California State University, Northridge a DESCRIPTIVE STUDY OF
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California State University, Northridge A DESCRIPTIVE STUDY OF CONSUMER DISSONANCE 1\ AND EDUCATIONAL NEED A thesis submitted in partial satisfaction of the requirements for the degree of Master of Science in Home Economics by Sally K. O'Krent June, 1974 California State University, Nort.hridge June, 1974 To my family: my husband, children, and parents, for their support and their sacrifices iii ACKNOWLEDGHENTS 'rhis thesis would not be complete without words of gratitude and appreciation to Mrs. netty nailey, Chairman of my Thesis Committee, and Dr. Richard Campbell, who have both been generous with their time, help and encouragement throughout my education at California State University, Northridge. Thanks too, to nrs. Louise Sutton and Dr. Marjory Joseph for their criticisms and suggestions in the development and writing of this study. iv TABLE OF CONTENTS PAGE JJEfJICATIO't'J... • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • ii·i ACKNOWLEDGJI.lF.NTS . • • • • • . • . • . • . • . • • • . • • . i v LIST OF TABLES..................................... vi ABS'rH.ACT. • • . • • • • • . • • • • • • • • • • • • . • • . • . • • • • • • • • • • . • viii Chapter I. IN'l'RODUCTION. • . • • • • • • • • • • • . • • • • • • • . • . • • • 1 Background and Significance Objectives Assumptions Limitations Definition of Special Terms I I. REVIEW OF LI'l'ERATPRE. • • • . • • • • • • • • • • . • • • . • • 6 III. PROCEDURE .•..•.....•..•.•.••.•....••• ~..... 31 IV. FINDINGS OF THE STUDY. • • • • • • • • • • . • • • • • . • • • 35 V. SUMMARY, CONCLUSIONS, AND REC0f1MENDATIONS. • • • • • • • • • • • • • • • • • • . • • . • 53 BIBLIOGRAPI-IY....................................... 64 APPENDIX........................................... 69 v LIST OF TABLES TABLE PAGE 1 Selected Characteristics of Respondents • . • . • • . • . • • • • . • • . • 3 6 2 Selected Characteristics of Respondents' Employment .........••....... 37 3 Selected Characteristics of Respondents' Income. 37 4 Selected Characteristics of Respondents' Occupation •....•.......•.... 39 5 New t1ajor Household Appliances Purchased by Consumers within the Last Five Years .. 40 6 Incidence of Problems Experienced by Consumers with New Major Household Appliances Purchased within the Last Five Years............................... 40 7 Reasons Given by Consumers for Dissatis faction with New Major Household Appliances............................... 42 8 Consumer Behavior in the Event of Consumer Dissonance. • . • • • • • . • . • • • . • . • . • . 4 2 9 Consumer Behavior in the Event of Purchasing Defective New Major Household Appliances............................... 44 10 Consumer Behavior in the Event of Dissatisfaction with Mail Order Purchases of New Major Household Jl... ppliances a a a a a a a D a a g e a a a 8 a a a 0 a a a a a G a • a a a 4 4 11 Consumer Complaint Registration and 'l'ype of Store .... " ...... ~................ 46 12 Consumer Behavior and Defective New Major Household Appliances within the First Year of Purchase .•.••......•.•••..• 48 vi TABLE PAGE 13 Consumer Behavior when the Store of Purchase is Unable to Remedy Dissatisfaction ..••.•.••• ~............... 49 14 Consumer Resources about Which Respondents Wanted More Information •.•.•. 51 15 Respondents' Opinion Regarding Use of Consumer Resources. • • • • • • • . • • • . • • . • . • 52 vii ABSTRACT A DESCRIPTIVE STUDY OF CONSUMER DISSONANCE AND EDUCATIONAL NEED by Sally K. O'Krent Master of Science in Home Economics May, 1974 This study describes consumer behavior resulting from dissatisfaction with purchases of new major house- hold appliances relating to the following areas: the degree to which consumer resources are used, awareness of available alternatives, and factors that influence con- sumers to seek satisfaction in the event of consumer dissonance. The basis for conclusions drawn from this study is data derived from a questionnaire administered to a diverse population of 135 people, resulting in one hundred useable questionnaires. It was found that more than half of the re- spondents did experience problems with their new major .household appliances. Although most consumers made an ;effort to remedy their dissatisfaction, principally by contacting-the store of purchase, one out of every four consumers seldom, or sometimes did so. i j viii Over half of the respondents did discriminate among types of stores in registering a complaint. Also, there were consumers who either repaired defective appli ances themselves, or who paid to have repairs made during the first year of purchase, when their appliances were fully covered by guarantees. Consumers wanted more information regarding consumer resources, and often felt that they did not take adequate advantage of existing consumer resources. Findings suggest that resources used were often not the most effective ones for redressing grievances. In comparing actual consumer behavior to alterna tive behavior that would be more likely to lead to the redress of grievances, it is suggested that further education is needed regarding guarantees, consumer rights, legislation, and resources. Hopefully this education would contribute to more effective, satisfied consumers. ix CHAPTER I INTRODUCTION Background and Significance On March 15, 1962, President John F. Kennedy sent the first Message to Congress ever devoted entirely to consumer protection. We have seen rapid growth in the areas of consumer education, consumer organization, and consumer legislation in the years that have passed since that Message. As a consumer and a concerned citizen, as a student of consumerism and a potential teacher of consumer education, this researcher is concerned with the consumer movement in general, and with consumer protection specifically. It is hoped that this research will be of value as a means of pinpointing areas where further education in consumerism is needed. This researcher believes that there is a need for wider dissemination of information with respect to: (1) consumers' rights enumerated by President Kennedy in 1962: The right to safety -- to be protected against the marketing of goods which are I hazardous to health or life; The right to be informed -- to be protected I __________ __j 1 2 against fraudulent, deceitful or grossly mis leading information, advertising, labeling, or other practices, and to be given the facts he needs to make informed choices; The right to choose -- to be assured, wherever possible, access to a variety of products and services at competitive prices; and in those industries in which competition is not workable and government regulation is substituted, an assurance of satisfactory quality and service at fair prices; The right to be heard -- to be assured that consumer interests will receive full and sympathetic consideration in the formulation of government policy, and fair and expeditious treatment in its administrative tribunals; ~6) and by President Nixon in 1969: The right to make an. intelligent choice among products and services; The right to accurate information; The right to expect that sellers have considered the health and safety of the buyer; The right to register his dissatisfaction, and have his complaint heard and weighed; (49) (2) existing consumer legislation; (3) an understanding of the use of consumer resources; and (4) the effective use of consumer rights and legislation. Objectives While the consumer movement is increasing in size I and strength, people are still left unprotected-- through! I ignorance, through misinformation -- and are being taken I I _________ j ··-. ---------------------- 3 advantage of by businessmen who are willing to bend or ; break the law because of potential profits in comparison with inadequate or unenforceable penalties. (45) While legislation is proliferating, there is controversy regarding its necessity. Some consumer activists say the need is not for more legislation, but for funds and means of enforcement, as well as for dis- semination of information that would make existing legislation effective. (15:155) (18:86) (22:18) ( 26: 2) (27:43) Consequently, the objective of this research was to obtain a description of the behavior of individuals in the sample relating to the following areas: (1) Consumer behavior as a result of dissatisfac- tion with purchases of new major household appliances; (2) The extent of awareness regarding available alternatives in the event of consumer dissatisfaction with new major household appliances; (3) The degree to which consumer resources were used when dissatisfaction with new major household appliances occurred; and (4) Factors that influenced consumers to seek satisfaction in the event of consumer dissonance relating to purchases of new major household appliances. --- ________________ __)I 4 Assumptions (1) There is a need for consumer protection. (2) There are existing means for redressing con sumer grievances. (3) New major household appliances are covered by at least a one year guarantee covering all repairs, parts and labor necessary due to defects and/or normal useage. (4) Descriptive data regarding consumer behavior in the event of consumer dissonance can be compared to more effective alternative action to redress grievances. Discrepancies between existing behavior and behavior that would lead to the redress of consumer grievances indicate an educational need. (5) It is hoped that by participating in this study, consumers used as the sample to obtain data in creased their awareness of alternatives available in the event