Chapter 3 Vocab
1. Consumer-any person or group that buys or uses goods and services to satisfy personal
needs and wants.
2. Disposable income-income remaining for people to spend or save after all taxes have
been paid.
3. Discretionary income-money income a person has left to spend on extras after
necessities have been bought.
4. Warranty-promise made by a manufacturer or a seller to repair or replace a product
within a certain period of time if it is found to be faulty.
5. Rational choice-involves choosing the alternative that has the greatest value from
among comparable quality products.
6. Competitive advertising-advertising that attempts to persuade consumers that a product
is different from and superior to any other.
7. Informative advertising-advertising that benefits consumers by giving information
about a product.
8. Bait and switch-deceptive advertising practice in which a store attracts consumers with
an ad offering a product at a low price, the tries to sell a similar product but at a higher
price.
9. Generic brands-general name for a product rather than a specific brand name given by
the manufacturer.
10. Brand name-word, picture, or logo on a product that helps consumers distinguish it
from similar products.
11. Comparison shopping-getting information on the types and prices of products
available form different stores and companies.
12. Consumerism-movement educate buyers about the purchases they make and to
demand better and safer products form manufacturers.
13. Ethical behavior-acting in accordance with moral and ethical convictions about right
and wrong.