Vanitha swaminathan university of pittsburgh

Better Marketing for a Better World Vanitha Swaminathan, University of Pittsburgh Summer AMA, Boston; August 11, 2018

Broadening our focus involves adopting a different, wider lens Tradeoffs between Employee and Customer Satisfaction Company Government Employees Society/ Environment Consumers Primary focus of marketing scholarship Source: Zamudio, Swaminathan & Mah (2018) Understanding positive/negative externalities, i.e., costs and benefits experienced by third parties as a result of a marketing exchange is key

Negative externalities occur if social costs outweigh social benefits, e.g., pollution, waste, vice goods What are some market-based solutions to negative externalities? When and why are they effective? Regulations, minimum pricing, restrict distribution, consumption Taxation (e.g., tax on plastic bags) Reducing information asymmetry, e.g., info on carbon footprint Selling permits for pollution Forcing manufacturers to compensate for social costs, e.g., fines Consumer activism, e.g., buycotts and boycotts Corporate social responsibility Voluntary disclosures, i.e., reduce information asymmetry Create reputational risks, e.g., review websites, rankings Consumer nudges Increase focus on a broader set of outcomes, e.g.,consumer well-being, health