Chapter 7 Flashcards
What is consumerism?
Consumerism is an economic theory that says the more people buy, the better it is for the economy.
What are the factors of consumerism?
- Identity
- Health and safety
- Jobs
- Environment
- Marketing
How does Identity affect consumerism?
The items we buy reflect what we value and believe in/
How do Health and Safety affect consumerism?
Laws require warnings on products such as cigarettes, as well as warnings as to what smoking can lead to.
What type of laws does Canada and USA have about product labeling?
require producers to list the ingredients in food and cosmetics.
How do jobs affect consumerism?
When you buy a product, you connect to a chain of people and their jobs. Your choice is part of what keeps them employed
What are the indicators that an economy is shrinking?
If profits fall, or fewer people have jobs, this indicates that an economy is shrinking rather than growing.
How do governments encourage consumer spending?
Through tax breaks and other measures
Why would a government encourage consumer spending?
They sometimes encourage consumer spending to keep their economies growing.
How does environment affect consumerism?
Your choices as a consumer also affect the air, water, and land that you share with everybody.
How much does packaging make of waste?
Packaging makes up one-third of the waste North American consumers generate.
What amount of plastic produced is used as packaging?
Packaging accounts for about one-quarter of all plastic produced in the U.S.
What legislations has the government made about consumerism and the environment?
- banned leaded gasoline, because of the harmful effects of lead on human health
- Consumers shopping for new appliances can identify energy-efficient options
What legislation has the government made in marketing?
Advertising can’t make false or misleading claims about products and services
What is the competition act?
The Competition Act aims to uphold competition among producers by ensuring fair business practices.
How does marketing affect consumerism?
The products that are marketed to you on billboards or commercials ensure that you are more tempted to buy a product.
What are the advertising techniques?
Bandwagon Effect Emotional Appeal Glittering Generalities Plain Folks Appeal Testimonials
What is the bandwagon effect?
• Encourages you to buy a product or service because everyone else is.
What is emotional appeal?
• Uses strong emotional language that connects with your fears and desires.
What is glittering generalities?
• Relates the product or service to words or images that promise everything, but deliver little or nothing.
What is plain folks appeal?
• Relates a product or service to the experience of ordinary folks.
What is are testimonials?
• Uses celebrities or experts to speak for a product.
What is scientific appeal?
• Uses statistics or scientific data to persuade consumers to buy a product or service
What does boycott mean?
A decision by consumers to stop buying a product or service as a way to bring about change
