bluuebunny/crossref_metadata_2025 huggingface dataset:
An Interpretation of the Attitudinal and Behavioral Effects of Puffery
Authors: OLIVER RICHARD L.
Published: July 2010

Although the FTC has increased its activity in the monitoring of deceptive advertising, the law nonetheless continues to recognize most puffery as harmless and permits a firm to argue that a claim is puffery in defense against a charge of fraud or misrepresentation. This paper is designed to explore the view that puffery may be equivalent in impact to literal deception. A review of the relevant theoretical and empirical literature in the areas of expectation creation, attitude formation, and disconfirmation is presented which suggests that puffery achieves its intended impact through a combination of preexposure and postpurchase effects. Specifically, it is argued that puffed claims create high expectations used in attitude and intention formation prior to purchase. The nature of these claims is such that many cannot be disconfirmed after purchase while others are repressed due to the consumer's reluctance to acknowledge discrepancy. Moreover, the initial inflated attitude serves to bolster the postpurchase attitude when the consumer is exposed to and recognizes a negative disconfirmation. Implications of this interpretation for the marketing and legal communities are discussed.
An Emerging Model for Purchase and Consumption of Non‐Prescription Drugs
Authors: HUSTAD THOMAS P. , COURTNEY ALICE E. , HEELER ROGER M.
Published: July 2010

This paper presents the results of exploratory surveys which describe the behavior of the buyer and consumer of over‐the‐counter (OTC) drugs. The results are summarized in a simple decision model which describes the information search process under various conditions of symptom severity, user satisfaction and brand familiarity. Implications are discussed for regulating problem consumption. In particular, advertising and labeling regulations seem unlikely to reduce patterns of heavy usage observed in the research. Problems arising from the self medication process must be examined in a broader context of health care behavior.
Estimating Consumer Losses From Unavailable Advertised Grocery Specials
Authors: FERGUSON CARL E. , MASON J. BARRY , WILKINSON J. B.
Published: July 2010

Supermarkets regularly advertise food specials to provide information on new products and seasonal products, to induce new customers to the store and to retain old customers by good price / quality relationships. But how important are the purchase of advertised food specials to food shoppers? Do they realize significant savings from buying advertised specials? If advertised specials are not available, how much do consumers lose? These questions are addressed in this article through the use of a Monte Carlo simulation, based on a comprehensive conceptual model of the determinants of unavailability.
Satisfaction/Dissatisfaction with Food Shopping Among Elderly Consumers
Authors: MASON J. BARRY , BEARDEN WILLIAM O.
Published: July 2010

The food shopping behavior of 110 elderly households in a standard metropolitan statistical area was examined. Data were collected by personal interview concerning the shopping behavior problems of elderly consumers and the frequency and types of dissatisfaction with food products purchased. Implications and directions for further research are suggested for those concerned with the role of the elderly in the marketplace.
Economic Analysis of Current Issues in Consumer Product Safety: Fabric Flammability
Authors: DARDIS RACHEL
Published: July 2010

Two major issues in the area of consumer product safety are who should protect the consumer and how much protection should be provided. Underlying both these questions are concerns for the consumer's freedom of choice and efficiency. Is the consumer the most efficient risk reducer or should risk reduction be left to the regulatory authorities? Given resources constraints which preclude the attainment of 100 percent protection, what is the optimal degree of protection. This paper applied economic analysis, including cost‐benefit analysis, to an examination of both issues. The advantages and disadvantages of the informed buyer approach versus the regulatory approach to the assignment of responsibility for consumer protection are first discussed. Cost‐benefit analysis is then applied to an evaluation of actual and hypothetical flammability standards for children's sleepwear and clothing. The two sleepwear standards proved cost effective in contrast to the two clothing standards where the costs of providing additional protection to the cosumer far exceeded the benefits. The results indicate the feasibility and utility of cost‐benefit analysis in determining how much protection should be provided.
Consumers' Nutritional Ratings of Fast‐Food Meals
Authors: MCNEAL JAMES U. , STEM DONALD E. , NELSON CAROL S.
Published: July 2010

This study examines the nutritional beliefs about fast‐food restaurant meals held by a small sample of consumers. Views on the nutritional quality, caloric content, potential hazards and economic value of such meals were examined with respect to the socioeconomic level and nutritional knowledge of consumers.

Findings indicate that consumers perceive these nutritional aspects of fast‐food meals to be important but often ignore them in practice. Implications for consumer education and a need for greater social responsibility on the part of the restaurants are noted.
Consumer Affairs Executives' Opinions on Educational Preparation for Business Careers in Consumer Affairs
Authors: FRITZSCHE DAVID J. , FERRELL O. C.
Published: July 2010

Data collected from practicing executive level consumer affairs professionals (CAPs) was used to identify areas they felt were important in preparation for a career in consumer affairs. The business administration major was considered the most useful major, with middle and junior level CAPs most favorable to the business administration major. Important areas of study delineated through factor analysis included consumer oriented subjects, communication skills, marketing, management, ethics and poverty, home economics, and physical sciences. Variations in the relative importance of majors and courses were found by type of company, level of management, and by sex. The study concludes that an interdisciplinary academic program appears to be most desirable for preparing students for a career in consumer affairs.
The Effects of Inflation and Taxes on the Costs of Home Ownership
Authors: DUNCAN GREG J. , MORGAN JAMES N.
Published: July 2010

This article assesses the impact of inflation on the true economic costs of owning a home. Using the assumption that most pre‐tax housing costs are roughly proportionate to house value, it is shown that inflation cuts housing costs substantially for homeowners with mortgages because capital gains income from house price inflation is untaxed but mortgage interest payments are fully deductible. The distribution of tax savings are estimated with national data and it is found that roughly half of all benefits go to families in the top one seventh of the income distribution.
Even After the Magnuson‐Moss Act of 1975, Warranties Are Not Easy to Understand
Authors: SHUPTRINE F. KELLY , MOORE ELLEN M.
Published: July 2010

This study was designed to measure the complexity of written material in a selected group of consumer durable warranties. The Fog Index and the Flesch Count were used in determining complexity and readability of warranties. Readability levels were computed for 125 warranties in nine categories of consumer durables: washing machines, refrigerators, vacuum cleaners, color televisions, coffee‐makers, can openers, stereos, bicycles, and automobiles. The results revealed that most of these warranties will be difficult to read for those with a high school education or less. As a result, the warranties examined in this study provide little protection against risk or claims for individuals who may not understand their specific terms as they are presently stated.
Characteristics of Consumer Participants in Federal Trade Commission Rule Making
Authors: LABARBERA PRISCILLA A. , LAZER WILLIAM
Published: July 2010

Increasing interest has been exhibited by both consumer groups and government agencies in gaining greater consumer participation in the rule‐making procedures of the federal government. Yet little is known about the characteristics and attitudes toward marketing of “participant consumers”‐those consumers who have participated in the process and made their viewpoints known to federal agencies. This study investigated such consumers. Significant differences were found between the demographic and attiludinal characteristics of participant consumers and consumers in general. To gain a balanced consumer perspective as inputs for regulations, federal regulators will have to extend their information gathering activities well beyond the normal consideration of consumer briefs received.
The Dynamics of Local Markets: A Case Study of Cameras
Authors: DUNCAN GREG J.
Published: July 2010

Longitudinal data on the availability and prices of two related products in a local market are used to assess the dynamic performance of the markets for these products. Consistent with prior research, a large degree of price dispersion was found for both products. There was some evidence of a modest reduction in price dispersion over time, and of the lowest quality models to “drop out” of the market. Store quality differences and likely search costs did not appear to explain the remaining dispersion.
Is the Truth in Lending Being Told with the Annual Percentage Rate as the Measure of the Cost of Credit?
Authors: CELEC STEPHEN E.
Published: July 2010

This paper demonstrates that the Annual Percentage Rate (APR) measure required under the Federal Reserve System's Regulation Z is not consistent with the mathematical procedures involved in calculating the interest charges on a loan. The APR is never a correct cardinal measure of the true cost of credit, and it is a correct ordinal measure only under specific restrictive conditions. Since the APR always understates the true cost of credit, and since a correct cardinal measure is already familiar to the finance profession, it is difficult to justify the required disclosure of the APR. The Annual Effective Rate should be required as the summary measure of the true cost of credit for all types of consumer loans.
Evaluating User Satisfaction with a Consumer Protection Hotline
Authors: LIPPERT ALICE , DONALD MAURICE MAC
Published: July 2010

The consumer complaint‐handling literature characterizes users of toll‐free Hotlines, but satisfaction with this consumer service has not been evaluated. A telephone survey was conducted of callers to a Wisconsin consumer protection Hotline in an effort to assess user satisfaction. When filers of complaints and inquiries were compared, it was found that complainants were more likely to have used the Hotline more than once or to have recommended it to others, while inquirers expressed greater satisfaction with the agency. As expected from previous research, users were generally satisfied with the Hotline and related services; high‐status groups were most satisfied; and low‐status persons were less likely to have used the Hotline.
The Impact of Price Advertising: The California Eyewear Market After One Year
Authors: MAURIZI ALEX R. , MOORE RUTH L. , SHEPARD LAWRENCE
Published: July 2010

Recent judicial decisions and regulatory actions have reversed advertising restrictions enforced in the professions. This study examined the degree to which such regulatory reform has in its first year resulted in increased advertising competition among California eyewear practitioners. It also analyzed price differences between advertising and nonadvertising ophthalmologists, optometrists, and opticians. The study found that while relatively few practitioners engaged in advertising, those that did charged 17 percent less than nonadvertisers.
Unavailability and Mispricing: Are Discount Stores Also Offenders?
Authors: MASON J. BARRY , WILKINSON J. B.
Published: July 2010

This research examined the availability and pricing policies of discount department stores for advertised products, thereby enlarging the scope of previous research on availability and mispricing of advertised supermarket products. The study findings suggest that unavailability is not a serious problem in discount department stores but that overpricing of advertised items may occur frequently.
Consumer Perceptions of Advertising as Misleading
Authors: SCHUTZ HOWARD G. , CASEY MARIANNE
Published: July 2010

A mail survey was conducted of 314 residents of two California cities to measure consumer perception of the prevalence of misleading advertising. Information was obtained concerning the extent of misleading advertising in the various media, for 30 products and services and for three age groups. The findings indicate that over half of the sample viewed “most” or “all” mail and telephone advertising as misleading, and that 38 percent of the respondents regarded “most” or “all” television advertising as misleading. Newspaper advertising was considered the most credible. Findings indicate that “most” or “all” advertising for products and services was viewed as misleading by 30 percent of the respondents. Findings for actions taken concerning misleading advertising indicate that nearly half of the sample had registered a complaint to the store or person advertising and that 29 percent of the respondents had complained to a manufacturer. Also, findings for the age groups indicate that two out of three respondents regarded “most” or “all” advertising directed at children as seriously misleading. Advertising directed at senior citizens was viewed as seriously misleading by 45 percent of the sample, and advertising directed at young and middle‐aged adults was viewed as only slightly less misleading.
Consumer Interest Litigation: A Case Study of Nader v. Allegheny Airlines
Authors: SNOW ARTHUR , WEISBROD BURTON A.
Published: July 2010

The Nader case highlights the related problems of airline “overbooking” and passenger “no shows,” and raises the question of what public policy should be in this area. The paper analyzes the efficiency and equity aspects of Nader's attempt to eliminate overbooking. It also focuses attention on the interplay of litigation and regulation as instruments of economic policy change.
Informationally Imperfect Consumer Markets: Empirical Findings and Policy Implications
Authors: MAYNES E. SCOTT , ASSUM TERJE
Published: July 2010

A local consumer market is informationally imperfect and welfare‐reducing to the extent that it is characterized by extensive price dispersion unexplained by utility‐conferring properties of the product. This article reports a study to ascertain the extent of informational imperfections for 17 representative products in Syracuse, New York. Except for food, most products exhibited extensive and welfare‐reducing price dispersion. The article also reports on a pilot investigation of consumers' perceptions, finding them to be mostly inaccurate (except for food) and typically underestimated. The study findings suggest that consumers are both victims of and contributors to informationally imperfect markets. The paper concludes with a discussion of policy implications.
Winning in Small Claims Courts: An Empirical Analysis
Authors: BRADLEY JULIE , SHERMAN BARBARA , BRYANT W. KEITH
Published: July 2010

Small claims courts provide consumers with a potentially effective method for complaint resolution. Little is known, however, about the factors which influence the probability of consumers winning their cases in court or of successfully settling their cases out of court. This study estimated these probabilities using 1975–76 data from the Syracuse, New York Small Claims Court. A major goal of the research was to determine if plaintiffs' demographic characteristics, the amount and type of advice sought by plaintiffs and the specific characteristics of the cases differentially affected the probability of successful consumer outcomes. Major findings were that economic variables such as the amount of the claim and the amount offered by way of settlement of the claim primarily determined the probability of settling out of court. Neither sex nor race had any impact on the probability of winning in court. Advice from the small claims court staff and from lawyers both were found to lower the probability that the consumer would win in court. The results point to the need for more empirical analyses of small claims court cases and may aid educators in advising consumers on the use of the institution and policy makers concerned with court reform.
Residential Electricity Demand in Rural Areas: The Role of Conservation Actions, Engineering Factors and Economic Variables
Authors: JAFFEE BRUCE L. , HOUSTON DOUGLAS A. , OLSHAVSKY RICHARD W.
Published: July 2010

A model of residential electricity demand using economic, engineering, and conservation variables was tested using data from a sample of rural residential customers served by eighteen rural electric membership cooperatives in central and southern Indiana. Electricity usage was found to be dependent upon past energy conservation efforts, even when household income, electricity prices, appliance stocks, space heating and cooling stocks, and housing characteristics were taken into account. The investigation also developed a ranking of receptivity to alternative conservation strategies. It supports public and private policies which are directed toward improving consumer attitudes toward energy conservation.
Recalls and the Remediation of Hazardous or Defective Consumer Products: The Experiences of the Consumer Product Safety Commission and the National Highway Traffic Safety Administration
Authors: TOBIN RICHARD J.
Published: July 2010

There have been many analyses of the nation's safety, health, and environmental programs, but relatively few studies of consumer protection programs. The present study attempts to add to the literature in this area by examining, through early 1982, the recall programs for hazardous or defective consumer products of two federal agencies: the Consumer Product Safety Commission (CPSC) and the National Highway Traffic Safety Administration (NHTSA). The analysis focuses on an evaluation of existing recall methods and their success in repairing hazardous products or in removing them from the marketplace. A review of several indicators of “success” suggests that a large gap exists between the set of all such hazardous products and the subset identified as hazardous and effectively acted upon by the two agencies. Some suggestions for closing this gap are noted and discussed.
United States Trade in Consumer Products
Authors: GARCIA PHILIP , ROSS MARY ANNE , PADBERG DANIEL I.
Published: July 2010

The United States has experienced a large trade deficit in consumer products. This paper argues that the deficit is due in part to the institutional and behavioral frameworks in which consumer products are marketed. The existence of an effective mass distribution system, a large market relative to promotion expenditures and the change‐orientation of the consumer can influence greatly the ability of nations to expand markets and stimulate sales of consumer products. These factors prevalent in the American economy have attracted imports. In contrast, their absence in the economies of our trading partners has limited our access to foreign markets. Policy implications of this situation and areas for further research are identified and discussed.
Developing an Information‐Based Marketing Strategy for a Consumer Protection Agency: A Case Study
Authors: HEMPEL DONALD J. , LARIC MICHAEL V. , TUCKER LEWIS R.
Published: July 2010

Consumer protection agencies can improve their responsiveness and productivity by gathering and using market information to develop social marketing programs. The authors propose a strategic model using consumer complaint data and examine its application in the design of an information system for the Connecticut Department of Consumer Protection. Results obtained from this system are presented to illustrate how the analysis of complaint data can be used in formulating a consumer protection strategy.
On Being Consumer Educators in the 1980's
Authors: BYMERS GWEN J.
Published: July 2010

Consumerism as a force in our society is maturing. Consumer education as a field of study is also growing up. It is beginning to be recognized as a positive and constructive force in the economy. In the decade of the 80's we can probably place less emphasis on the adversarial and protective issues and more on the rights and responsibilities of consumers in a market economy. A second or “hidden” agenda should be to encourage improvement in the production and delivery system itself.

Consumer education belongs to no single discipline. Even economics cannot provide the whole story for a consumer education program. However, consumer education that does not require solid economic understanding is indeed misnamed.

Although the primary focus of our efforts should be on the decision making of the individual and the household, our teaching must clearly articulate with the larger economy. We are living in a different economic climate than prevailed a decade or so ago. We must keep abreast of rapidly changing social institutions and market arrangements if our teaching is to be relevant and meet the challenges of the coming decade.
Beverage Container Deposit Laws: A Survey of the Issues and Results
Authors: MOORE W. KENT , SCOTT DAVID L.
Published: July 2010

Much of the movement toward mandatory beverage deposit legislation has withered away in the current anti‐regulation mood of the country. Even before the change in mood, the major focus of deposit laws was moving away from litter control and toward energy and resource savings. In fact, deposit laws have had a variety of repercussions on such factors as jobs, consumer prices, industry capital expenditures, energy consumption, and litter. The cooling emotions and lapse in time since most of the regulations were enacted provide a good opportunity to sort through the arguments and review the results. This paper attempts to present a balanced view of the issues surrounding this complicated topic. It find that the consequences of mandatory deposits have generally been somewhere between the initial predictions of groups favoring legislation and those opposing it.
Customer Characteristics and Attitudes at Participatory and Supermarket Cooperatives
Authors: SOMMER ROBERT , BECKER FRANKLIN , HOHN WILLIAM , WARHOLIC JEAN
Published: July 2010

Rising food prices have contributed to an increase in the number of food cooperatives in the United States. The present study was undertaken to learn more about the characteristics and motives of food co‐opshoppers at large supermarket cooperatives with paid staff and a full product range and small participatory co‐ops with volunteer workers and selective merchandising policies. Customer counts and interviews were conducted at participatory and supermarket co‐op stores and nearby commercial supermarkets in Northern California and in New York State. Shoppers at the participatory co‐ops were found to be young, well‐educated, ethnically homogeneous, non‐affluent, and motivated primarily by low prices, food quality, natural food and co‐op philosophy. Customers at supermarket co‐ops tended to be more diverse in age and ethnicity, well‐educated, with eclectic food tastes, and motivated primarily by convenience, low prices and co‐op philosophy. Customers at near by commercial supermarkets were also heterogeneous in age and ethnicity and motivated primarily by price and convenience. The implications of the different customer populations and motives for the future of food co‐ops are discussed.
A Comment on “The Consumer Impact of Alternative Allocation Plans: The Case of Gasoline”
Authors: KUSHMAN JOHN E.
Published: July 2010

This paper shows that the conclusions of a paper published in the Journal of Consumer Affairs on consumer preferences among allocation schemes were not valid deductions. It is argued that an adaptation of index numbers of quantity can be used to deduce preferences and an illustrative case is presented for various plans to allocate gasoline.
Risk Judgments and Intention Measures After Reading About Prescription Drug Side Effects in the Format of a Patient Package Insert
Authors: KEOWN CHARLES F.
Published: July 2010

Under a new Food and Drug Administration's proposal, consumers could receive an information leaflet, called a patient package insert or PPI, with most prescription drugs. This study examines the effects of providing side effect information on people's perceptions of risk and intentions to take a hypothetical drug. In a between‐subjects experiment, using nine groups of subjects receiving different side effect information, the study found that subjects were sensitive to large differences in the number of side effects, their degrees of seriousness, as well as their frequency of occurrence; however, subjects could not discriminate small differences. Several implications of the study are important to researchers and designers of consumer information programs that are concerned with risk assessment.
A Comparative Performance Analysis of New Wave Food Cooperatives and Private Food Stores
Authors: SCHIFERL ELIZABETH A. , BOYNTON ROBERT D.
Published: July 2010

The purpose of this study was to determine what “new wave” store front food cooperatives offer their patrons, relative to private grocery stores. A marketbasket price survey of 73 non‐meat food items was conducted at 10 cooperatives and eight private stores in the Minneapolis/St. Paul Area in 1981. Consumer satisfaction was examined via a mail questionnaire returned by 1,089 patrons of both store types. A new kind of food cooperative shopper was identified, the minor user. Minor users were more recent cooperative patrons and more closely resembled a traditional, established, middle‐class family. Unlike the more traditional co‐op user, price was the most important store choice criterion for the minor user. Cooperatives were judged by their patrons to be performing slightly less satisfactorily than private stores. However, the two store types were not found to differ in their performance of the two functions most important to consumers, i.e., price and quality. Member shoppers at a cooperative could save 15 percent, or about $290 per year for the average household, a return on a typical member's work contribution of $6.04 per hour.
In‐Store Shopping Strategies: Time and Money Costs in the Supermarket
Authors: WALKER ROSEMARY , CUDE BRENDA
Published: July 2010

Consumers may adopt in‐store shopping strategies to reduce time and/or money expenditures. Seven shopping strategies were identified and used to simulate the purchase of 19 specified products at three supermarkets at which price and size data were collected. Expenditures ranged from $13.88 to $23.70 for the various strategies, requiring up to 272 price comparisons. The monetary savings (from the average) resulting from use of the strategies were used to determine the break‐even times for three hypothetical wage rates. Break‐even time was defined as the amount of time one could spend such that the value of the time expended equals the monetary savings realized. The efficiency of a strategy was found to vary by store and by the value placed on shopping time. The implications of the findings for consumer educators are noted and discussed.
A Framework for Setting Retirement Savings Goals
Authors: DUNCAN GREG J. , MITCHELL OLIVIA S. , MORGAN JAMES N.
Published: July 2010

The purpose of this paper is to develop a framework for calculating savings needed to meet retirement goals under a variety of alternative assumptions about the economic and institutional environment. A “base case” that incorporates a zero real rate of interest serves as a starting point; next, differences resulting from a positive interest rate are examined. The analysis is further modified to take into account the effects of inflation, the role of Individual Retirement Accounts (IRAs), and possible future changes in tax laws. Throughout, the goal is to evaluate how best to plan for a smooth, regular consumption level before and after retirement and to adjust savings programs for changes in one's situation or expectations. The framework provided herein is expected to be useful to consumer educators and financial counselors concerned with helping individuals to meet their retirement goals.
Consumer Complaining and Community Involvement: An Exploration of Their Theoretical and Empirical Linkages
Authors: WARLAND REX H. , HERRMANN ROBERT O. , MOORE DAN E.
Published: July 2010

Drawing upon Smith's [16] participation theory, it is proposed that consumers who complain are also very likely to be active in other areas of social, economic and political life. The relationship between consumer complaining behavior and political and citizen participation is investigated in this paper. Using data from a 1980 survey of Pennsylvania adults, it was found that complaining behavior was significantly related to community involvement in a multivariate analysis in which other key variables were controlled. Implications are explored for both consumer education and the study of consumer complaining behavior.
The Cost of Inaccurate Consumer Information: The Case of the EPA Mileage Figures
Authors: SENAUER BEN , KINSEY JEAN , ROE TERRY
Published: July 2010

The EPA fuel economy estimates for automobiles are an important instrument of public policy and are widely publicized. However, the accuracy of these figures, for use by consumers as an estimate of actual on‐the‐road mileage, has come under increasing challenge. Consumers Union provides alternative fuel efficiency estimates for the cars it tests, based on actual on‐the‐road driving. This study calculates the costs of in‐accuracies in the EPA's Estimated Mileage, assuming consumers use those figures in making their automobile purchase decisions, but in actual driving achieve mileage equivalent to the Consumers Union's figures. The economic impact includes potentially large unanticipated additional expenditures on gasoline by consumers and in a few cases unexpected gasoline savings; also included is a net social welfare loss due to allocative error. This loss provides a measure of the gains to society obtainable from improvements in the reliability of the EPA estimates as a source of mileage information for consumers.
Price‐Quality Correlations in the Japanese Market
Authors: YAMADA YOSHIKO , ACKERMAN NORLEEN
Published: July 2010

This study tested the consumer's rule of thumb, price indicates quality, in the Japanese market. The data source was the Monthly Consumers product testing magazine published by the Japanese Consumer Association. Spearman's rho correlations of price and quality ranged from +.87 to −.80, with a mean of −.06. The slightly negative, near zero mean correlation indicated that, on the average, price was a very poor indicator of quality. Among product categories, bicycles had the highest mean correlation, +.54; mean correlations for other product categories exhibited considerable variation. Comparisons of correlations within a product category, such as television sets or microwave ovens, revealed that a significant positive correlation at one point in time was not a reliable guide to the level of price‐quality correlation for that product category at later points in time. Comparing results from this study with results from previous studies of Consumer Reports and Consumers Research reveals a smaller percentage of positive correlations and a lower mean correlation for the present study.
Estimating the Benefits of Individual Retirement Accounts: A Comparison to Capital Gains Investments
Authors: WALDEN MICHAEL L.
Published: July 2010

This paper compares the benefits of investing funds in an IRA account to the benefits of investing funds in a long‐term capital gains investment. The comparison is motivated because IRA funds, although they can be placed in a long‐term capital gains account, are ultimately taxed at ordinary income tax rates. IRA funds cannot receive the favorable long‐term capital gains tax treatment.

Following previous work by Collins, gain factors are computed for IRA accounts vs. long‐term capital gains accounts. In most cases the gain factors are larger than one, although much smaller than when the alternative investment is a typical savings account. Gains factors are, however, universally less than one for premature withdrawal of the IRA.
Consumer Trade‐Offs Among Flame Retardance and Other Product Attributes: A Conjoint Analysis of Consumer Preferences
Authors: CROWN E. M. , BROWN S. A.
Published: July 2010

This paper reports a study of consumer choices of alternative products, based on trade‐offs among various product attributes. The methodology is a conjoint analysis of product preference rankings based on evaluations by 197 consumers of nine blanket specimens mailed to them as part of a survey. The specimens, which varied according to price, hand, care instructions and flame retardance, provided a much more realistic representation of a choice situation than either verbal or pictorial product descriptions.

Results of the conjoint analysis suggest that this is an appropriate tool for examining consumer preferences. Flame retardance was found to be important to consumers in their choice of textile products, and they appeared willing to make trade‐offs among other product attributes to acquire this special property. For some consumers this might mean a willingness to pay more, to sacrifice some softness or to follow more specific care instructions. The implications of these results for public policy are discussed.
The Consumer Politics of Trade Restrictions: The Case of Domestic Content Requirements
Authors: MAYER ROBERT N.
Published: July 2010

Blue‐collar employment in the United States is declining due to a number of factors including the increasing competitiveness of foreign businesses, overseas plant relocation by American firms, and a new wave of automation (e.g., robotics) in “smokestack” industries [2, 13, 20, 27, 33]. From the viewpoint of American consumers, these developments could mean lower prices, improved product quality, and enhanced choice for American consumers. This paper argues, in contrast, that the declining power of organized labor in the United States poses serious issues of identity and strategy for the American consumer movement. These issues are first examined in detail with respect to domestic content legislation and the American auto industry and then considered more broadly in the paper's final section.
Home Equity Use and the Life Cycle Hypothesis
Authors: CHEN ALEXANDER , JENSEN HELEN H.
Published: July 2010

The life cycle hypothesis of consumption assumes the household to take a life‐time perspective on all resources available for consumption, and to use the assets accumulated during the life‐time to fund later consumption. Typically, households in the middle, high earning years, are able to save; younger and older households borrow or dissave. For many, a large share of accumulated household assets reside in home equity. This paper analyzes the propensity to use home equity to fund current consumption using a logit analysis of homeowners. The results support earlier criticism of the life cycle hypothesis in finding that older households do not rely on dissaving from assets. Older homeowners are less likely to use home equity to fund current consumption than others. Both sociodemographic determinants of life cycle changes as well as income variables are significant determinants of willingness to use home equity. Liquidity considerations appear to be less important.
The Effects of Changes in Implicit Energy Costs on Housing Prices
Authors: LONGSTRETH MOLLY , COVENEY ANNE R. , BOWERS JEAN S.
Published: July 2010

The determinants of housing sale price per square foot were estimated for houses sold in two time periods, 1971–1976 and 1977–1980 using hedonic price theory and regression analysis. Natural gas consumption did not affect sale prices in the first period, but higher consumption levels reduced sale price per square foot in the second period up to $88 ccf/sf year. At higher levels the sale price rose with increases in gas consumption.
The Welfare Loss from the New Sugar Program
Authors: DARDIS RACHEL , YOUNG CAROL
Published: July 2010

In May 1982, sugar import quotas were imposed after they had been discontinued for eight years. This paper examines the absolute and relative costs of the new sugar program and compares it to alternative systems of producer protection. The results indicate that the existing system is both inefficient and inequitable. The use of deficiency payments would transfer the burden of producer protection from sugar consumers to taxpayers. In addition, foreign aid should be provided directly (through taxes), rather than indirectly by means of quotas. The fact that political feasibility appears to have dominated efficiency or equity considerations means that low income consumers will continue to bear a disproportionate share of the costs of protecting domestic sugar producers and providing foreign aid.
Innovation Perception and Adoption of Solar Heating Technology
Authors: GUAGNANO GREG , HAWKES GLENN R. , ACREDOLO CURT , WHITE NANCY
Published: July 2010

This study examines the differences between solar adopters and the general public in their perceptions of solar technologies. Factor analysis confirmed the existence of the theorized dimensions of innovation perception. Discriminant analyses and post hoc comparisons were used to assess differences between adopters, nonadopters, and procrastinators. Models including these facets resulted in significant improvements over a model containing only demographic variables. Results are used to make suggestions for increasing the pace of solar adoption.
The Effects of Manufacturer Disclosure on Consumer Perceptions of Private Brand Grocery Product Attributes
Authors: FUGATE DOUGLAS L.
Published: July 2010

New food label disclosures are frequently proposed. One such proposal, the identification of manufacturer or packer of private label food items, has potentially far‐reaching effects upon food choice decision making and ultimately upon the cost and availability of private label food products. This experimental study examined consumer perceptions of private brand grocery product attributes before and after manufacturer disclosure. Attribute evaluation scores from the experiment were compared against each other and against a control group. Subjects appeared to be influenced by the information, but the effects varied by product and by attribute. The overall impact of mandatory manufacturer disclosure should be carefully weighed against the consumer's right to know. Much more needs to be known about consumer use of this information before implementing this requirement.
Measuring a Consumer Energy Conservation Ethic: An Analysis of Components
Authors: HALDEMAN VIRGINIA A. , PETERS JEANNE M. , TRIPPLE PATRICIA A.
Published: July 2010

An energy future based on conservation will require that consumers subscribe to a Consumer Energy Conservation Ethic. This study identifies the components and best predictors of a conservation ethic.
Economic Impacts of a National Deposit Law: Cost Estimates and Policy Questions
Authors: LESSER WILLIAM , MADHAVAN ANANTH
Published: July 2010

This paper uses available evidence to project the impacts of national mandatory deposit legislation for beverage containers. Container litter should decline by 70 percent with 70 percent of redeemed containers recycled. This comes at an estimated cost of over $3 billion annually. Due to these high costs, alternative approaches should be evaluated first, with a national bottle bill adopted only as a last resort and then only with broad public support. Along with the impacts of the law, its operational characteristics require more research attention. Several directions for policy analysis are identified.
Consumer Valuation of Protection from Creditor Remedies
Authors: FALLS GREGORY A. , WORDEN DEBRA DRECNIK
Published: July 2010

This study investigates the values consumers place on restrictions of creditor remedies. The unique data employed were derived from a 1979 consumer survey taken across four local credit markets that differed significantly in their legal environments. The results of binomial logit analysis identified the characteristics of consumers who were willing to pay for contractual protection from several creditor remedies. A study of the dollar amounts that consumers were inclined to pay provided few significant results.
Consumer Attitudes Toward Health and Health Care: A Differential Perspective
Authors: GOULD STEPHEN J.
Published: July 2010

Measures of attitudes of health care consumers toward their own health behaviors and health care institutions reveal the overall pattern of their views as well as their segmented views. Results suggest that some consumers may take a more scientific approach to health care and prevention than others and that demographics, health status, and health consciousness are partial predictors of that consumer approach. Policy makers for health care should formulate and target programs with different segments of the population in mind.
An Indirect Test of Children's Influence on Efficiencies in Parental Consumer Behavior
Authors: POLACHEK DORA E. , POLACHEK SOLOMON W.
Published: July 2010

A statistical test is applied to explore the possibility that children can affect the efficiency with which parents consume. Parents may receive some economic benefits from children in the form of reverse integenerational transfers that occur because of a positive influence children have on family behavior. Results show that not only do children have an influence on parental consumption, but also that the influence is beneficial. In fact, not accounting for such a benefit could cause an underestimate in such measures as the rate of return to education or the benefits from such governmental programs as Head Start.
The Distribution of U.S. Income and Food Expenditures
Authors: BLAYLOCK JAMES R. , BLISARD WILLIAM N.
Published: July 2010

Food expenditure and income distributions over 1980–1985 are examined using two welfare criteria: less inequality and more available resources. Intertemporal changes in the distributions are studied from the perspectives of inequality, relative economic affluence, society's satisfaction with the distributions, asymmetries, and average propensities to spend. Major conclusions are that inequality has increased over time in both the income and food spending distributions, relative economic affluence has generally risen, society is less satisfied with the food spending distribution, and average propensities to spend on food have been constant.
Consumer Representation and Local Telephone Rates
Authors: MAYER ROBERT N. , ZICK CATHLEEN D. , BURTON JOHN R.
Published: July 2010

The study reported here attempts to determine the impact of several political factors, including the type of proxy advocacy provided by state government, on flat‐rate, residential telephone service. Results indicate that the type of proxy advocacy and the length of public utility commissioners’ terms are significantly related to residential telephone rates, whereas method of commissioner selection has no relationship to rates.
The Hierarchy of Consumer Participation: Knowledge and Proficiency in Telecommunications Decision Making
Authors: HYMAN DREW
Published: July 2010

This paper establishes a “hierarchy of consumer participation” that has striking parallels to the hierarchy of political involvement developed by Milbrath (1965, 1982). Analysis of consumer decision making required by the deregulation of telecommunications shows that independence of decision making, propensity to use sources of information, and propensity to influence others' decisions are highly interrelated. Four main types of consumers are identified: consumer influentials, active consumers, dependent consumers, and nondecision makers. The levels of consumer participation should be highly salient in defining targets and programs for consumer research, education, protection, and policymaking.
Time as a Direct Source of Utility: The Case of Price Information Search for Groceries
Authors: KOLODINSKY JANE
Published: July 2010

A “joint production” model that combines aspects of household production and the economics of information is formulated to explain variation in time spent in price information search for groceries by dual earner households. Enjoyment of search time, a psychological variable, is incorporated into the model. Empirical estimation using grocery expenditure data indicates that enjoyment, income, age, the price of search time, presence of young and teenage children, daily use of a microwave oven, and the percentage of a market basket filled with name brand items are significant factors in explaining variation in time spent in price information search.
Consumer Decision‐Making Styles as a Function of Individual Learning Styles
Authors: SPROLES ELIZABETH KENDALL , SPROLES GEORGE B.
Published: July 2010

The interrelations between individuals' learning styles and their consumer decision‐making styles are explored. A Secondary Learning Styles Inventory is developed to measure six characteristics of learning, and a Consumer Styles Inventory is developed to measure eight characteristics of consumer decision making. Significant correlations between 21 of the 48 pairs of learning and consumer decision‐making characteristics are found. Implications for the dissemination of consumer education and information are suggested.
Consumer Acceptance of Cosmetically Imperfect Produce
Authors: BUNN DAVID , FEENSTRA GAIL W. , LYNCH LORI , SOMMER ROBERT
Published: July 2010

A survey of 229 supermarket shoppers found low initial acceptance of cosmetically scarred oranges. Acceptance rose substantially after information was provided about reduced pesticide use. The findings reveal a substantial market for cosmetically imperfect produce when accompanied by consumer education regardless of the consumers' demographic characteristics.
Social Issues and Socially Responsible Investment Behavior: A Preliminary Empirical Investigation
Authors: ROSEN BARRY N. , SANDLER DENNIS M. , SHANI DAVID
Published: July 2010

An important dimension of the ongoing trend toward greater corporate social responsibility is the emergence of individual and institutional investors who invest in companies that support social objectives. While a small number of studies have examined the criteria used by institutions, no studies have looked at individual investors. Using a mail survey of 4,000 investors in two mutual funds that incorporate social screens in their investment decisions, this study finds that compared with other investors, socially responsible investors are younger and better educated. Respondents most frequently identify environmental and labor relations issues when asked what defines socially responsible corporate behavior. Although the respondents value socially responsible behavior in companies they invest in, they are unwilling to sacrifice financial returns to achieve it.
Helping Consumers Choose a Credit Card
Authors: D'ASTOUS ALAIN , MIQUELON DIANE
Published: July 2010

Choosing an economically appropriate credit card requires that two kinds of information be available: knowledge of one's credit card usage and comparison information on credit card costs. This article examines a recent Canadian information program on credit card costs and presents the results of a study designed to test the effectiveness of changes in the information presentation format.