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Consumerism and the Dark

Side of Consumer Behaviour

  

Prof.Mowen
 

S.Victor Anandkumar
University of Mauritius
Consumerism:

Some definitions «

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But why?

Disillusionment with the system

The performance gap

The consumer information gap

Antagonism toward advertising

Impersonal and unresponsive marketing institutions

Intrusions of privacy

Different views of the marketplace
The focus is on Consumer Rights!

Right to safety

Right to be informed

Right to choose

Right to be heard

Right to consumer education

Right to recourse and redress

Right to an environment that enhances
the quality of life
Major Public Policy Issues


Deceptive advertising

Advertising to children

Telemarketing fraud
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.

›   


 

 
 


  


  

 
 
 

Types of deception

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Deceptive selling


 
 




  

 

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Advertising to Children

Children influence some $180 billion in US purchases


($1.87 trillion worldwide).

An average child spends 3.5 hours in TV watching and is


exposed to more than 30,000 ads a year

Both policy makers and marketing managers have reacted


to criticism of advertising directed at children.

Sweden has banned advertising to children under 12.

Other measures:

Using a    between the program and the ad

Ban on host selling

Encourage truthful and accurate advertising that recognizes
children¶s cognitive limitations
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.
ëegligent Consumer Behavior

ëegligent 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:

 


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Framework for Deviant Consumer Behaviour
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 % Compulsive buying Addictive consumption

 
Smoking

 

Drugs

Alcohol

- Compulsive consumption



Binge
eating
 3
Compulsive gambling

!  Consumer theft Underage drinking



 Black markets Underage smoking
Drug use
Consumer theft
 Ô  
‡ Enticing product and
unfulfilled aspirations
‡ Contraband item
‡ Embarrassing item
&
  Ô  
‡ Low-perceived risk and high-
perceived opportunism Temptation
 Accessible product
 Limited security
 Crowded store
" Ô  
‡ Thrill-seeking tendencies THEFT
 Ô  
‡ Low-ticket item
&
  Ô  
‡ Accessible product Ability to
‡ Limited security
‡ Crowded store rationalize
" Ô  
‡ Attitudes towards the store
‡ Attitudes towards big biz
‡ Moral development
‡ Differential association
ëegative effects of marketing

Does advertising make consumers dissatisfied


with their appearance?

Does advertising make consumers materialistic


and hence dissatisfied with what they have
achieved?

Does advertising misrepresent segments of


consumers?

Does advertising cost or benefit the consumer?

Do marketing practices invade consumers¶


privacy?
Corporate Social Responsibility

Firms have become viewed as responsible


for more than generating profits.

³Corporate social responsibility´ refers to


the idea that firms have an obligation to
help the larger society by offering some of
their resources.
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.
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.
The Diffusion of Rumors

Public peace of mind can be corrupted by


diffusion of rumors.

Rumors often plague both large and small


companies.
Types of Rumors


 rumors represent wishful thinking on
the part of the circulators.

The 
 rumor is a fear rumor that spooks the
market place.



 rumors are based on a perception
of what could happen in the future if something
else were to occur.

In  
 rumors individuals spread
rumors that may help them financially or
otherwise.

  rumors arise when people seek


explanations for unusual events.
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.
Managerial Implications

Positioning. The concept of corporate social


responsibility has direct implications for the
positioning of a company. Efforts to create a
³good-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.

Research. Market research should be used to


determine how consumers view the company
Managerial Implications

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.