Financial Literacy 501

The articles in this special issue of The Journal of Consumer Affairs focus on financial literacy. The scope of the content spans conceptualization and measurement as well as factors influencing financial literacy and its impact. This editorial prelude suggests one way that educators might use this issue as well as a previous (Summer 2008) special issue of the journal that also focused on financial literacy.     

Corrective advertising information processing by teenagers

In this study teenagers' understanding of corrective advertisements was measured at three levels: beliefs, attitudes and behavioural intentions. The results support the use of beliefs rather than attitudes or behavioural intentions to detect deception.     

Monastic mortality: Durham Priory, 1395–15291

This article presents reliable data on the life expectancy of the monks of Durham Priory between 1395 and 1529. The number of years that monks survived in this northern monastery plunged precipitously in the second half of the fifteenth century before staging a partial recovery in the early sixteenth. The experience of Durham monks mirrors the scale, direction, and timing of the data already produced for the monks of Canterbury and Westminster. While the precise relationship between monastic mortality and that of the population at large remains difficult to determine, there can be no doubt that the symmetry that has been established between mortality in three monasteries located in different parts of the country has important implications for our understanding of the demographic history of late medieval England.     

Telecommunications deregulation and rural consumers: the impact on decision-making

Deregulation of the U.S. telecommunications industry has made a major impact on the consumer decisions of both urban and rural telephone consumers. This article focuses on rural consumers and examines their relative satisfaction with local and long-distance service, attitudes toward and knowledge about deregulation, and use of information in specific local service and equipment decisions. Implications for consumer educators are identified.     

INFORMATION DISCLOSURE IN MAIL ORDER CATALOGUES

Catalogue mail order shopping has become a common mode of shopping for many consumers. Despite Federal Trade Commission rules as well as federal statutes designed to protect consumers in mail order transactions, consumers continue to experience problems with shopping by mail. Some problems may stem from limited availability or clarity of information in mail order catalogues. Resolution of problems is also more difficult when complete information is not available. In a survey of 139 catalogues distributed in the United States the authors found that, with the exception of refund policies, the majority contained no (or vague) information on the companies' policies. Additionally, when information was provided it was usually located on the order form rather than in the catalogue itself. Recommendations for improved information disclosure in mail order catalogues are discussed in the final section of this paper.     

Estimating the Returns to Informed Decision-Making

Data from 929 product tests in Consumer Reports between January 1975 and November 1984 were used to estimate the potential payoffs to consumer search. A “best choice’ and a “worst choice’ were identified in each product test using three different selection methods. In methods 1 and 2, the worst choice was qualitatively inferior to the best choice. However, the method 1 worst choice was the most expensive lower-quality option, while in method 2 it was the least expensive alternative. In method 3, both the best and worst choices were selected randomly without regard to quality rankings or price. When the worst choice in a product test was more costly than the corresponding best choice, the price difference (in percent) was computed to estimate the returns to search in 12 product classes. Implications for consumers and consumer educators are also identified.     

Consumer Response to Telecommunications Deregulation: The Equal Access Decision

This paper examines consumer response to equal access-the choice of a primary long-distance carrier. A model is developed that suggests that those consumers who seek information to aid in decision making may acquire it either through search or experience. The paper reports results of a survey of consumers who recently made the equal access decision. Logit analysis identified search in other purchase decisions and age as two characteristics significantly related to the extent of prepurchase search.     

In-Store Shopping Strategies: Time and Money Costs in the Supermarket

Consumers may adopt in-store shopping strategies to reduce time and/or money expenditures. Seven shopping strategies were identified and used to simulate the purchase of 19 specified products at three supermarkets at which price and size data were collected. Expenditures ranged from $13.88 to $23.70 for the various strategies, requiring up to 272 price comparisons. The monetary savings (from the average) resulting from use of the strategies were used to determine the break-even times for three hypothetical wage rates. Break-even time was defined as the amount of time one could spend such that the value of the time expended equals the monetary savings realized. The efficiency of a strategy was found to vary by store and by the value placed on shopping time. The implications of the findings for consumer educators are noted and discussed.     

Consumer acceptability of foods using low salt levels and salt substitutes

The purpose of this research was to investigate the effect first of sodium reduction and second its substitution (using LoSalt) on the acceptability of eating quality of chilli con carne and ratatouille. Hedonic assessment tests were carried out to determine the lowest levels of sodium necessary to produce acceptable dishes. Triangle tests were carried out to investigate whether differences could be observed when table salt was replaced by a salt substitute. Total sodium content of the dishes was determined by flame photometry. In the case of both dishes the sodium concentration of the most preferred samples was found to be similar. However, the chilli con carne was found to be acceptable at all additions of table salt. It was also found to be acceptable without the addition of any salt. Total substitution of added table salt with LoSalt was also successful in both dishes with panel members being unable to differentiate between salt and LoSalt samples. Thus it would appear that successful dishes can be produced by reducing added table salt levels or by substituting LoSalt, without affecting overall acceptability of the products.     

Resident participation in a community-based garden/yard waste reclamation programme

Resident participation in a community-based garden/yard waste reclamation programme was investigated. A survey to determine if the participants in the programme exhibited traits as innovators was completed and the acceptance patterns of various aspects of the garden/yard waste reclamation programme were compared to established diffusion patterns for innovations. The results indicate that the diffusion of innovation theory can be used to describe resident participation in the programme evaluated in this study. Individuals with more education and higher incomes were more likely to participate than those with less education and lower incomes. The rate of adoption of the degradable bags at 27% was higher than the 16% projected by theory. However, rate of adoption of the degradable ties (11%) and reclamation products (11%) was somewhat lower. An effort to reduce the complexity of the issues surrounding the programme may increase the rate of adoption for all aspects of the programme.