4

Consumer and
Social Well-Being

CONSUMER
BEHAVIOR, 11e
Michael R. Solomon

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 Chapter Objectives
1. Ethical business is good business.
2. Marketers have an obligation to provide
safe and functional products as part of
their business activities.
3. Consumer behavior impacts directly on
major public policy issues that confront
our society.
4. Consumer behavior can be harmful to
individuals and to society.

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 Learning Objective 1

• Ethical business is good

business.

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 Marketing Ethics and Public Policy
• Business ethics are rules of conduct that guide
actions in the marketplace
• There are cultural differences in what is
considered ethical.

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 Do Marketers Manipulate Consumers?

• Advertisers simply
do not know enough
about people to
manipulate them

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 Do Marketers Create Artificial Needs?
Objective of marketing: create awareness that
needs exist, not to create needs

• Need: a basic versus • Want: one way that

biological motive society has taught us
that the need can be
satisfied

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 Are Advertising & Marketing Necessary?

Does advertising foster materialism?

• Products are designed to meet existing needs;
• Advertising only helps to communicate their
availability

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 Do Marketers Promise Miracles?

• Advertisers simply
do not know enough
about people to
manipulate them

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 Learning Objective 2
• Marketers have an obligation to provide
safe and functional products as part of
their business activities.

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 Table 4.1 Old versus New Materialism

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 Courses of Action

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 Table 4.2 Federal Legislation to Enhance
Consumer Welfare
• Dodd-Frank Wall • Magnuson-Moss
Street Reform and Warranty-
Consumer Protection Improvement Act
Act (2010) (1975)
• Internet Tax Freedom • Consumer Goods
Act (1998) Pricing Act (1975)
• The Nutrition Labeling • Consumer Products
and Education Act Safety Act (1972)
(1990)

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 Public Policy & Consumerism
Concern for the welfare of consumers

Department of Agriculture Federal Trade Commission

Food and Drug Securities and Exchange

Administration Commission

Environmental Protection
Agency

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 Adbusters

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 Transformative Consumer Research
• TCR promotes research projects that
include the goal of helping people or
bringing about social change
• Social marketing strategies use marketing
techniques to encourage positive
behaviors such as increased literacy and
to discourage negative activities such as
drunk driving

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 Top Cause Marketers
• Yoplait • Boxtops for Education
• Susan G Komen • Kellogg’s
• General Mills • Campbell’s
• P&G • Girl Scouts
• RED • Dawn

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 Learning Objective 3
• Consumer behavior impacts directly on
major public policy issues that confront
our society.

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 Data Privacy and Identity Theft
• Identity theft occurs when someone steals
your personal information and uses it
without your permission.

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 Market Access
• Disabilities
• Food deserts
• Media literacy

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 Sustainability and
Environmental Stewardship
• Triple bottom-line orientation
• Financial
• Social
• Environmental

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 Amazon’s Vine

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 For Reflection
Advertisers are often blamed for promoting a
materialistic society by making their products as
desirable as possible.
• Do you agree with this?
• If yes, is materialism a bad thing?
• If no, what are your reasons?

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 LOHAS

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 Disposal

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 Learning Objective 4
• Consumer behavior can be harmful to
individuals and to society.

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 Dark Side of CB
• Consumer terrorism
• Addictive consumption
• Compulsive consumption
• Consumed consumers
• Illegal acquisition and product use

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 For Review
1. Ethical business is good business.
2. Marketers have an obligation to provide
safe and functional products as part of
their business activities.
3. Consumer behavior impacts directly on
major public policy issues that confront
our society.
4. Consumer behavior can be harmful to
individuals and to society.

Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall 4-27