access to the Multiple Listing Service. This article examines a significant antitrust problem that affects the consumer directly at the local level and suggests some alternative remedies such as making the public aware that commissions are negotiable and doing away with the limitation of access to Multiple Listing Services to members of local boards of Realtors. The article also suggests that in addition to strengthening state real estate commissions as regulatory bodies, state antitrust units can provide effective enforcement mechanisms.
How Wisely Do Consumers Select Their Property and Liability Insurance Coverages?
Authors: ELDRED GARY W.
Published: July 2010

Responses from a consumer panel in South Carolina were used to evaluate consumers' selections of homeowner's and auto insurance coverages. The results indicate that many consumers violate accepted decision rules for selecting coverages. Liability limits typically were below usually recommended levels, while most respondents had selected only small deductibles. Responses also indicated that a major portion of the respondents had not been provided information by their agents to assist them in the selection of coverage. Respondents who reported they had received information from their agents typically had made more appropriate selections than those who had not.
Drained‐Weight Labeling for Meat and Poultry: An Economic Analysis of a Regulatory Proposal
Authors: SEXAUER BENJAMIN
Published: July 2010

In December 1977, the Department of Agriculture proposed controversial new drained‐weight labeling regulations for meat and poultry products. Consumer groups for the proposal and producer groups against it made strongly worded, but largely unsupported statements about its impact. This paper attempts to clarify the basic issues. It examines the impact of drained‐weight labeling on product price and the effect on producers and consumers, assuming both a static and a dynamic setting.
Elderly Consumers' Knowledge Related to Medigap Protection Needs
Authors: LAMBERT ZARREL V.
Published: July 2010

Elderly consumers’ knowledge of Medicare coverage and the major factors they considered in purchasing supplementary health insurance were examined. Perceptions of the financial consequences of being hospitalized also were investigated. The findings based on a sample of Florida residents indicated that many older people may be ill‐prepared to correctly assess their medigap protection needs and to choose wisely among alternative insurance policies if they decide to purchase supplementary coverage. Inadequate knowledge may result in unfulfilled expectations about protection when medical expenses are incurred, vulnerability to questionable insurance sales appeals and methods, and purchase of uneconomic duplicate coverage.
140 Million Forgotten Consumers—The Life Insurance Policyholders of America
Authors: BELTH JOSEPH M.
Published: July 2010

The life insurance disclosure movement has focused almost entirely on point‐of‐sale disclosure, to the virtual exclusion of post‐sale disclosure. Life insurance companies are therefore under pressure to provide attractive point‐of‐sale information. Some of the methods used to achieve this objective adversely affect long‐time policyholders. Emphasis should be placed on the need for post‐sale disclosure, and policyholders should be educated on how to perform their own evaluations. Publicity should be given to companies whose actions improve the position of long‐time policyholders, and to companies whose actions adversely affect long‐time policyholders.
Public Participation in Rulemaking by the Federal Trade Commission: A Survey of Some Recent Experiences
Authors: LACZNIAK GENE R. , CURLEY ANNE
Published: July 2010

This paper provides a description and evaluation of activities undertaken within the public participation program of the Federal Trade Commission. Telephone interviews were held with 46 funding recipients representing organizations with substantial memberships in an effort to determine the use and benefit of public participation monies. The survey suggests that the program is working reasonably well in that the vast majority of respondents characterized their involvement in rulemaking as only possible by virtue of receiving the grant money. The major criticisms of public participation programs are also reviewed along with their relationship to the results of this survey. Some suggestions for improving the implementation of public participation funding are explored.
Product Standards and the Economics of Time
Authors: SWAGLER ROGER M. , MARLOWE JULIA
Published: July 2010

It is increasingly common for policy makers to evaluate product standards in cost‐benefit terms. However, such evaluations focus on the product itself rather than the product in use. The possible impact of the standard on consumers’ use of time is therefore overlooked. As a result, cost‐benefit relationships could be systematically misrepresented.
Quantity of Information and Information Display Type as Predictors of Consumer Choice of Product Brands
Authors: PATTON W. E.
Published: July 2010

Research has shown that consumers like large quantities of product information and believe that it helps them to make better purchase decisions. In light of this finding, it is quite possible that consumers might make brand choice decisions based on the amount of information provided. In cases where brands differ in amount of information, consumers may choose those brands that provide the most information. This article reports the results of exploratory research designed to examine this question as well as the effects of two information display types on brand choice in situations of varying information quantity. The findings revealed evidence to support the hypothesized consumer preference for high‐information brands over low‐information brands. The magnitude of the effect was also found to differ by type of information display.
The Effect of Nutrition Information on Brand Rating: Test for a Non‐Use Benefit
Authors: FREIDEN JON B.
Published: July 2010

Although consumers tend to express positive attitudes toward nutrition labeling when questioned directly, research indicates that most people do not use the information to help them make purchase decisions. While direct usage rates may be low, there may, however, be non‐use benefits associated with the information. This article describes the findings from a laboratory experiment which employed an indirect and highly structured research method to study an important non‐use benefit. The results indicate that consumers have more favorable attitudes toward food products which supply more information on the label.
Devising and Using a Computerized Diet: An Exploratory Study
Authors: FOYTIK JERRY
Published: July 2010

This paper reports on a study in which 60 volunteers used computerized diets for two weeks to experience how consumers react to drastic changes in eating practices. The diets for the experiment were developed by linear programming techniques to be as nutritious as the Thrifty Food Plan but substantially lower in cost. The results suggest this procedure could be used for devising dietary guides for consumers tempted to try a food plan assuring nutritious meals at low cost.
Increasing the Organizational Influence of Corporate Consumer Affairs Departments
Authors: FORNELL CLAES
Published: July 2010

Empirical research suggests that most corporate consumer affairs departments are not a part of the decision‐making structure of their respective firms. The typical consumer affairs department appears to have little influence in management decisions that affect consumer satisfaction and welfare. As a result, it is of limited value for the consumer.

A reason for the isolation of consumer affairs from corporate decision making may be that the department's contribution to the firm's welfare is not well understood. By showing a significant contribution to company sales, the consumer affairs department would be in a position to gain influence in the profit‐seeking organization. The article identifies the relationship between sales and complaint management within a marketing framework and develops objectives for complaint management that maximize the consumer affairs department's contribution to sales thereby enhancing the power base of the department within the business organization.
Welfare Loss from Inaccurate Information: An Economic Model with Application to Food Labels
Authors: SEXTON RICHARD
Published: July 2010

This study develops an economic framework which explains the welfare loss to consumers from imperfect information and provides a mechanism for analyzing the benefits from improved information. The model is applied to imperfect net weight information for packaged chicken and empirical estimates of the resulting welfare loss are obtained.
A General Test for Compliance with Equal Credit Opportunity Standards
Authors: INGRAM F. JERRY , WARNER ARTHUR E.
Published: July 2010

The basic objective of this study was to justify, develop, describe, apply and evaluate a statistical test for assessing the lending patterns of financial institutions for evidence of discrimination. Reduced to its essentials, the proposed test consists of a comparison of the discriminating ability of two alternative multivariate discriminant functions. One of these discriminant functions contains only generally accepted risk and return factors as discriminant variables, while the other is composed of the same risk and return factors plus a set of variables representing protected classes of loan applicants. An empirical application of the methodology in a mortgage lending setting led to the conclusion that protected classes of applicants such as minorities, women, and the elderly were afforded the same access to credit as their unprotected counterparts in the same risk categories.
The Allocation of Monthly Payments to Principal and Interest; A Caveat for Consumers
Authors: COLLINS ROBERT A.
Published: July 2010

The true cost of credit depends not only on the amount borrowed and the interest rate, but also the manner in which monthly interest charges are calculated. Changes in this calculation method that appear to be minor can produce some surprising changes in the cost of credit. These changes, which do not have to be disclosed on some types of loans, are worth watching for when shopping for credit.
A Survey of Consumer Difficulties with the Homebuying Process in One Colorado Community
Authors: WHITE BETTY JO , BARCLAY NANCY A.
Published: July 2010

To provide a basis for homebuyer education, this study sought to identify difficulties related to the homebuying process. A questionnaire mailed to a random sample of 250 Colorado homebuyers requested them to indicate problems encountered during search, purchase, and first year of occupancy. They were also asked to identify their two most important homebuying problems and the perceived causes for these difficulties. An 80.4 percent response was realized, of which 153 were eligible respondents.

The difficulties most commonly reported by the respondents were utility costs, foregone activities, mechanical system problems, necessary repairs or adjustments, delayed closings, and overlapping payments. Numbers and types of reported problems varied across sample groups categorized by buyer, search, and purchase characteristics. Implications for consumer education and further research are drawn from the study findings.
The Potential for Growth of Consumer Cooperatives: A Comparison with Producer Cooperatives
Authors: HALL BRUCE F. , HALL LANA L.
Published: July 2010

Over the past decade, widespread interest has developed among consumers in the formation of cooperatives, raising the question of how economically viable these cooperatives will be over time. This paper presents an analysis which shows that the potential for growth of consumer cooperatives will depend on the success of cooperatives in increasing management efficiency and in developing a range of more sophisticated financial instruments, including reorganizing as capital stock cooperatives and using borrowed capital. In addition, federation, consolidation and vertical integration may be needed. These conclusions are derived from analysis of the cost functions of the cooperative firm and from comparative analysis of the structural evolution of producer marketing cooperatives and consumer cooperatives.
The Professions Under Scrutiny: An Antitrust Perspective
Authors: TROMBETTA WILLIAM L.
Published: July 2010

Increasingly, the professions are coming under the scrutiny of the antitrust laws. Such anticompetitive forms of professional conduct as group boycotts, arbitrary and unreasonable licensing requirements, barriers to entry and exclusionary practices, price‐fixing, stifling of innovative delivery systems, and restrictions on the scope of professional practice are reviewed in this article. Also examined are the problems encountered by the courts in applying antitrust law to the professions.

The review of the literature reveals modest evidentiary support for a shift in the burden of requiring regulation to those proposing it. Several alternatives are set forth to aid in the development of procompetitive professions.
The Historical Development of the Content of Consumer Education: An Examination of Selected High School Texts, 1938–1978
Authors: HERRMANN ROBERT O.
Published: July 2010

This study was designed to determine which topics historically have been most frequently considered to be a part of consumer education and to identify changes over time in the coverage of particular topics. Fifteen selected high school consumer education texts published over a 40‐year period were examined and their contents classified into 50 topic categories. Overall, it was found that there was substantial variation among the texts in the topics included and in the length of coverage given to them. While a small group of topics was covered in all of the books, only limited evidence was found for a developing consensus about many other areas. It also appears that the content of consumer education textbooks was relatively unresponsive to economic and social changes over the 40‐year period.