Consumer Analysis Society Notes

Consumer Analysis

Responsibilities and Problems of Consumer Research in Society

The Consumer Society

Development of a consumer culture
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
The goods often take on specific meanings or functions in society
Is the TV a babysitter?
Is the Internet the way to communicate?
Does advertising put too much pressure on consumers?
Are there things that consumers just HAVE to get, even though they really don’t need them?

Marketing and the Development of the Consumer Culture

Marketers encourage the demand of products by making them culturally desirable through cultural symbolism
Consider the ads seen during the holiday season
Changes initiated by marketing may not always be positive:
Encouraging behavior that may not always be in the best interest of consumers
e.g., the “Marlboro Man”

For instance, are standards of beauty for females too difficult to achieve?

The Effect of Consumption on the Quality of Life

Consumers in higher income brackets own more material possessions than those in lower brackets
Ownership of economic goods enhances subjective well being (an indicator of quality of life)
Satisfaction with life was found to increase with income
Life satisfaction was also found to be positively correlated with the possession of material things (but only for materialistic people)

The Dark Side of the Consumer Society

Materialism
To be materialistic means to measure our self-worth by our external assets and possessions rather than by intrinsic characteristics
This is often seen when countries go through rapid cycles of economic development
People may not need or want “things”, but those things represent some level of achievement or success

Why Are Material Possessions Important?

The Materialistic Personality
Three personality traits are common to materialistic people:

Envy

Non-generousness

Materialistic Personality (continued)
Possessiveness

I tend to hang on to things I should probably throw out.
I get very upset if something is stolen from me, even if it has little monetary value.
I worry about people taking my possessions.

Addictive or Compulsive Behavior

A behavior is addictive if it is beyond the control of the consumer
Two types of compulsive consumers
Distressed—those characterized by feelings of self-doubt, incompetence, and personal inadequacy
Sociopathic—those driven by strong impulsive desires
Frequency programs and compulsive behavior

Shoplifting

Shoplifting is pervasive
It hurts both retailers (higher costs) and consumers (higher prices)
Two types of shoplifting
Shoplifting by acquisition – taking products without paying
Shoplifting by disposition – returning products after they have been used or damaged

Shoplifting (continued)

How do shoplifters rationalize their behavior?
Denial of responsibility
Denial of injury
Denial of victim
Condemning the condemners
Thirty seven percent of all adolescents have admitted to shoplifting at least once over a 12-month period

Ethics in Marketing

What are some examples?
Ethical Consumer actions by firms
Unethical Consumer actions by firms

Is It Legal and/or Ethical? – Eight tests

Additional Tests

Special obligations test: any special obligations of your industry? E.g. alcoholic industry promotes safe driving
Motives test – what is the intent of actions?
Consequences test – provide as many positive consequences as possible, reduce negatives
Utilitarian test – maximize utilities of all parties
Rights test – preserve consumer rights
Justice test – do not damage targeted consumers, how would you want to be treated?

Tobacco Industry Advertising Has Been a Significant Example

The tobacco industry has been criticized for decades concerning their influence and misrepresentation
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

Protecting the consumer versus increasing short-term profitability
QOL helps marketers resolve conflicts by guiding them to act in the best interest of the consumers without compromising organizational objectives
QOL goals
To guide the development of products that enhance the well-being of targeted consumers
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

Product objectives
Consider how a product enhances the well-being of consumers
Consider the impact of the product on publics other than target customers
Price objectives
Set prices that target customers can reasonably afford
Place objectives
Ensure access to the product and post-purchase service
Promotion objectives
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