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

5

Selected Characteristics of Respondents' Occupation •....•.......•....

New t1ajor Household Appliances Purchased by Consumers within the Last Five Years ..

6 Incidence of Problems Experienced by Consumers with New Major Household Appliances Purchased within the Last

39

40

Five Years............................... 40

7 Reasons Given by Consumers for Dissatis­faction 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 .•.••......•.•••..•

vi

48

TABLE

13

14

Consumer Behavior when the Store of Purchase is Unable to Remedy

PAGE

Dissatisfaction ..••.•.••• ~............... 49

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.

viii

i j

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 hazardous to health or life;

The right to be informed -- to be protected

I

I __________ __j

1

against fraudulent, deceitful or grossly mis­leading 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

2

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 --- ________________ __)

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.

4

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

5

--- ·-,~--------- ----.------ ·- --·- ---------- ~-----·---~-... --"---------

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

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

7

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 mis­leading 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 substi­tuded, 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

8

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

9

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

1938, and has had numerous amendments to deal with . . I

specJ.fJ.~

problems: the Pesticide Chemicals Amendment in 1954, I

setting up a system of enforceable residue tolerances; I

the Delaney Amendment in 1958 (known as the Food Additives!

Amendment), regulating food additives for safety; the i l I

______ _j

10

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

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

12

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

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)

14

('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

15

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

16

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

17

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

18

.. -- . -·~ -------·-----,

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

prospective purchase, including features that should be

looked for regarding specific products. (5:421) Other

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)

i i

I

Consumers Union made laboratory tests to determinej

I

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

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-

19

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

20

one of the oldest organizations used by

....... ··- . --·-··-··- ----l consumers. It

provides technical pre-shopping information through its

publication, Consumers Bulletin, in which products are

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

I

I I

i

21

- .. -- ---·-------~ ·-- ------- ··--------·---------------·-·-----~

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

22

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.

23

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-

24

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

I j

1 or choose not to pursue legal redress. However, in

December of 1973, the United States Supreme Court handed

down a decision which requires that every plaintiff in 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)

25

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)

26

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)

30

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

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) :

(1) Assurance that all information would remain

confidential. Anonymity was guaranteed by the absence

of the requirement for names of respondents;

l i i I

I (2) Instructions for answering questions, includint

a key to letter answers appropriate for some questions. I

There was no verbal amplification, insuring identical

directions regarding the questionnaire for all partici-

pants in the study; and

(3) A definition of the term "major household

appliances."

The sample was selected from a diverse population

of extended day students enrolled in Home Economics

I

I I !

classes at Moorpark College in Simi, California, students ! I

J

32

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

I

, where the term "average" is used, it is identified as

1 being the mean average, median average, or modal average.

Conclusions drawn from the data obtained through

this research are compatible with the principle generally

accepted by consumerists that consumers can be educated

to make their needs and wishes known, to become better

l i l

I

I -- ---- ------·----- _______________________ j

33

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

TABLE 1

SELECTED CHARACTERISTICS OF RESPONDENTS

Characteristic

Sex Hale Female No answer

Age range in 18 - 22 23 - 30 31 - 40 41 - 50 51 - 60

years

Marital status Single Harried Other No answer

Number of children 0 1 2 3

·4 or more No answer

Educational status Did not graduate high

school High School Graduate Associate of Arts Degree Bachelor's Degree Master's Degree Doctoral Degree

Attending school (Full-time - 14) (Part-time - 43)

I (No answe~ - 1)

II Not attending school

No answer

[__ - . ··-··· -····· .. . ........ .

Number and Percent of Respondents

23 74

3

8 32 36 20

4

8 85

4 3

17 18 22 24 14

5

1 53 25 19

2 0

58

38 4

! _____ )

36

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

37

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%),

TABLE 4

SELECTED CHARACTERISTICS OF RESPONDENTS' OCCUPATION

Occupation

Accountant Bookkeeper Buyer Bakery Ivlanager Cafeteria Helper Carpenter Clerk Consultant Department Manager Diet Aide Engineer Executive Vice-President Factory Worker Film Technician Groundsman Neat Cutter Nurse Painting Contractor Photographer United States Postal

Worker Restaurant Hanager Salesperson Secretary Street Maintenance Worker Teacher Technical Librarian 'l'ravel Agent Waitress No answer

Total

~umber and Percent of Respondents

5 1 1 1 1 1 2 1 1 1 2 1 1 1 1 1 2 1 1

1 1 1 3 1 5 1 5 1

16 ----·---1

61*

*Thirty-nine percent of the sample was not employed.

39

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 __________ -- --------- -

40

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

TABLE 7

REASONS GIVEN BY CONSUMERS FOR WITH NEW MAJOR HOUSEHODD

DISSATISFACTION - -1 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

42

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

43

----- ---- ------------- -------------------------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

44

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

I i

year of purchase themselves, but more than one-fourth

(26%) often or sometimes did; 17% had no experience in i

regard to attempting to repair a major household appliance!

----------- J

45

TABLE 11

CONSUBER CONPLAINT REGISTRATION AND TYPE OF STORE

Consumer Behavior

Type of store at which consumer is most likely to register a complaint:

Discount store Department store Appliance store Mail order company No difference -- all of

the above No difference -- none of

the above Not appiicable -- no

experience

Number and Percent of Respondents

6 26 19

1

43

1

5

~------------------------------_.------------------~

'1

46

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%),

47

i I I

. ·-.-. -·---.- -·· ---------- --------------------------- -- ·----- -----------1

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

I

i I !

48

I

I

l L~~.~··

-~· -·---~ ~-~-··-~-----~

TABLE 13

CONSUMER BEHAVIOR ~vHEN THE STORE OF PURCHASE IS UNABLE TO REMEDY DISSATISFACTION

Consumer Behavior

Seek satisfaction else­where

Give up Not applicable -- no

experience

Satisfaction is sought by an attempt to contact:

Hanufacturer Better Business Bureau Media consumer aid, such

as Action 4 {on tele­vision) or Action Reporter {on radio)

Newspaper columnist or editor

Ralph Hader Government agency Non-governmental

consumer group NACAP U·1ajor Appliance

Consumer Action Panel) Attorney None of the above Other

Number and Percent of Respondents

75 5

20

82 36

8

1 2 4

4

3 5 5 3

49

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.)

50

I

TABLE 14

CONSUMER RESOURCES ABOUT WHICH RESPONDENTS ~vANTED HORE INFORMATION

Resource

Hanufacturer Better Business Bureau Hedia consumer aids, such

as Action 4 (on tele­vision) or Action Reporter (on radio)

Newspaper columnists or editors

Ralph Nader Government agencies Non-governmental consumer

groups HACAP (.Hajor Appliance

Consumer Action Panel) Class action suits None of the above Other

Number and Percent of Respondents

23 29

23

5 9

22

23

47 12

6 0

l ______________ .

51

............... ---------·· . ~-l

TABLE 15

RESPONDENTS' OPINION REGARDING USE OF CONSUMER RESOURCES

Number and Percent Opinion of Respondents

Think they take adequate advantage of consumer resources to remedy dis­satisfaction with new major household appliances:

Often 22 Sometimes 19 Seldom 34 Not applicable -- no

experience 20 I'm not sure 5

I

I i I

52

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

description of consumer behavior relating to the • I

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

'~-used

.. :··--·- --- ----· ---------------l 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

54

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.

55

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

56

I

I I L

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

satisfaction elsewhere. Twenty percent had no experience

in this area, and 5% gave up.

In the event of a store's inability to remedy

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

58

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

59

r

------·-··-··· ----····

1 attempted I

to make repairs themselves during the fir~t~-----~----~

'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 ______ ·······---· ---..... -.... --·· .. --· .. -.. -- -.

60

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

61

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.

62

BIBLIOGRAPHY

63

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.

7.

Saint Louis: c. V. Mosby Co., 1967.

McCarry, Charles. Review Press,

Citizen Hader. 1972~

New York: Saturday

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

( I

t

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.

65

Your help in providing the following personal

information, necessary for interpreting the data you have

supplied, is very much appreciated.

Age

0 - 17 41 - 50 --18 - 22 51 - 60 --23 - 30 61 - 64 31 - 40 65 and over

Education

Please circle highest level of education completed:

0 1 2 3 4 5 6 7 8 9 10 11 12

Please indicate highest degree attained:

No degree Associate-or Arts Degree Bachelor's Degree Naster's Degree -­Doctoral Degree==:

Employment

Are you employed?

Yes

Sex

Hale Female

Marital Status

Single .Harried Other

Are you a student?

Yes

No

Full-time Part-time--

Total Annual Family Income

$ 0 - 4,999 5 ' 0 0 0 - 9, 9 9 9

10,000 - 199999 20,000 - 29,999 30,000 - 39,999---40,000 and above--

Full-time Part-time-­Occupatio~ -----------------------

No

Number of children living at home for whom you are responsible:

Ages of children: ------------------------------------

T .H A N K y 0 u

78