CONSUMER BEHAVIOUR

Consumer Behaviour

Consumer Behaviour

Introduction

The advertising industry has become a vital part of the United States' economy. The Pontifical Council for Social Communications states that advertising has a great influence on a consumer's understanding of life, one's culture, and the world (Foley, 1998). Advertising encourages economic growth through information being made available about competing goods and services. However, advertising can be deceptive, encourage unlimited consumption, create confusion for the consumer, and intensify destructive desires such as lust and greed.

Advertising encourages consumption by showing improvement in features and quality of products and services. It promotes products such as colas, cigarettes, and alcohol, which can cause consumers to use products in excess, causing possible dangerous side effects (Boddewyn, 1999). Advertising is only one aspect that goes into shaping consumer choices, and the role advertising plays in either initiating or reinforcing consumer trends is dubious (Schudson, 1984). Laws regulating advertisements should be minimal because the public can self-regulate false or misleading ads through the use of personal boycotts. Private and public consumer advocacy groups exist to inform the public of misleading advertisements, poor quality products, and potentially dangerous products. Government regulation has its place in protecting the consumer through the placement of warning labels on potentially dangerous products, but consumerism is ultimately in the hands of the consumer.

The church closely protected consumers in the Middle Ages (Preston, 1975). Trade was tightly controlled, and strict laws were enforced to protect the consumer. The idea of caveat emptor developed from the practice of unlawful trading, such as horse-trading. Caveat emptor became legally accepted as kings saw financial benefits from trading. This became part of the legal tapestry of the time, and eventually common law (Preston, 1975). As trade grew, consumers were offered more products, but not much of a choice within each product.

This situation led to a sellerism atmosphere, where consumers had little choice but to accept the seller's claims. With the decline of church influence, sellerism became prevalent, and expectations regarding the honesty of the seller were lowered (Preston, 1975). The sellerism attitude continued throughout American history until the early 20th century. Sinclair's book, The Jungle, published in 1906, changed attitudes towards sellerism. The book revealed some of the unethical practices of the "Captains of Industry" and shed light on the plight of consumers. In 1906, President Roosevelt signed two laws to protect the consumer: The Meat Inspection Act and The Pure Food and Drug Act. Eight years later, the federal government would intervene to protect the consumer with the inception of the Federal Trade Commission (FTC).

Federal Trade Commission

The commission's original purpose was to enforce antitrust laws. In its early days, the FTC deemed that a business was involved in unfair methods of competition if it falsely advertised (Preston, 1975). During this time, the only avenue consumers had to retaliate against unethical advertisements was the court system, which proved to be the seller's friend, because under common law one must prove intent on the part of the advertiser (Preston, ...