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Consumer Bill of Rights

features content of particular interest to women and offers We are all consumers. Understanding why we behave
forums for discussion of issues relevant to its users. Simi- as we do is integral to an efficient transfer of goods and
larly, Hispanic.com aims to provide services and informa- services in a market-driven economy and helps consumer
tion to Hispanic Americans as well as to provide a virtual needs get fulfilled. As Weinthal pointed out, “Since both
meeting space for Hispanic Americans to meet and help founders of Laura’s Wholesome Junk Food had dietary
one another. These represent early attempts to use the restrictions of their own and knew many individuals with
Internet to target and serve multicultural populations. limitations on what they could eat, we wanted to make
Future sites are likely to target more narrowly defined sub- the Bite-lettes accessible to as many people as possible. By
cultures (e.g., Hispanic Americans with an interest in making products that are all kosher, vegan, sweetened pri-
gourmet cooking) and to focus on reaching more lifestyle- marily with fruit, then adding a wheat-free flavor and
based subcultures. three gluten-free ones, Laura’s made something for almost
every consumer” (Trice, 2005).
THE CONSUMER DECISION- SEE ALSO Marketing
MAKING PROCESS
What consumers think and the social environment they BIBLIOGRAPHY
live in determine what they buy and how that purchase Trice, Laura M.D. (2005). Personal correspondence.
decision is made. Typically, the decision process is Wilkie, William L. (1994). Consumer Behavior (3rd ed.). New
described as a series of five stages. The first stage, need York: Wiley.
recognition, occurs when consumers perceive a difference
between their ideal and actual states. Need recognition is
Lauren G. Block
often prompted by persuasive advertising. Consumers Patricia Williams
then begin the information search process by conducting
an internal search of their own knowledge structures, fol-
lowed by an external search for information from friends,
family members, salespeople, and advertisements. This CONSUMER BILL OF
step can clarify the problem, providing criteria to use for RIGHTS
assessing product alternatives and resulting in a subset, or
“consideration set,” of potential choices. Webster’s dictionary defines consumerism as “a movement
for the protection of the consumer against defective prod-
These options are then assessed more completely in
ucts, misleading advertising, etc.” Limited consumer pro-
the third stage, alternative evaluation. In this stage, prod-
tection was present until the 1950s and early 1960s. In
ucts in the consideration set are compared with one
the 1950s, a significant breakthrough occurred with the
another. Sometimes a simple heuristic rule of thumb, such
establishment of the product-liability concept, whereby a
as “I’m going to buy the cheapest product” is used. At
plaintiff did not have to prove negligence but only had to
other times a more complex strategy, such as a weighted-
prove that a defective product caused an injury. In his
average model that compensates for product strengths and 1962 speech to Congress, President John F. Kennedy out-
weaknesses, is used.
lined four basic consumer rights, which later became
After examining each alternative, consumers are known as the Consumer Bill of Rights. In 1985, the
ready to purchase, the fourth step in the decision process. United Nations endorsed Kennedy’s Consumer Bill of
Finally, after buying, the consumers enter the postpur- Rights and expanded it to cover eight consumer rights.
chase phase of the process, during which the performance Consumer protection can only survive in highly industri-
of the chosen alternative is evaluated in light of prior alized countries because of the resources needed to finance
expectations. Consumers will be satisfied with the product consumer interests.
if it meets or exceeds expectations; dissatisfaction occurs if Kennedy’s Consumer Bill of Rights included the
the product does not meet expectations. right to be informed, the right to safety, the right to
This model of consumer behavior, while very useful, choose, and the right to be heard. The right to be
is highly simplified and does not always accurately reflect informed involves protection against misleading informa-
the decision process consumers follow. Consumers may tion in the areas of financing, advertising, labeling, and
not always proceed linearly through the five steps as packaging. Several laws of the 1960s and 1970s were
described, and sometimes they may skip certain steps aimed at this right. The Cigarette Labeling Act (1965),
entirely. The model, however, is a close approximation of Fair Packaging and Labeling Act (1966), and the Whole-
the process for most consumers for most purchase occa- some Meat Act (1967) all addressed packaging. This leg-
sions. islation dealt with the accurate identification of the

146 ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION