1. Consumer Economics Chapter 15 Issues, Ethics, and Globalization
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2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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