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Chapter 18 Ethics, Social Responsibility, and the Dark Side of Consumer Behavior and Marketing Copyright © Cengage Learning. All rights reserved. 18 | 1 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. Copyright © Cengage Learning. All rights reserved. 18 | 2 Chapter 18 Overview Copyright © Cengage Learning. All rights reserved. 18 | 3 Framework for Deviant Consumer Behavior (Exhibit 18.2) Copyright © Cengage Learning. All rights reserved. 18 | 4 Addictive/Compulsive Consumption • Deviant Acquisition – Engage in crime to Behavior finance • Addiction Chemical – Realization of hitting rock dependence bottom • Compulsive— • Causes Irresistible urge to – Inherited tendencies perform irrational act, e.g., gambling stages – Family-related factors – Pleasure of “big win” – Becomes central force of individual’s life Copyright © Cengage Learning. All rights reserved. 18 | 5 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 Copyright © Cengage Learning. All rights reserved. 18 | 6 Compulsive Behavior • Compulsive consumption – Eating – Buying – Gambling Copyright © Cengage Learning. All rights reserved. 18 | 7 Compulsive Buying • The Experience – – – – Low Self-Esteem Fantasy Orientation Alienation Family History • Consequences – Financial – Emotional – Interpersonal Copyright © Cengage Learning. All rights reserved. 18 | 8 Impulsive Behavior • Impulsive buying • Impulsive eating • Influence by consumer’s promotion or prevention focus Copyright © Cengage Learning. All rights reserved. 18 | 9 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 Copyright © Cengage Learning. All rights reserved. 18 | 10 Consumer Theft • Prevalence – Retail: $41.6 billion – Nonretail • Psychological Factors Affecting – Temptation to steal – Ability to rationalize behavior Copyright © Cengage Learning. All rights reserved. 18 | 11 Motivations for Consumer Theft (Exhibit 18.7) Copyright © Cengage Learning. All rights reserved. 18 | 12 Consumer Theft and Marketers’ Problems • Increased usage of theft-reducing devices • Coverings costs of theft • Reducing ability to serve customers Copyright © Cengage Learning. All rights reserved. 18 | 13 Black Markets “…situations in which consumers pay (often exorbitant amounts) for items not readily available…sellers are unauthorized.” • Legal Items in Short Supply • Brands • Illegal Items Copyright © Cengage Learning. All rights reserved. 18 | 14 Underage Drinking and Smoking • Prevalence • Consequences • Marketing Implications – Product availability – Exposure to advertising – Targeting youth – Inappropriate message in media/ads – Warning labels/ads Copyright © Cengage Learning. All rights reserved. 18 | 15 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 Copyright © Cengage Learning. All rights reserved. 18 | 16 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 Copyright © Cengage Learning. All rights reserved. 18 | 17 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 Copyright © Cengage Learning. All rights reserved. 18 | 18 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” Copyright © Cengage Learning. All rights reserved. 18 | 19 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 Copyright © Cengage Learning. All rights reserved. 18 | 20 Marketing Implications • Horror stories hurt all marketers • Communicating how information gathered helps consumers • Laws and self-imposed regulation • Markets for privacy protection Copyright © Cengage Learning. All rights reserved. 18 | 21 Social Responsibility Issues • Environmentally conscious behavior • Conservation behavior – When do consumers’ like to conserve? – Can consumers be motivated to conserve? Copyright © Cengage Learning. All rights reserved. 18 | 22 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 Copyright © Cengage Learning. All rights reserved. 18 | 23