Transcript CB_6e_Ch17_MarketingEthicsCSR

Chapter 17
Marketing, Ethics
& Social Responsibility
Learning Objectives
To understand:
1. Compulsive buying, consumer theft, & black
markets, & ethical questions associated with
them
2. Deviant behaviors of consumer theft, black
markets & underage smoking & drinking
3. Ethical questions facing marketers
4. Environmental consciousness & conservation
5. Consumers resist marketing practices,
individually & in groups
Deviant Consumer Behavior
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
Above the influence
abovetheinfluence.com is
a webpage presented in a
format that discourages
underage drinking,
smoking and drug use.
The site makes its point
by providing facts, video
games, testimonials, and
sources of help for young
people.
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
Compulsive Behavior
Compulsive consumption
– Eating
– Buying
– Gambling
– How is impulsive consumer behavior
different than compulsive cb?
Compulsive Buying
The Experience
– Low Self-Esteem
– Fantasy Orientation
– Alienation
– Family History
Consequences
– Financial
– Emotional
– Interpersonal
Impulsive Behavior
Impulsive buying
Impulsive eating
Impulsive shopping
Influence by consumer’s promotion or
prevention focus
Marketing Implications
Do marketing activities encourage addictive,
compulsive, & impulsive behavior?
Does marketing/advertising cause these
behaviors?
Marketing activities to reduce addictive &
compulsive behavior
Marketing activities that stimulate impulsive
behavior
Consumer Theft
Prevalence
– Retail: $41.6 billion
– Nonretail
Psychological Factors Affecting
– Temptation to steal
– Ability to rationalize behavior
Motivations for Theft
Consumer Theft
Consumer theft can be a marketer’s problem
Theft includes return fraud, counterfeit, & other
sneaky ways to take from companies or their
earned brand equity
Increased usage of theft-reducing devices
(mirrors, tags, alarms)
Some stores employ guards (e.g., Tiffany & Co.)
Coverings costs of theft
Reducing ability to serve customers
What would you as a marketer/businessperson
do regarding theft from your business?
Black Markets
“…situations in which consumers pay (often
exorbitant amounts) for items not readily
available…sellers are unauthorized.”
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”?
Underage Drinking & Smoking
Prevalence
Consequences
Marketing Implications
– Product availability
– Exposure to advertising
– Targeting youth
– Inappropriate message in media/ads
– Warning labels/ads
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
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
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?
Advertising & Self-Image
Idealized Body Images
– Obsessions with thinness
– Thinness, advertising, & self- perceptions =
Social Comparisons Theory
Materialism
– Consumers less satisfied
– Family influences
– “Good life”
Sex in Advertising
When is sex in
advertising unethical
If at all, in your opinion?
©adage.com
Consumer Privacy
Sources of Marketing Information
– Tracking purchases
– Applications
– Marketing research
– Public domain
Consumer Responses
– Uncomfortable
– Complaints
– Lack of trust
– Data has errors
Marketing Implications
Horror stories hurt all marketers
Communicating how information gathered
helps consumers
Laws & self-imposed regulation
Markets for privacy protection
Respect privacy; What would you want done
to you and your family? Think of this and
hold it to high esteem in your career.
Corporate Social Responsibility
Environmentally conscious behavior
Conservation behavior
– How can marketers motivate people to
conserve for long-term sustainability?
Market Resistance
Individual Resistance—Word-of-mouth
Retail Resistance (e.g., anti-Hallmark)
Market Resistance (anti Valentine’s Day)
Advocacy Groups—Inform public about business
practices
Boycotts
– Avoid purchasing
– Companies held accountable
– Gain publicity
– Hurt company financially
Questions?