DB compensatory decision making bias
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MKTG4120_PPT_Ch17.pptxChapter 17
Marketing, Ethics, and Social
Responsibility in Today’s
Consumer Society
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Social and Temporal Dilemmas
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Addictive Behavior
Usually brought on by chemical dependency
Perceived or chemical dependence on product or activity
Repeated use of product, even if dangerous
Can be harmful to addicts & those around them
Examples: cigarettes, drugs, alcohol, Internet use (facebook, instagram), gambling, video games, etc.
You can be addicted to shopping, online shopping, and other marketplace endeavors
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Compulsive Behavior
Compulsive consumption
Strong emotional component
Compulsive buyers have low self-esteem
How is impulsive consumer behavior different than compulsive cb?
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Consumer Theft
Prevalence
Retail: $37 billion losses
Nonretail: fraud; pirarcy
Psychological factors affecting
Temptation to steal
Ability to rationalize behavior
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Motivations for Theft
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Black Markets
Example: Cuban Cigars
Legal items in short supply
Brands
Illegal items
What are some examples of products on the black market and are they still “marketed”?
“…situations in which consumers pay (often exorbitant amounts) for items not readily available…sellers are unauthorized.”
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Black Markets
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Advertising to Children~ Issues
Did you watch a lot of TV as a child? Did it impact you positively or negatively?
Issues:
Undeveloped cognitive abilities
Unable to store/retrieve information in long-term memory
Prey on needs
Teach children materialism, act on impulse, immediate gratification
Do not understand cost
Host selling
Types of products
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Marketing Implications
Does marketing perpetuate materialism?
Makes acquisition attractive and convenient
Does marketing encourage addictive and compulsive acquisition behaviors?
Promotes unhealthy behaviors, such as smoking
How can marketers deal with consumer theft?
Antitheft devices and improved security systems
Reducing ability to serve customers
What would you as a marketer/businessperson do regarding theft from your business?
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Advertising to Children~ Solutions
Solutions to consider:
Parental control
Program/advertising separator
Limits to amount of advertising per hour
Public Service Announcements (PSAs)
Children’s Advertising Review Unit—Better Business Bureau
Educational initiatives
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Underage Drinking & Smoking
Prevalence
Consequences
Marketing Implications
Product availability
Exposure to advertising
Targeting youth
Inappropriate message in media/ads
Warning labels/ads
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Idealized Self-Images
Idealized body images
Obsessions with thinness
Thinness, advertising, & self-perceptions = Social Comparisons Theory
Materialism
Consumers less satisfied
Family influences
“Good life”
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Idealized Self-Images
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Sex in Advertising
When is sex in
advertising unethical
If at all, in your opinion?
Source: Used courtesy of Ad Age on Campus.
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Marketing & Obesity
Link between junk food advertising & childhood obesity
Less guilt in eating low-fat snacks
Underestimate of calorie content of meals
Unhealthy food perceived as tastier
Does marketing/advertising cause obesity?
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Consumer Privacy
Sources of marketing information
Tracking purchases
Applications
Marketing research
Public domain
Consumer responses
Uncomfortable
Complaints
Lack of trust
Data has errors
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Marketing Implications
Does marketing encourage underage or excessive drink and smoking?
Large amount of alcohol and cigarette advertising
More critical determinants are peer pressure, parental influence, and self esteem
Does advertising affect self-image?
More sensitive to negative effects of messages on self-image
Does marketing contribute to overeating and obesity?
Discouraging unhealthy eating; encouraging healthy eating
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Publicizing Health Concerns
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Marketing Implications
Do marketers invade consumers’ privacy?
Communicating how information gathered helps consumers
Laws & self-imposed regulation
Markets for privacy protection
Respect privacy; What would you want done to you and your family? Think of this and hold it to high esteem in your career.
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Marketing Social Responsibility
Environmentally conscious behavior
Conservation behavior
Greenwashing
Charitable behavior
Community involvement
How can marketers motivate people to conserve for long-term sustainability?
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Consumer Resistance
Individual resistance—negative word-of-mouth
Advocacy groups—inform public about business practices
Boycotts
Avoid purchasing
Companies held accountable
Gain publicity
Hurt company financially
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Questions?
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