This document discusses ethics and consumer learning. It notes that ethics shape the decisions that people and organizations make. Consumer learning is how individuals acquire knowledge about purchasing and consuming goods that they apply to future behaviors. The document then discusses how advertising, especially to children, can sometimes lead to undesirable behaviors if the ads promote behaviors without proper evaluation. It also discusses concerns that food marketing can teach children to overeat, contributing to obesity. The document closes by discussing involvement theory and how consumers have different levels of involvement in purchases - from high involvement in big purchases to low involvement in everyday, low-risk purchases.

1. Ethics and consumer
learning

2. Ethics are a collection of principles of right
conduct that shape the decisions people or
organizations make
A Consumer Learning is the process by which
individuals acquire the purchase and
consumption knowledge and experience that
they apply to future related behaviour.

3. ETHICS AND CONSUMER LEARNING
Behavioral, cognitive and observational learning can
sometimes lead to undesirable behavior after a person observes
a particular behavior in an advertisement or commercial and
develops a cognition based on the ad, which subsequently
leads to undesirable behavior.
It is difficult to develop advertisements that are free of any
cues that may unintentionally cause some persons to draw the
wrong conclusions and engage in undesirable behavior.
Since children are more likely than adults to imitate behavior
they see on TV with little or no evaluative judgment, there are
many ethical concerns regarding advertising to children.

4. Advertising to children is subject to self-regulation
according to guidelines developed by the Children’s
Advertising Review Unit (CARU) of the Council of Better
Business Bureaus.
Currently a major concern regarding the impact of
marketing on children’s behavior is whether food marketers
“teach” children to eat more than they should, and thus
cause the surging obesity and health problems among
young consumers.
The principle of stimulus generalization can also be used
to confuse consumers and alter intended consumption
behavior

5. Involvement theory

6. Involvement refers to how much time, thought,
energy and other resources people devote to the
purchase process.
There are three levels of involvement, high, low
and no involvement.
High Involvement
Low Involvement

7. High involvement
It occurs when an individual perceives an expected
purchase that is not only of high personal relevance
but also represents a high level of perceived risk.
Cars, washing machines, houses and insurance
polices are seen as ‘big ticket’ items, infrequent
purchases that promote a great deal of involvement.
Since it involves high risk, customers devote a great
deal of time to researching the intended purchase
and collecting as much information as possible in
order to reduce, as far as possible, levels of perceived
risk.

8. Low Involvement
It state of mind regarding a proposed purchase suggests
little threat or risk to the consumer.
Low-priced items such as washing powder, baked beans
and breakfast cereals are bought frequently, and past
experience of the product class and the brand, cues an
individual into a purchase that requires little information or
support.
Items such as alcoholic and soft drinks, cigarettes and
chocolate are also normally seen as low involvement,

9. Thank you