Chapter 3 - Your Role as a Consumer

consumer

any person or group that buys or uses goods and services

disposable income

income remaining for a person to spend or save after taxes have been paid

discretionary income

money a person has left to spend on extras after necessities have been paid for

rational choice

the alternative that has the best perceived value to a consumer

competitive advertising

advertising that attempts to persuade consumers that a product is superior to another

informative advertising

advertising that provides information about a product to consumers

bait and switch advertising

an illegal form of advertising that attracts consumers with a low-priced product, then the store tries to sell them a higher priced product

comparison shopping

getting information about products from more than one store

warranty

a promise made by a manufacturer to repair or replace a product if it is faulty

brand name

a word, picture, or logo that helps consumers identify a product

generic brand

general name for a product rather than a specific brand name

consumerism

the movement to educate consumers and demand better products from manufacturers

right to safety

consumers have a right to expect that the product they buy is not dangerous

right to be informed

consumers have a right to know important product information

right to choose

consumers have a right to markets in which sellers compete; no monopolies

right to be heard

consumers have a right to voice their complaints to the seller and to the courts

right to redress

consumers have a right to be compensated for their losses

consumer responsibilities

report faulty products, behave ethically