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Chapter 16: The Dark Side of Consumer Behavior
Chapter 16: The Dark Side of Consumer Behavior
Chapter 16: The Dark Side of Consumer Behavior
Chapter 16: The Dark Side of Consumer Behavior
Chapter 16: The Dark Side of Consumer Behavior
Chapter 16: The Dark Side of Consumer Behavior
Chapter 16: The Dark Side of Consumer Behavior
Chapter 16: The Dark Side of Consumer Behavior
Chapter 16: The Dark Side of Consumer Behavior
Chapter 16: The Dark Side of Consumer Behavior
Chapter 16: The Dark Side of Consumer Behavior
Chapter 16: The Dark Side of Consumer Behavior
Chapter 16: The Dark Side of Consumer Behavior
Chapter 16: The Dark Side of Consumer Behavior
Chapter 16: The Dark Side of Consumer Behavior
Chapter 16: The Dark Side of Consumer Behavior
Chapter 16: The Dark Side of Consumer Behavior
Chapter 16: The Dark Side of Consumer Behavior
Chapter 16: The Dark Side of Consumer Behavior
Chapter 16: The Dark Side of Consumer Behavior
Chapter 16: The Dark Side of Consumer Behavior
Chapter 16: The Dark Side of Consumer Behavior
Chapter 16: The Dark Side of Consumer Behavior
Chapter 16: The Dark Side of Consumer Behavior
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Chapter 16: The Dark Side of Consumer Behavior

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  • 1. Chapter 16 The Dark Side of Consumer Behavior Consumer Behavior - A Framework John C. Mowen Michael S. Minor
  • 2. Key Concepts
    • Deceptive advertising
    • Children’s ability to distinguish programs and ads
    • Improving children’s advertising
    • Negligent consumer behavior
    • Product misuse
    • Drivers of compulsive consumption
    • Corporate social responsibility
    • Why firms want to seem responsible
    • Consumer reactions to product recalls
    • Corporate rumors
  • 3. Introduction
    • Firms may engage in unscrupulous behavior.
    • Consumers also engage in negligent behavior.
    • Governments regulate buying and selling goods and services to reduce the harmful effects of these behaviors.
  • 4. Major Public Policy Issues
    • Deceptive advertising
    • Advertising to children
    • Telemarketing fraud
  • 5. Deceptive Advertising
    • An advertisement which is potentially misleading or literally false is deceptive.
    • Potentially misleading ads are difficult to evaluate because miscomprehension may often occur.
      • Miscomprehension is a problem for firms because the audience does not understand the message being delivered.
    • The FTC regulates deceptive advertising, but not miscomprehension.
  • 6. Advertising to Children
    • Both policy makers and marketing managers have reacted to criticism of advertising directed at children.
    • Some countries have banned advertising to children under 12.
  • 7. Telemarketing Fraud
    • The elderly are vulnerable to fraud by telemarketers.
    • A program to combat this fraud is the Know Fraud Program.
    • Organizations that fight telemarketing fraud are the AARP, the FBI, the Post Office, and others.
  • 8. Negligent Consumer Behavior
    • Negligent behavior is composed of actions and inactions that may negatively affect the long-term quality of life of individuals and society.
    • This type of behavior can occur in two different contexts:
      • Product Misuse
      • Consumption of Hazardous Products
  • 9. Product Misuse
    • Many injuries result from misuse of a safe product - not from product defects.
    • Using a cell phone while driving is being outlawed in some areas.
    • “ The most dangerous component is the consumer, and there’s no way to recall him.”
  • 10. Consuming Hazardous Products
    • Between 1988 and 1998 alcohol related accidents have declined. The methods used to increase consumer awareness are:
      • Informing and Education
      • Social Controls
      • Economic Incentives
      • Economic Disincentives
  • 11. Compulsive Behavior
    • Some products are hazardous and consumption can become compulsive or addictive over time.
    • Other behaviors are not harmful in moderation but become addictive when they become compulsive.
      • Smoking
      • Compulsive Drinking
      • Gambling
      • Compulsive Shopping
      • Other Compulsions
  • 12. Smoking
    • Consumers until the late 1960s were exposed to nearly 3000 cigarette commercials per week of 38 different brands.
    • In 1950 there was already concern over the health hazards of cigarette smoking.
    • Smoking declined from the 1960s to 1992 but has held steady since then.
  • 13. Compulsive Drinking
    • As mentioned earlier, there has been a decline in alcohol-related deaths on the road. This suggests a decline in alcohol consumption.
    • Despite the decrease in sales of hard liquor, there is an increase in alcoholic soft drinks.
      • These taste like colas or fruit juices but may contain more alcohol than beer does.
  • 14. Gambling
    • Gambling affects an estimated 8 to 12 million people.
    • Gambling takes place in casinos in Las Vegas, New Jersey, on river boats and elsewhere.
    • State-run lotteries make it easy to gamble by visiting a convenience store.
  • 15. Compulsive Shopping
    • Some consumers “shop till they drop” because shopping can become an addiction similar to alcohol or drugs.
    • There are drugs available to help relieve this compulsion.
    • Compulsive shopping may be hereditary.
  • 16. Other Compulsions
    • Overworking and overeating are some other compulsions.
    • Research has stressed sociological and psychological influences. Chemical imbalances may also be important.
    • Multiple compulsions may occur together.
  • 17. Corporate Social Responsibility
    • Firms have become viewed as responsible for more than generating profits.
    • “ Corporate social responsibility” refers to the idea that firms have an obligation to help the larger society by offering some of their resources.
  • 18. Succeeding in the Long Run
    • A business’s self-interest could be advanced if the business embraced a long-run view.
    • This position would permit expenditures in support of socially responsible activities and provide future benefits in the form of consumer approval and loyalty.
  • 19. Acquiring a Positive Public Image
    • One way of showing that companies are socially responsible is by creating a positive public image.
    • Another way that firms can show they are socially responsible is by making speedy product recalls.
  • 20. The Diffusion of Rumors
    • Public peace of mind can be corrupted by diffusion of rumors.
    • Rumors often plague both large and small companies.
  • 21. Types of Rumors
    • Pipe dream rumors represent wishful thinking on the part of the circulators.
    • The bogie rumor is a fear rumor that spooks the market place.
    • Self-fulfilling rumors are based on a perception of what could happen in the future if something else were to occur.
    • In premeditated rumors individuals spread rumors that may help them financially or otherwise.
    • Spontaneous rumors arise when people seek explanations for unusual events.
  • 22. Avoiding Regulation
    • A final reason to act in a socially responsible manner is to avoid government regulation.
    • Most of the burden of social responsibility is on marketers. They can do best by following the strategies suggested, and maintaining a positive initial corporate image and responding quickly when difficulties arise.
  • 23. Managerial Implications
    • Positioning. The concept of corporate social responsibility has direct implications for the positioning of a company. Efforts to create a “good-citizen” image help to position a firm as one that puts customers first.
    • Environmental Analysis. A company’s actions must be in compliance with laws and regulation.
      • A firm should be in a position to respond promptly if a response is warranted: An “early-warning system” needs to be in place and functioning continuously.
  • 24. Implications continued…
    • Research. Market research should be used to determine how consumers view the company.
      • Market research may also help determine whether customers are using a firm’s product in a novel manner that may be unsafe.
    • Marketing Mix. Pricing, promotion, product development, and distribution should be socially responsible.
    • Segmentation. Some population segments are more concerned with issues of corporate social responsibility than are other segments.

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