Consumer Economics Chapter 15 Issues, Ethics, and Globalization Copyright©2009 Taylor & Francis Group, an informa business

Learning Objectives Describe the four drives impacting consumer behavior Explain globalization and the need for a global perspective Explain the blocks to more sustainable consumer behavior Discuss the need for consumer and financial literacy

Introduction Focus on economic beliefs and behavior of consumers Consumer behavior has changed over the years and continues to change Ultimately, consumer behavior connects with ethics

Four Drives Impacting Consumer Behavior The drive to acquire objects and experiences that improve our status relative to others. The drive to bond with others in long-term relationships of mutual care and commitment The drive to learn and make sense of the world and of ourselves The drive to defend ourselves, our loved ones, and our resources from harm

Drive to Acquire Consumer behavior is a balance between the resources consumers have and the goods they want to acquire Individuals seek to maximize the utility they get from exchanging their money, time, and energy for a market basket of goods

Drive to Bond The use of gift cards is growing Social relationships contain a mix of competitive and cooperative elements Gifting and gift cards The use of gift cards is growing

Drive to Learn and Make Sense of the World and Ourselves Much of human behavior is driven by the need to know, to understand Consumers gather information prior to purchasing Consumer education is important to being a good consumer

Drive to Defend Consumers want to defend themselves from making bad purchase decisions Consumers want to protect themselves and their property from accidents and misfortune In addition, they want to protect their privacy

Development of a Global Perspective Globalization refers to the distribution of goods and services worldwide A global perspective is a philosophy includes global ethics Social responsibility and social marketing have become important parts of global corporations

The Changing World of the Consumer Consumer terrorism is an attempt to disrupt the marketplace Stealth marketing is the provision of a unique service or product in a way that is not too public Location marketing engages mobile users in the context of their daily lives

Sustainability and Consumerism Ecological economics focuses on the relationship of the environment and economics Sustainable development means not using up natural resources or endangering species Voluntary simplicity is a conscious effort to live more modestly with fewer possessions and at lower consumption levels

Consumer and Financial Literacy Consumer education is important to being a good consumer Consumer education consists of: Consumer decision making Resource management Citizen and government participation

Chapter Summary Globalization has connected consumers and companies across the physical and digital worlds A global perspective is required to live and work in this world Ethics and citizenship are important as never before A mind shift to the greater good underlies modern consumer behavior