331 consumer... · Web viewDistinguish between consumer misbehavior and consumer problem behavior. LO3 Discuss marketing ethics and how marketing ethics guide the development of marketing

CHAPTER 16CONSUMER AND MARKETING MISBEHAVIOR

WHAT DO YOU THINK POLLING QUESTIONConsumers are generally more ethical than the typical businessperson.Strongly disagree 1 2 3 4 5 6 7 Strongly agree

Have students access www.cengagebrain.com to answer the polling questions for each chapter of CB. Ask them to take the online poll to see how their answers compare with other students taking a consumer behavior course across the country. Then turn to the last page of the chapter to find the What Others Have Thought box feature. This graph is a snapshot of how other consumer behavior students have answered this polling question thus far.

LEARNING OUTCOMESAfter studying this chapter, the student should be able to:L01 Understand the consumer misbehavior phenomenon and how it affects the exchange

process.L02 Distinguish between consumer misbehavior and consumer problem behavior.LO3 Discuss marketing ethics and how marketing ethics guide the development of marketing

programs.L04 Comprehend the role of corporate social responsibility in the field of marketing.L05 Understand the various forms of regulation that affect marketing practice.L06 Comprehend the major areas of criticism to which marketers are subjected.

SUGGESTED LECTURE OPENEREvery year Fortune magazine publishes a list of the world’s most admired companies. While this list celebrates companies’ positive behavior, many might not realize that this edition of the magazine also functions as a watchdog against companies’ misbehavior. The magazine lists the top ten best and the top ten worst performers in each of the following categories:• Innovation• People management• Use of assets• Social responsibility• Management quality• Financial soundness• Long-term investment• Product quality• Global competitiveness

[Source: “Worlds Most Admired Companies,” Fortune, March 22, 2010, http://money.cnn.com/magazines/fortune.]

©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1

LECTURE OUTLINE WITH POWERPOINT® SLIDES

Slide 1 Slide 2

LO1. Understand the consumer misbehavior phenomenon and how it affects the exchange process.

Consumer Misbehavior and Exchange

Slide 3

Consumer misbehavior may be viewed as a subset of the human deviance topic. It is considered a subset because the term covers only negative or destructive deviance and does not consider positive deviance. Misbehavior violates norms and also disrupts the flow of consumption activities. For example, a consumer who is screaming loudly and cursing at a waiter because his or her order is wrong will likely make other consumers feel uncomfortable. Researchers sometimes call misbehavior the “dark side” of consumer behavior, and there are certainly many ways to describe it.

Slide 4


The Focus of Misbehavior: ValueA central component for understanding consumer behavior is value. How consumers obtain value is the key issue. In each case, consumers seek to maximize the benefits they receive from an action while reducing their own costs.

Slide 5

Consumer Misbehavior and Ethics

Moral BeliefsMoral beliefs, or beliefs about the perceived ethicality or morality of behaviors, play important roles in ethical decision making.1 The effect of moral beliefs on ethical decision making and consumer misbehavior is shown in Exhibit 16.1. A consumer’s moral beliefs are comprised of three components:

1. Moral equity Beliefs regarding an act’s fairness or justness. Do I consider this action to be fair? Is it “fair” for me to shoplift this item?

2. Contractualism Beliefs about the violation of written (or unwritten) laws. Does this action break a law? Does it break an unwritten promise of how I should act? Is shoplifting illegal?

3. Relativism Beliefs about the social acceptability of an act. Is this action culturally acceptable? Is shoplifting acceptable in this culture? Does it matter if it is acceptable in this culture? Is it acceptable to me?

Slide 6 Slide 7

1 This definition based on: Babin, Barry J. and Laurie A. Babin (1996). “Effects of Moral Cognitions and Consumer Emotions on Shoplifting Intentions,” Psychology & Marketing, (December) 785-802.


Ethical EvaluationsOnce a consumer enters into a situation that calls for an ethical decision, he or she considers the various courses of action. Deontological and teleological evaluations then occur.2

1. Deontological evaluations Focus on specific actions: Is this action “right?” As such, deontology focuses on how people accomplish their goals.

2. Teleological evaluations Focus on the consequences of the behaviors and the individual’s assessment of those consequences. Four major issues are involved with teleological evaluations:

a. The perceived consequences of the actions for various stakeholders

b. The probability that the consequence will occur

c. The desirability of the consequences for the stakeholders

d. The importance of the stakeholder groups to the consumer3

Slide 8

Motivations of MisbehaviorWhy do consumers misbehave? Researchers Fullerton and Punj offer the following motivations:4

Unfulfilled Aspirations – Anomie is the concept as a response to rapid cultural change and an explanation for deviance. Some consumers turn to deviant actions (or actions deemed inappropriate by society) in order to achieve goals that society has set.

Thrill-seeking – The thrill of the action may lead consumers to misbehave.

2 Vitell, Scott (2003). “Consumer Ethics Research: Review, Synthesis, and Suggestions for Future Research,” Journal of Business Ethics, (March) 33-47.

3 Hunt, Shelby and Scott Vitell (1986). “A General Theory of Marketing Ethics,” Journal of Macromarketing, (Spring) 5-16.

4 This section is based on: Fullerton, R. A. and G. Punj (2004). “Repercussions of Promoting an Ideology of Consumption: Consumer Misbehavior,” Journal of Business Research, (57) 1239-1249.


Lack of Moral Constraints – Consumers who don’t have a set of moral beliefs that are in agreement with society’s expectations and see no problem with their behavior.

Differential Association – Explains why groups of people replace one set of acceptable norms with another set that others view as unacceptable.

Pathological Socialization – Consumers may view misbehavior as a way to seek revenge on firms.

Provocative Situational Factors – Crowding, wait times, excessive heat, and noise can contribute to misbehavior.

Opportunism – The outcome of a deliberate decision-making process that weighs the risks and rewards of the behavior.

Slide 9

Q: Ask students to search online for evidence of misbehavior. Have their favorite celebrities been caught recently for shoplifting or disorderly conduct? Is the cause of the misbehavior clear?

A: Answers will vary. Students may speculate on the motivations behind the misbehavior of celebrities more readily than their own consumer behavior.

LO2. Distinguish between consumer misbehavior and consumer problem behavior.

Distinguish Consumer Misbehavior and Problem Behavior


Slide 10

Although the line between consumer misbehavior and problem behavior can be somewhat blurred, we distinguish between the two areas by considering the issue of self-control.

1. Consumer problem behavior Behaviors that are seemingly outside of a consumer’s control.

2. Consumer misbehavior Behaviors deliberately harmful to another party in an exchange process.

Slide 11

Consumer MisbehaviorThere are many different types of consumer misbehavior. This discussion will be limited to behaviors that typically gather a lot of attention.

ShopliftingDid you know that more than $35 million of products are shoplifted from retailers each day? More than 10 million people have been caught shoplifting in the last 5 years.5 Consumer motivations for shoplifting are similar to their motivations for other misbehavior and often include the following:

The temptation is so strong. They believe retailers can afford the monetary loss. The perceived likelihood of getting caught is low. They seek acceptance in a group. Some people steal for the excitement associated with the activity.6

5 Information and statistics provided by the National Association for Shoplifting Prevention (NASP), a non-profit organization; www.shopliftingprevention.org, accessed June 29, 2010.


http://www.shopliftingprevention.org/

The shoplifting intentions of adolescent consumers appear to be more heavily influenced by emotions than by moral beliefs. The opposite occurs in older consumers. Shoplifting behavior appears to peak during the adolescent years.

Computer-Mediated Behaviors: Illegal Sharing of Software and MusicWith improvements in technology, consumers have the ability to download illicit materials from a number of sources. Major problems include the pirating of computer software, video games, and music. The software industry loses billions of dollars annually due to illegal copying. Research reveals that how consumers view illegal downloading depends on the motivation for the behavior.

Computer-Mediated Behaviors: AttacksBusinesses can lose productivity from slow Internet connections and clogged up computers due to attacks. Computer viruses are a major problem. There are thousands of computer viruses being circulated from computer to computer. An emerging form of computer misbehavior is known as cyberbullying. Cyberbullying is the attack of innocent people on the Internet, and it is an especially big problem among young consumers.

Consumer FraudConsumers can fraudulently obtain credit cards, open bank accounts, and turn in fake insurance claims. Identity theft is another major public concern.

Abusive Consumer BehaviorSome consumers become so incredibly upset when they don’t get their way that they become obnoxious and belligerent. One early study in the area of problem customers suggested that four categories of customers can be identified:

1. Verbally or physically abusive customers2. Uncooperative customers3. Drunken customers4. Customers who break company policy.7

Dysfunctional fan behavior is abnormal functioning relating to sporting event consumption. Simply stated, dysfunctional fan behavior is bad fan behavior! Culture jamming refers to attempts to disrupt advertisements and marketing campaigns by altering the messages in some meaningful way.

Slide 12

6 This section based in large part on Cox, Dena, Anthony D. Cox, and George P. Moschis (1990). “When Consumer Behavior Goes Bad: An Investigation of Adolescent Shoplifting,” Journal of Consumer Research, 17 (2)(September) 149-159.

7 Bitner, Mary J., Bernard H. Booms, and Lois Mohr (1994). “Critical Service Encounters: The Employee’s Viewpoint,” Journal of Marketing Research, 58 (4) 95-106.


Q: Has anyone in the class been a victim of identity theft? Have they had their Facebook accounts hacked? What happened?

A: Answers will vary.

Illegitimate ComplainingSometimes consumers complain about products or services when there isn’t a problem. Illegitimate complaining is motivated by a:

Desire for monetary gain. Desire to evade personal responsibility for product misuse. Desire to enhance the consumer’s ego. Desire to look good to others. Desire to harm a service provider or company.

Slide 13

Product MisuseConsumers also may use products in ways that were not intended by the marketer. Statistics from the Consumer Product Safety Commission reveal that deaths and injuries resulting from product consumption cost the United States over $800 billion annually.8 A number of explanations have been offered:

Consumers may simply not pay attention to what they are doing. Consumers may feel as though they always “get away” with the risky behavior. Consumers may have a tendency to be error prone.

8 Information obtained from Consumer Products Safety commission website, http://www.cpsc.gov, accessed March 17, 2008.


http://www.cpsc.gov/

Consumers may focus more on the thrill of misuse rather than the actual risk of the behavior.9

There are currently three major issues of regarding the misuse of a product, specifically cars:

1. Aggressive Driving – Aggressive driving may range from mild displays of anger to seriously violent acts while driving. Although aggressive driving is often thought of as an act by a solitary consumer, aggressive driving problems often involve multiple drivers. Younger, less-educated males are more likely to engage in aggressive driving behavior.10

2. Drunk Driving – According to the latest statistics, 13,000 people die from alcohol-related traffic accidents per year.11 Drunk driving is often related to binge drinking.

3. Cell Phone Use in Cars – A growing area of public concern involves the use of cell phones while driving. Given the increased popularity of cell phone technologies, this issue is likely to remain under intense public scrutiny. Currently, eight states ban driving while talking on a cell phone and texting while driving is banned in 28 states.

Consumer Problem Behavior

Compulsive Consumption

Compulsive consumption refers to repetitive, excessive, and purposeful consumer behaviors that are performed as a response to tension, anxiety, or obtrusive thoughts.12 Addictive consumption refers to a physiological dependency on the consumption of a product.

9 Stoltman, Jeffrey and Fred Morgan (1993). “Psychological Dimensions of Unsafe Product Usage,” in Rajan Varadarajan and Bernard Jaworski, eds., Marketing Theory and Applications, 4th ed., Chicago: American Marketing Association.

10 Crimmins, Jim, and Chris Callahan (2003), “Reducing Road Rage: The Role of Target Insight in Advertising for Social Change, “Journal of Advertising Research, (December), 381-390.

11 Information obtained from Mothers Against Drunk Drivers website: http://www.madd.org/, accessed June 17, 2009.

12 This definition based on O’Guinn, Thomas C. and Ronald J. Faber (1989). “Compulsive Buying: A Phenomenological Exploration,” Journal of Consumer Research 16 (2) September, 147-157.


http://www.madd.org/

Slide 14

Compulsive consumption often takes two forms:1. Compulsive buying may be defined as chronic, repetitive purchasing behaviors in

response to negative events or feelings.13 The influences of this form of buying include feelings of low self-esteem and self-adequacy, obsessive-compulsive tendencies, fantasy-seeking motivations, and materialism.14

2. Compulsive shopping refers to repetitive shopping behaviors. The word oniomania is sometimes used to describe this behavior. Compulsive shoppers frequently shop four to seven days per week, think about shopping for nine or more hours per week, and spend two or more hours shopping during each trip. Both men and women engage in compulsive shopping.

Q: Ask students whether they know anyone who fits the description of a compulsive shopper. How do these people handle the problem?

A: Many people are becoming compulsive shoppers and are using shopping as a way of escaping reality.

Eating DisordersBinge eating refers to the consumption of large amounts of food while feeling a general loss of control over intake. Binge eating may result in medical complications including high cholesterol, high blood pressure, and heart disease. Exhibit 16.3 presents a description of the binge eating disorder. Bulimia is a disorder that includes binge eating episodes followed by self-induced vomiting or purging. Anorexia is the starving of one’s body in the pursuit of “thinness.”

13 This definition based on Faber, Ronald and Thomas O’Guinn (1992). “A Clinical Screener for Compulsive Buying,” Journal of Consumer Research 19 (3) December, 459-469.

14 Hirschman, Elizabeth C. (1992). “The Consciousness of Addiction: Toward a General Theory of Compulsive Consumption,” Journal of Consumer Research (September), 155-179; O’Guinn, Thomas C. and Ronald J. Faber (1989). “Compulsive Buying: A Phenomenological Exploration,” Journal of Consumer Research (September), 147-157; Dittmar, Helga (2005). “A New Look at Compulsive Buying: Self-Discrepancies and Materialistic Values as Predictors of Compulsive Buying Tendencies,” Journal of Social and Clinical Psychology (September), 832-859.


Slide 15

Binge DrinkingBinge drinking is a very serious problem in society today, and it is defined as the consumption of five or more drinks in a single drinking session for males and four or more drinks for women.15 Over 45% of college students in the United States reported engaging in binge drinking behaviors.16 Binge drinking has been linked to suicide attempts, unsafe sexual practices, legal problems, academic disruptions, and even death.17

The behavior is not confined to the college crowd, but found throughout demographic groups.

Problem GamblingProblem gambling is another serious consumer behavior issue and may be described as an obsession with gambling and the loss of control. Problem gamblers exhibit at least some of the criteria for pathological gambling.

Drug AbuseDrug abuse, using both illegal and legal drugs (such as over-the-counter medications and prescription drugs), can become problematic for some consumers. A recent study by the Partnership for a Drug Free America revealed that nearly one in five teenagers report using prescription drugs to get high, and nearly one in ten report abusing cough medicine.

Advise students as to where they can get help on campus for these behaviors. Eating issues, gambling, drinking, and drug abuse are common on college campuses. Familiarize yourself with the services

15 National Institute for Alcohol Abuse and Alcoholism website: www.niaaa.nih.gov. Accessed March 17, 2008.

16 Information obtained from Mothers Against Drunk Drivers website: http://www.madd.org/Under-21/College/Statistics/AllStats.aspx#STAT_1800, accessed July 2, 2010.

17 Wechsler H., J.E. Lee, M. Kuo, M. Seibring, T. F. Nelson, and H. P. Lee (2002), “Trends in College Binge Drinking During a Period of Increased Prevention Efforts: Findings from Four Harvard School of Public Health Study Surveys,” Journal of American College Health 50, 203–217; Presley, C. A., M. A. Leichliter, and P. W. Meilman (1998), Alcohol and Drugs on American College Campuses: A Report to College Presidents: Third in a Series, 1995, 1996, 1997, Carbondale, IL: Core Institute, Southern Illinois University.


http://www.madd.org/Under-21/College/Statistics/AllStats.aspx#STAT_1800

available. You may want to bring in a campus counselor as a guest speaker for the last portion of your lecture.

LO3. Discuss marketing ethics and how marketing ethics guide the development of marketing programs.

Marketing Ethics and Misbehavior

Slide 16

Marketing EthicsEthics has been used in many ways, and ethical issues permeate our everyday lives. Unscrupulous actions of companies directly impact the marketplace because they upset the value equation associated with a given exchange.

The term ethics refers to standards or moral codes of conduct to which a person, group, or organization adheres. Marketing ethics consists of societal and professional standards of right and fair practices that are expected of marketing managers as they develop and implement marketing strategies.18

ConsumerismConsumerism is a term used to describe the activities of various groups to protect basic consumer rights.

Slide 17

18 This definition is based on Laczniak, Gene R. and Patrick E. Murphy (2006). “Normative Perspectives for Ethical and Socially Responsible Marketing,” Journal of Macromarketing, 26 (2): 154-177.


Overconsumption has been suggested to be a misbehavior itself. Advertisements tell us to buy this and that to “improve” all different aspects of our lives. So consumers generally buy more products and services than we need. Some consumers have chosen to not overconsume, and in fact, have simplified their lives.

Slide 18

Throughout the 20th century, the voice of the consumer grew steadily stronger. Consumer movements were greatly helped by the adoption of the Consumer Bill of Rights, which was introduced in 1962. The Consumer Bill of Rights included the:

Right to safety Right to be informed Right to redress and to be heard Right to choice

Slide 19

The Marketing Concept and the ConsumerDuring the 1960s, author Theodore Levitt published an article in the Harvard Business Review titled “Marketing Myopia.” Levitt’s new marketing concept perspective argued that businesses should define themselves in terms of the consumer needs that they satisfy


rather than in terms of the products that they make. The marketing concept developed quickly during this time period.

The Marketing Mix and the ConsumerOne of the most visible elements of the marketing mix is pricing. For this reason, pricing policies are often questioned. Exhibit 16.5 presents the four Ps of marketing as well as their ethical and unethical uses. The four Ps include:

1.Product2.Place3.Price4.Promotion

The product portion of the marketing mix also commonly comes under fire. Consider the following categories of products that were originally introduced by Philip Kotler:19

Deficient products –Products that have little to no potential to create value of any type (i.e., faulty appliances). Salutary products – Products that are good for both consumers and society in the long run (i.e., air bags). They offer high utilitarian value but do not provide hedonic value. Pleasing products – Products that provide hedonic value to consumers but may be harmful in the long run (i.e., cigarettes). Desirable products – Products that deliver high utilitarian and hedonic value and also benefit both consumers and society in the long run (i.e., pleasant-tasting weight-loss products).

Slide 20

Consumer Vulnerability and Product HarmfulnessTwo important issues to consider when discussing marketing ethics are product harmfulness and consumer vulnerability.20 Public criticism of marketing strategies tend to be most intense when a marketer targets vulnerable consumer groups with harmful products.

19 Kotler, Philip (1972). “What Consumerism Means for Marketers,” Harvard Business Review, 50 (May-June), 48-57.

20 Smith, N. Craig and Elizabeth Cooper-Martin (1997). “Ethics and Target Marketing: The Role of Product Harm and Consumer Vulnerability,” Journal of Marketing¸ 61 (3), 1-20.


Employee BehaviorIndividual behavior is guided not only by a sense of what members of society would believe is ethical or unethical in a particular situation, but also by an individual’s morals. Morals are personal standards and beliefs that are used to guide individual action.

Slide 21

LO4. Comprehend the role of corporate social responsibility in the field of marketing.

Corporate Social Responsibility

Slide 22

Corporate social responsibility may be defined as an organization’s activities and status as they relate to its societal obligations.21 Due to increased pressure from consumer and media groups, companies are finding that they must be socially responsible with their activities. The activities fall into one of three categories:

1. Ethical duties Involve acting within expected ethical boundaries.2. Altruistic duties Involve giving back to communities through philanthropic

activities.3. Strategic initiatives Involve strategically engaging in socially responsible

activities to increase the value of the firm.22

21 This definition is based on Brown, Tom J. and Peter A. Dacin (1997). “The Company and the Product: Corporate Associations and Consumer Product Responses,” Journal of Marketing, 61 (1), 68-84.

22 Lantos, Geoffrey P. (2001). “The Boundaries of Strategic Corporate Social Responsibility,” Journal of Consumer Marketing, 18 (7): 595-630.


Slide 23

Q: Discuss greenwashing. Do students think it is right for marketers to mislead consumers into believing a product is “green” or was made using “green” processes?

A: Answers will vary. See if students can find examples of companies that have been caught for greenwashing.

The Societal Marketing ConceptThe societal marketing concept considers not only the wants and needs of individual consumers, but also the needs of society.23 All firms have many stakeholders and the effects of marketing actions on all these stakeholder groups should be considered. This concept emerged out of recognition of the effects that a marketing system has on society as a whole. This assertion is found in Exhibit 16.7, which presents prescriptions for improved marketing ethics.

Slide 24 Slide 25

LO5. Understand the various forms of regulation that affect marketing practice.

Regulation of Marketing Activities

Slide 26

23 Kotler, Philip (1972). “What Consumerism Means for Marketers.”


Marketing and the LawExhibit 16.8 presents a number of acts that have been brought into law in an effort to regulate commerce and ensure free trade. Many of these acts are aimed at maintaining or improving the general welfare of consumers in a free marketplace. They also protect the value that consumers receive from exchanges by prohibiting certain acts, such as deceptive advertising and the selling of defective or unreasonably dangerous products.

Slide 27

Q: Review Exhibit 16.8. Ask students which of these acts affect them the most.

A: Answers might include the Consumer Product Safety Act or one of the newest acts, Credit Card Accountability, Responsibility, and Discolsure Act or the Helping Families Save Their Homes Act.

LO6. Comprehend the major areas of criticism to which marketers are subjected.

Public Criticism of Marketing

Slide 28


Many areas in marketing come under public scrutiny. Although several issues may be discussed regarding public criticism of marketing, the focus here is on only a handful of issues, such as the following:

Deceptive advertising Marketing to children Pollution Planned obsolescence Artificial needs Manipulative sales tactics Stealth marketing

Deceptive AdvertisingDeceptive advertising is advertising that contains messages omitting information that is important in influencing a consumer’s buying behavior and is likely to mislead consumers acting “reasonably.”24 Actual deception can sometimes be difficult to prove in practice. The term puffery describes the practice of making exaggerated claims about a product and its superiority. Puffery differs from deceptive advertising in that there is no overt attempt to deceive a targeted consumer.

Marketing to ChildrenIt has been estimated that the average American child sees more than 40,000 television commercials per year or an average of more than 100 commercials per day.25 Two important issues arise concerning marketing to children:

1. One issue is whether children can understand that some marketing messages may not offer a literal interpretation of the real world.

2. Another issue is that the sheer quantity of marketing messages to which children are exposed can be called into question.

PollutionThe process of marketing a product often leads to pollution. As a result, marketers are often criticized for harming the environment. The issue of environmental protection 24 Federal Trade Commission website: http://www.ftc.gov/bcp/conline/pubs/buspubs/ad-faqs.shtm. Accessed March 17, 2008.

25 American Psychological Association 92004), “Television Advertising Leads to Unhealthy Habits in Children; Says APA Task Force,” February 23, http:// www.apa.org/releases/childrenads.html. Accessed August, 2007.


continues to grow in importance, and several popular movies and events highlight consumer pressure on businesses and government to move toward increased environmental protectionism.

Planned ObsolescencePlanned obsolescence is the practice of managing and intentionally setting discontinue dates for products. Critics charge that it is both wasteful and greedy for marketers to engage in planned obsolescence. Marketers counter by arguing that by continually offering improved products, consumers are able to enjoy increased standards of living.

Artificial NeedsMarketers are often criticized for imposing what might be called “artificial” needs on consumers. An issue here is the difference between a want and a need and the validity of the marketing impetus to prod consumers to “keep up with the Joneses.”

Manipulative Sales Tactics High-pressure and manipulative sales pitches are often the topic of consumer dissatisfaction. For example, a realtor might tell a client that several other people have looked at a particular house when they actually have not. Or, a salesperson might tell a customer that a product is in short supply when it really is not. There are several well-known techniques that salespeople use including:

1. Foot-in-the-door technique When consumers realize that they have opened themselves up to a sales pitch (or literally, opened their door to a salesperson), they are more likely to listen to the pitch and more likely to buy a product.

2. Door-in-the-face technique A salesperson begins the sales pitch with a very large request to a customer. For example, the salesperson might begin with, “Can I get you to buy this car today?” Realizing that very few, if any, customers would say “yes,” the salesperson prepares for the dreaded “no.” This tactic plays on the fact that a consumer will feel badly for rejecting the salesperson and will reciprocate by listening to the sales pitch.

3. Even-a-penny-will-help technique The tactic is to make the donor feel ashamed for giving such a small amount. If donors do feel shame, they are more likely to give more than is requested.

4. “I’m working for you!” technique Salespeople attempt to lead customers into believing that they are working as hard as possible to give them the best deal when, in reality, they are simply following a script or a routine.

Q: Ask students whether they have ever experienced a high-pressure sales technique.

A: Answers might include occasions when purchasing a new car, cell phone, or simply a new pair of shoes.


Stealth MarketingStealth marketing was discussed earlier, but we again highlight its use here because it is commonly called into question on moral grounds. In stealth marketing, consumers are completely unaware that marketing tactics are being used on them. WOMMA is opposed to such tactics and consider them to be unethical.

Slide 29

Products LiabilityProducts liability is the extent to which businesses are held responsible for product-related injuries. The primary legal doctrine governing products liability in the United States today is strict liability. With strict liability, consumers can win a legal action against a firm if they can demonstrate in court that an injury occurred and that the product associated with the injury was faulty in some way.

With negligence, an injured consumer would have to show that the firm could foresee a potential injury that might occur and then decide not to act on that knowledge. For a host of reasons, juries tend to be more sympathetic to a consumer who is claiming a product injury and are more likely to award substantial punitive damages as well as compensatory damages. Punitive damages are intended to punish a company for behavior associated with an injury, and compensatory damages are intended to cover costs incurred by a consumer due to an injury.

Slide 30

VIDEO CLIPPowerPoint Clip from RecyclineRun time 1:23 minutes

Slide 31


For an environmentally conscious consumer-product company like Recycline, it is essential that the customer understands and believes the “green story” behind their products. This means marketing both to retail partners in order to get the products on store shelves as well as marketing directly to consumers to make product sales. Recycline wants consumers to know that participating in the green marketplace doesn’t mean that customers have to make sacrifices.

Ask your students:1. What does Recycline feel is essential to making green products mainstream?

Answer: Green products must involve no consumer sacrifice in comparison to similar non-green products. This means the products must perform as well, look as good, and fall into the same cost range. On top of this, these products must provide a truly meaningful environmental alternative.

2. What are consumers wary of when it comes to green marketing and green companies?

Answer: Consumers are concerned that companies abuse the term “Green” in order to increase sales. They also may feel that companies talk more about environmentally sound products and practices than they do deliver on them.

END OF CHAPTER MATERIAL

PART 5 CASE ANSWERS

Case 5-1 Bullying Behavior: It’s Not Just on the Playground AnymoreQuestions:

1. Have you ever experienced or observed cyberbullying? If so, think about the incident and how it affected members of the situation.

More than 32% of teenagers report cyberbullying, and millions more unreported incidents occur. These statistics suggest that you have at least been exposed to this activity. More than likely, the victim of cyberbullying was very negatively affected. It is important to consider the consequences of cyberbullying to everyone.


2. Many times, cyberbullying occurs on social networks such as Myspace.com. In light of this, are these networks good for preteen and teenage consumers? Consumers of all ages?

The potential for cyberbullying and other invasions of privacy make social network memberships inappropriate for individuals under 18. Many times, social networks have controls in place that discourage consumers under certain ages from joining. However, because of the virtual environment, these controls can be averted. Parents and guardians have the responsibility of monitoring preteens and teenagers social networking membership and use. For adults, social networks can provide a great opportunity for professional and personal communication, as well as an inexpensive means of interacting with others that may not be geographically close. But the risks of negative information about account owners highlights the importance of taking steps to ensure that consumers’ images are not marred by such information. If you are going to participate in a social network, monitor your account very closely, do not accept communications from others whom you do not know, and report negative information immediately.

3. Why would marketers, such as Sony Creative Software, become involved with the effort to reduce cyberbullying?

Many for-profit firms have become involved in socially responsible marketing, which includes anticipating both positive and negative results of product usage. From a societal standpoint, marketers must have the best interest of consumers as a priority. There is also a business motivation for joining social efforts. By associating themselves with good causes, brands build positive associations in the eyes of consumers. The desired ultimate result of this enhanced brand image would be increased business performance. Therefore, marketers can dually benefit from engaging in the effort to reduce cyberbullying.

Case 5-2 Green Attitude Leads to Green Action Questions:

1. Why do consumers such as Madhu, think green but not really act green? What are some of the impediments to acting green?

In many ways Madhu is like many customers who think about doing something but rarely get around to actually doing it. Intention to act does not always translate into action. There are many reasons for this – habits, lack of knowledge or facilities, and inability/unwillingness to make cost and time commitment.

In some instances, consumers are used to doing things in a certain manner and find it difficult to break the habit. It is easy to throw things away into one container. Without a conscious effort and constant reminder, consumers automatically fall into the learned patterns of behavior.


Sometimes consumers have the right attitude and will to act but might not posses adequate knowledge of what is to be done. Lack of understanding of environmental problems or lack of belief in the existence of these problems, lack of knowledge of human impact on the planet, lack of information on how one can specifically help alleviate the situation or make a difference, etc. At other times, specific information may not be readily available with respect to what can and cannot be recycled, where to recycle, and so on. Also if one lives in town or city that does not have any public or private recycling program, it would be difficult to transform thoughts into action.

Finally, there is the cost and time issue. More and more consumers are realizing that there is a cost commitment to being green. Green products whether they are organic or devoid of harmful chemicals cost more than normal products. If you live in a city with Whole Foods, you can compare the cost of groceries at that store versus at Walmart. Similarly, one has to make an effort and have a time commitment to being green. Whether it is searching for green product or sorting recyclables or driving to the recycling center, one has to have the time to do it.

2. Are incentives necessary to alter consumer behavior related to reusing and recycling? Provide both pros and cons to this strategy.

Based on earlier research experiments and promotional activities by company, it is well know that some consumers, if not all, respond to incentives both monetary and non-monetary. Of course, consumers such as Madhu, do not seem to be actively seeking incentives. For these consumers “doing good” is incentive enough. They are similar to those who give money or time to charities.

There are some who are not likely to change behavior, no matter the magnitude of the incentive. But there are those could be persuaded by incentives to go green. For example, many European countries and U.S. states provide incentives for recycling beverage containers.

3. As a green living consultant, what other courses of action would you recommend to Madhu and her family in their quest to reduce their impact on the planet?

There are many strategies a “green” consumer can adopt in order to reduce their impact on the environment. They include reducing consumption (ex. less meat), reuse items (ex. grocery bags as trash bags), convert waste (ex. composting), trading items no longer used/needed (ex. old video games for cash or new games), donating older items (ex. to Goodwill Industries or Salvation Army), reselling old items (ex. garage sales).

The downside of providing incentives for performance is that consumers get conditioned to them and once the incentives expire, many return to their normal non-green behavior.


4. Can you help Madhu find agencies and organizations that provide an eco-friendly seal of approval for household items such as grocery purchases?

There are a few organizations that attempt to provide a level of credibility to green claims. First and foremost there is the “Energy Star” (energystar.gov/) seal provided by the federal Environment Protection Agency (EPA) for home appliances. The Green Seal (greenseal.org/) is an non-profit agency that helps consumers find green certified products and services26. Green American Today (greenamericatoday.org/) provides a seal of approval for environmental and socially responsible businesses and lists them in the National Green Pages27. Good Housekeeping magazine has added a “green seal” of approval. According their press release, after a product obtains a GH seal, the magazine reviews “data about a product's composition, manufacturing, packaging and other attributes that may have an impact on the environment.”28

Given the evolving nature of green marketing, there is likely to be other organizations or agencies developing green seals of approval making consumers’ green decision making less complex.

Case 5-3 The Ethics of Selling Home Improvement ServicesQuestions:

1. Which sales technique discussed in Chapter 16 best describes the one used by Joel? Explain.

The foot-in-the-door technique. Joel demonstrates a considerable degree of savvy in requesting that Don simply let him up on the roof. Which then leads to taking up Don’s time with details of what Joel’s company has to offer, and which then leads to Joel asking Don to close the sale. As Chapter 16 illustrates, Joel’s behavior is indicative of foot-in-the-door selling.

2. Why might Joel’s sales technique be considered manipulative?

As discussed in Chapter 16, foot-in-the-door selling is predicated on self-perception theory. Applying this theory to our case study, a sales person such as Joel makes a small request to which a consumer such as Don will most likely agree (i.e. – not much is required of Don to let Joel climb up on the roof). The fact that Don let Joel up on the roof, however, will be a psychological factor when Joel requests Don’s time to discuss what the roofing company can offer (i.e. – Don is more likely to listen to Joel’s sales pitch because Don let Joel up on the roof in the first place). As

26 http://greenseal.org/

27 http://www.greenamericatoday.org/greenbusiness/sealofapproval.cfm

28 http://www.greenbiz.com/news/2009/03/11/good-housekeeping-adds-green-seal-approval


http://www.greenbiz.com/news/2009/03/11/good-housekeeping-adds-green-seal-approval

http://www.greenamericatoday.org/greenbusiness/sealofapproval.cfm

http://greenseal.org/

the level of Don’s commitment to the transaction increases, Joel will inevitably ask Don to make a purchase. In summary, the foot-in-the-door selling technique is considered manipulative because it involves playing on consumer emotions in order to make a sale.

3. In the context of this marketing situation, can the argument be made that Don is a “vulnerable” consumer? Explain.

As Chapter 16 illustrates, what constitutes a consumer being “vulnerable” is open to interpretation. Elderly consumers have traditionally been seen as vulnerable, although describing Don in this manner seems extreme. Nevertheless, it can be argued that since Don knows little about roofing, and since he is probably unable to physically climb up on the roof himself, he could therefore be considered to be a “vulnerable” consumer in the context of this scenario.

4. Does Don have a “true” need? Or is Joel creating an artificial one?

The fact that Don will be asking his nephew to conduct a roof inspection before further considering Joel’s offer indicates that Don himself questions his need for new shingles. As Chapter 16 indicates, a criticism leveled against marketers has been their propensity for creating artificial needs to sell goods and services. Ironically, Don has a real need that a savvy sales person like Joel most likely understands: Don’s need to feel like he is doing a good job taking care of his home. The extent to which Joel focuses on satisfying Don’s real need with a product (i.e. – roofing shingles) that Don might not actually need is the extent to which Joel’s professional ethics could be questioned.

ONLINE CASE ANSWERS Visit www.login.cengage.com to access the online case studies for CB.

Choicepoint Case

1. What measures can consumers take to prevent becoming victims of identity theft?

Answer: It is important for consumers to be aware of potential identity theft and to monitor their personal information. Omitting Social Security numbers from checks and driver’s licenses can prevent criminals from obtaining them. Furthermore, trash and mail should be disposed with discretion. Online, consumers should choose passwords that would be difficult for identity thieves to guess. Additionally, only emails from known senders should be opened. To detect identity theft, monitor bank accounts to identify any unusual transactions, and regularly obtain credit reports to ensure that no outstanding debt has been incurred by someone else.

2. Even though selling consumer data is a legal business practice, many people question the data-brokering practice. Is it ethical to sell consumer data for profit?


http://www.cengage.com/login

Answer: Consumer information is often beneficial to firms in marketing their products and services. Consumers may be wary of having their information disclosed to other parties, but data brokering is not unethical if performed in accordance with high standards for protecting consumer identities from the wrong individuals. As argued by the FTC against Choicepoint, the unethical aspect of data brokering lies in not maintaining stringent criteria for screening potential clients.

3. Will Internet identity theft stop consumers from carrying out transactions online?

Answer: As with traditional face-to-face transactions, consumers need to verify the legitimacy of the entity asking for their personal information online. Many firms now take measures to ensure customer privacy online. Some consumers will continue to avoid making transactions online to protect their identities, but the convenience offered by the Internet will likely ensure its popularity.

Music Case

1. How do file-sharing and music piracy disrupt the exchange process? How have they enhanced the exchange process?

Answer: Music piracy has disrupted the exchange process by making it difficult for the music industry to continue to produce and make a profit from the music that it helps artists to create. Furthermore, the industry must spend a large amount of money in both its litigation attempts as well as in educating consumers about piracy and its illegality. The cost of these endeavors is also passed on to the consumer in the form of higher CD prices as well as in other avenues, such as student fees. Additionally, it has made it difficult for the industry to sign and promote new artists.

However, file-sharing and piracy have also created new opportunities for exchange. Recognizing the consumer desire for readily available digital downloads, a number of legitimate pay services have popped up, starting with Apple iTunes. In addition, the iPod generation has apparently been born from the ashes of the Napster lawsuits. Also, artists are increasingly turning to the Internet to promote and release their music. The rock band, Radiohead, recently released their latest album solely on the Internet, allowing consumers to name their own price in exchange for the right to download the album. All in all, the model proved to be highly successful for the band.

2. Do government restrictions on file-sharing activity interfere with the Consumer Bill of Rights?

Answer: Strictly speaking, governmental restrictions on file sharing do not interfere with consumer rights for safety, for information, to redress, or to choice. However, some may feel that governmental restrictions do restrict a more basic right—the right to freedom. The problem with this argument, however, is that music is protected by copyrights and/or intellectual property right laws. For this reason, it cannot be argued that restrictions violate a consumer’s right to freedom. Music is protected via legal contracts between the performer and the company. Also, consumers must adhere to federal laws and regulations.


3. The case provides an example of the three components of moral beliefs. Describe each of those examples and explain why each fits with those components.

Answer: Moral equity: In the opening paragraph, Kelly thinks about whether he should start downloading the Rolling Stones song. In effect, he is contemplating the fairness of his actions before continuing. As such, he is taking stock of his moral equity.

Contractualism: The individual who has gone to trial for downloading has provided an argument that file-sharing is not illegal, basically stating that file-sharing does not break a law. This is textbook contractualism.

Relativism: In the last paragraph, the case argues that people engage in piracy every day believing that “everyone else is doing it” and “so many others are doing it that I’ll never be caught.” In other words, people are going forward thinking that this behavior is culturally acceptable and therefore moral. This is an example or relativism.

4. What is your opinion? Do perceived unethical actions by a company or industry justify unethical actions in return? Do you believe that the music industry deserves some protection from illicit file sharing?

Answer: Student opinions will vary, but ultimately these opinions will be influenced by moral beliefs. Most students would probably have trouble justifying one “wrong” act by committing another. If a consumer follows the pathological socialization approach, then he or she would feel that one wrong act can be justified by another; fortunately, relatively few people in society feel this way. It is also likely that most people would feel that the industry does deserve at least “some protection” from illicit file sharing. Obviously, recording companies have all types of costs that need to be recouped with their music sales. Ultimately, the companies are delivering valuable products to their consumers, and if the companies themselves begin to lose the value of the transaction, the music will stop!

REVIEW QUESTIONS (*) Indicates material on prep cards.

1. [LO1] What is meant by consumer misbehavior? List ways in which consumers misbehave.

Answer: Consumer misbehavior is behavior that violates generally accepted norms of conduct. Not everyone will agree on what misbehavior really means. Misbehavior can be considered to be a subset of human deviance. According to this chapter, the following topics are types of consumer misbehavior: shoplifting, computer-mediated behaviors, fraud, abusive consumer behavior, dysfunctional sports behavior, illegitimate complaining, and product misuse such as aggressive driving, drunk driving, or use of a cell phone while driving. Students will likely come up with other examples. Also, students may not agree that these issues are really misbehaviors. It is likely that some students will not see cell phone use while driving as any problem at all.


2. [LO1] How does consumer misbehavior affect exchange?

Answer: Consumer misbehavior affects exchange processes in many ways. Ultimately, other consumers and the business itself are harmed by consumer misbehavior. Students will likely come up with many examples. A simple example is what happens at a sporting event when someone is misbehaving. If a family comes to a football game at a professional stadium for the first time and encounters drunken fans who are behaving crudely, it is likely that their experience will be ruined. They will probably not return to another game, at least for a very long time. In this way, both the family and the organization are harmed because of dysfunctional sports behaviors.

3. *[LO1] How is value related to consumer misbehavior?

Answer: Value is related to both consumer behavior and consumer misbehavior. The text states that the focal motivation for consumer misbehavior is value. The consumer that misbehaves often tries to maximize the value they receive from consumption while minimizing costs and affecting the value received by other consumers. As the text states, other consumers are harmed when consumers misbehave.

4. [LO2] What is the key distinction between consumer misbehavior and consumer problem behavior?

Answer: The most straightforward way to approach the question is by considering the issue of self-control. Problem behaviors are generally outside the control of the consumer. For example, an alcoholic has a real problem with alcohol. A compulsive person may have real problems with a specific condition, such as obsessive-compulsive disorder.

5. [LO2] What are some behaviors that have been researched in consumer misbehavior? What are some behaviors that have been researched in consumer problem behavior?

Answer: Behaviors that have been researched in consumer misbehavior research include shoplifting, computer-mediated behaviors, fraud, abusive consumer behavior, dysfunctional sports behaviors, illegitimate complaining, and product misuse, such as aggressive driving. Consumer problem behaviors that have been researched include compulsive buying, compulsive shopping, eating disorders, binge drinking, problem gambling, and drug abuse.

6. [LO3] Define marketing ethics.

Answer: Marketing ethics consists of societal and professional standards of right and fair practices that are expected of marketing managers as they develop and implement marketing strategies.

7. *[LO3] How do marketing ethics guide marketing decision making?


Answer: In order for marketers to misbehave, they must be aware that an action would be considered unethical and act with deviance to cover the true intent of the action. As such, they must consider their own ethical beliefs when they act. The marketing organization or employee that misbehaves must know that their actions would be considered inappropriate and carry through with them anyway.

8. [LO4] What is corporate social responsibility?

Answer: The term corporate social responsibility refers to an organization’s activities and status related to its societal obligations. The term has become very popular as marketers realize the importance of satisfying their many stakeholder groups

9. [LO4] How can a firm show that it is socially responsible?

Answer: Companies can show their corporate social responsibility in many ways. Specifically, they can donate to causes, support minority programs, ensure responsible manufacturing processes and environmental protectionism, act quickly when product defects are detected, focus on employee safety, and encourage employees to volunteer at local causes.

10. [LO5] What are the basic types of regulatory bodies that monitor marketing activities?

Answer: The major regulatory bodies include the Federal Trade Commission and the Food and Drug Administration. The Better Business Bureau also plays an important function. Bodies such as the American Association of Advertisers and the Children’s Advertising Review Unit of the BBB are important “self” regulatory bodies.

11. [LO5] What are the major professional organizations that publish strict codes of conduct for its marketing members?

Answer: There are many marketing organizations that publish codes of conduct for its members. The most notable example from this chapter is the American Marketing Association. Students may present other examples as well.

12. [LO6] What are some of the behaviors that draw the most criticism in marketing practice?

Answer: There are many practices that draw criticism. The text highlights issues such as deceptive advertising, marketing to children, pollution, product obsolescence, cash advance loans, the creation of artificial needs, and manipulative sales tactics.

13. *[LO5] How does deceptive advertising differ from “puffery?”

Answer: Puffery refers to statements of alleged superiority that are considered to merely be exaggeration. With puffery, there is no overt attempt to deceive customers. With deceptive advertising, deceit is assumed. In general, specific claims


must be substantiated or the marketer can be pursued on the grounds of deceptive advertising.

APPLICATION / INTERACTIVE QUESTIONS

14. In what ways have you experienced a consumer misbehaving that disrupted your personal exchange process? How did this make you feel? How did employees deal with the consumer? Ask friends about ways that they’ve been affected by consumer misbehavior. How are your experiences similar? Different?

Answer: Student responses will vary. However, it is likely that students will report problems that they have had when dining out because this is a common problem area. It is also likely that students will report problems occurring during sporting events. This is a great question for class discussion.

15. *In your opinion, which is a bigger problem area for society, consumer misbehavior or consumer problem behavior? Why? Ask consumers from an older demographic segment, like your parents, what they think are the biggest problem areas. Do you agree? Do you disagree? In what ways?

Answer: Students will answer this question in different ways. Both types of behaviors profoundly affect society. Criminal actions hurt consumers and increase the price of many products. Drinking and driving kills people. It will be interesting to note the differences in how people from various demographic backgrounds answer this question. This is also a good question for classroom discussion.

16. Visit a website that offers statistics on drunk driving (www.madd.org). Find statistics on drunk driving fatalities in your state. How does your state compare with nearby states? To the national average? Why do you think that your state’s numbers compare in the way that they do?

Answer: This question will obviously depend on the state in which the student resides. This is another good question for classroom discussion. These discussions can go in many different directions and often prove to be valuable for student learning.

17. In your opinion, how big of a problem is binge drinking and drinking and driving on your campus? What could be done differently on your campus to promote the dangers of these behaviors and to encourage students to refrain from them?

Answer: This will most certainly be a hot button topic. Given the prevalence of the behavior across college campuses, it is likely that you will get a lot of emotional responses. We can all agree that drinking and driving is a terrible behavior, but opinions on binge drinking may not be in agreement. Some students may say that if it isn’t hurting someone else then what’s the problem? Isn’t it a matter of personal choice and freedom? This question can spark a lot of discussion.


18. Pay attention to fan behavior the next time you visit a sporting event at your school. Note the behaviors that you see. How many behaviors could be considered dysfunctional? What were they?

Answer: This can be a popular activity at college campuses because many students like to go to events, such as football or basketball games. By having students observe other fans, the learning experience truly becomes experiential. Again, this is a great topic for classroom discussion.

19. Survey students at your school by asking them questions about which social issues they are most concerned about. What are their opinions regarding corporate social responsibility? How do their concerns relate to the social responsibility of firms with which they do business?Answer: Student responses are likely to vary. However, many issues discussed in Chapter 16 are important to students. Students tend to be concerned about issues such as environmental pollution, marketing to children, marketing of “artificial” needs, and manipulative sales tactics. Most students will also feel that companies do have a responsibility to society. They are also likely to avoid doing business with companies that they simply don’t agree with. As the chapter discusses, consumers do tend to avoid companies that are not socially responsible. Of course, it is unlikely that students will completely agree with the extent to which companies have an obligation to be socially responsible.

20. Ask your classmates what their opinions are of the topic of marketing to children. Compare these results with the same results that you obtain from an older sample of students. How do the results compare? What differences do you find? What are your opinions about marketing to children? Do you think that it is ethical or unethical? Do you think that there are too many advertising messages aimed at kids?Answer: This is another hot marketing topic wherein students will likely not agree. The issue can become emotional, especially for students who have children or who regularly care for children. This question will provide another great topic for classroom discussion.

GROUP ACTIVITIESA great exercise to use in class is the power of sight—catching people in the act of misbehaving. A visit to www.youtube.com will be a source of inspiration for this topic. Visit youtube.com, and use key phrases such as “shoplifting.” A plethora of videos are available to watch in class ranging from 1 to 5 minutes. This is a powerful way to open discussion about shoplifting.

Ask questions such as: “Does anyone know someone who shoplifts?” “Does anyone know someone who considers themselves to be a retail borrower?” Use this as an opportunity to discuss the topic of behavioral evaluation. Ask students what motivates such behavior. Use the section in the book on the motivations of misbehavior to dive further into discussion about the research performed by Fullerton and Punj. Have students provide shoplifting examples that fit each category.

Consumers possess unfulfilled aspirations


Consumer thrill-seeking Moral constraints are absent Differential association Pathological socialization Provocative situational factors Opportunism

*Have students get into groups. Have them discuss the oil spill that devastated the Gulf of Mexico in 2010. As them to discuss the following questions amongst themselves and then to compare answers across the groups. Encourage them to debate across groups what the company did well, what they did not do well, and what they should have done?

* In what ways did BP exhibit corporate social responsibility?* In what ways did the company practice the societal marketing concept?* How did they live up to their altruistic duties, ethical duties, and strategic initiatives?* What should they have done differently?* How would your group handle the situation if you were in control at BP?

CHAPTER VIDEO CASE

To view the video case Organic Valley, go to the CB companion website login.cengage.com to select this video.29

Paul Deustche moved to Wisconsin with the hopes of growing his own food and living off the land. After buying a farm, Paul found that his values matched those of the organic farmers so he began selling milk to Organic Valley. Organic farmers are required to work the land in a more environmentally friendly manner. There are laws that protect consumers, so they know they are buying certifiable organic products when they see the organic seal. The costs of organic farming are much higher in some respects, such as organic feed; however, the organic method keeps the animals healthy without expensive chemicals and antibiotics. Also, the animals produce better, live longer, and the organic companies can pay more to their suppliers because of what they are able to charge for their products.

Ask your students:

1. Describe at least one ethical challenge faced by organic farmers, such as Paul Deustche, or by Organic Valley.Answer: Student responses will vary. In trying to ensure legitimacy, there are many rules and regulations that apply to organic farmers. Many of these rules and regulations are constantly changing or being updated; and farmers could cut corners in areas that could affect the final product.

29 From Hoyer & MacInnis. Segment 22 Organic Valley from Consumer Behavior, pg. 32. Copyright (c) South-Western, a part of Cengage Learning, Inc. Reproduced by permission. www.cengage.com/permissions


2. How has consumers’ perceptions and attitudes of organic foods changed over time?

Answer: Consumers are now more devoted to organic health. Organic food is viewed as the healthiest choice and is sought after by many. The price also reveals the quality of the product; organic products are priced higher than common products.

PART 5 VIDEO CASE

To view the part 5 video case, go to the CB companion website login.cengage.com to select this video.

Making a ReturnTime: This video is between 5-7 minutes long.

Concepts Illustrated in the Video

Consumer satisfaction Consumer dissatisfaction Expectations Service quality Cognitive dissonance Consumer misbehavior Retail borrowing Ethical decision making

Synopsis

Fiona, a struggling college student, is trying to make a return for a dress she’s already worn to an event. She talks to Brett, the Sales Associate, and complains that the dress was itchy and has frayed edges. Brett knows she’s already worn the dress by the smell and the deodorant stains. Fiona gets irritated by the store’s return policy which states you must have a sales receipt for proof of purchase. After the sales associate refuses to take back the dress, an interviewer asks a series of questions to both parties.

Fiona did not keep her receipt and tells the interviewer that she wouldn’t shop there again and feels Brett was pressuring her into a purchase that she couldn’t afford. Brett tells the interviewer that she needed to have the receipt and because the store is so small, they have a strict return policy. He goes on to tell the interviewer that he questions the customers about their needs before suggesting merchandise. The video concludes with the viewer making his/her own decision about the post-consumption process.

Teaching Objectives for the Video Case

Discuss the relative importance of satisfaction and value in consumer behavior

Describe some ways that consumers dispose of products


Comprehend how consumers’ moral beliefs and evaluations influence the choice to engage in consumer misbehavior

Critical Thinking Questions – Suggested Answers1. Have you ever been in Fiona’s situation before? If not, do you know of anyone

that has tried to return worn merchandise? What was the result? Do you feel there’s anything unethical about returning worn merchandise without any defects?

Answer: Student answers will vary. Many will be able to tell stories of their “friends” in this same or similar situation.

2. Explain the concept cognitive dissonance. Did Fiona experience it? If so, what were the conditions that were present in her experience with the boutique? Have you ever experienced cognitive dissonance? What was the outcome?

Answer: Cognitive dissonance refers to lingering doubts about a decision that has already been made. Dissonance is sometimes known as “buyer’s regret.” Cognitive dissonance tends to happens when a buyer spends money on a high ticket item. In the video’s example; the dress can represent a high ticket item to a college student on a budget. The condition present in Fiona’s case was the decision was difficult to reverse. The store had a strict return policy so she was not able to get her money back. Student answers will vary from cars to their choices of colleges.

3. Is Fiona’s attempt to return a worn dress a form of consumer misbehavior? Did Fiona participate in retail borrowing? Explain your answer.

Answer: Consumer misbehavior is defined as human deviance. The book defines consumer misbehavior as behavior that violates generally-accepted norms of conduct. Retail borrowing is a trend that’s on the rise. Consumers are returning items like crazy. The difference with retail borrowing the return is premeditated. Fiona did participate in retail borrowing. She brought the dress for a formal event and with the intent to return it after she wore it.


Documents

331 consumer... · Web viewDistinguish between consumer misbehavior and consumer problem behavior. LO3 Discuss marketing ethics and how marketing ethics guide the development of marketing