1. Vanitha swaminathan university of pittsburgh

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

3. 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

4. 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