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 ______j I ··-. ------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 of consumer dissatisfaction, and that they were stimulated to become better informed, more responsible consumers.
Limitations
More than half (58%) of the sample used for data collection was a captive, student audience. Therefore, the sample may have been biased in terms of greater aware ness than the general population in regard to consumerism. 5
Certainly it was a sample which was not representative of society in general. Consequently, the results of this study cannot be generalized beyond the sample used.
Definition of Special Terms
For purposes of this study, the term, "major household appliances" refers to refrigerators, freezers, ovens and ranges, clothes washers and dryers, dishwashers, microwave ovens and trash compactors. "Consumer dissonance" is defined as the dissatis faction the buyer experiences due to discrepancies between expectations about the performance of a new major house hold appliance and the actual performance of the appli- ancee --- ·-,~------.------·- --·------~-----·---~- ... --"------
CHAPTER II
REVIEW OF LITERATURE
Introduction
It is in the interest of the consumer to make
purchases of goods and services with the best possible
combination of high quality and low price. In contrast,
the seller is concerned with making a maximum profit.
When the economic system works properly, both parties
~ benefit: the consumer is happy with the product he
bought and the price he paid, and the seller has made an
adequate profit. (5:651)
The major problem is how the buyer is to know the
answer to these questions: which products are of high
quality, which advertising techniques are fraudulent or
deceptive, which seals of approval, standards and labels
are meaningful and helpful in allowing him to make a
better choice, whether measurements are accurate, which
guarantees and warrantees are aids to him, and what, if
anything, they do guarantee him? These problems, com
pounded by the fact that an average supermarket in the
United States carries between 8,000 and 10,000 products
(5:577) make it easy to understand that the consumer
might lack the information necessary to make an intelli
gent choice in the marketplace.
6 7
Concern for the consumer is not a new phenomenon in American history. The first consumer protection law was passed in 1872, and made it a federal crime to defraud through the use of the mails. In the late nineteenth century, the consumer protection movement was branded
"muckraking," an unsavory, anti-establishment connotation at best. However, voluntary consumer groups were formed and federal consumer legislation was proposed. (4:57)
Between 1839 and 1905, Congress reviewed more than one hundred proposed bills dealing with food and drug regula- tion, but passed none because of strong business oppositio combined with public apathy. (4:58)
Upton Sinclair's book, The Jungle, published in
1906 (11) stirred public opinion and devastated public apathy. The result was a landmark for consumerism: passage of the Food and Drug Act in 1906, which was supposed to assure that only c~ean, safe, unadulterated, non-poisonous drugs, food, liquor and medicine could be manufactured, sold, or transported in the United
States. (4:58) Increased attention demanded by World War
I and increased industrialization resulted in apathy and the law became inadequate. (9:417)
In 1927, another book, Your Money's Worth (4:59). gave renewed impetus to and interest in the consumer movement, resulting in the Food, Drug, and Cosmetic Act of 1938 (9:417), legislation that was felt to be adequate i i I I ------~------~------· ------______j 8
to protect the public from food contamination and adultera
tion by providing sanitary controls, health safeguards,
prohibiting deceptive practices, and requiring labeling
information -- with strengthened enforcement provisions.
i (9:417)
Clearly, there is a need to see that there are
rules in the marketplace, and that they are enforced
fairly for both the buyer and the seller. In our society,
this is a function of government. On March 15, 1962,
President John F. Kennedy sent the first ~·1essage to
Congress ever devoted entirely to consumer protection.
In it, he listed the now historical consumer rights:
The right to safety -- to be protected against the marketing of goods which are hazardous to health or life;
The right to be informed -- to be protected 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 substi tuded, 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. (46)
On February 5, 1964, in a Hessage to Congress,
President Johnson reiterated President Kennedyis four
! consumer rights •. (47) President Johnson sent a further 9
Message to Congress on March 21, 1966, asking again for effective laws concerning lending charges and packaging practices. ( 4 8)
In President Richard M. Nixon's 1969 Message to Congress, he stressed that "America of the '70's ••• had
••. buyer's rights" (49) which he enumerated as:
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)
Federal Consumer Agencies
The federal government spends hundreds of millions of dollars annually through its four main federal consumer protection agencies (5:667): The Department of Agricul- ture (Consumer Protection, Marketing and Regulatory
Program), the Food and Drug Administration, the Federal
Trade Commission, and the Office of Consumer Affairs.
The role of the United States Department of Agriculture is to see that consumers enjoy safe, clean and nutritious food: the Meat Inspection Act of 1906 forbids the interstate shipment of meat and meat products which have not passed federal inspection. It has established standards for minimum amounts of meat in meat 10
products, insists that labeling be informative, and not
false or deceptive. ( 5: 6 9 0) The Wholesome M.ea t Act of
1967 assures inclusion of meat not involved in interstate
commerce: meat must now be inspected either by the
federal government or an adequate state agency. (5:691)
It is of historical interest to note that on December 6,
1967 President Johnson signed the Wholesome Meat Act in
the presence of its congressional sponsors, including
Upton Sinclair (eighty-nine years old and confined to a
wheelchair), the "muckraker" responsible for passage of
the Food and Drug Act. in 1906, and Ralph Nader, today's
"one man crusade" for consumers. (7:151)
In 1957 the poultry industry was placed under
mandatory federal inspection. (5:692) Hearings in the
House of Representatives on II.R. 12489, a compulsory fish
inspection bill, began in February, 1974. The bill, if
passed into law, will provide for continuous inspection
of all fish processed in the United States. (51:1) The Food and Drug Administration, a division of
the Department of Health, Education and Welfare, was
created by the Federal Food,·Drug and Cosmetic Act of 1 . . I 1938, and has had numerous amendments to deal with specJ.fJ.~ I problems: the Pesticide Chemicals Amendment in 1954,
setting up a system of enforceable residue tolerances; I the Delaney Amendment in 1958 (known as the Food Additives! i Amendment), regulating food additives for safety; the l ______jI 11
Color Additive Amendment in 1960, setting safety limits
on the amounts of food, drug and cosmetic coloring; the
Federal Hazardous Substances Labeling Act in 1960, requir-
ing prominent warnings on chemical products used in the
household; the Kefauver-Barris Drug Amendment of 1962, to
assure safety, effectiveness and reliability in prescrip-
tion drugs (5:668); the Drug Abuse Control Amendments in
1965 to eliminate illicit drug traffic of depressants
and stimulants -- which led President Johnson to transfer
the Federal Department of Agriculture Bureau of Drug
Abuse Control to the Department of Justice in 1968,
forming a new Bureau of Narcotics and Dangerous Drugs,
which resulted in 1970 in a new Comprehensive Drug Abuse
Prevention and Control Act; and the Fair Packaging and
Labeling Act in 1966. (5:669)
The Food and Drug Administration also has the
responsibility of preventing adulteration and mislabeling
of food (other than meat and poultry, for which the
Department of Agriculture is responsible) in interstate
commerce. (5:669) The Food and Drug Administration has
established definitions and standards for food regarding
identity, quality and enrichment (5:669, 670), provides
health guards, requires informative labeling, prohibits
deception in labeling practices, is on guard against food
contamination and filth, and polices chemical additives
: in food for man and other animalso (5:672, 674) Cur- - rently, _ legislati()I1 :r;egardi!1:_9 __ ~~J2_£~yed ~_ngredie~~--_!-~~~_!_~~-~J 12
and mandatory regulation of the cosmetic industry is being reviewed by Congress, although Representative Leonor
Sullivan (a Haine Democrat) has been trying to get legislation regarding cosmetic safety through Congress for nearly twenty years. (29)
The Federal Trade Commission was established by the Federal Trade Commission Act of 1914, with the authority to act in the public interest against unfair trade practices occuring in commerce, the basic objectives' being to maintain free and competitive enterprise, to prevent monopolies and unfair or deceptive trade practi ces, and to attack fraudulent practices existing in the
marketplace o (5: 694)
The effectiveness of the Federal Trade Commission as a consumer protector was attacked by a student group sponsored by Ralph Nader, and substantiated by the
American Bar Association in 1969, resulting in the appointment of a new chairman and major organizational changes o • The result is a more effectively active Federal
Trade Commission (5:695), which produced the Wool Products
Labeling Act, the Fur Products Labeling Act, the Textile
Fiber Products Identification Act (all requiring informa tive labeling regarding the composition of the products covered, and safeguards against unfair practices concern ing misbranding and misrepresentation). The Flammable
Fabrics Act, prohibiting the interstate sale of dangerously flammable clothing and fabric was passed in 1953 due to 13
the Federal Trade Commission's effort. (5:695) In an attempt to make clear to businessmen those practices that are deceptive and prohibited by law, the Federal Trade
Commission has also drawn up guides dealing with bait advertising, deceptive advertising of guarantees, decep- tive practices in pricing and debt collection, and decep- tive practices in cigarette and tire advertising.
The performance of the Nixon Administration's
Office of Consumer Affairs, headed by Virginia Knauer, has been "muted" and "most disappointing," according to
Time. (25:86) Ralph· Nader has given up any effort to maintain a liason with Mrs. Knauer because she is located in the \i'Jhi te House -- a guarantee, Nader thinks, that the advocate's power would be neutralized. (7:165) Nader thinks that, because many conswner laws contain no criminal penalties against executives of companies violating their provisions, and have inad8quate budgets and staffing, they are only cosmetic, and that administra- tive arrangements frequently throttle the intent of consumer laws. (7:167)
Perhaps as a consequence of this ~ind of criticism, the Consumer Products Safety Commission was created as an independent consumer protection agency with jurisdiction over product safety. (16:4) The agency was given special safeguards to prevent it from becoming one where the industry supposedly being regulated has more power than the general public. (32) The 14
Commission is the result of a two year study by the
National Commission on Product Safety, which revealed that consumer products are involved in injuring 20,000,000
Americans, killing 30,000, creating 100,000 permanent disabilities, and 600,000 hospitalizations annually.
Economically, the costs are estimated as being in excess of $5,000,000,000. (16:4)
The Consumer Products Safety Commission is com- posed of five commissioners (appointed by President Nixon) who were repeatedly pledged in congressional confirmation hearings to be independent of pressure from both industry and the White House. As a result, the commission has the power to appoint its top management, and thirteen of them have not been granted permanent status because
Chairman Richard 0. Simpson has refused to submit their names to the White House for political screening. (32)
Currently, the Commission is expected to issue a program for regulating aerosol sprays, which will \ probably include banning certain products in aerosolized form and setting up safety standards for the design of I their containers. Primary concern regarding the aerosol, is related to problems associated with inhalation of I the contents, and explosion of the containers. The
Commission estimates that there are 12,000 injuries annually related to aerosol products, of which about a thousand are caused by exploding containers. (28) 15
('l'he Commission does not have jurisdiction over food, drugs or cosmetics, which are regulated by the Food and Drug Administration. The Food and Drug Administration approves new drugs before they are marketed, and requires that packaging does not adversely effect their safety.)
(28)
State Consumer Agencies
In the United States, federal and state constitu tions divide authority for regulating economic activities.
The federal government is empowered to regulate commerce that occurs between states, while state governments are restricted to regulating intrastate commerce. A problem develops when one jurisdiction fails to act, or acts inadequately. (5:652) Perhaps that is a partial explana tion for the proliferation o.f state and local governmental agencies, as well as voluntary non-governmental organiza tions, individual consumerists and professional associations which benefit the consumer. Foremost among present state agencies are:
California's Department of Consumer Affairs which originated in 1970 and aided passage of a law creating the nation's first Bureau of Automotive Repairs, setting forth basic st&ndards for all of California's auto repair shops. (18:87) This special state agency is devoted to aiding consumers who have complaints regarding 16
incompetent auto mechanics, and dishonest or unscrupulous
practices by auto repair shops. (50)
In a study regarding filing and disposition of
consumer complaints, Ralph M. Gaedeke recommended that
existing complaint channels for both federal and state
consumer agencies needed consolidation and clarification.
(21:55) California's Department of Consumer Affairs, in
cooperation with fifteen other agencies in the state, has
; prepared a new form designed for people who do not know
who to contact regarding a complaint. Listed with the
form are seventy-five common complaint areas, and corn-
plaints will be sent unopened to the correct agency on
' the basis of the complaint area indicated. The "One
Stop" complaint form is available by mail. (30)
In addition to the Department of Consumer Affairs,
California's State Attorney General's Office has its own
Consumer Protection Unit. Herschel T. Elkins, head of
the unit, says his office receives about 12,000 written I complaints a year, the vast majority of which have nothing
done about them due to a lack of manpower. (18:87)
From July of 1973 to January of 1974, the Unit
received 10,000 complaints from Californians. Leading
all categories was mail order, followed in decreasing
order by store sales, transportation, personal services,
real property and multi-level organizations. Personal
services complaints concern the areas of schools, dance 17
studios, health studios, dating services, employment
agencies, and convalescent hospitals. Peter Demauro, head of the unit's Sacramento office, thinks personal service
frauds are "saddest of all," because people admitting problems and asking for help come forward and "get
taken . " ( 3 3)
The Consumer Protection Unit also has a squad of
"super shoppers" deployed in Sacramento, San Francisco and
Los Angeles, which protects California's consumers by
tracking down misleading advertising and unethical sales practices. Elkins says the "super shoppers" are very effective, and keep consumers informed about what is
going on in the marketplace. Currently, volunteer college
students are being organized to expand the program, and
Elkins said that to his knowledge, California was the
first state to institute this procedure. (42)
Massachusett's Consumer Council, the country's
first major consumer agency at the state level, was
created in 1962. The Council has its office in the state executive branch of government, and it helped pass the country's first truth-in-lending law in 1967 and the
country 9 s first unit pricing law in 1971, both at the state level. (18:86).
City Consumer Agencies .,
Leading city consumer agencies include Los 18
Angeles's Bureau of Consumer Affairs, established in April
of 1972, which handled 4,500 complaints in its first five
months of existence, obtaining $267,000 worth of refunds
! and adjustments for consumers. (25: 87)
Another prominent city agency is New York City's Consumer Affairs Commission, headed by Bess Meyerson.
The Commission has hundreds of staff members, including attorneys, an annual budget of $3,500,000, and the right
to write and enforc~ its own regulations regarding
consumerism -- including the power to prosecute. (25:87)
Non-governmental Consumer Groups
There is a plethora of non-governmental consumer
groups, varying from national to local and from serious
to amusing:
Consumers Union of the United States originated
in 1936 as a non-profit organization. Its goals are to
provide consumer information and counseling regarding
consumer goods and services, and more broadly, on all
matters relating to the expenditure of family income, with the further purpose of creating and maintaining
decent living standards. Consumers Union spends
$18,000,000 annually, and has over 400 employees. (5:422)
(37)
Consumers Union activities range from technical 19
.. -- . -·~ ------·-----, I testing to publishing Consumer Reports from January througij I November, a magazine which is bought by 2,250,000 people j
monthly. (13) A special Buying Guide is published in
December, which rates products as to quality and gives
additional information regarding price and safety. Each
monthly report relating to a specific product begins with
general information the shopper should know about a
i prospective purchase, including features that should be i
looked for regarding specific products. (5:421) Other I articles deal with consumer credit, meat and poultry grad-·
ing, and drug pricing. In addition, Consumers Union
sponsors research by independent organizations such as
the Weights and Measures Research Center and the American
Council on Consumer Interests. Consumers Union was a
leading force in establishing the International Organiza-
tion of Consumers Unions, composed of consumer testing
organizations from different countries. (5:423) Consumers Union made laboratory tests to determinej
among other things, the quality of packaged products,
which led the organization to the conclusion that there is no dependable correlation among brand, price and I quality. (5:346) All test samples are purchased in the
! same manner as consumers would buy them, and eighty per-
cent of the testing is performed in Consumers union
laboratories by technicians with college degrees in
engineering or science. (5:422) Consumers Union pub- 20
lishes its financial reports annually, adding to its credibility. (5:422)
Consumers Union is accepted as an organized spokesman for consumers (5:5), and pays particular atten tion to advertising in various media which Consumer Union economist Colston E. Warne considers to be "peculiarly susceptible to some of the least admirable traits."
(5:192) Among those traits are fictitious pricing, low quality, and obsolescence. Consumers Union's concern over the cost of credit lead to the Truth-in-Lending Act of 1969, which was designed to give the borrower the true annual interest rate, and the "dollars-and-cents" cost of borrowing. (5:322, 334)
Mrs. Rhoda Karpatkin, an attorney who has repre sented Consumers Union for the last sixteen years, was chosen as the first woman to be its executive director.
(13) (37) Currently there is an internal dispute over the direction the organization should take: Concentration on product testing versus legal advocacy. In Mrs. Karpatkin's view, "Consumers Union has to do both," and she sees the courtroom as another test laboratory for buyers' rights. (13) Other areas she would like to pursue include product safety and product standards, as well as examining the necessity for some products now on the market.
Another consumer group, Consumers Research, is 21
...... ··- .--·-··-··- ----l one of the oldest organizations used by consumers. It I provides technical pre-shopping information through its I publication, Consumers Bulletin, in which products are I i listed as being either recommended, intermediate, or not recommended. However, questions have been raised regard- ing the organization's integrity, perhaps because, in contrast to Consumers Union which obtains its samples through store purchases -- as would the consumer -- Consumers Research often borrows samples directly from the manufacturers, who certify that samples were selected randomly from inventories. Some tested products are rented, and all items are said to be returned after testing. (5:420) Another problem is that Consumers Research does not publish its financial report annually, as does Consumers Union. (5:422) The Children's Television Advertising Project is an additional nationally known, non-governmental consumer group, composed of representatives of six consumer organi- zations (the Council on Children, Media and Merchandising, Action for Children's Television, Consumers Union, Action Now, Consumers Federation of America, and the Consumer Law Institute of Los Angeles) which have joined forces to attain specific goals: to urge the Federal Trade Commission to restrict commercials that promote products with a high sugar content and to reduce the number of advertisements on children's television programs. The 22
- .. -- ---·------~ ·------··------·------·-·-----~ group hopes to institute a warning that products with a high sugar content may be harmful to children's teeth, and to propose a voluntary code to control advertising on children's programs. The code is expected to be the basis for negotiations arranged for by the Federal Trade
Commission.with representatives of the advertising and broadcasting industries, which spend an estimated
$400,000,000 on more than 20,000 television commercials.
(38)
Robert B. Choate, representative of the Council on Children, Media and Merchandising on the Children's
Television Advertising Project, declared in 1970 that I I "the most nut:J;,"itional part of cereal is the box," starting\ an uproar that resulted in nearly all of the forty cereals I named being upgraded nutritionally. The ultimate decision! on advertising, however, rests with the Federal Trade I
Commission. ( 38) FIT (Fight Inflation Together), is a consumer group that was founded in the San Fernando Valley in 1973 to launch a nationwide meat boycott (because of high prices) that "rattled the meat industry," (44) and gained the group national prominance. Arline Mathews, co-founder of FIT, has started a new group, ACT (American Consumers
Together), which received front page attention in the
Los Angeles Times when the newspaper devoted a story to
ACT's March 1974 "selective buying" campaign, "in the hope ...J 23
of bringing down [!!teat and graiilj prices," according t~-----l Ms. Mathews. (4 4) 'l'he group is also involved in a move
to roll back gasoline prices, and is handing out leaflets
and receiving a good deal of newspaper, radio and tele
vision coverage to dramatize their goal (31), which, Ms.
Mathews says, is "to make officialdom cognizant of the
wishes of the American people •••• (government officials]
have kowtowed to special interests and have done nothing
to curtail excess profits that the huge cartels gobble
up." (4 4)
A Los Angeles area group, called Outraged Consum
ers Action Committee, was featured in the Los Angeles
Times in an article titled "Hammers Beat Pinto to Death."
(43) Roger T. Sweitzer, a member of the Committee, had
been unable to get satisfaction regarding complaints he
had about his Ford Pinto automobile. After complaining
to the agency that sold him the car and writing to Ford's
customer service division in Dearborn, .Hichigan with no
! results, he contacted the news media, inviting interested
parties to attend the "death" of his 1972 Pinto (by beat
, ing it with a sledgehammer at Ford's assembly plant in
Pico Rivera, California). He financed the purchase of
his alternate means of transportation -- a bicycle -- by
charging participants a dollar a swing at the car. 24
Ralph Nader
The leader among voluntary, individual consumerists is Ralph Nader, "a one-man crusade," according to Time. (24) Nader has been making headlines since 1965, seven years after he graduated from Harvard Law School (7:xi), when he published Unsafe at Any Speed (7:xiii) (24), his expose regarding automobile safety deficiencies. In addition to disclosure, he follows up with lawsuits, aided by "Naider's Raiders" and other consumer groups he has organized. Unsafe at Any Speed led to the passage of the National Traffic and Motor Vehicle Safety Act in 1966, which deprived the automobile industry of the power to unilaterally decide questions of vehicle safety (7:28), and allowed the federal government to set safety standards for all cars, domestic and foreign, sold in the United States. (24) In the seven years since the Motor Vehicle Safety Act went into law, 40,000,000 cars, trucks, busses and other vehicles have been recalled due to safety problems. (19) In 1967, Nader turned to other consumer issues, and became a "universal critic" of American society, publicizing such issues as radiation dangers, dangers from gas pipelines, and unwholesome conditions existing in the meat industry -- all leading to regulating legisla- 25
tion for those problems (7:115), as well as stimulating
interest in consumerism. Nader has more recently involved
himself in a crusade to widen the use of class action
suits which, he says, "would open the doors to the
courtroom to bring high volume, small dollar abuses to
justice." (4:144)
The purpose of a class action suit is to allow
a large group with a common complaint to join together
in one suit, an increasingly popular means of gaining
satisfaction for disgruntled consumers who might, because II
of small amounts of money involved, be otherwise unable, I
1 or choose not to pursue legal redress. However, in
December of 1973, the United States Supreme Court handed
I down a decision which requires that every plaintiff in j I a class action suit involving parties from different state$
must have suffered at least $10,000 in damages. (Cases
involving anti-trust and civil rights are excluded from
the $10,000 minimum.) Consumerists and environmentalists
fear the decision is a severe blow to unorganized
consumers, and Justice William Brennan, speaking for
fellow dissenters William Douglas and Thurgood Marshall
regarding the decision, said it does "no jud~cial system
credit," because consumers might not be able to afford
the expenses involved in proving a complex case. (17) 26
Professional Associations
Prominent among the professional associations involved in the consumer movement is the American Home Economics Association, long concerned with educating the individual for family living. Of particular concern has been buying problems of the consumer, supporting consumer protection programs, promoting information regarding protection against fraudulent and unfair practices and information relating to standards of quality, safety and performance, and encouraging adequately informative labeling and advertising. (5: 598, 599) The American association of University Women is also a professional group involved in helping the consumer.
An example of their work is a survey made by the Consumer Action section of the Whittier, California branch of the organization. A team of twenty surveyers concerned them selves with a comparison over a three year period of prices on brand-name items at eighteen markets. The researchers were concerned, too, with how cooperative the markets were in helping consumers understand how to get more food for their money by utilizing unit pricing, open dating for meat, and providing adequate supplies of advertised specials. ( 36) 30
Business spokesmen do not agree -~~~~--:~~s:::-and I government spokesmen regarding the ultimate answer to consumer problems, but they do agree that there is, in general, a need for cooperation among consumers, govern ment and business, as well as for a broad consumer educa tion program. (22:18) CHAPTER III PROCEDURE
This is a descriptive study, the methodology for which can be divided into three parts: The method of data collection, selection of the sample, and statistical tools used in the research. The basis for conclusions drawn from this study is the data derived from a carefully constructed questionnaire. Considerable thought, study and research in the area of consumerism were prerequisites to devising the questionnaire. In addition, the researcher was aided and advised in constructing the questionnaire by four members of the faculty from the Home Economics. Department at California State University, Northridge: Dr. Marjorie Joseph, Professor of Horne Economics and Chairman of the Home Economics Department; Mrs. Betty Bailey, Assistant Professor of Home Economics; Dr. Richard Campbell, Professor of Marriage and Family Relations; and Mrs. Louise Sutton, Assistant Professor of Home Economics. Once devised, the questionnaire was tested, evaluated, and retested by administering it to a class composed of ten graduate students in Home Economics 500, Critique of Literature and Research, at California State university, Northridge. Changes were made, questions were
31 32
clarified, and the subject matter was limited to new major
household appliances in an effort to prevent confusion
and uncertainty on the part of respondents~ An additional
reason for limiting the subject matter to new major house-
hold appliances was to insure clarity of the concept under
examination: A respondent would in all probability
react differently to dissonance concerning a relatively
inexpensive purchase (and consequently answer the
questionnaire differently) than he would to a more costly
major appliance.
The cover sheet to the questionnaire contained
the following items (copies of both the cover sheet and
' the questionnaire are found in the Appendix) : l (1) Assurance that all information would remain i i confidential. Anonymity was guaranteed by the absence I of the requirement for names of respondents; I (2) Instructions for answering questions, includint
a key to letter answers appropriate for some questions. I There was no verbal amplification, insuring identical I
directions regarding the questionnaire for all partici-
pants in the study; and (3) A definition of the term "major household I I ! appliances."
The sample was selected from a diverse population
of extended day students enrolled in Home Economics
classes at Moorpark College in Simi, California, students ! I J 33
enrolled in Home Economics classes at California State
University in Northridge, California, parents of boys
belonging to the Y.M.C.A.'s Gra-Y program, workers in
travel and accounting businesses, and residents of the
San Fernando Valley.
Respondents were selected on the basis of their
fulfilling two criteria:
(1) Age: They had to be at least eighteen years
old, the minimum age required by California law for
entering a binding contract; and
(2) Experience: They had to have direct
experience in purchasing and using new major household
appliances.
One hundred thirty-five questionnaires were
answered. The result was one hundred questionnaires that
met the above criteria, and that were used as the basis for data compiled in this study.
Statistical tools used were limited to number
counts and percentages of the total number because of
the descriptive nature of the research. In all cases
, where the term "average" is used, it is identified as I being the mean average, median average, or modal average. 1 Conclusions drawn from the data obtained through
this research are compatible with the principle generally
accepted by consumerists that consumers can be educated l i l I to make their needs and wishes known, to become better I ______j ------·----- 34
informed, more responsible consumers. (1:155) ...... ····--·-·------·----·--1
CHAPTER IV
FINDINGS OF THE STUDY
The findings of this study are illustrated by tables listing possible responses to each area studied, the number of respondents selecting each possible answer, and the percentage of the total sample the responses represent. The number of participants in the study failing to answer questions is also included in the tables.
Description of Respondents
There was a total of 100 respondents in the study, the majority (74%) of whom were female. Sixty-eight percent of the sample was between 23 and 40 years of age.
Eighty-five percent of the respondents were married, and
78% had children. Almost all were high school graduates (99%), and almost half (46%) had additional degrees.
More than half of the sample (58%) were still attending school. (See Table 1.)
Most respondents were employed (61%) (see Table
2), and nearly half (47%) had a total family income of between $10,000 and $19,000. (See Table 3.) Their occupations were diverse, falling into 28 categories.
35 36
TABLE 1
SELECTED CHARACTERISTICS OF RESPONDENTS
Number and Percent Characteristic of Respondents
Sex Hale 23 Female 74 No answer 3
Age range in years 18 - 22 8 23 - 30 32 31 - 40 36 41 - 50 20 51 - 60 4 Marital status Single 8 Harried 85 Other 4 No answer 3
Number of children 0 17 1 18 2 22 3 24 ·4 or more 14 No answer 5
Educational status Did not graduate high school 1 High School Graduate 53 Associate of Arts Degree 25 Bachelor's Degree 19 Master's Degree 2 Doctoral Degree 0
Attending school 58 (Full-time - 14) (Part-time - 43) I (No answe~ - 1) I Not attending school 38 I No answer 4
! [__ - . ··-··· -····· ...... _____ ) 37
TABLE 2
SELECTED CHARACTERISTICS OF RESPONDENTS' EMPLOYMENT
Number and Percent Employment of Respondents Employed 61 (Full-time - 42) (Part-time - 18) (No answer - 1) Not employed 37 No answer 2
'rABLE 3
SELECTED CHARACTERISTICS OF RESPONDENTS' INCOME
Number and Percent Total Famil~ Income of Respondents
$ 0 - 4,999 3 5,000 - 9,999 10 10,000 - 19,999 47 20,000 - 29,999 29 30,000 - 39,999 4 40,000 and above 3 No answer 4 The modal average was evenly divided :=~=g~~~~=::~:~:~-l teachers and travel agents, each representing 5% of the participants in the study. (See Table 4.)
Purchases of New Major Household Appliances
As described in Table 5, 88% of the participants in the study had purchased one or more new major household appliances within the last 5 years. The most frequent purchases were: refrigerators (46%), followed in de- creasing order by clothes washers (45%), clothes dryers
(35%), dishwashers(34%), ovens and/or ranges (19%), freezers (13%) and microwave ovens (1%), for a total of
193 new major household appliance, a mean average of 1.9 new major household appliances per respondent. No one in the study bought a trash compactor.
Problems Experienced
with New Major Household Appliances
Problems with new major household appliances were experienced by 54% of the study's participants. (See
Table 6.) Foremost among reasons for dissatisfaction was mechanical defects (experienced by 43% of the re- spondents), followed in decreasing-order by physical defects (24%), not living up to advertised performances
(14%), not having features the consumer would like (7%), 39
TABLE 4
SELECTED CHARACTERISTICS OF RESPONDENTS' OCCUPATION
~umber and Percent Occupation of Respondents
Accountant 5 Bookkeeper 1 Buyer 1 Bakery Ivlanager 1 Cafeteria Helper 1 Carpenter 1 Clerk 2 Consultant 1 Department Manager 1 Diet Aide 1 Engineer 2 Executive Vice-President 1 Factory Worker 1 Film Technician 1 Groundsman 1 Neat Cutter 1 Nurse 2 Painting Contractor 1 Photographer 1 United States Postal Worker 1 Restaurant Hanager 1 Salesperson 1 Secretary 3 Street Maintenance Worker 1 Teacher 5 Technical Librarian 1 'l'ravel Agent 5 Waitress 1 No answer 16 ----·---1 Total 61*
*Thirty-nine percent of the sample was not employed. 40
TABLE 5
NEW ~ffiJOR HOUSEHOLD APPLIANCES PURCtffiSED BY CONSUMERS WITHIN THE LAST FIVE YEARS
Number and Percent Type of Appliance of Respondents
Refrigerators 46 Freezers 13 Ovens and/or ranges 19 Clothes washers 45 Clothes dryers 35 Dishwashers 34 Microwave ovens 1 Trash compactors 0
Total 193*
*Respondents purchased a mean average of 1.9 appliances each.
TABLE 6
INCIDENCE OF PROBLEMS EXPERIENCED BY CONSUMERS WITH NEW MAJOR HOUSEHOLD APPLIANCES PURCHASED WITHIN THE LAST FIVE YEARS
Number and Percent Incidence of Problems of Respondents
!Had problems 54 [Did not have problems 34
L______------having features the consumer does not want or use (6%), consuming too much energy (4%), being bought on impulse
(3%), and being aesthetically displeasing (1%). Thirty- four percent of the respondents did not experience any of the above reasons for dissatisfaction, and 4% named other reasons: bad workmanship, not built to last, poor quality and inadequate temperature controls. Thirty-four percent of the sample did not have problems with new major house- hold appliances they had purchased. (See Table 7.)
Consumer Behavior in the Event
of Consumer Dissonance
In the event of consumer dissonance, or unmet expectations in regard to purchases of new major household appliances, consumer behavior was varied: the majority of respondents (63%) often contacted the store of purchase to register a complaint; 23% sometimes did; 5% seldom did;
1% was not sure of what they did; and 8% had no experi- ence with consumer dissonance in regard to new major household appliances. (See Table 8.)
Consumer Behavior in the Event of Purchasing
Defective New Major Household Appliances
In the event of purchasing a defective new major household appliance, the majority of respondents (68%) ·-----·--·-··-J 42
TABLE 7 REASONS GIVEN BY CONSUMERS FOR DISSATISFACTION - -1 WITH NEW MAJOR HOUSEHODD APPLIANCES i I I
Number and Percent Reason of Respondents
!-1echanical defects 4 3 Physical defects (scratches, chips, dents, etc.) 24 Not living up to advertised performance 14 Extra features that I don't want or use 6 Features that I would like to have are not there 7 Consumes too much energy 4 Aesthetically displeasing (I don't like the color, shape, etc.) 1,. Bought on impulse 3 None of the above 34 Other 4
TABLE 8
CONSUMER BEHAVIOR IN THE EVENT OF CONSUMER DISSONANCE
Nurr~er and Percent Consumer Behavior of Respondents Contact store of purchase: Often 63 Sometimes 23 Seldom 5 Not applicable -- no experience 8 I'm not sure 1 43
often contacted the store that made the sale; 21% some times did, 7% seldom did, and 4% said they had no experi ence with defective new major household appliances. (See
Table 9.)
Consumer Behavior in the Event of Dissatisfaction
with Mail Order Purchases of New
Major Household Appliances
When dissatisfaction resulted from a mail order purchase of a new major household appliance, less than half of the sample (40%) registered a complaint with the mail order company; 9% sometimes did; 6% seldom did; 3% were not sure, and 1% did not answer. However, it must be pointed out that 41% of the sample did not have experience regarding dissatisfaction with mail order purchases of new major household appliances. (See
Table 10.)
Consumer Complaint Registration
and Type of Store
The type of store made no difference in regard to registering complaints to 44% of the people in the study:
43% said they were just as likely to register a complaint at a discount store as at a department store, appliance 44
------l
TABLE 9
CONSUMER BEHAVIOR IN THE EVENT OF PURCHASING DEFEC'l'IVE NEW MAJOR HOUSEHOLD APPLIANCES
Number and Percent Consumer Behavior of Respondents
Contact store of purchase: Often 68 Sometimes 21 Seldom 7 Not applicable -- no experience 4 I'm not sure 0
TABLE 10
CONSUMER BEHAVIOR IN THE EVENT OF DISSATISFACTION WITH MAIL ORDER PURCHASES OF NEW MAJOR HOUSEHOLD APPLIANCES
Number and Percent Consumer Behavior of Respondents
Register complaint with mail order company: Often 40 Sometimes 9 Seldom 6 Not applicable -- no experience 41 I'm not sure 3 No answer 1 45
store or mail order company. One respondent, however, said there was no difference among the type of store -- he would not be likely to register a complaint at any of them. Twenty-six percent said they were more likely to register a complaint at a department store; 19% were most likely to register a complaint at an appliance store, 6% at a discount store, 1% at a mail order company, and 5% had no complaints to register. (See Table 11.)
Consumer Behavior and Defective New Hajor Household
Appliances within the First Year of Purchase
If a new major household appliance were defective within the first year of purchase, more than half of the participants in the study (56%) seldom paid for repairs;
16% had no experience in regard to paying for repairs to defective new major household appliances within the first ! year of purchase; 22% often or sometimes paid for repairs,j and 6% were not sure of how they would behave in regard to paying for repairs to a major household appliance within the first year of purchase. (See Table 12.) I More than half (52%) of the sample seldom attempt-~ ed to repair a major household appliance within the first 1 year of purchase themselves, but more than one-fourth
(26%) often or sometimes did; 17% had no experience in I i i regard to attempting to repair a major household appliance! ------J 46
TABLE 11
CONSUBER CONPLAINT REGISTRATION AND TYPE OF STORE
Number and Percent Consumer Behavior of Respondents
Type of store at which consumer is most likely to register a complaint: Discount store 6 Department store 26 Appliance store 19 Mail order company 1 No difference -- all of the above 43 No difference -- none of the above 1 Not appiicable -- no experience 5
~------_.------~
'1 47
within the first year of purchase, and 5% were not sure or did not answer the question. (See Table 12.)
Consumer Behavior When the Store of Purchase
is Unable to Remedy Dissatisfaction
In the event of a store's inability to remedy the consumer's dissatisfaction, 82% of the respondents said they attempted to contact the manufacturer of the appliance; 36% attempted to contact the Better Dusiness
Bureau; 8% attempted to contact a media consumer aid;
5% attempted to contact an attorney; 4% attempted to con tact a government agency or non-governmental consumer group; 3% attempted to contact MJI,CAP (Hajor Appliance
Consumer Action Panel); 2% attempted to contact Ralph
Nader; and 1% attempted to contact a newspaper columnist or editor. Five percent said they attempted to contact none of the above, and 3% of the respondents said they contacted another source, but did not specify what that source was. (See Table 13.)
Cons~e~R~sources about Which Respondents
~\'anted .i'·1ore Information
Respondents in the study wanted more information about the following consumer resources: MACAP (47%), the Better Business Bureau (29%), manufacturers (23%), 48
.·-.-. -·---.- -·· ------·------1 I i I ! i I I
TABLE 12 CONSUHER BEHAVIOR AND DEFECTIVE NEW MAJOR HOUSEHOLD APPLIANCES WITHIN THE FIRST YEAR OF PURCHASE
Number and Percent Consumer Behavior of Respondents
Pay for repairs: Often 9 Sometimes 13 Seldom 56 Not applicable -- no experience 16 I'm not sure 6
Repair it themselves: Often 6 Sometimes 20 Seldom 52 Not applicable -- no experience 17 I'm not sure 3 49
-~· -·---~ ~-~-··-~-----~
TABLE 13
CONSUMER BEHAVIOR ~vHEN THE STORE OF PURCHASE IS UNABLE TO REMEDY DISSATISFACTION
Number and Percent Consumer Behavior of Respondents
Seek satisfaction else where 75 Give up 5 Not applicable -- no experience 20
Satisfaction is sought by an attempt to contact: Hanufacturer 82 Better Business Bureau 36 Media consumer aid, such as Action 4 {on tele vision) or Action Reporter {on radio) 8 Newspaper columnist or editor 1 Ralph Hader 2 Government agency 4 Non-governmental consumer group 4 NACAP U·1ajor Appliance Consumer Action Panel) 3 Attorney 5 None of the above 5 Other 3
I
I l L~~.~·· 50
media consumer aids (23%), non-governmental consumer groups (23%), government agencies (22%), class action suits (12%), Ralph Nader (9%), and newspaper columnists or editors (5%). (See Table 14.)
Respondents' Opinion Regarding Use
of Consumer Resources
In the respondents' opinion regarding use of consumer resources, more than one-third (34%), thought they seldom took adequate advantage of consumer resources to remedy dissatisfaction with new major household appliances. About one-fifth (22%) felt they often did; one-fifth (20%) said they had no experience; nearly one fifth (19%) said they thought they sometimes took advantage of remedies available to them; and 5% were not sure. (See
Table 15.) 51
TABLE 14
CONSUMER RESOURCES ABOUT WHICH RESPONDENTS ~vANTED HORE INFORMATION
Number and Percent Resource of Respondents
Hanufacturer 23 Better Business Bureau 29 Hedia consumer aids, such as Action 4 (on tele vision) or Action Reporter (on radio) 23 Newspaper columnists or editors 5 Ralph Nader 9 Government agencies 22 Non-governmental consumer groups 23 HACAP (.Hajor Appliance Consumer Action Panel) 47 Class action suits 12 None of the above 6 Other 0
I l______. 52
...... ------·· .~-l
I
I i TABLE 15 I RESPONDENTS' OPINION REGARDING USE OF CONSUMER RESOURCES
Number and Percent Opinion of Respondents Think they take adequate advantage of consumer resources to remedy dis satisfaction with new major household appliances: Often 22 Sometimes 19 Seldom 34 Not applicable -- no experience 20 I'm not sure 5 CHAPTER V
SU~~RY, CONCLUSIONS,AND RECO~ffiNDATIONS
Summary of Objectives, Background
and Procedure
groups have proliferated, and in many instances business has jumped on the consumerism bandwagon. However, some consumers are still left unprotected, and are being
( 45)
that there is a need for cooperation as well as for a broad consumer education program. (22:18)
The objective of this study was to obtain a \ i • I description of consumer behavior relating to the follow~ng areas:
(1) Consumer behavior resulting from dissatis- faction 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
53 54
.. :··--·------· ------l ~-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.
Consumer dissonance is defined as dissatisfaction
experienced by the buyer as a result of discrepancies
between his expectations and a product's actual perform-
ance.
A major assumption of the study is that
descriptive data regarding consumer behavior in the event
of consumer dissonance can be compared to alternative
behavior that would lead to the redress of grievances.
Discrepancies between existing behavior and alternative
behavior that could lead to the redress of grievances
indicate a need for further education in consumerism.
Since this is a descriptive study, statistical
tools, aside from percentages and number counts, were
not used. The basis for conclusions drawn from the
study is the data derived from a carefully constructed questionnaire. The questionnaire was administered to a
diverse population of students at r~orpark College and
California State University, Northridge, parents of boys
in the Y.M.C.A.'s Gra-Y program, workers in travel and
accounting businesses, and residents of the San Fernando
Valley, resulting in one hundred useable questionnaires.
------___ J 55
Respondents were selected on the basis of fulfilling two
criteria:
(1) Age: They had to be at least eighteen years
old, the minimum age required by California law for
entering a binding contract; and
(2) Experience: They had to have direct experi-
ence in purchasing and using new major household
appliances.
Summary of Findings
The majority of respondents were married, female,
between the ages of twenty-three and forty years of age,
had children, were high school graduates, were still
attending school, and almost half (46%) had degrees in
higher education.
Host respondents were employed, and nearly half
(47%) had a total family income of between $10,000 and
$19,000. Their occupations were diverse, falling into twenty-eight categories.
Respondents in the study had purchased a mean
average of 1.9 new major household appliances. Refriger-
ators were purchased most frequently, followed in decreas-
ing order by clothes washers, clothes dryers, dishwashers,
ovens and/or ranges, freezers, and a microwave oven. j No one included in the study bought a trash compactor.
[_ ___ ------56
More than half of the respondents experienced
problems with their new major household appliances. The
most frequently experienced reason for dissatisfaction
was mechanical defects, followed in decreasing order by physical defects, failure to live up to advertised per
formances, did not have features the consumer would like,
had features the consumer did not want or use, consumed
' too much energy, was bought on impulse, and was aestheti
cally displeasing. More than one-third of the sample did
not have problems with new major household appliances
they had purchased.
In the event of consumer dissonance, the majority
of subjects contacted the store of purchase to register
a complaint. Twenty-eight percent contacted the store
of purchase sometimes, or seldom. In the event of
purchasing a defective new major household appliance,
most respondents contacted the store of purchase, but
28% did sometimes, or seldom.
\fuen dissatisfaction resulted from mail order
purchases of new major household appliances, less than
half of the sample (40%) registered a complaint with the
mail order company. It should be noted, however, that
41% of the sample had no experience in making a purchase
from a mail order company. Fifteen percent of the sample
would sometimes or seldom register a complaint with a
mail order company in the event of dissatisfaction with 57
a new major household appliance.
Nearly half of the sample (44%) said the type of
store at which their purchase of a new major household
appliance was made would make no difference in regard to
registering complaints. The remaining respondents said
they would be most likely to register complaints at
department stores, followed in decreasing order by
appliance stores, discount stores, and, last, mail order
companies.
More than half of the participants in the study
said they seldom paid for repairs for a defective new
major household appliance within the first year of purchase. Twenty-two percent would often or sometimes
pay for repairs, and 6% were not sure if they would
pay for repairs.
More than half of the sample seldom attempted to
repair a new major household appliance within the first
year of purchase. However, more than one-fourth of the
respondents often or sometimes did attempt repairs them-
selves.
When the store of purchase was unable to remedy
the consumer's dissatisfaction with a new major household
appliance, three-fourths of the respondents sought I satisfaction elsewhere. Twenty percent had no experience in this area, and 5% gave up.
I In the event of a store's inability to remedy I L 58
the consumer's dissatisfaction, 82% of the respondents attempted to contact the appliance's manufacturer. One third of the sample attempted to contact the Better
Business Bureau. Each of the other consumer resources were used by less than 10% of the respondents. However, respondents did want more information about the following consumer resources: Almost half (47%) wanted to know more about MACAP, one-third about the better Business Bureau, and almost one-fourth wanted to know more about manufac turers, media consumer aids, non-governmental consumer groups, and government agencies. About one-tenth wanted more information regarding class action suits and Ralph
Nader, followed by 5% who expressed interest in news paper columnists or editors.
One fifth of the respondents said they often took advantage of available consumer resources to remedy dis satisfaction they experienced with new major household appliances, and nearly one-fifth said they sometimes did.
More than one-third of the respondents seldom took adequate advantage of consumer resources available to them to remedy dissatisfaction with new major household appliances.
Conclusions
Consumers did experience dissatisfaction with new major household appliances they purchased, with mechanical 59
defects leading the list of complaints. Most consumers made an effort to remedy their dissatisfaction, and that effort usually consisted of contacting the store of pur chase. However, one out of every four consumers seldom, or sometimes contacted the store of purchase in the event of consumer dissonance. Furthermore~ if the appliance were purchased through a mail order company, one-fourth of the respondents with experience in purchasing from a mail order company seldom or sometimes registered a com plaint with that company in the event of consumer disso nance. Those consumers did not' take advantage of the guarantee that comes with new major household appliances,
under which they were covered for all repairs, parts and
labor necessary because of defects and/or normal useage of appliances in the first year of purchase.
Over half of the respondents (52%) discriminated between types of stores if they had a complaint, saying
they were more likely to complain at either a department
store, an appliance store, a discount store, or a mail order company. Those·consumers, too, did not take advan
tage of their first year guarantee, if they failed to
complain at a particular type of store when they were
discontented with a purchase.
One-fifth of the consumers questioned often or
sometimes paid for repairs to their new major household
appliances, and more than one-fourth of the respondents 60
------·-··-··· ----···· r to make repairs themselves during the 1 attempted fir~t~-----~----~ I 'year of purchase. Again, those consumers did not take advantage of their first year guarantee.
However, once consumers contacted the store of
purchase to remedy their dissatisfaction, they rarely
gave up, and most sought satisfaction elsewhere, princi-
pally by contacting the manufacturer of the appliance,
if the store of purchase did not remedy their dissatis-
faction. Fully one-third of the respondents contacted
the Better Business Bureau if they could not gain satis-
faction from the store of purchase, perhaps not realizing
that the Better Business Bureau is ineffective as a
consumer organization, possibly because it is supported
by voluntary membership fees. 'l'he fees, of course, may
come from the businesses about which consumers are regis-
tering complaints. (5:218)
Consequently, there is a need to educate consumers
as to the understanding and use of guarantees and consumer
resources. Respondents in the study did want more infor-
mation regarding consumer resources. They wanted to know
more about MACAP, the Better Business Bureau, manufac-
turers, media consumer aids, and both governmental and
non-governmental consumer groups and agencies.
Finally, consumers themselves often did not feel I they took adequate advantage of existing consumer I i resources available to them. It is this researcher's l ______·······---· ---..... -.... --·· .. --· .. -.. -- -. 61
suggestion that further education is needed in the areas
of guarantees, consumer rights, legislation, and resources!
to contribute to more effective, satisfied consumers.
Suggestions and Hecommendations
. for Further Study
If this study is replicated or expanded, the
following changes in the questionnaire are suggested:
(1) Question 4: Change to read, "If the store
at which you made your purchase is unable or unwilling to
remedy your dissatisfaction, which of the following do
you attempt to contact?" (Check ONE or MORE.)
(2) Question 7: Omit as unnecessary. Also,
categories of "no dif'ference - all of the above" and "no
difference - none of the above" are confusing when used
with a negative question.
(3) Question 11: Omit as unnecessary. Same
; problem as question 7 is involved.
(4) Question 12: Change to read, "If the store
at which you made your purchase is unable or unwilling to
remedy your dissatisfaction, which ONE of the following
do you usually do?"
Additional suggestions are:
(1) Use a sample that is more representative of
the general population, or representative of a particular 62
segment of the general population.
(2) Use a larger sample.
Variations on the same subject are:
(1) Study consumer dissonance in relation to products other than new major home appliances.
(2) Do a co~relational study to determine if education in consumerism does lead to more effective, satisfied consumers. Administer questionnaires to a class of students in consumerism at the beginning of the semester, and again at the end of the semester to conclude if an understanding of consumer rights and resources is increased and if students become more effective in redressing consumer grievances. BIBLIOGRAPHY
63 ( I t
BIBLIOGRAPHY
Books
1. Bruce, Ronald (ed.). The Consumer's Guide to Product Safety,. New York: Unl. versal-Award House, Inc. , 1971.
2. Chase, Stuart and F.J. Schlink. Your Money's Worth. New York: Macmillan Co., 1927.
3. Engel, James F., D.T. Kollat, and R.D. Blackwell. Consumer Behavior. U.S.A.: Holt, Rinehart & W1.nston, Inc., 1968.
4. Gaedeke, Ralph M. and Warren W. Etcheson. Consumerism: Viewpoints from Business, Government, and the Public Interest. San Francisco: Canfield Press, 1972.
5. Gordon, Leland J. and Stewart M. Lee. Economics for Consumers. 6th ed. New York: Van Nostrand Re1.nhold Co., 1972.
6. Guthrie, Heleri Andrews. Introductory Nutrition. Saint Louis: c. V. Mosby Co., 1967. 7. McCarry, Charles. Citizen Hader. New York: Saturday Review Press, 1972~
8. McClellan, Grant S. (ed.). The Reference Shelf, Vol. 40, No. 3. The Consum1.ng Publl.c. New York: The H.W. Wilson Co., 1968. 9. Peckham, Gladys c. F'oundations of Food Preparation. 2d ed. Hew York: 'l'he ~1acmillan Co., 1969.
10. Ramparts Hagazine Editors and Frank Browning (eds.). In the Marketplace: Consumerism in America. San Franc1.sco: Canfield Press, 1972.
11. Sinclair, Upton. The Jungle. New York: Doubleday, Page and Co., 1906.
64 65
Periodicals
12. Ackerman, Hobert W. "How Companies Respond to Social Demands." Harvard Business Review. July-August 19 7 3 1 PP • 8 8-9 8 •
13. "Advocate's Advance." Time. January 28, 1974, p. 66.
14. Allen, James B., Senator. "Lets You and Him Fight." Nation's Business. February 1973, pp. 38-39.
15. Angevine, Erma. "The Consumer Federation of America." 'rhe Journal of Consumer Affairs. Winter 1969, pp. 152-155.
16. Barclay, Robert W. "Washington News: Product Safety." Journal of Home Economics. September 1972, p. 4.
17. "Class-Action Chill." Time. December 31, 1973, p. 49.
18. "Consumers Battle at the Grass Roots." Business World. February 26, 1972, pp. 86-88.
19., "Consumers: Living Dangerously." Newsweek. January 28, 1974, p. 66.
20. "Energy: The Whirlwind Confronts the Skeptics .. " Time. January 21, 1974, pp. 22-27.
21. Gaedeke, Ralph M. "Filing and Disposition of Consumer Complaints; Some Empirical Evidence." The Journal of Consumer Affairs. Summer 1972, pp. 45-56.
22. "What Business, Government and Consumer Spokesmen Think about Consumerism." The Journal of Consumer Affairs. Summer 1970, pp. 7-18.
23. "More 'l'alk than Action on Consumer Complaints." Business Week. May 19, 1973, pp. 66-67.
24. "Nader's Conglomerate." Ti~. June 11, 1973, p. 82.
25. "The New Centurions." Time. September 18, 1972, pp. 86-88.
26. "They Can't Really Fix It, Can They?" Consumer Bulletin. February 1972, pp. 2, 43.
27. "Will the Toy Safety Act Achieve Its Intended Purpose?" Consumer Bulletin. December 1971, pp. 2, 43.
78
Your help in providing the following personal information, necessary for interpreting the data you have supplied, is very much appreciated.
Age Sex Marital Status
0 - 17 41 - 50 Hale Single 18 - 22 51 - 60 -- Female .Harried 23 - 30 61 - 64 -- Other 31 - 40 65 and over
Education
Please circle highest level of Are you a student? education completed: Yes 0 1 2 3 4 5 6 7 8 9 10 11 12 Full-time Please indicate highest degree Part-time-- attained: No No degree Associate-or Arts Degree Bachelor's Degree Naster's Degree - Doctoral Degree==:
Employment Total Annual Family Income
Are you employed? $ 0 - 4,999 5 ' 0 0 0 - 9, 9 9 9 Yes 10,000 - 199999 20,000 - 29,999 Full-time 30,000 - 39,999--- Part-time- 40,000 and above-- Occupatio~------No
Number of children living at home for whom you are responsible: Ages of children: ------
T .H A N K y 0 u