Question 1

Advertising is a type of consumer information commonly provided by business organizations.

Accepted Answer

Advertising is a way for businesses to inform consumers about their products or services and persuade them to purchase them. Therefore, it is a type of consumer information provided by business organizations.

Question 2

An example of an economic buying influence would be:

Accepted Answer

Inflation directly affects the cost of goods and services, leading to an increase in prices. This can influence buying decisions as consumers may need to adjust their budget or choose substitutes for their preferred products.

Question 3

A social factor that would influence a consumer's buying decision would be the hobbies and interests they have.

Accepted Answer

Hobbies and interests are social factors that can influence a consumer's buying decision. For example, someone who is interested in fitness may be more likely to purchase athletic wear or equipment.

Question 4

The first phase in the buying process involves information gathering.

Accepted Answer

The first phase in the buying process is typically the information gathering stage, where the buyer identifies a need or problem and begins research to identify potential solutions or products that can fulfill their needs.

Question 5

A limited warranty covers all aspects of the product and does not require the buyer to incur any of the costs for shipping and repairs.

Accepted Answer

A limited warranty only covers specific parts or aspects of a product and may require the buyer to incur some costs for repairs or shipping.

Question 6

Several federal government agencies publish materials to assist consumers with buying decisions and financial planning.

Accepted Answer

Many federal government agencies, such as the Consumer Financial Protection Bureau and the Federal Trade Commission, provide resources for consumers regarding purchasing decisions and personal finance. These materials often include information on topics such as budgeting, credit scores, and avoiding scams.

Question 7

The most consistent quality is usually found with nationally known,brand-name products.

Accepted Answer

Brand-name products generally have standards and guidelines in place to ensure consistency in their products, making them more reliable than generic or unknown brands.

Question 8

The main purpose of Consumers Union is to:

Accepted Answer

The main purpose of Consumers Union is to evaluate the quality of products and services. They do this by conducting independent product testing, research, and advocacy campaigns to promote consumer rights and safety.

Question 9

Mediation involves a legally binding decision by a third party to solve a consumer complaint.

Accepted Answer

Mediation involves a neutral third party facilitating a discussion between the parties involved in a consumer complaint to come to a mutually agreed upon solution. The decision reached is not legally binding, but rather a voluntary agreement by both parties.

Question 10

Service contracts are usually included in the cost of appliances and other high-priced items.

Accepted Answer

The answer of Service contracts are usually included in the...

Question 11

The first phase of the consumer buying process is:

Accepted Answer

The first phase of the consumer buying process is identifying the problem or need. This is where the consumer realizes that they have a need or want for a particular product or service. They may have run out of a product, need something new or better, or have a new requirement for a particular item. The other phases involve gathering information, evaluating alternatives, researching alternatives, selecting the buying location, and making the purchase.

Question 12

An implied warranty is usually in written form.

Accepted Answer

An implied warranty can be created without any written documentation, such as the implied warranty of merchantability and fitness for a particular purpose.

Question 13

The most reliable source of product information is likely to come from:

Accepted Answer

A food product ingredient label provides the most accurate and objective information about a product’s contents and nutritional value. Advertisements and salespeople are not always unbiased or truthful, and friends and relatives may not have expertise in the product. Mail order catalogs may not provide detailed information about the product composition.

Question 14

One way to gather information about a product is to use an independent testing organization like Consumers Union.

Accepted Answer

Consumers Union is an independent, nonprofit testing organization that evaluates and provides information about consumer products.

Question 15

A class action suit allows many people with the same complaint to take action as a group.

Accepted Answer

A class action suit is a legal procedure that allows a group of people with similar claims or injuries to bring their cases to court together as one consolidated lawsuit. This enables them to pool their resources and present a stronger case against a defendant, and also helps to prevent the courts from becoming bogged down with a large number of individual cases with similar issues.

Question 16

Open dating information provides consumers with information about product freshness.

Accepted Answer

Open dating information, such as the "sell-by" or "use-by" date, indicates the date up to which the product is at its best quality and freshness, providing consumers with information to make informed purchasing and consumption decisions.

Question 17

Which organization specializes in the testing of products for electrical and fire safety?

Accepted Answer

Underwriters Laboratories (UL) is an organization that specializes in the testing of products for electrical and fire safety. They are recognized as an independent safety science company that tests and certifies electrical products for safety.

Question 18

Representation by a lawyer is usually required in small claims court.

Accepted Answer

Representation by a lawyer is not required in small claims court. In fact, many small claims courts prohibit lawyers from representing clients in order to keep the process simple and affordable for everyone involved. Parties in small claims court are typically expected to represent themselves.

Question 19

Unit pricing uses a standard unit of measurement to compare prices of packages of different sizes.

Accepted Answer

Unit pricing is a method of comparing prices of packages of different sizes by expressing the cost per unit of measurement. This helps consumers make informed decisions when purchasing goods.

Question 20

Which one of the following is the best example of a personal opportunity cost associated with a consumer purchase?

Accepted Answer

Personal opportunity cost is the cost of foregone opportunities that a consumer has given up when they choose to buy a particular good or service. Time is a valuable resource, and when a consumer spends time comparing prices, they are giving up the opportunity to use that time for other activities such as leisure, work, or socializing. Therefore, time spent comparing prices is the best example of a personal opportunity cost associated with a consumer purchase. The other options, such as enjoyment derived from owning an item, discount received for paying cash, money spent by stores on advertising, or efforts by the government to prevent consumer fraud, do not represent a personal opportunity cost.

Quiz 8: Consumer Purchasing Strategies and Legal Protection