1. Copyright © Cengage Learning. All rights reserved.18 | 1 Chapter 18 Ethics, Social Responsibility, and the Dark Side of Consumer Behavior and Marketing

2. 18 | 2 Copyright © Cengage Learning. All rights reserved. Key Concepts 1.Compulsive buying, consumer theft, and black markets, and ethical questions associated with them. 2.Deviant behaviors of consumer theft, black markets and underage smoking and drinking. 3.Ethical questions facing marketers. 4.Environmental consciousness and conservation. 5.Consumers resist marketing practices, individually and in groups.

3. 18 | 3 Copyright © Cengage Learning. All rights reserved. Chapter 18 Overview

4. 18 | 4 Copyright © Cengage Learning. All rights reserved. Framework for Deviant Consumer Behavior (Exhibit 18.2)

5. 18 | 5 Copyright © Cengage Learning. All rights reserved. Addictive/Compulsive Consumption Deviant Acquisition Behavior Addiction Chemical dependence Compulsive— Irresistible urge to perform irrational act, e.g., gambling stages –Pleasure of “big win” –Becomes central force of individual’s life –Engage in crime to finance –Realization of hitting rock bottom Causes –Inherited tendencies –Family-related factors

6. 18 | 6 Copyright © Cengage Learning. All rights reserved. Addictive Behavior Usually brought on by chemical dependency Dependence on product or activity Repeated use of product, even if dangerous Can be harmful to addicts and those around them Examples: cigarettes, drugs, alcohol, Internet use and video games

7. 18 | 7 Copyright © Cengage Learning. All rights reserved. Compulsive Behavior Compulsive consumption –Eating –Buying –Gambling

8. 18 | 8 Copyright © Cengage Learning. All rights reserved. Compulsive Buying The Experience –Low Self-Esteem –Fantasy Orientation –Alienation –Family History Consequences –Financial –Emotional –Interpersonal

9. 18 | 9 Copyright © Cengage Learning. All rights reserved. Impulsive Behavior Impulsive buying Impulsive eating Influence by consumer’s promotion or prevention focus

10. 18 | 10 Copyright © Cengage Learning. All rights reserved. Marketing Implications Do marketing activities encourage addictive, compulsive, and impulsive behavior? Marketing activities to reduce addictive and compulsive behavior Marketing activities that stimulate impulsive behavior

11. 18 | 11 Copyright © Cengage Learning. All rights reserved. Consumer Theft Prevalence –Retail: $41.6 billion –Nonretail Psychological Factors Affecting –Temptation to steal –Ability to rationalize behavior

12. 18 | 12 Copyright © Cengage Learning. All rights reserved. Motivations for Consumer Theft (Exhibit 18.7)

13. 18 | 13 Copyright © Cengage Learning. All rights reserved. Consumer Theft and Marketers’ Problems Increased usage of theft-reducing devices Coverings costs of theft Reducing ability to serve customers

14. 18 | 14 Copyright © Cengage Learning. All rights reserved. Black Markets Legal Items in Short Supply Brands Illegal Items “…situations in which consumers pay (often exorbitant amounts) for items not readily available…sellers are unauthorized.”

15. 18 | 15 Copyright © Cengage Learning. All rights reserved. Underage Drinking and Smoking Prevalence Consequences Marketing Implications –Product availability –Exposure to advertising –Targeting youth –Inappropriate message in media/ads –Warning labels/ads

16. 18 | 16 Copyright © Cengage Learning. All rights reserved. Advertising to Children—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

17. 18 | 17 Copyright © Cengage Learning. All rights reserved. Advertising to Children—Possible Solutions Program/Advertising Separator Limits to amount of advertising per hour Public Service Announcements (PSAs) Children’s Advertising Review Unit—Better Business Bureau Educational Initiatives

18. 18 | 18 Copyright © Cengage Learning. All rights reserved. Do Marketing Efforts Promote Obesity? Link between junk food advertising and childhood obesity Less guilt in eating low-fat snacks Underestimate of calorie content of meals Unhealthy food perceived as tastier

19. 18 | 19 Copyright © Cengage Learning. All rights reserved. Advertising and Self-Image Idealized Body Images –Obsessions with thinness –Thinness, advertising, and self- perceptions = Social Comparisons Theory Materialism –Consumers less satisfied –Family influences –“Good life”

20. 18 | 20 Copyright © Cengage Learning. All rights reserved. Do Marketing Practices Invade Consumers’ Privacy? Sources of Marketing Information –Tracking purchases –Applications –Marketing research –Public domain Consumers’ Responses –Uncomfortable –Complaints –Lack of trust –Data has errors

21. 18 | 21 Copyright © Cengage Learning. All rights reserved. Marketing Implications Horror stories hurt all marketers Communicating how information gathered helps consumers Laws and self-imposed regulation Markets for privacy protection

22. 18 | 22 Copyright © Cengage Learning. All rights reserved. Social Responsibility Issues Environmentally conscious behavior Conservation behavior –When do consumers’ like to conserve? –Can consumers be motivated to conserve?

23. 18 | 23 Copyright © Cengage Learning. All rights reserved. Resisting Marketing Practices Individual Resistance—Word-of-mouth Advocacy Groups—Inform public about business practices Boycotts –Avoid purchasing –Companies held accountable –Gain publicity –Hurt company financially