Elizabeth B. Goldsmith - Consumer Economics: Issues and Behaviors

Consumer Economics

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 todays 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 to encourage students to develop their critical thinking skills through analyzing consumer issues.

Expanded coverage of social media and the impact of social influence on consumers.

Revised Consumer Alerts: practical advice and guidance to help students 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 scienceswhat works, what doesnt, and how consumers are changing.

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

Consumer Economics: Issues and Behaviors by 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, PhD, Department of Family and Consumer Sciences, California State University, Northridge, USA

Goldsmiths 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, PhD, Chair and Associate Professor, Sam Houston State University, USA

Consumer Economics

Issues and Behaviors

Third Edition

Elizabeth B. Goldsmith

Third edition published 2016

by Routledge

2 Park Square, Milton Park, Abingdon, Oxon, OX14 4RN

and by Routledge

711 Third Avenue, New York, NY 10017

Routledge is an imprint of the Taylor & Francis Group, an informa business

2016 Elizabeth B. Goldsmith

The right of Elizabeth B. Goldsmith to be identified as author of this work has been asserted by her in accordance with sections 77 and 78 of the Copyright, Designs and Patents Act 1988.

All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers.

Trademark notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe.

First edition published by Pearson Education Inc., 2004

Second edition published by Pearson Education Inc., 2009

British Library Cataloguing in Publication Data

A catalogue record for this book is available from the British Library

Library of Congress Cataloging in Publication Data

Names: Goldsmith, Elizabeth B., author.

Title: Consumer economics : issues and behaviors / Elizabeth B. Goldsmith.

Description: Third Edition. | New York : Routledge, 2016. | Revised edition of the authors Consumer economics, 2009.

Identifiers: LCCN 2015047046| ISBN 9781138846586 (hardback) | ISBN 9781315727363 (ebook)

Subjects: LCSH: Consumer education. | Consumption (Economics)

Classification: LCC TX335 .G585 2016 | DDC 640.73dc23

LC record available at http://lccn.loc.gov/2015047046

ISBN: 978-1-138-84658-6 (hbk)

ISBN: 978-1-315-72736-3 (ebk)

Typeset in Bembo

by Keystroke, Station Road, Codsall, Wolverhampton

Additional materials are available on the companion website at www.routledge.com/goldsmith

Contents

With thanks and appreciation to Editor Elanor Best of Routledge for her hard work and determination. Thanks are also extended to the reviewers of the present edition:

Also thanked are the reviewers of the previous edition:

Appreciation is also extended to the reviewers of the first edition:

Many thanks to the J. William Fulbright Scholarship Board (CIES) and the Bureau of Educational and Cultural Affairs of the US Department of State; the University of the West Indies; the University of Malta; my academic home, Florida State University; and to my family for their love and support.

When we all think alike, then no one is thinking.

Walter Lippman

LEARNING OBJECTIVES

Understand the consumer.

Define consumer economics.

Explain the market economy.

Describe Adam Smiths contribution to consumer economics.

Explain the five steps in the consumption process.

Explain the three questions economies have to address.

Describe the three parts of the business cycle.

CASE STUDY

Buying Online and Data Tracking

The following quote illustrates three trends pervasive in todays consumer purchasing behavior. There is more buying online, more sophisticated data tracking, and a growing lack of privacy.