Showing papers in "Journal of Consumer Policy in 1997"
TL;DR: In this paper, the relative impact of current quality and reputation variables on consumer decisions was examined using data from the market for Bordeaux wine and the results indicated that reputation has a large impact on the willingness to pay of consumers, that long term reputation is considerably more important than short term quality movements, and that consumers react slowly to changes in product quality.
Abstract: The absolute and relative impact of current quality and reputation variables on consumer decisions are examined using data from the market for Bordeaux wine. The estimates indicate that a model of consumer decision making which incorporates information on reputation (past quality) and collective reputation (average group quality) rejects alternative models that include current quality. The results also indicate that reputation has a large impact on the willingness to pay of consumers, that long term reputation is considerably more important than short term quality movements, and that consumers react slowly to changes in product quality. Collective reputation is shown to have an impact on consumer willingness to pay that is as large as that of individual firm reputation. If reputation and collective reputation effects are ignored, the estimated impact of current quality and short term changes in quality on consumer behaviour are overstated.
349 citations
TL;DR: In this paper, the authors show the need for a new model of consumption by making clear the descriptive and normative shortcomings of consumer sovereignty, and propose a new sustainable consumption model to serve as a guideline for both responsible consumers and consumer policymakers and for all institutions concerned with the creation of sustainable development.
Abstract: The importance of consumption in modern societies is constantly growing. To guide consumer oriented policy, a model of consumption is needed which reflects consumers increased significance. The model of consumption prevailing in the theory of market economies as well as in consumer policy was traditionally based upon the notion of consumers sovereignty. This model served both as a description and as the ethical foundation of the market economy. In the first part of this paper, the authors show the need for a new model of consumption by making clear the descriptive and normative shortcomings of consumer sovereignty. In view of the reality of modern societies, it is neither possible nor ethically justifiable to make purchase decisions according to the individual maximization of utility only. The second part presents the idea, the ethical foundation, and the contents of the new model of "sustainable consumption." This model is proposed to serve as a guideline for both responsible consumers and consumer policymakers and for all institutions concerned with the creation of a sustainable development.
188 citations
TL;DR: In this article, a trans-disciplinary approach is proposed for sustainable consumption in the context of material balance economics and evolutionary theory, and three major areas are identified in which consumer research could contribute to the presented frameworks, and to the theory and practice of sustainable consumption.
Abstract: The article is an integrative, theoretical paper addressing the problem of sustainable consumption. It provides the insights of two conceptual frameworks on the conditions for and limits to sustainable consumption. Existing consumer research on environmental issues is reviewed. It is argued that consumer research is not focusing on the right issues in this area and that a trans-disciplinary approach is called for. Frameworks from materials balance economics and evolutionary theory are presented and applied to recreational consumption. Three major areas are identified in which consumer research could contribute to the presented frameworks, and to the theory and practice of sustainable consumption.
158 citations
TL;DR: In this paper, the authors explore three models of individual bankruptcy law which might provide some guidance for analysing policy and for posing further research questions in relation to bankruptcy as a legal and social institution.
Abstract: The author explores three models of individual bankruptcy law which might provide some guidance for analysing policy and for posing further research questions in relation to bankruptcy as a legal and social institution. The models are: (1) Bankruptcy law as a response to deviant behaviour; (2) Bankruptcy as consumer protection; (3) Bankruptcy as social welfare law. Some tentative thoughts are also offered on the comparative analysis of consumer bankruptcy as a focus for understanding relationships between legal and social norms.
36 citations
TL;DR: In this article, the authors describe certain central aspects of the operation of the consumer bankruptcy system in the United States and explore two types of questions: the first is to identify the categories of persons principally served by the bankruptcy system and to determine if suggestions of widespread abuse of that system by debtors are well-founded.
Abstract: This paper describes certain central aspects of the operation of the consumer bankruptcy system in the United States. It combines government data with the investigators' empirical data from two large studies done over a decade to explore two types of questions. The first area of investigation relates specifically to bankruptcy policy. The object is to identify the categories of persons principally served by the consumer bankruptcy system and to determine if suggestions of widespread abuse of that system by debtors are well-founded. The paper reports that the system is used primarily by the middle-class. It also reports that there is no evidence of widespread abuse. The second area of investigation is explanation of differences in the operation of the system in different regions of the country, differences that have persisted over twenty years despite major changes in legal rules and economic conditions. The paper argues that these differences are not explicable in terms of formal legal rules or a simple economic model and that a better explanation of the data is that the differences are the product of a "local legal culture" in each region.
34 citations
TL;DR: In the United States, discharge of debt has been an established principle of bankruptcy law since the late 19th century, and bankruptcy is frequently used by consumer debtors as discussed by the authors, however, in the US, as well as in Canada, debtors are increasingly encouraged to opt for a payment plan.
Abstract: The consumer bankruptcy or, rather, consumer debt adjustment, is a fairly recent phenomenon in continental Europe. In the nineties, a number of European countries introduced judicial institutions in order to alleviate an excessive debt burden carried by consumer debtors. In addition to the court proceedings, the European jurisdictions often provide the debtor with debt counselling services, supervision, and payment requirements. In the United States, on the other hand, discharge of debt has been an established principle of bankruptcy law since the late 19th century, and bankruptcy is frequently used by consumer debtors. However, in the US, as well as in Canada, debtors are increasingly encouraged to opt for a payment plan. There seems to be a certain convergent trend between the two different legal cultures. Paradoxically, at the same time scholars have pointed out that the variance in local cultures seems to be a main factor in explanations of how debtors choose either a direct discharge or a payment plan. This finding gives us reason to consider the interplay of counselling and other pre-trial measures and its effect upon the rights and duties of debtors.
24 citations
TL;DR: In this paper, the commitment of several European consumer organizations with respect to environmental issues during the past two decades in order to assess whether and how environmental issues are internalized in consumer policy across time.
Abstract: Consumer organizations have traditionally been concerned with protecting, informing, and educating the "weak" consumers. These policies were deemed necessary because of the unequal power balance and conflicts of interests between consumers and producers. Since there are also conflicts between the interests of nature on the one hand, and consumers and producers on the other, this article discusses the rationale of consumer organizations' involvement in environmental issues while considering their original objectives. More specifically, it is aimed at identifying the commitment of several European consumer organizations with respect to environmental issues during the past two decades in order to assess whether and how environmental issues are internalized in consumer policy across time.
23 citations
TL;DR: The authors examines the causes of the rapidly escalating number of bankruptcies and shows that there is a strong correlation between the number of consumer bankruptcy and the equally rapid growth in the volume of consumer credit.
Abstract: Consumer bankruptcies in Canada have become a major legal, economic and social phenomenon. The number of consumer bankruptcies almost tripled between 1985 and 1995 and exceeded 75,000 in 1996. The author examines the causes of the rapidly escalating number of bankruptcies and shows that there is a strong correlation between the number of consumer bankruptcies and the equally rapid growth in the volume of consumer credit. The paper rejects the argument of credit grantors and federal bankruptcy officials that going bankrupt and obtaining a discharge from one's debts has become too easy and that a high percentage of consumer bankrupts could have made a consumer proposal involving a substantial repayment of their debts.
18 citations
TL;DR: In this article, the authors examine four important limitations on the scope of the fresh start concept in consumer bankruptcy law, including the debtor must give up non-exempt property, debt repayment plans, certain debts are "excepted" from discharge, and many rights of secured creditors in collateral are preserved despite discharge.
Abstract: Consumer bankruptcy law in the United States has been distinguished by its commitment to the fresh start concept, enabling the debtor to discharge indebtedness and begin a new economic life. In this paper recent developments respecting four important limitations on the scope of the fresh start are examined. The four limitations are: (1) the debtor must give up non-exempt property; (2) in some parts of the country debtors are effectively required to complete 3 to 5 year debt repayment plans (called Chapter 13 plans) before receiving a discharge; (3) certain debts are "excepted" from discharge; and (4) many rights of secured creditors in collateral are preserved despite discharge.
17 citations
TL;DR: The Norwegian Consumer Bankruptcy Act was passed 17 July 1992 to give persons with "serious debt problems" the possibility to gain control over their economy as mentioned in this paper, and it contains provisions for negotiations between the debtor and the creditors, for court rulings on repayment plans and for a discharge of the debts not covered by the plan.
Abstract: The Norwegian Consumer Bankruptcy Act was passed 17 July 1992 to give persons with "serious debt problems (. . .) the possibility to gain control over their economy." The Act contains provisions for negotiations between the debtor and the creditors, for court rulings on repayment plans, and for a discharge of the debts not covered by the plan. The origin of the Act was a social welfare approach to the problem of overindebtedness. However, the Act embodies an inherent contradiction in that it also includes moral elements in order to prevent it from exerting a negative influence on the perceived obligation to pay one's debts. This contradiction has given the courts a wide scope of discretion in the application of the Act. As a result, cases are treated differently in different jurisdictions. Some judges put more emphasis on moral evaluations than others. This situation also gives room for strategic action from creditor groups who typically are repeat players in cases of consumer bankruptcy. In this way the more objective, social welfare approach of the Act is undermined.
16 citations
TL;DR: In this article, the authors explore the possibilities for expanding the domain of non-legal actors in this field by looking at legal aid discussions in general, and more specifically at the new Alternative Dispute Resolution (ADR) trend that is developing both in the USA and Europe.
Abstract: In the advisory report to the European Commission (Huls et al., 1994), the conclusion was reached that the optimal European solution for overindebtedness of consumers is a combination of legal change and a strengthening of the work of social debt counsellors. It was argued that the two spheres, the legal and the social, should be linked in order to create a constructive coalition. Europe has learned from the USA how to introduce the concept "discharge of debts" into their legislation (Huls, 1992). The USA may learn from Europe how debt coun- sellors can play a more vital part in tackling the debt problem of consumers. This paper explores the possibilities for expanding the domain of non-legal actors in this field by looking at legal aid discussions in general, and more specifically at the new Alternative Dispute Resolution (ADR) trend that is developing both in the USA and Europe. In the first section of the paper, the importance of an adequate definition of the problem is stressed. The following section summarizes the model proposed in Huls et al. (1994). It is followed by a plea for professional and independent debt counselling, a prerequisite for dejuridification of the debt problem, and for a coupling of debt problems to legal aid discussions. This leads to the conclusion that a strong case can be made for debt counselling as a form of ADR. WHICH SOLUTION FOR WHOSE PROBLEM? The rise in overindebtedness has coincided with the rise in consumer credit. In Europe today, overindebtedness is found more frequently than a number of years ago. For various reasons, many consumers are not able to pay back their debts. Such financial entrapment is not restricted to specific social or economic groups, but can happen to almost anyone. Four different groups of overcommitted debtors can be distin- guished. The first group runs into temporary misfortune (i.e., unemployment, divorce, illness, and so on). A second group consists of people who unconsciously become overcommitted. They make use of widely available forms of credit, without realizing that they might not be able to repay in the future. The third group are the "poor" who have to take credit in order to attain a reasonable standard of
TL;DR: In this article, the authors assess critically to what extent EC policy and law have responded to these new challenges and requirements by focusing, firstly, on the caselaw of the European Court of Justice and, secondly, on policy innovations introduced by and constraints facing the EC legislative institutions.
Abstract: The principal objective of this paper is to stimulate debate about the current state of the relationship and tensions between consumer and environmental protection policies at Community level. By virtue of the constitutional changes to Community Law introduced by the Single European Act 1986 (SEA) and the Treaty on European Union 1992 (TEU), the European Community (EC) has committed itself to re-evaluating its core, fundamental aim of attaining completion of market integration. The EC is now compelled to address whether the development of open and free market conditions ultimately serves the best interests and priorities of its inhabitants and whether its original goals adequately internalise their environmental concerns and demands. This paper aims to assess critically to what extent EC policy and law have responded to these new challenges and requirements by focusing, firstly, on the caselaw of the European Court of Justice and, secondly, on policy innovations introduced by and constraints facing the EC legislative institutions. Ten years on from the SEA, it appears that the Community has barely started to confront the issue of the consumer-environment interrelationship, with the result that political and legal developments have been unclear and often contradictory. The Community must begin to match its rhetoric with definitive action.
TL;DR: In this article, the authors argue that a significant threat to effective consumer protection is posed by fuzzy thinking at the policy-making stage, and they examine three major Australian law reform initiatives: the Contracts Review Act 1980 (New South Wales), new uniform truth in lending laws; and product liability legislation.
Abstract: Good legislation depends on clearly articulated policy objectives. This paper argues that a significant threat to effective consumer protection is posed by fuzzy thinking at the policy-making stage. Three major Australian law reform initiatives are examined: the Contracts Review Act 1980 (New South Wales); new uniform truth in lending laws; and product liability legislation. In each case, effective policy choices were left unresolved, either because the choice was politically too difficult or simply because of a failure by the policy makers to perceive that there was a choice needing to be made. In each case, the problem has been disguised by resort to drafting at a high level of abstraction, and this serves to make rhetorical claims in support of the legislation seem plausible. The truth, however, is that legislation drafted this way is bound to be indeterminate and it is left to the courts to invent policy as part of the interpretation process. This is not a legitimate judicial function.
TL;DR: In this article, the authors examined the existence and use of group actions in consumer issues in the Baltic states and found that group actions were also used in courts and administrative group actions.
Abstract: The article is based on a study which aimed at examining the existence and use of group actions in consumer issues in the Baltic states. It was part of a larger research project in which the same questions were studied in all Central and Eastern European countries. Besides group actions in courts, administrative group actions were also studied.
TL;DR: In this paper, the authors trace and analyse the development of consumer affairs departments in the United States and the Netherlands on the basis of fourteen case studies, and conjecture that the application of information technology, communication technology, and personnel management style could be major determinants of differences with regard to CADs in the aforementioned countries.
Abstract: Over a decade ago Hansen and Schoenheit (1986), in their Journal of Consumer Policy article, concluded that Consumer Affairs Departments (CADs) offer potential for improving organisational performance in the market place and that their transferability to the European context would be warranted. In this article we trace and analyse the development of Consumer Affairs Departments in the United States and the Netherlands on the basis of fourteen case studies. On the basis of a comparative analysis we conjecture that the application of information technology, the application of communication technology, and personnel management style could be considered as major determinants of differences with regard to CADs in the aforementioned countries. We conclude the article with a number of building blocks that organisations may use in preparing their CADs for the decade to come.