The media has recently exposed that grade inflation is a concern for higher education in North America. Grade inflation may be due to consumerism by universities that now compete for students. Keeping students happy (and paying) may have been emphasized more than learning. We review the literature on faculty evaluation and present a model that incorporates students' individual differences and grade inflation as sources of bias in teaching evaluations. To improve teaching effectiveness, and avoid consumerism in higher education, faculty evaluations must begin to focus on students and the reciprocal role of grade inflation in teaching evaluation. (Contains 1 figure.)