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93-515: Consumer Reports ( CR ), formerly Consumers Union ( CU ), is an American nonprofit consumer organization dedicated to independent product testing , investigative journalism , consumer-oriented research, public education, and consumer advocacy. Founded in 1936, CR was created to serve as a source of information that consumers could use to help assess the safety and performance of products. Since that time, CR has continued its testing and analysis of products and services, and attempted to advocate for

186-441: A CR test. In 2010, CR rated the 2010 Lexus GX 460 SUV unsafe after the vehicle failed one of the magazine's emergency safety tests. Toyota temporarily suspended sales of the vehicle, and after conducting its own test acknowledged the problem and issued a recall for the vehicle, which later passed a CR re-test. In 2016, CR found wildly inconsistent battery life in its testing of Apple's 2016 MacBook Pro . This led to

279-676: A $ 375,000 grant from an environmental group, the Climate Imperative Foundation, to examine gas stoves and indoor air quality, which resulted in the publication of an article entitled "Is Your Gas Range a Health Risk?" published on Oct. 4, 2022, with a note indicating that the article was funded in part by a grant from the Climate Imperative Foundation. This article appeared prior to an Oct. 25 memo by Consumer Products Safety Commission Commissioner Richard L. Trumka entitled 'Notice of Proposed Rulemaking to Ban Gas Stoves'. Consumer Reports does not allow outside advertising in

372-403: A better understanding of the product. Online consumer reviews play a crucial role in providing product information before consumers make a purchase decision . These reviews, full of desires, preferences and behavioural insights, are a valuable source of data for both consumers and businesses. By understanding consumer behaviour and preferences, businesses can develop strategic plans to improve

465-430: A car recall tracker and personalized content. An additional base of online members join for free and received guidance on a range of products (e.g. gas grills, washing machines) at no charge. CR has also launched several advocacy websites, including HearUsNow.org, which helps consumers with telecommunications policy matters. In March 2005, CR campaign PrescriptionforChange.org released " Drugs I Need ", an animated short with

558-536: A case. In 1971, Bose Corporation sued Consumer Reports ( CR ) for libel after CR reported in a review that the sound from the system it reviewed "tended to wander about the room". The case eventually reached the United States Supreme Court , which affirmed in Bose Corp. v. Consumers Union of United States, Inc. that CR 's statement was made without actual malice and therefore

651-415: A consumer budget constraint . Factors influencing consumers' evaluation of the utility of goods include: income level, cultural factors, product information and physio-psychological factors. Consumption is separated from production, logically, because two different economic agents are involved. In the first case, consumption is determined by the individual. Their specific tastes or preferences determine

744-417: A consumer graphically along with the limitations of a consumer's budget. [REDACTED] An indifference curve shows the various combination of two goods that leave the consumer equally satisfied. For example, every point on the indifference curve I1 (as shown in the figure above), which represents a unique combination of good X and good Y, will give the consumer the same utility. Indifference curves have

837-413: A decrease in income will shift the budget constraint to the left. [REDACTED] Depending on the indifference curves, as income increases, the quantity purchased of a good can either increase, decrease or stay the same. In the figure below, good Y is a normal good since the amount purchased increased as the budget constraint shifted from BC1 to the higher income budget constraint, BC2. However, good X

930-415: A few assumptions that explain their nature. Firstly, indifference curves are typically convex to the origin of the graph. This is because it is assumed that a given consumer will sacrifice consumption in one good for more consumption of the other good. Thus, the marginal rate of substitution (MRS), which is the slope of the indifference curve at any single point along the curve, will decrease when moving down

1023-446: A given indifference curve. Indifference curves can also take various other shapes depending on the preferences of the consumer. Secondly, for a given consumer, their indifference curves cannot intersect each other. This is because the same set of consumption for a given individual cannot represent two different utility values. Thirdly, it is assumed that individuals are more satisfied with a bundle of goods on an indifference curve that

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1116-530: A kids' version of Consumer Reports called Penny Power , later changed to Zillions . This publication was similar to Consumer Reports but served a younger audience. At its peak, the magazine covered close to 350,000 subscribers. It gave children financial advice for budgeting their allowances and saving for a big purchase, reviewed kid-oriented consumer products (e.g., toys, clothes, electronics, food, videogames, etc.), and generally promoted smart consumerism in kids and teens; testing of products came from kids of

1209-401: A large land-estate L . According to the laws of economic logic, sunk costs and making decisions should be irrelevant. However, there is a widespread irrationality in people's actual investment activities, production and daily activities that takes sunk costs into account when making decisions. Sunk costs for individuals may be represented by behaviour in which they make decisions based on

1302-490: A magazine aimed at young women. In 2008, Consumer Reports acquired The Consumerist blog from Gawker Media . Magazine copies distributed in Canada include a small four-page supplement called "Canada Extra", explaining how the magazine's findings apply to that country and lists the examined items available there. In 1998, Consumer Reports launched the grant-funded project Consumer Reports WebWatch , which aimed to improve

1395-405: A product to be completed at the individuals pace. This indicates that the time constraint effect may be less controlling of consumers choice than initially discussed. However, important consideration should be made based temporal effects of a purchase. A study found that consumers often fall into a prevention-promotion mindset depending on the urgency of a decision. A prevention mindset comes from

1488-569: A progressive message. Consumers Union would surpass Schlink's Consumers' Research in subscribers by 1940, accumulating a readership of 71,000. Numerous businesses and corporations set out to suppress the actions of Consumers Union. In an effort to suppress the critiques of Consumers' Union, The New York Herald Tribune established an institute with the goal of demonstrating that the efforts of consumers groups were futile, in that businesses already conducted extensive product-testing. The Crowell Institute on Consumer Relations founded in 1937, sprouted from

1581-435: A screenshot out of a set of either 4, 9 or 16 similar items with a 3-second time window. The results show that consumers are typically good at optimizing items that they have seen within the search process, i.e., they can easily make a choice from the “seen-set” of items. The results also show that consumers mostly use the hybrid model as a computational process for consumer choice. The data is most qualitatively consistent with

1674-556: A song from the Austin Lounge Lizards , that was featured by The New York Times , JibJab , BoingBoing , and hundreds of blogs. On Earth Day 2005, CR launched GreenerChoices.org, a web-based initiative meant to "inform, engage, and empower consumers about environmentally friendly products and practices". Consumer Reports was a sponsor of the Safe Patient Project, whose goal was to help consumers find

1767-408: A stance in support of the war effort. The urged their supporters to put aside their personal interest by consuming less, and following the government ordered policies of consumption. They were also critical of businesses who saw the war period as an opportunity to advertise their products and as a result were wasting paper. The government's vested interest in the politics of consumption would escalate in

1860-445: Is deemed not worthwhile to attempt to determine the value of specific behavior. Heuristics are techniques for simplifying the decision-making process by omitting or disregarding certain information and focusing exclusively on particular elements of alternatives. While some heuristics must be utilized purposefully and deliberately, others can be used relatively effortlessly, even without our conscious awareness. Consumption by individuals

1953-478: Is free. As of July 31, 2009, WebWatch has been shut down, though the site is still available. Consumer Reports Best Buy Drugs is available free on Consumer Reports Health.org. It compares prescription drugs in over 20 major categories, such as heart disease, blood pressure and diabetes, and gives comparative ratings of effectiveness and costs, in reports and tables, in web pages and PDF documents, in summary and detailed form. Also in 2005 Consumer Reports launched

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2046-448: Is further away from the origin. From the graph above, the indifference curve I3 would give the consumer the highest utility whereas I1 would give the lowest utility. The indifference curves shown in the figure above adhere to the three assumptions outlined in that they are convex, do not intersect, and have a higher utility the further the indifference curve is away from the origin. As a second example, consider an economy that consists of

2139-727: Is in East Haddam, Connecticut . CR is funded by subscriptions to its magazine and website, as well as through independent grants and donations. Marta L. Tellado is the current CEO of Consumer Reports. She joined the organization in 2014, following her work with the Ford Foundation , with the goal of expanding its engagement and advocacy efforts. Consumer Reports' flagship website and magazine publishes reviews and comparisons of consumer products and services based on reporting and results from its in-house testing laboratory and survey research center. CR accepts no advertising, pays for all

2232-793: Is influenced by the consistency between their perceived hotel performance and their preferences – a classic multi-attribute decision making (MADM) problem. Vocabulary-based sentiment analysis is incorporated into online reviews to create product rankings that take into account the sentiment score of the review, the brand ranking of the product and the usefulness of the review. In the context of travel, travellers' choices and behaviours when selecting restaurants are heavily influenced by their travel classification or purpose, such as leisure, business or adventure. The study's modelling results suggest that travellers show diverse preferences in terms of dining behaviour, depending on factors such as environment, type of cuisine, price range and dietary restrictions. While

2325-430: Is not a rational choice. The rise of the internet and social networks may cause changes in consumer behavior , resulting in more planned and sensible purchase processes . Fourthly, individuals can be reluctant to spend cash on particular items because they have preconceived boundaries on how much they can afford to spend on 'luxuries,' according to their mental accounting. Lastly, it is not easy to separate products in

2418-444: Is now (X1, Y1) as shown in the figure below. As a result, the amount of good Y bought has shifted from Y2 to Y1, and the amount of good X bought has shifted from X2 to X1. The opposite effect will occur if the price of Y decreases causing the budget constrain to shift from B C 2 {\displaystyle BC2} to B C 3 {\displaystyle BC3} , and the highest indifference curve that maximises

2511-408: Is outside the budget constraint. As a result, the most optimal point for the individual is where the indifference curve I2 is tangent to the budget constraint. As a result, the individual will purchase X ∗ {\displaystyle X*} of good X and Y ∗ {\displaystyle Y*} of good Y. [REDACTED] Indifference curve analysis begins with

2604-744: Is the umbrella organisation of the three Swiss consumer organisations (the Stiftung für Konsumentenschutz (SKS) of German-speaking Switzerland, the Fédération romande des consommateurs (FRC) of French-speaking Switzerland and the Associazione consumatrici e consumatori della Svizzera italiana (ACSI) of Italian-speaking Switzerland). In the United Kingdom, the Enterprise Act 2002 allows consumer bodies that have been approved by

2697-399: Is the phenomenon observed through changes in purchasing power. It reveals the change in quantity demanded brought by a change in real income . Graphically, as long as the prices remain constant, changing income will create a parallel shift of the budget constraint. Increasing income will shift the budget constraint right since more of both goods can be bought by the consumer. On the other hand,

2790-433: Is typically impacted by advertising and consumer habits as well. Secondly, consumers struggle to give standard utils and instead rank distinct options in order of preference, which is referred to as ordinal utility . Thirdly, it is not always likely that a consumer would stay rational and make the choice which maximizes their utility. Sometimes, individuals are irrational. For example, a consumer making impulsive purchases

2883-551: The Consumers' Association in the UK. One common means of providing consumers useful information is the independent comparative survey or test of products or services, involving different manufacturers or companies (e.g., Which? , Consumer Reports , etc.). Another arena where consumer organizations have operated is food safety . The needs for campaigning in this area are less easy to reconcile with their traditional methods, since

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2976-643: The Secretary of State for Trade and Industry to be designated as "super-complainants" to the Competition and Markets Authority . These super-complainants are intended to, "strengthen the voice of consumers," who are "unlikely to have access individually to the kind of information necessary to judge whether markets are failing for them." Eight have been designated as of 2007 : By 1969 most capitalist countries with developed marketplaces hosted consumer organizations that published consumer magazines which reported

3069-753: The 16-year-old test results of the 1988 Samurai in its advertising or promotional materials. In December 1997, the Isuzu Trooper distributor in Puerto Rico sued CR , alleging that it had lost sales as a result of disparagement of the Trooper by the Consumers Union of the United States (CU). A trial court granted the motion for summary judgment by the CU, and the U.S. Court of Appeals for

3162-505: The 25 years after World War II, there was a correlation between the number of people in a country who were purchasing cars and the popularity of consumer magazines. In some cases, an increase in other consumer purchases seemed to drive popularity of consumer magazines, but the correlation was closest for populations who made decisions about buying cars. The availability of consumer magazines comforted consumers when individuals in society suddenly became overwhelmed with marketplace decisions, and

3255-600: The First Circuit affirmed the favorable judgment. In 2003, Sharper Image sued CR in California for product disparagement over negative reviews of its Ionic Breeze Quadra air purifier . CR moved for dismissal on October 31, 2003, and the case was dismissed in November 2004. The decision also awarded CR $ 525,000 in legal fees and costs. The February 2007 issue of Consumer Reports stated that only two of

3348-765: The Kentucky Equal Justice Center and the California Pan-Ethnic Health Network among other advocacy organizations. In recent years, the organization has been vocal on key issues, including championing consumer choice and industry competition in the debate against the Sprint T-Mobile merger, advocating for consumer preference to leave net neutrality protections in place, exposing how data is used to engage in racial discrimination when determining consumer pricing offers, and advocating for stronger privacy laws in

3441-426: The ability to extend the time constraint by using remote shopping consumers can often make a more informed decision however when the time for purchase arrives consumers often fall into a prevention focus mindset. During the online shopping process, retailers encourage customers to share their product reviews on digital platforms such as e-commerce websites and social media, which in turn helps other shoppers to have

3534-601: The age range a product was targeted toward. It also taught kids about deceitful marketing practices practiced by advertising agencies. The magazine folded in 2000. Consumer Reports had an annual testing budget of approximately US$ 25 million, as well as approximately 7 million subscribers (3.8 million print and 3.2 million digital) as of April 2016. The organization had around 6 million members in July 2018. In 1927, F.J. Schlink and Stuart Chase published their best selling novel, Your Money's Worth , which saw massive readership due to

3627-455: The amount of utility they derive from goods and services they consume. In the second case, a producer has different motives to the consumer in that they are focussed on the profit they make. This is explained further by producer theory. The models that make up consumer theory are used to represent prospectively observable demand patterns for an individual buyer on the hypothesis of constrained optimization . Prominent variables used to explain

3720-518: The best quality of health care by promoting the public disclosure of hospital-acquired infection rates and medical errors. The US Centers for Disease Control states that about 2 million patients annually (about 1 in 20) will acquire an infection while being treated in a hospital for an unrelated health care problem, resulting in 99,000 deaths and as much as $ 45 billion in excess hospital costs. The campaign has worked in every state calling for legislation requiring hospitals to disclose infection rates to

3813-527: The board of CR from 1982 to 2006 and was the head of the National Highway Traffic Safety Administration from 1977 to 1981, where she discussed the sequence of events leading to the publishing of the erroneous information. In February 1998, the organization tested pet food and claimed that Iams dog food was nutritionally deficient. It later retracted the report claiming that there had been "a systemic error in

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3906-450: The bundles "on" indifference curve 4 are more preferred than the bundles "on" indifference curve 1. The income effect and price effect explain how the change in price of a good changes the consumption of the good. The theory of consumer choice examines the trade-offs and decisions people make in their role as consumers as prices and their income change. Indifference curves are heuristic devices used in microeconomics to convey preferences of

3999-401: The child safety seats it tested for that issue passed the organization's side impact tests. The National Highway Traffic Safety Administration , which subsequently retested the seats, found that all those seats passed the corresponding NHTSA tests at the speeds described in the magazine report. The CR article reported that the tests simulated the effects of collisions at 38.5 mph. However,

4092-691: The consumer in legislative and rule-making areas. Among the reforms in which CR played a role were the advent of seat belt laws , exposure of the dangers of cigarettes , and more recently, the enhancement of consumer finance protection and the increase of consumer access to quality health care. The organization has also expanded its reach to a suite of digital platforms. Consumer Reports Advocacy frequently supports environmental causes, including heightened regulations on auto manufacturers. The organization's headquarters, including its 50 testing labs, are located in Yonkers, New York , while its automotive testing track

4185-481: The consumer movement. The demand for brand research led to Schlink to found the company Consumers' Research in 1927. The company was responsible for publishing Consumers’ Research Bulletin (previously named Consumer Club Commodity List). The subscriber count in 1933 was reported to be over 42,000. It was in this year, that Consumer Research moved its operations to New York City. Following this move, employees began to unionize, citing unfair pay. Schlink proceeded to fire

4278-418: The consumers utility shifts from I2 to I3. [REDACTED] If these curves are plotted for many different prices of good Y, a demand curve for good Y can be constructed. The diagram below shows the demand curve for good Y as its price varies. Alternatively, if the price for good Y is fixed and the price for good X is varied, a demand curve for good X can be constructed. [REDACTED] The income effect

4371-514: The context in which the decisions are made, small or even unexpected changes in the decision-making environment can greatly affect their decisions. The basic problem of consumer theory takes the following inputs: Behavioral economics has criticized neoclassical consumer choice theory because reality is more complex that what the theory can determine itself. Firstly, consumers use heuristics , which means they do not scrutinize decisions too closely but rather make broad generalizations. Further, it

4464-691: The credibility of Web sites through investigative reporting, publicizing best-practices standards, and publishing a list of sites that comply with the standards. WebWatch worked with the Stanford Web Credibility Project , Harvard University's Berkman Center , The Annenberg School of Communications at the University of Pennsylvania, and others. WebWatch is a member of ICANN , the W3C and the Internet Society . Its content

4557-410: The decision-making process of these consumers. A study was conducted to measure the computational processes of subjects when faced with a decision to choose a product from a bundle of slightly differentiated products, whilst faced with a time constraint. The study was conducted through an experiment in which participants were in a supermarket-like environment and were asked to pick a snack food item from

4650-756: The discovery of a bug in the Safari web browser , which Apple promptly fixed via a software update. In May 2018, CR said it could not recommend the Tesla Model 3 due to concerns about the car's long stopping distance. Within days, Tesla issued a remote software update. CR retested the car's brakes, then gave the Model 3 a "recommended" rating. Consumer Reports has been sued several times by companies unhappy with reviews of their products. Consumer Reports has fought these cases vigorously. As of October 2000, Consumer Reports had been sued by 13 manufacturers and never lost

4743-418: The early 2000s. At the start of 2009, Consumer Reports acquired The Consumerist blog from Gawker Media for approximately $ 600,000. Prior to 2012, the organization did business as Consumers Union. The reason for the name change was that the name of "Consumer Reports" was more familiar to the public than the name of "Consumers Union". Consumer Reports spent $ 200,000 on lobbying in 2015. The Consumerist

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4836-445: The effect of changes to the budget constraint. The graph below shows the effect of a price increase for good Y. If the price of Y increases, the budget constraint will pivot from B C 2 {\displaystyle BC2} to B C 1 {\displaystyle BC1} . Notice that because the price of X does not change, the consumer can still buy the same amount of X if he or she chooses to buy only good X. On

4929-410: The fact that they have paid for this good or service irrespective of current circumstances. An example of this is a consumer who has already purchased their ticket for a concert and may travel through a storm to be able to attend the concert in order to not waste their ticket. Another example is different payment schedules for gym members may result in different levels of potential sunk costs and affect

5022-504: The forum Woman's Home Companion , which had a readership of 2 million. The institute suppressed the efforts of consumer groups by giving business and advertisers the platform to putdown the consumers' pursuit of "lower distribution costs, grade labeling, and regulation," asserting that these businesses were already taking these factors into account. The New York Times proved to be an obstacle for Consumers Union, refusing CU's requests to advertise. Other major publications would follow suit. In

5115-514: The frequency of gym visits by consumers. That is to say, the payment schedule with other less frequent (e.g., quarterly, semi-annual or annual payment schedule), compared to a month pay the fee to the gym in a larger, these factors to reduce the cost and reduce the psychological sunk costs, more vivid sunk costs significantly increased people's gym visits. In summary, the behaviour of consumers in these two examples can be characterised by their ideal that losses loom larger than gains. Highly relevant to

5208-405: The hybrid model rather than the optimal or satisfying models. This reliance on impulsive data however isn't necessarily representative of today's market, throughout the pandemic consumers where largely forced to use online shopping methods making browsing between competitors easier, allowing for indulgence in research and conversations outside of the retailers control and evaluation of the need for

5301-538: The independence of its judgment". In 2007, in response to errors in infant car seat testing, it began accepting advice from a wide range of experts on designing tests, but not on final assessments. Also, at times CR allows manufacturers to review and respond to criticism before publication. CR also accepts referral fees from websites such as Amazon for including "affiliate links" to websites where customers can purchase reviewed products. Some objective and comparative tests published by Consumer Reports are carried out under

5394-471: The interwar years. The rise of Consumers Union happened simultaneously with women's groups interest in consumption. Despite the mobilization of citizens interested in consumption, the pursuit of consumer rights were not validated until the New Deal. The programs represented an acknowledgment of the consumer movement, by actively working to improve consumer purchaser power. In World War II, Consumer Union took

5487-697: The magazine, but its website has retailers' advertisements. Consumer Reports states that PriceGrabber places the ads and pays a percentage of referral fees to CR , who has no direct relationship with the retailers. Consumer Reports publishes reviews of its business partner and recommends it in at least one case. CR had a similar relationship with BizRate at one time and has had relationships with other companies including Amazon.com , Yahoo! , The Wall Street Journal , The Washington Post , BillShrink, and Decide.com. CR also accepts grants from other organizations. Consumer Reports says its secret shoppers purchase all tested products at retail prices on behalf of

5580-401: The market. Some items, such as an electronic car or a refrigerator, are only purchased occasionally and cannot be mathematically divided. Consider an economy with two types of homogeneous divisible goods, traditionally called X and Y. The consumer will choose the indifference curve with the highest utility that is attainable within their budget constraint. Every point on indifference curve I3

5673-514: The measurements of various minerals we tested – potassium , calcium and magnesium ". Consumer organization Consumer Organizations may operate via protests , litigation , campaigning , or lobbying . They may engage in single-issue advocacy (e.g., the British Campaign for Real Ale (CAMRA), which campaigned against keg beer and for cask ale ) or they may set themselves up as more general consumer watchdogs , such as

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5766-408: The modern consumer organization are standards organizations and consumers leagues. Both of these appeared in the United States around 1900. Trade associations and professional societies began to establish standards organizations to reduce industry waste and increase productivity. Consumer leagues modeled themselves after trade unions in their attempts to improve the market with boycotts in

5859-408: The need for your goals to align with your responsibilities. A promotion mindset revolves around the experience of new things. When faced with a purchase consumers were found to adopt the prevention mindset however when the purchase was distant a promotion mindset was adopted. In conclusion the role of the time constraint effect on consumer choice is highly relevant when informing consumer choices. With

5952-533: The online data includes coverage that is not published in the magazine; for example, vehicle reliability (frequency of repair) tables online extend over the full 10 model years reported in the Annual Questionnaires, whereas the magazine has only a six-year history of each model. In 1990, Consumer Reports launched Consumer Reports Television . By March 2005 it was "hosted" by over 100 stations. On August 1, 2006, Consumer Reports launched ShopSmart ,

6045-422: The organization, that they do so anonymously, and that CR accepts no free samples in order to limit bias from bribery and to prevent being given better than average samples. Consumer Reports pays a rental fee to manufacturers when using these press samples and does not include the products in its ratings. For most of CR ' s history, it minimized contact with government and industry experts "to avoid compromising

6138-434: The other hand, if the consumer chooses to buy only good Y, he or she will be able to buy less of good Y because its price has increased. Now, the consumption of good X and Y will be re-allocated to account for the price change in good Y. To maximize their utility, the consumption bundle that is on the highest indifference curve that is tangent to B C 1 {\displaystyle BC1} . This consumption bundle

6231-461: The popularity of magazines seemed to grow as more marketplace decisions became available. Consumer choice The theory of consumer choice is the branch of microeconomics that relates preferences to consumption expenditures and to consumer demand curves . It analyzes how consumers maximize the desirability of their consumption (as measured by their preferences subject to limitations on their expenditures), by maximizing utility subject to

6324-441: The postwar period. Government would encourage to consume both through propaganda as well as the protections instituted to promote individual consumption. Consumer Reports has helped start several consumer groups and publications, in 1960 helping create global consumer group Consumers International and in 1974 providing financial assistance to Consumers' Checkbook which is considered akin to Consumer Reports for local services in

6417-629: The potential to help sift through large amounts of data, extract useful insights and provide personalised recommendations to consumers. In short, online consumer reviews are an important resource for shoppers and businesses alike. Using this information can help businesses better understand consumer preferences, improve their offerings and ultimately increase customer satisfaction. For consumers, having access to aggregated, relevant and trustworthy information can greatly enhance their decision-making process and overall online shopping experience. The indifference curves and budget constraint can be used to predict

6510-472: The price rise occurs, as is usual, then the decline in overall purchasing power due to the price rise leads, for most goods, to a further decline in the quantity demanded; this is called the income effect . As the wealth of the individual rises, demand for most products increases, shifting the demand curve higher at all possible prices. In addition, people's judgments and decisions are often influenced by systemic biases or heuristics and are strongly dependent on

6603-433: The products it tests, and as a nonprofit organization has no shareholders. It also publishes general and targeted product/service buying guides. Consumer Reports has hundreds of thousands of online advocates who take action and write letters to policymakers about the issues its advocates take on. This group continues to grow as Consumer Reports expands its reach, with 6 million paid members who have access to online tools like

6696-605: The public. The Safe Patient Project also works on medical devices, prescription drugs, and physician accountability. GreenerChoices.org offers an "accessible, reliable, and practical source of information on buying 'greener' products that have minimal environmental impact and meet personal needs". The site contains many articles about different products, rating them on how "green" they are. It also focuses on electronics and appliance recycling and reuse, as well as conservation and global warming prevention. Funding for Consumer Reports has recently been provided by USPIRG Education Fund ,

6789-472: The quality of their services and tailor their offerings to better meet the needs of their customers. For example, when consumers do an online search for hotels, they can compare prices, locations, services and other aspects of various potential hotels on the site. The platform can also provide personalised recommendations based on a user's search history and preferences. Based on the attributes listed for each hotel, consumers can make an informed decision that

6882-500: The rate at which the good is purchased (demanded) are the price per unit of that good, prices of related goods, and wealth of the consumer. The law of demand states that the rate of consumption falls as the price of the good rises, even when the consumer is monetarily compensated for the effect of the higher price; this is called the substitution effect . As the price of a good rises, consumers will substitute away from that good, choosing more of other alternatives. If no compensation for

6975-409: The results of product testing . Internationally, the idea of consumer organizations spread from Consumers Union in the United States starting in 1956. The growth of interest in product testing journalism might be explained by increased consumption of mass-marketed products in and before that period. That increased international consumption itself was an effect of the aftermath of World War II . In

7068-606: The same way that trade unions sought to improve working conditions with strike action . Aside from this general consumer organisation, the Netherlands is home to many categorical consumer organisations whose working terrain is limited to a certain part of the markets. Examples of categorical organisations include: Finally, there is a business regulation agency, charged with competition oversight, sector-specific regulation of several sectors, and enforcement of consumer protection laws: The Swiss Alliance of Consumer Organisations

7161-431: The scientific, dietary or medical evidence is normally more complex than in other arenas, such as the electric safety of white goods . The current standards on mandatory labelling , in developed countries, have in part been shaped by past lobbying by consumer groups. The aim of consumer organizations may be to establish and to attempt to enforce consumer rights . Effective work has also been done, however, simply by using

7254-438: The service Greener Choices , which is meant to "inform, engage, and empower consumers about environmentally-friendly products and practices". It contains information about conservation, electronics recycling and conservation with the goal or providing an "accessible, reliable, and practical source of information on buying "greener" products that have minimal environmental impact and meet personal needs". Consumer Reports published

7347-407: The seven metropolitan areas they serve. Prominent consumer advocate Ralph Nader was on the board of directors, but left in 1975 due to a "division of philosophy" with new Executive Director Rhoda Karpatkin . Nader wanted Consumer Reports to focus on policy and product advocacy, while Karpatkin focused on product testing. Karpatkin was appointed executive director in 1974 and retired as president in

7440-510: The steering; the manufacturer claimed: "Some do, some don't" show this behavior, but it has no "validity in the real world of driving". Nevertheless, the next year, these models included a lighter weight steering wheel rim and a steering damper , and Consumer Reports reported that the previous instability was no longer present. In a 2003 issue of CR , the magazine tested the Nissan Murano crossover utility vehicle and did not recommend

7533-512: The strikers. The former Consumers' Research employees, teamed up with "journalists, engineers, academics, and scientists" to found the company Consumers Union —now known as Consumer Reports—in February 1936. Consumers Union differentiated themselves from Consumers' Research by establishing a community amongst readers. Within the overall mission of creating more informed consumers, Consumers Union united with women's clubs and citizen groups, creating

7626-427: The study and understanding of consumer choice is the role of time contraint effects. This effect is related to the available time consumers have before making their decision on whether to buy a product or service and which product or service to buy. With the incessant exposure consumers have to businesses through the avenues of social media, television, billboards and radio, time constraint effects can significantly impact

7719-718: The study provides valuable insights into restaurant decision-making, it also acknowledges limitations and suggests other directions for research to further explore consumer preferences in various contexts. However, the sheer volume of online reviews and the need to consider various attributes when making decisions can be overwhelming for consumers. In many cases, it can be a challenge to discern genuine reviews from fake ones or marketing-driven content. Therefore, tools and methods must be developed to help consumers make informed choices by helping them rank product candidates based on other consumers' reviews and their preferences. The use of artificial intelligence and machine learning algorithms has

7812-540: The tests that were completed in fact simulated collisions at 70 mph. CR stated in a letter from its president Jim Guest to its subscribers that it would retest the seats. The article was removed from the CR website, and on January 18, 2007, the organization posted a note on its home page about the misleading tests. Subscribers were also sent a postcard apologizing for the error. On January 28, 2007, The New York Times published an op-ed from Joan Claybrook , who served on

7905-468: The threat of bad publicity to keep companies' focus on the consumers' point of view. Consumer organizations may attempt to serve consumer interests by relatively direct actions such as creating and/or disseminating market information, and prohibiting specific acts or practices, or by promoting competitive forces in the markets which directly or indirectly affect consumers (such as transport, electricity, communications, etc.). Two precursor organizations to

7998-440: The umbrella of the international consumer organization International Consumer Research & Testing . Consumer Reports also uses outside labs for testing, including for 11 percent of tests in 2006. ConsumerReports.org, the website of Consumer Reports, is largely available only to paid subscribers. ConsumerReports.org provides updates on product availability, and adds new products to previously published test results. In addition,

8091-570: The utility function. The utility function is treated as an index of utility. All that is necessary is that the utility index change as more preferred bundles are consumed. The tangent point between the indifference curve and the budget line is the point at which consumer satisfaction is maximized. Indifference curves are typically numbered with the number increasing as more preferred bundles are consumed. The numbers have no cardinal significance; for example, if three indifference curves are labeled 1, 4, and 16 respectively that means nothing more than

8184-405: The vehicle because of a problem with its power steering, even though the vehicle had above-average reliability. The specific problem was that the steering would stiffen substantially on hard turning. CR recommended the 2005 model, which had addressed this problem. BMW changed the software for the stability control in its X5 SUV after replicating a potential rollover problem discovered during

8277-585: The wake of the Cambridge Analytica data scandal . Consumer Reports is well known for its policies on editorial independence , which it says are to "maintain our independence and impartiality ... [so that] CR has no agenda other than the interests of consumers". CR has unusually strict requirements and sometimes has taken extraordinary steps; for example it declined to renew a car dealership's bulk subscription because of "the appearance of an impropriety". However, Consumer Reports in 2021 took

8370-402: The year 1938, CU would find itself at the center of The Dies Committee's investigation into "unpatriotic propaganda". The committee brought on former member of Consumers' Research' board, J.B. Matthews as its research director. In Matthews' official report, he accused CU and its CEO Arthur Kallet of holding Communist ideals, and going as far as to label CU as "Communist front". The smear campaign

8463-513: Was criticized by Consumers Union for its lack of legitimacy. The allegations proved fruitless, and rather served to delegitimize CR and Congressman Dies. In part due to actions of Consumers' Research, the House Un-American Activities Committee placed Consumers Union on a list of subversive organizations, only to remove it in 1954. Consumers Union established themselves as an advocate for consumer rights during

8556-570: Was not libelous. In 1988, Consumer Reports announced during a press conference that the Suzuki Samurai had demonstrated a tendency to roll and deemed it "not acceptable". Suzuki sued in 1996 after the Samurai was again mentioned in a CR anniversary issue. In July 2004, after eight years in court, the suit was settled and dismissed with no money changing hands and no retraction issued, but Consumers Union did agree to no longer refer to

8649-685: Was subsequently closed in December 2017, when its content was folded into the Consumer Reports website. In the July 1978 issue, Consumer Reports rated the Dodge Omni/Plymouth Horizon automobile "not acceptable", the first car it had judged such since the AMC Ambassador in 1968. In its testing they found the possibility of these models' developing an oscillatory yaw as a result of a sudden violent input to

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