How do our consumer marketing strategies
affect consumer well-being?
Many of the concepts and methods from this course can be applied in
ways that have questionable ethics and potentially harmful effects on consumers.
How can responsible firms address these issues?
Development of a consumer culture
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A consumer culture is one in which a high level of economic development
is reflected in a high level of consumption of goods and services by a
majority of its members—macro-consumption
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The goods often take on specific meanings or functions in society
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Consider the national epidemic of obesity
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How have portions of foods changed over time? Study findings from National
Heart, Lung, and Blood Institute Obesity Education Initiative
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“Super Size Me”
Are consumers vulnerable to the messages in advertising?
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Does advertising put too much pressure on consumers?
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Are there things that consumers just HAVE to get, even though they really
don’t need them?
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Do marketers encourage the demand of products by making them culturally
desirable through cultural symbolism
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Consider the ads seen during the holiday season
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Changes initiated by marketing may not always be positive:
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Encouraging behavior that may not always be in the best interest of consumers
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e.g., the “Marlboro Man”
For instance, are standards of beauty for females too difficult to achieve?
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Obsessions with Thinness
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Anorexia
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Bulimia
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Instant weight reducing pills
The Effect of Consumption on the Quality of Life
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Consumers in higher income brackets own more material possessions than
those in lower brackets
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Ownership of economic goods enhances subjective well being (an indicator
of quality of life)
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Satisfaction with life was found to increase with income
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Life satisfaction was also found to be positively correlated with the possession
of material things (but only for materialistic people)
Materialism and the Dark Side of Consumer Society
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Materialism
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To be materialistic means to measure our self-worth by our external assets
and possessions rather than by intrinsic characteristics
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This is often seen when countries go through rapid cycles of economic development
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People may not need or want “things”, but those things represent some level
of achievement or success
Why Are Material Possessions Important?
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They reflect self-worth
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They reward societal contributions
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They lead to control
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They help us achieve secular immortality
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They are encouraged within certain religions
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They are a route to happiness
The Materialistic Personality
Three personality traits are common to materialistic people:
Envy
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I am bothered when I see people who buy anything that they want.
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There are certain people I would like to trade places with.
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When friends have things I cannot afford, it bothers me.
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I don’t seem to get what is coming to me.
Non-generousness
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I don’t like to lend things even to good friends.
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I don’t like to have anyone in my home when I’m not there.
Materialistic Personality (continued)
Possessiveness
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I tend to hang on to things I should probably throw out.
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I get very upset if something is stolen from me, even if it has little
monetary value.
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I worry about people taking my possessions.
Addictive or Compulsive Behavior
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A behavior is addictive if it is beyond the control of the consumer
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Two types of compulsive consumers
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Distressed—those characterized by feelings of self-doubt, incompetence,
and personal inadequacy
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Sociopathic—those driven by strong impulsive desires
Shoplifting
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Shoplifting is pervasive
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It accounts for over a third of retail shrinkage
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It hurts both retailers (higher costs) and consumers (higher prices)
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Two types of shoplifting
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Shoplifting by acquisition – taking products without paying
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Shoplifting by disposition – returning products after they have been used
or damaged
Which items are most likely to be shoplifted?
Discussion
Shoplifting (continued)
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How do shoplifters rationalize their behavior?
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Denial of responsibility
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Denial of injury
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Denial of victim
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Condemning the condemners
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Thirty seven percent of all adolescents have admitted to shoplifting at
least once over a 12-month period
Ethics in Marketing
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Legal versus ethical actions
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Many of the things that marketers do affect the society at large
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Laws and regulation control only certain aspects of marketing activity
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Ethics require marketers to be responsible for their own actions
What are some examples?
Ethical Consumer actions by firms
Unethical Consumer actions by firms
How can your company develop a checklist on legality and ethics?
Eight tests
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Legal test – does the action violate the law?
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Duties test – five duties to consumers
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Fidelity – keep promises, contracts
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Gratitude – appreciation for consumers
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Justice – distribute rewards based on merits
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Non-maleficence – do no harm, safe toys
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Beneficence - take actions to improve lives of consumers
Additional Tests
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Special obligations test: any special obligations of your industry? E.g.
alcoholic industry promotes safe driving; tobacco industry promotes ??
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Motives test – what is the intent of actions?
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Consequences test – provide as many positive consequences as possible,
reduce negatives
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Utilitarian test – maximize utilities of all parties
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Rights test – preserve consumer rights
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Justice test – do not damage targeted consumers, how would you want to
be treated?
Tobacco Industry Advertising Has Been a Significant Example
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The tobacco industry has been criticized for decades concerning their influence
and misrepresentation
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Joe Camel was found to be one personality most recalled by children
Cigarette Advertising used to promote its Glamour, Ruggedness, or
Healthfulness
Quality-of-Life (QOL) Marketing
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Protecting the consumer versus increasing short-term profitability
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QOL helps marketers resolve conflicts by guiding them to act in the best
interest of the consumers without compromising organizational objectives
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QOL goals
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To guide the development of products that enhance the well-being of targeted
consumers
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To guide the marketing of those products effectively and efficiently in
ways to minimize negative effects on consumers and other publics, while
generating long-term profits
QOL Analysis can enable firms to be proactive in meeting needs of
consumers
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Product objectives
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Consider how a product enhances the well-being of consumers
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Consider the impact of the product on publics other than target customers
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Price objectives
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Set prices that target customers can reasonably afford
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Place objectives
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Ensure access to the product and post-purchase service
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Promotion objectives
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Develop campaign that effectively educate target consumers about the long-term
benefits of a product in a manner that is consistent with both the needs
and the value system of the targeted population