Knowledge (XXG)

Informed consumer

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can result in huge financial losses and this same concept applies to daily purchases. Being an informed consumer is advantageous to the economy, market and consumers. An informed consumer is capable of making sensible decisions by gaining an insight about a product prior to its purchase. This insight
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In an efficient, integrated EU economy underpinned by EU-wide rules, consumers must be able to trust that their rights will be upheld in the event of any problems when purchasing goods and services in other EU countries. At an annual cost of 5 euro cents per person, the EU's consumer protection
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Affordability – Consumers may be misled by aggressive sales tactics, especially by professionals paid by commission, who may entice the consumer to buy expensive products, products with a high mark-up, or expensive options. Information about the potential purchases can help the consumer save money
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According to the 2013 Edelman Trust Barometer, an online survey of 26,000 general population respondents across 26 countries, 35% of those identified as "the informed public" who need to hear company information three times to believe it, while another 29% need to hear it an additional 4–5 times.
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The study also looked at how consumers place their trust in corporations of different sizes. In the US, 86% of informed consumers trust small businesses, while just 55% trust big businesses. A similar gap is apparent in the UK (78% vs. 48%), but the opposite is true in China, where 89% trust big
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Some businesses may be reluctant to inform their potential consumers, concerned that this might harm the marketability and attractiveness of their products. However, economic analysis indicates that informational asymmetry between the producer and consumer is detrimental to the marketplace and a
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Reliability – Information about products facilitates safe purchases. Mass production of bulk consumer goods may result in instances of products bearing manufacturing defects. Recognising these defects can prevent the customer from financial injury or loss. Product and brand reviews and consumer
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It is the responsibility of the consumer to get all the information about the potential purchase and associated background before making a decision to buy a product. It is ultimately the consumer, through their market choices, which endorses or rejects a product, thus shaping the marketplace.
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Whereas informed publics in developed countries are more trusting of small than big businesses (76% vs. 53%), emerging market respondents placed more trust in big businesses (79% vs. 70%). Overall, small businesses are slightly more trusted than big businesses (70% vs. 62%).
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about the terms and conditions associated with the product or service make plain the regulatory requirements to redress any consumer grievances. Informing the consumer can also help set the consumer's expectations of the product, which can be useful to the producer.
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This evolution in the market orientation can be a challenge for existing and emerging businesses. Some ways of taking advantage of the new market are to understand the target customers, maintain visibility to these people, and utilize grassroots tactics.
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To deal with highly informed consumers, the marketer must understand that the consumer has knowledge about the product and be prepared to manoeuvre this knowledge into a sale, and be well-informed to provide comprehensive knowledge to the consumers.
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Consumers also expect to get a communication channel for inquiry and complaints about the product or service. They want effective redressal and remedies to loss, such as implementation of legal regulations and prosecution to law violations
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Looking at company types, the study finds that trust in media companies rose from 52% of informed publics globally in 2012 to 57% in 2013. Within the US, trust in media companies crossed into the majority, increasing from 45% to 51%.
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Thomas Wilhelmsson (2007). "The Informed Consumer v the Vulnerable Consumer in European Unfair Commercial Practices Law – A Comment". In Geraint Howells; Christian Twigg-Flesner; Deborah Parry; Annette Nordhausen (eds.).
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Appropriate quality – Almost every purchase comes with a variety of options from which to choose. Consumer information enables the customers to select a quality of product which matches their needs for durability or
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Consumers derive information from a variety sources, each with its own interest, skills and resources. It is essential for the consumers to recognise their personal interests and make a suitable decision.
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Ethical considerations – Consumers may not wish to deal with a company which indulges in unethical practices, such as animal testing, labour abuse, environmental pollution, and political corruption.
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required teaching the consumer about the product or service, consumers have become knowledge-ridden with strong opinions on how they want to spend their money. This trend is substantiated by
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forums online can be instrumental in educating the customers about potential problems with the product, and should be considered when making big purchases like appliances and vehicles.
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The information should be written in plain and understandable language, which is self-explanatory. Also, the text should be readable in terms of the size and type of font.
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of product or service (with no exorbitant mark-up cost). Information about the related costs of the product must be brought to the knowledge of the consumer.
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Stephen Weatherill (1996). "The Evolution of European Consumer Law and Policy: From Well Informed Consumer to Confident Consumer". In H. W. Micklitz (ed.).
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Cristina Poncibò & Rossella Incardona (March 2007). "The Average Consumer, the Unfair Commercial Practices Directive, and the Cognitive Revolution".
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Consumers derive their information from multiple sources. The following are the sources from which consumers gather desired knowledge about the product:
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The consumer must be provided with complete, unambiguous and explicit knowledge about the products. The information must contain details regarding the
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programme for 2014–2020 is designed to enforce consumer laws throughout the single market, giving consumers a high level of legal protection.
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ensure consumers' rights keep pace with economic and social change – especially in the food, energy, financial, transport and digital markets.
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The consumers also have the right to indiscriminate prices, that is paying the same price as other customers, without any discrimination.
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and avoid unscrupulous business dealings. They envisage a fair market environment that facilitates and supports several consumer rights:
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The abundance of available information via electronic media has created a transformation of the market orientation. While traditional
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equips the consumer with the data to arrive at an evidence based conclusion. This can be made clear through in a few common aspects:
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which found "buyers are often between 70 and 90 percent of the way through the sales process before they ever engage a vendor".
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Providing complete information levels the information asymmetries between the producer and consumer and improves consumer
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marketingcharts.com/traditional/8-in-10-informed-consumers-need-to-hear-company-info-more-than-twice-to-believe-it-26518/
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Guido Alpa (2002). "Trading On-line and Consumer Protection". In Guido Ferrarini; Klaus J. Hopt; E. Wymeersch (eds.).
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The consumer must get a fair chance of choosing from the range of goods and services available in the market place.
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Becoming educated about the consequences of a purchase makes the consumer both informed and responsible.
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Norbert Reich (2005). "Autonomy: The concept of the "Informed Consumer" and the standard of deception".
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safeguard consumer rights, enabling consumers to resolve disputes with traders quickly and efficiently
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According to the European Union, "Information is a deciding factor for consumers when making their
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Know who they are dealing with, and to not do business with any company that cannot be contacted.
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and policy decisions. It is the solution to issues ranging from online transactional threats,
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Get all promises in writing and review all documents before paying or signing a contract.
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protect consumers against serious risks and threats that they cannot tackle on their own
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Stephen Weatherill (1994). "The Role of the Informed Consumer in EC Law and Policy".
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enable consumers to make choices based on clear, accurate and consistent information
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Resist high-pressure sales techniques, and take time to consider a purchase.
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huffingtonpost.com/daniel-newman/how-to-sell-to-the-inform_b_5309839.html
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Protect personal information, and share it only with a trusted company.
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of information. The consumers want to be able to cast off the invasive
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in marketing, and the mass information storage capacity of computers,
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mckinsey.com/insights/marketing_sales/the_consumer_decision_journey
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methods, and threat of entry into the private system of consumers.
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Resolution of 14 April 1975, one of the primary objectives of the
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and affects both consumer interests and their confidence in the
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has become a great concern. Hence, consumers want to ensure
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Social networks (friends, family, fellow consumers, etc.)
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Consumer information is the most important element for
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Governments issue public information for the consumers
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Archived from 93:The consumers expect just and equitable 682:"EU Legislation on consumer protection" 358: 626:"How to Sell to the Informed Consumer" 379:Capital Markets in the Age of the Euro 231:Suppliers of the products or services. 101:. Fair price is equal to a reasonable 7: 844:. Intersentia nv. pp. 297–298. 898:the philosophy of and activism for 310:EU consumer policy is designed to: 14: 764:The Yearbook of Consumer Law 2007 835:. Baden–Baden. pp. 424–440. 796:Journal of Consumer Policy Issue 596:"How to be an Informed Consumer" 60:circulating within the market." 652:"The consumer decision journey" 174:and ensure a smarter purchase. 87:and product care instructions. 1: 766:. Ashgate Publishing, Ltd. 251:recommends that consumers: 1116: 602:. Federal Trade Commission 1000:Collaborative consumption 949:Consumer welfare standard 896: 808:10.1007/s10603-006-9027-9 713:. edelman trust barometer 22:law of the European Union 249:Federal Trade Commission 1100:Consumer protection law 980:Consumer Bill of Rights 196:Transparent information 81:contents of the product 1064:Ellen Swallow Richards 1059:Consumers' Association 1047:Consumer organizations 403:"Consumer Information" 223:Regulatory authorities 211:Sources of information 186:Effects on marketplace 20:is fundamental in the 434:"Consumer Protection" 154:behavioural targeting 842:Understanding Eu Law 783:Consumer Law Journal 432:Hurme, Sally Balch. 64:Consumer expectation 954:Ethical consumerism 944:Consumer revolution 939:Consumer protection 929:Consumer capitalism 900:consumer protection 558:Helberger, Natali. 521:Helberger, Natali. 458:Helberger, Natali. 413:on 26 December 2014 281:customer engagement 150:consumer protection 124:With the advent of 16:The concept of the 1095:European Union law 990:Consumer education 985:Consumer complaint 300:consumer education 285:Forrester Research 105:added to the real 30:European Community 1082: 1081: 995:Consumer movement 975:Consumer activism 959:Informed consumer 243:Customer know-how 203:major ground for 18:informed consumer 1107: 934:Consumer privacy 924:Anti-consumerism 883: 876: 869: 860: 855: 836: 827: 790: 777: 748: 747: 745: 743: 729: 723: 722: 720: 718: 703: 697: 696: 694: 692: 678: 672: 671: 669: 667: 647: 641: 640: 638: 636: 624:Newman, Daniel. 621: 612: 611: 609: 607: 592: 586: 585: 583: 581: 575: 569:. 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Index

law of the European Union
European Council
European Community
European Union
consumers
choices
products
services
market place
contents of the product
safety warnings
pricing
commodities
profit margin
cost
manufacturing
electronic media
consumer privacy
privacy
marketing
consumer protection
behavioural targeting
stock market
decision-making
Transparent information
market failure
Regulatory authorities
Federal Trade Commission
customer engagement
Forrester Research

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