1. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 17 Marketing, Ethics, and Social Responsibility in Today’s Consumer Society

2. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Learning Objectives~ Ch. 17 1.Distinguish between social and temporal dilemmas, and explain the search for balance in decisions that can involve such dilemmas. 2.Define marketing ethics and consumer ethics, and identify some of the issues that arise from unethical or deviant acquisition, consumption, and disposition behaviors. 3.Discuss some of the ways in which consumers and organizations use marketing for socially responsible purposes. 4.Describe what consumers can do to resist unwanted marketing practices.

3. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Addictive Behavior Usually brought on by chemical dependency Perceived or chemical dependence on product or activity Repeated use of product, even if dangerous Can be harmful to addicts & those around them Examples: cigarettes, drugs, alcohol, Internet use (facebook, eBay), gambling, video games, etc. You can be addicted to shopping, online shopping, and other marketplace endeavors

4. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Compulsive Behavior Compulsive consumption Strong emotional component Compulsive buyers have low self-esteem How is impulsive consumer behavior different than compulsive cb?

5. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Consumer Theft Prevalence –Retail: $37 billion losses –Nonretail: fraud; pirarcy Psychological factors affecting –Temptation to steal –Ability to rationalize behavior

6. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Black Markets Example: Cuban Cigars Legal items in short supply Brands Illegal items What are some examples of products on the black market and are they still “marketed”? “…situations in which consumers pay (often exorbitant amounts) for items not readily available…sellers are unauthorized.”

7. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Advertising to Children~ Issues Did you watch a lot of TV as a child? Did it impact you positively or negatively? 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

8. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Advertising to Children~ Solutions Solutions to consider: Parental control Program/advertising separator Limits to amount of advertising per hour Public Service Announcements (PSAs) Children’s Advertising Review Unit—Better Business Bureau Educational initiatives

9. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Underage Drinking & Smoking Prevalence Consequences Marketing Implications –Product availability –Exposure to advertising –Targeting youth –Inappropriate message in media/ads –Warning labels/ads

10. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Idealized Self-Images Idealized body images –Obsessions with thinness –Thinness, advertising, & self-perceptions = Social Comparisons Theory Materialism –Consumers less satisfied –Family influences –“Good life”

11. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Marketing & Obesity Link between junk food advertising & childhood obesity Less guilt in eating low-fat snacks Underestimate of calorie content of meals Unhealthy food perceived as tastier Does marketing/advertising cause obesity?

12. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Consumer Privacy Sources of marketing information –Tracking purchases –Applications –Marketing research –Public domain Consumer responses –Uncomfortable –Complaints –Lack of trust –Data has errors

13. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Marketing Social Responsibility Environmentally conscious behavior –Conservation behavior –Greenwashing Charitable behavior Community involvement How can marketers motivate people to conserve for long-term sustainability?

14. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Consumer Resistance Individual resistance—negative word-of-mouth Advocacy groups—inform public about business practices Boycotts –Avoid purchasing –Companies held accountable –Gain publicity –Hurt company financially