Consumer Economics: Issues and Behaviors / Edition 3

by Elizabeth B. Goldsmith

Overview

From identity theft to product recalls, from what we once thought of as unshakeable institutions to increasing concerns about sustainability, consumer issues are an integral part of modern life. This fully updated third edition of Consumer Economics offers students an accessible and thorough guide to the concerns surrounding the modern consumer and brings to light the repercussions of making uninformed decisions in today’s economy.

This definitive textbook introduces students to these potential issues and covers other key topics including consumer behavior, personal finance, legal rights and responsibilities, as well as marketing and advertising. Combining theory and practice, students are introduced to both the fundamentals of consumer economics and how to become better-informed consumers themselves.

Highlights in this new edition include:

• New Critical Thinking Projects feature to encourage students to develop their critical thinking skills through analysing consumer issues.
• Expanded coverage of social media and the impact of social influence on consumers.
• Revised Consumer Alerts: practical advice and guidance for students to make smart consumer decisions.
• A new Companion Website with a range of presentation materials and exercises related to each chapter.

Fully updated throughout, this textbook is suitable for students studying consumer sciences – what works, what doesn’t, and how consumers are changing.

Product Details

ISBN-13:	9781138846586
Publisher:	Taylor & Francis
Publication date:	06/20/2016
Edition description:	Revised
Pages:	578
Product dimensions:	7.44(w) x 9.69(h) x (d)

About the Author

Elizabeth B. Goldsmith is Professor in the Department of Retail Merchandising and Product Development at Florida State University, USA.

Read an Excerpt

We must be the change we wish to see in the world.
– Mahatma Gandhi

Consumer economics—since it mirrors social and economic change—is a very fastpaced discipline. The purpose of this book is to provide an updated look at the consumer movement and the intricacies of consumer behavior. It addresses who buys, what, how, when, and why. It also looks at the forces that impact consumer choice in an ever-changing and often turbulent world. Quality of life and well being are seen as end states, which consumers pursue in their decision making. Too often consumer books have focused on problems and complaints, and although these are addressed, solutions are also presented.

The 21st century has brought us a keen awareness of company frailties and less than perfect ethics. Exposure of company fraud and excesses is constantly in the news eroding consumer confidence. Personal bankruptcies and the number of consumer complaints have hit all time highs. In short, we have a way to go before we reach a truly functioning and fair marketplace. This book traces this pursuit through time and across countries. Adding to the global approach has been the Internet, which has pushed privacy issues to the forefront while at the same time opening up competition in products, information, and user practices. From the consumer point of view, competition is nearly always favorable. But in all things there are tradeoffs; and identity theft, which can happen in-person, or over the Internet, is the current number one consumer concern.

Today's consumer is operating in a much more complex marketplace than could ever have been envisioned by Adam Smith, founder of modern economics, who argued that consumers—not kings or parliaments—should rule nations. There is no doubt that the consumer is still sovereign, but controlling resources is becoming increasingly difficult. "New" consumers are about so much more than saving money and fighting the urge to buy on impulse. The following list highlights how the text's coverage seeks to explain the behavior and issues surrounding these new consumers.

• The text presents 14 chapters designed to be manageable in a semester long course, detailing the unique ideas and solutions that lead to more successful consumer experiences.
• Students like examples that relate to their own lives, so every effort has been made to give student-based examples such as landlord-tenant disputes, sorting through credit card and cellular phone offers, purchasing cars and vehicle repairs, and choosing travel and various other "deals" wisely.
• The Internet and e-commerce play very big roles in this text. The trend toward buying online or at least shopping around for information is well documented.
• More universities are incorporating consumer behavior into their consumer courses, and this combination is reflected in the title and the content. Advertising and media impacts are highlighted. At the same time, economics, environmental studies, public policy, and law are not neglected. The legal aspects of consumerism are especially emphasized.
• The text is unique in its introduction of a circular flow model and in its coverage of the process of consumption from beginning to end.
• A full chapter on consumption shifts and the consumer movement is also unique. It is amazing to see the types of products that consumers once used often to their detriment and how the government stepped in to make the marketplace safer. Personalities are included to add "faces" to the policy changes.
• What to eat and drink are daily consumption decisions we all make. The chapter provides state-of-the-art scientific and behavioral knowledge on diets, organically grown food, genetically altered food, additives, food-related disease, fast food versus the slow food movement, and bottled water consumption.
• Next, is a chapter on health and wellness, another keystone area in consumerism. Skyrocketing health care costs, recalls of medical devices, the latest in cosmetics and treatments, and alcohol and tobacco consumption patterns are all explored.
• Practical matters regarding purchasing homes, cars, insurance, and investments are covered. Warranties and guarantees are addressed as well as product safety and awareness of "get rich quick" schemes.
• The last chapter zeros in on identity theft and how to avoid it. Also covered are a variety of other topics such as vulnerable populations and global consumption and it finishes with a look toward the future.
• Since terms and words are so important in consumer economics, key terms are highlighted in the text and appear again in the Glossary to aid in study.
• Careers in consumer economics are mentioned throughout and again in the Appendices. When this book went to press the U.S. Securities and Exchange Commission announced they were hiring 800 new employees mostly as investigators. The career opportunities for those trained in consumer economics are boundless whether in community service, government service, corporate consumer affairs, association or trade organizations, education, or law.
• To aid instructors, ancillaries include an instructor's manual with a test item file and outlines and PowerPoints.

Table of Contents

Table of Contents

PART 1: Consumer Perspectives

CHAPTER 1 Consumers in a Changing World

CHAPTER 2 The Consumer Movement

CHAPTER 3 Consumer Theories and Models

PART 2: Consumer Protection

CHAPTER 4 Consumer Protection and Law

CHAPTER 5 Government Protection, Consumer Groups, and the Media

PART 3: Consumers in the Marketplace

CHAPTER 6 Brands, Buying Process, and Product Development

CHAPTER 7 Decision Making and Advertising

CHAPTER 8 Food And Water Issues

CHAPTER 9 Health and Wellness Issues

CHAPTER 10 Sustainability and Safety

CHAPTER 11 Internet, Technology and Identity Theft

CHAPTER 12 Being a Better Consumer of Housing and Vehicles

PART 4: Consumers in the Financial Marketplace

CHAPTER 13 Banking, Debt, and Credit Issues

CHAPTER 14 Insurance and Investment Issues

PART 5: Emerging Consumer Issues and the Global Perspective

CHAPTER 15 Issues, Ethics, and Globalization

Preface

We must be the change we wish to see in the world.
– Mahatma Gandhi

Consumer economics—since it mirrors social and economic change—is a very fastpaced discipline. The purpose of this book is to provide an updated look at the consumer movement and the intricacies of consumer behavior. It addresses who buys, what, how, when, and why. It also looks at the forces that impact consumer choice in an ever-changing and often turbulent world. Quality of life and well being are seen as end states, which consumers pursue in their decision making. Too often consumer books have focused on problems and complaints, and although these are addressed, solutions are also presented.

The 21st century has brought us a keen awareness of company frailties and less than perfect ethics. Exposure of company fraud and excesses is constantly in the news eroding consumer confidence. Personal bankruptcies and the number of consumer complaints have hit all time highs. In short, we have a way to go before we reach a truly functioning and fair marketplace. This book traces this pursuit through time and across countries. Adding to the global approach has been the Internet, which has pushed privacy issues to the forefront while at the same time opening up competition in products, information, and user practices. From the consumer point of view, competition is nearly always favorable. But in all things there are tradeoffs; and identity theft, which can happen in-person, or over the Internet, is the current number one consumer concern.

Today's consumer is operating in a much more complex marketplace than could ever have been envisioned by Adam Smith, founder of modern economics, who argued that consumers—not kings or parliaments—should rule nations. There is no doubt that the consumer is still sovereign, but controlling resources is becoming increasingly difficult. "New" consumers are about so much more than saving money and fighting the urge to buy on impulse. The following list highlights how the text's coverage seeks to explain the behavior and issues surrounding these new consumers.

• The text presents 14 chapters designed to be manageable in a semester long course, detailing the unique ideas and solutions that lead to more successful consumer experiences.
• Students like examples that relate to their own lives, so every effort has been made to give student-based examples such as landlord-tenant disputes, sorting through credit card and cellular phone offers, purchasing cars and vehicle repairs, and choosing travel and various other "deals" wisely.
• The Internet and e-commerce play very big roles in this text. The trend toward buying online or at least shopping around for information is well documented.
• More universities are incorporating consumer behavior into their consumer courses, and this combination is reflected in the title and the content. Advertising and media impacts are highlighted. At the same time, economics, environmental studies, public policy, and law are not neglected. The legal aspects of consumerism are especially emphasized.
• The text is unique in its introduction of a circular flow model and in its coverage of the process of consumption from beginning to end.
• A full chapter on consumption shifts and the consumer movement is also unique. It is amazing to see the types of products that consumers once used often to their detriment and how the government stepped in to make the marketplace safer. Personalities are included to add "faces" to the policy changes.
• What to eat and drink are daily consumption decisions we all make. The chapter provides state-of-the-art scientific and behavioral knowledge on diets, organically grown food, genetically altered food, additives, food-related disease, fast food versus the slow food movement, and bottled water consumption.
• Next, is a chapter on health and wellness, another keystone area in consumerism. Skyrocketing health care costs, recalls of medical devices, the latest in cosmetics and treatments, and alcohol and tobacco consumption patterns are all explored.
• Practical matters regarding purchasing homes, cars, insurance, and investments are covered. Warranties and guarantees are addressed as well as product safety and awareness of "get rich quick" schemes.
• The last chapter zeros in on identity theft and how to avoid it. Also covered are a variety of other topics such as vulnerable populations and global consumption and it finishes with a look toward the future.
• Since terms and words are so important in consumer economics, key terms are highlighted in the text and appear again in the Glossary to aid in study.
• Careers in consumer economics are mentioned throughout and again in the Appendices. When this book went to press the U.S. Securities and Exchange Commission announced they were hiring 800 new employees mostly as investigators. The career opportunities for those trained in consumer economics are boundless whether in community service, government service, corporate consumer affairs, association or trade organizations, education, or law.
• To aid instructors, ancillaries include an instructor's manual with a test item file and outlines and PowerPoints.

Editorial Reviews

‘I have used Professor Goldsmith’s Consumer Economics: Issues and Behaviors text for several years and am delighted to add her newest version to my Consumer Economics class. The book is written in such a user-friendly way that the reader may forget that s/he is reading a textbook. The information in this newest version is up-to-date and relevant to consumers of every age. The content will likely inspire a new generation of consumer advocates.’ — Dr. Diann Moorman, Associate Professor at the University of Georgia, USA

‘Goldsmith’s Consumer Economics provides updated information on important and current economic issues faced by consumers. The book is well written based on information from original research papers and other reputable sources including the author’s own scholarship. A great textbook for undergraduate courses in consumer economics and relevant disciplines.’ — Jing Jian Xiao, Author of Consumer Economic Wellbeing and Professor of Consumer Economics, University of Rhode Island, USA

‘Consumer Economics: Issues and Behaviors by Elizabeth B. Goldsmith provides an all-encompassing introduction and overview to the study of consumerism. The detailed examples, discussion questions and resources serve to engage students from varying disciplines in the exploration of their rights and responsibilities as a consumer.’ — Linda A. Bradley, Ph.D., Department of Family and Consumer Sciences, California State University, Northridge, USA

‘Dr. Goldsmith’s latest edition of Consumer Economics: Issues and Behaviors contains all the elements of an excellent text. As an instructor, I use the quotes from each chapter as an introduction to each class session. The students connect with the practical nature of the case studies that reflect chapter content. The real life examples and high interest topics connect easily with students and lead to lively discussion. I look forward to utilizing this updated text to enhance my classes.’ — Susan A. Reichelt, Ph.D., Chair and Associate Professor, Sam Houston State University, USA

From the Publisher