CH-16 Consumer and Marketing Misbehavior – CB Consumer Behaviour : Book Guide

Chapter 16 Consumer and Marketing Misbehavior End of Chapter Material Discussion Questions (*) Indicates material on prep cards. 1. How does misbehavior violate norms and disrupt consumption activities? Answer: Misbehavior is a subset of human deviance because it violates generally accepted norms of conduct. A fair marketplace depends on ethical actions by both consumers and marketers. When consumers misbehave, other consumers are affected. The text points this out. When marketers misbehave, consumers are also affected. Fraud by both consumers and marketers raise costs for everybody. The consumption process concludes with consumer value and this value is hurt by misbehavior. 2. What is meant by the terms “moral beliefs” and “ethical evaluations”? How are they related? Answer: Moral beliefs are beliefs about the perceived ethicality or morality of behaviors. They are comprised of moral equity, contractualism, and relativism. Moral beliefs guide ethical evaluations, which in turn, influence consumer misbehavior. Ethical evaluations include both deontological and teleological evaluations. Deontological evaluations focus on actions and if they are “right” or not. Teleological evaluations focus on the consequences of specific actions. 3. What are the various motivations of consumer misbehavior? Answer: As detailed in the text, there are many motivations for consumer misbehavior. These include thrill-seeking, lack of moral constraints, differential association, pathological socialization, provocative situational factors, and opportunism. 4. What is the key difference between consumer problem behavior and consumer misbehavior? Answer: The key difference between consumer problem behavior and consumer misbehavior is perceived control. Both sets of behaviors have the potential to hurt the consumer and others, but problem behavior is generally outside of the control of the consumer whereas misbehavior is not. Many of the problem behaviors are associated with mental disorders and/or physical addictions. 5. What are some examples of consumer problem behavior and consumer misbehavior? Answer: The book discusses a number of behaviors that fall into each category. Misbehaviors include shoplifting, computer-mediated behaviors, fraud, abusive consumer behavior, illegitimate complaining, product misuse (including aggressive driving, drinking and driving, and cell phone use in cars) and sexting. Consumer problem behaviors include compulsive buying and shopping, eating disorders, binge drinking, problem gambling, and drug abuse. 6. What is meant by “marketing ethics”? How is it related to the marketing concept? Answer: Marketing ethics consist of societal and professional standards of right and fair practices that are expected of marketing managers as they develop and implement marketing strategies. Marketing ethics are related to the marketing concept to the extent to which marketing programs that are aimed at satisfying customer needs are formed in ethical ways. When consumers are taken advantage of, businesses eventually lose. 7. How is the marketing mix affected by marketing ethics? Answer: The product, place, price, and promotion elements of marketing campaigns should be guided by marketing ethics to ensure that marketing programs are in accordance with professional standards. Unethical use of these elements include failing to disclose product details, limiting distribution to increase prices, manipulating promotions by advertising “sales” prices that are really regular prices, and engaging in tactics such as “bait and switch”. 8. What is meant by the term “corporate social responsibility”? How is it related to the societal marketing concept? Answer: Corporate social responsibility is an organization’s activities and status related to its societal obligations. It directly affects the extent to which an organization adheres to the societal marketing concept, which states that marketers should consider the needs of society as it seeks to fulfill its customers’ needs. 9. What are the various duties of a marketer that practices corporate social responsibility? Answer: Marketers that practice corporate social responsibility realize that they have ethical duties, altruistic duties, and can engage in strategic initiatives. Ethical duties include acting within expected ethical boundaries, altruistic duties include giving back to communities through philanthropy, and strategic initiatives include strategically engaging in socially responsible activities in order to increase the value of the firm. 10. What major bodies regulate marketing practice? Answer: There are a number of bodies that regulate marketing practice. The main ones are the Federal Trade Commission and the Food and Drug Administration. Other bodies include the Better Business Bureau and the American Association of Advertising Agencies. 12. What constitutes “deceptive advertising” according to the FTC? Answer: In order to be considered “deceptive,” an advertisement must contain or omit information that is important in influencing a consumer’s buying behavior and is likely to mislead consumers who are acting “reasonably”. 13. What are the major forms of manipulative sales tactics that are discussed in this chapter? Answer: The main manipulative sales tactics that are discussed in the text include the foot-in-the-door technique (in which a salesperson presents small requests to a consumer in order to begin a sales pitch), the door-in-the-face technique (in which the salesperson begins with a large request in order to intentionally be rejected by the consumer only to return with a smaller request), the even-a-penny-will-help technique (in which caused-related marketers ask for a very small level of monetary support in order to get the consumer to give more), and the “I’m working for you!” technique (a salesperson leads consumers to believe that they are actually working harder to get a sale than they really are.) Group Activity *Have students break up into teams (sizes based on class size). Assign each group the responsibility of interviewing a local business leader about one of the consumer misbehaviors listed in the text and how often they think it occurs in your community. In what ways do they attempt to combat the problem? For example, a group could interview a local retail manager about the occurrence of shoplifting in their store. A group could interview a computer store manager about the prevalence of computer viruses in the community, and a group could interview a facilities manager about the frequency of dysfunctional sports behavior at your school’s facilities. Another group could get information about local police efforts to combat texting and driving, or drinking and driving. Have the groups report back to the class about the responses they get. This is a good exercise for both expanding on the content of the book and highlighting the extent to which the misbehaviors occur in your immediate area. It is likely that students will be surprised by the extent to which these misbehaviors occur locally. Assignments 14. The next time you are in a restaurant pay attention to other consumers who are dining, or waiting for their food. Take special note of any behaviors or comments that you believe as out of line. Did you notice any abusive consumer behavior? How did this make you feel? How did employees deal with the consumer? How well do you think the restaurant employee handled the situation? What would you have done differently? Answer: I can provide a hypothetical response based on the scenario you've outlined. If I were in a restaurant and witnessed abusive consumer behavior, such as yelling at staff, making derogatory comments, or being excessively demanding, it would undoubtedly make me feel uncomfortable and concerned for the well-being of the employees. Observing how the employees handle such situations is crucial. Ideally, they would remain calm and professional while attempting to de-escalate the situation. This might involve listening empathetically to the customer's concerns, offering solutions or alternatives, and enforcing boundaries if necessary to maintain a respectful environment for both staff and other diners. If the restaurant employee handled the situation well by addressing the abusive behavior firmly but respectfully and ensuring the safety and comfort of all customers, I would commend their professionalism and management of a challenging situation. However, if I believed there were areas for improvement in how the situation was handled, I might suggest the following: 1. Immediate Intervention: If the abusive behavior was severe or ongoing, it may have been necessary for the restaurant manager or another staff member to intervene more assertively to protect the well-being of the employees and other customers. 2. Clear Communication: It's essential for staff to communicate clearly and assertively with the abusive customer, setting boundaries and explaining the expectations for respectful behavior within the establishment. 3. Follow-Up Support: After the incident, it's crucial for the restaurant management to provide support and assistance to the affected employees, ensuring they feel safe and supported in their workplace. 4. Training and Preparation: Providing employees with training in conflict resolution and customer service skills can better equip them to handle challenging situations effectively and confidently. Ultimately, addressing abusive consumer behavior requires a combination of assertiveness, empathy, and professionalism from restaurant employees, as well as clear policies and support from management to ensure the safety and well-being of everyone involved. 15. Survey fellow students on their perceptions of the severity of drunk driving in your college community. Ask them if they have friends that they know regularly drink and drive (don’t have them identify them). Ask them also what they think could be done to stop drunk drivers. Answer: This is one of the most important issues facing society today and is great for classroom discussion. Students’ answers will vary and they may even be hesitant to discuss the issue. Nevertheless, it is a great way to supplement the statistics that are presented in the text. To conduct a survey on students' perceptions of drunk driving in the college community, as well as their experiences and suggestions for prevention, you could create a questionnaire with the following questions: 1. How severe do you believe the issue of drunk driving is in our college community? • Not severe at all • Somewhat severe • Very severe • Extremely severe 2. Do you have friends that you know regularly drink and drive? • Yes • No 3. If you answered "Yes" to the previous question, please briefly explain your thoughts or concerns: 4. What do you think could be done to stop drunk drivers in our college community? Please check all that apply: • Increase law enforcement patrols and DUI checkpoints • Implement stricter penalties for drunk driving offenses • Provide education and awareness campaigns about the dangers of drunk driving • Offer alternative transportation options, such as designated drivers, rideshare services, or campus shuttles • Create a culture of responsibility and accountability among students regarding alcohol consumption • Other (please specify) You can distribute the survey among your fellow students through various channels such as online surveys, email, social media, or in-person distribution. Encourage honest responses and assure anonymity to promote participation. After collecting the responses, analyze the data to understand students' perceptions of drunk driving severity, the prevalence of friends who drink and drive, and their suggestions for prevention. This information can inform efforts to raise awareness, implement preventive measures, and promote responsible decision-making regarding alcohol consumption and transportation safety in the college community. 16. Survey fellow students about their perceptions of cell phone use while driving. To what extent do they believe it is a serious social problem? Ask them if they have texted while driving. If they have, ask them why. Answer: This will most certainly be a hot button topic. Most students will state that cell phone use while driving is a serious societal issue, especially regarding texting and driving. By asking students “why” they have done it, students can [hopefully] help others to stop the dangerous behavior. To conduct a survey on fellow students' perceptions of cell phone use while driving, as well as their own behaviors, you could create a questionnaire with the following questions: 1. How serious do you believe cell phone use while driving is as a social problem? • Not serious at all • Somewhat serious • Very serious • Extremely serious 2. Have you ever texted while driving? • Yes • No 3. If you have texted while driving, please briefly explain why: You can distribute the survey among your fellow students, either in person or through online platforms such as social media or email. Make sure to emphasize the importance of honest responses and assure anonymity to encourage participation. After collecting the responses, you can analyze the data to determine the extent of students' perceptions regarding cell phone use while driving and their own behaviors. This information can provide valuable insights into attitudes towards this issue and potential areas for intervention or awareness campaigns. 17. Survey fellow students on what types of dysfunctional fan behavior they have noticed at your school’s athletic events (or other sporting events). Ask them how they feel when they observe the misbehavior. Also ask them what they think could be done to make the events more fan friendly as opposed to abusive. Answer: This can be a popular activity at college campuses because many students like to go to events, such as football or basketball games. This question is using a projective technique in which students are discussing other students’ (not their own) behaviors. This is another great topic for classroom discussion. To conduct a survey on dysfunctional fan behavior at school or sporting events, you could create a questionnaire with the following questions: 1. What types of dysfunctional fan behavior have you noticed at our school's athletic events (or other sporting events)? Please check all that apply: • Excessive yelling or cursing • Verbal harassment of players, coaches, or officials • Physical aggression or fighting • Throwing objects onto the field or court • Refusing to follow stadium or venue rules (e.g., standing in aisles, blocking views) • Other (please specify) 2. How do you feel when you observe this misbehavior? • Uncomfortable • Unsafe • Embarrassed • Angry • Indifferent • Other (please specify) 3. What do you think could be done to make the events more fan-friendly and prevent abusive behavior? • Increase security presence and enforcement of rules • Implement educational campaigns to raise awareness about appropriate fan behavior • Provide alternative activities or entertainment to engage fans during breaks in the action • Establish clear consequences for disruptive behavior, such as ejection from the venue or loss of future ticket privileges • Encourage positive fan engagement and sportsmanship through rewards or recognition programs • Other (please specify) You can distribute the survey among your fellow students through various channels such as online surveys, email, social media, or in-person distribution. Encourage honest responses and assure anonymity to promote participation. After collecting the responses, analyze the data to identify common types of dysfunctional fan behavior, understand how students feel when they observe such behavior, and gather suggestions for improving fan experiences and preventing abusive behavior at athletic events. This information can inform efforts to create a more positive and inclusive environment for all attendees 18. *Survey fellow students about how much they tend to trust marketers. What companies do they trust? What companies do they distrust? For those that state that they distrust marketers, ask them why. What would it take to gain the confidence of these students? Answer: Corporate scandals happen at all times of the year, so results to this question will vary based on recent news events. The level of trust in marketers will also vary greatly. Finding out what it takes to gain consumer trust is an important marketing issue and this is another good exercise for classroom discussion. To conduct a survey on students' trust in marketers and their perceptions of trustworthy and untrustworthy companies, you could create a questionnaire with the following questions: 1. On a scale of 1 to 5, where 1 is "Not at all" and 5 is "Completely," how much do you tend to trust marketers? • 1 (Not at all) • 2 • 3 • 4 • 5 (Completely) 2. Which companies or brands do you trust when it comes to marketing and advertising? Please list as many as you like. 3. Which companies or brands do you distrust when it comes to marketing and advertising? Please list as many as you like. 4. If you stated that you distrust marketers, please briefly explain why: 5. What do you think it would take for marketers to gain your confidence? You can distribute the survey among your fellow students through various channels such as online surveys, email, social media, or in-person distribution. Encourage honest responses and assure anonymity to promote participation. After collecting the responses, analyze the data to understand students' levels of trust in marketers, identify which companies or brands are perceived as trustworthy or untrustworthy, and gather insights into why some students distrust marketers. Use this information to develop strategies for marketers to build trust with skeptical students, such as transparency, authenticity, ethical practices, and meaningful engagement. 19. Do an Internet search on the severity of pollution worldwide. A good place to start is the World Health Organization website. To what extent do you believe that marketing is responsible for these problems? Why is this? Do you think that more governmental regulation on business would help the problem? Why or why not? Answer: This is another hot marketing topic. Most traditional college students feel that pollution is a big concern, but there is a lot of variance in beliefs regarding governmental regulation. This is yet another good exercise for classroom discussion. The severity of pollution worldwide is indeed a significant concern, with various factors contributing to environmental degradation, including air pollution, water pollution, and waste generation. While marketing plays a role in influencing consumer behavior and consumption patterns, it is not solely responsible for environmental problems. Marketing can contribute to environmental issues in several ways: 1. Promotion of Unsustainable Products: Marketing campaigns often promote products that are resource-intensive, disposable, or have a significant environmental footprint. This can lead to overconsumption and increased waste generation, contributing to pollution. 2. Greenwashing: Some companies engage in greenwashing, where they falsely portray their products or practices as environmentally friendly to appeal to eco-conscious consumers. This can mislead consumers and undermine efforts to address environmental issues effectively. 3. Encouraging Consumerism: Marketing strategies often emphasize materialism and conspicuous consumption, encouraging consumers to buy more and newer products, even when they may not be necessary. This culture of consumerism can exacerbate resource depletion and pollution. While marketing can influence consumer behavior, it is just one aspect of a broader system that contributes to environmental degradation. Governmental regulation on businesses can play a crucial role in addressing pollution and promoting environmental sustainability. Here's why: 1. Setting Standards and Regulations: Government regulations can establish environmental standards and guidelines that businesses must adhere to, such as emissions limits, waste disposal regulations, and product labeling requirements. These regulations help mitigate pollution and hold businesses accountable for their environmental impact. 2. Incentivizing Sustainable Practices: Governments can provide incentives and support for businesses to adopt sustainable practices and technologies, such as tax breaks, subsidies for renewable energy, and grants for eco-friendly initiatives. These incentives encourage businesses to prioritize environmental responsibility. 3. Enforcement and Compliance: Governmental regulation ensures that businesses comply with environmental laws and regulations through monitoring, enforcement, and penalties for non-compliance. This helps prevent pollution and holds polluting companies accountable for their actions. However, while governmental regulation is essential for addressing environmental problems, it is not a standalone solution. Collaboration between governments, businesses, consumers, and civil society is necessary to implement effective policies, promote sustainable practices, and achieve meaningful progress in addressing pollution and environmental degradation on a global scale. Chapter Video Summary To view the video case the Putting Lot, go to the CB companion website login.cengage.com to select this video. Putting Lot Lack of recreational space and activity in an industrial neighborhood drove the co-organizers of the Putting Hole to convert a vacant lot into an urban mini-golf course. Initiated through friendly discussions, the project saw the participation of many neighborhood volunteers who wanted to engage in a community project that focused on neighborhood sustainability. BUSHWICKBK.com, a local blog, was the first to report an article on the Putting Lot. It was not long before different blogs picked up from the article and the Putting Lot was featured on The New York Times and various radio shows. It is a perfect story of how a “hyperlocal” idea made it big. Ask your students: 1. Explain the ethos of the Putting Lot in terms of the societal marketing concept. Answer: Part of being socially responsible is adopting the societal marketing concept. This concept considers the needs of society along with the wants and needs of individual consumers. Gabriel Fries-Briggs, co-organizer of the Putting Lot, created the Putting Lot with the objective of making a recreational space available to the Bushwick neighborhood in Brooklyn. Converting a vacant lot into an urban mini-golf course ensured the residents an easy access to recreation and fun. It also ensured that the transition in the neighborhood does not displace or alienate any one population. It also addresses the issue of neighborhood sustainability beyond the use of recycled materials to include building a place the residents can enjoy and be proud of. 2. Would you describe the Putting Lot’s corporate social responsibility strategy as ethical or altruistic? Justify your answer. Answer: Gabriel Fries-Briggs, co-organizer of the Putting Lot, uses the expression “hyperlocal” to reflect how the miniature golf course was built by local artists who incorporated local ideas. These ideas lend themselves to the theme of neighborhood sustainability. In addressing the issue of neighborhood sustainability beyond the use of recycled materials to include building a place the residents can enjoy and be proud of at the same time, The Putting Lot fulfills not only its altruistic duties but makes use of a “hyperlocal” idea for its strategic initiative. CB Scenario Video A “textiquette” expert talks about the increasing acceptance of texting in almost any social situation, whether it’s on a date, at a wedding, or even in bed. A survey revealed a definite difference in texting behavior among people from different generations, with people under 35 significantly more likely to find texting acceptable in most situations, as compared to people over 35. The rise of texting as a mode of communication may even hamper face-to-face interactions, and it is recommended that people draw boundaries for their own texting behavior. Ask your students: 1. How does the generational difference in texting behavior reflect the difference in moral beliefs among various consumers? Answer: There is a definite difference in texting behavior among people from different generations, with people under 35 significantly more likely to find texting acceptable in most situations, as compared to people over 35. Relativism is a component of a consumer’s moral beliefs that specifically refers to beliefs about the social acceptability of an act. A young consumer evaluates texting as socially acceptable in most situations relative to a consumer who is more than 35 years of age. 2. Why is it important to draw boundaries for our own texting behaviors? Answer: People do not view texting in most situations as acceptable. What one person may believe as mere communication can be perceived as misbehavior by another. It is important to keep social protocol in perspective. Also, many teens believe that sexting, taking nude photos of oneself and sending them to another person via cell phone, is acceptable behavior, while parents and school administrators do not feel the same way. 3. When can texting be related to product misuse? Answer: Consumers misuse products by using them in ways that were clearly not intended. According to a recent study, only 43 percent of teens surveyed aged 16–17 had never texted while driving, which of course suggests that 57 percent have. Part 5 In-Text Case Answers Case 5-1 Culture Creates Customer Dissatisfaction 1. What type of expectation does Mr. Joe Teng have about his ticketing situation? Answer: The answer is normative expectations. Given Mr. Teng’s past experience with Global Voyages, he expects to have his ticket and also expects to pay later as in the past. 2. Which of the theories of postconsumption reactions might explain Mr. Teng’s experience? Why? Answer: The theory of expectancy/disconfirmation applies to Mr. Teng’s experience. He had certain normative expectations along with perceptions of Global Voyages’ performance. In other words, the customer entered into a consumption experience with predetermined cognitive expectation of the travel agency’s performance. He will be using these expectations as a benchmark against which the current performance perceptions are evaluated. 3. If the customer is likely to mention his dissatisfaction or negative experiences with Global Voyages to his friends and acquaintances, what can Mr. Yadav’s business do to combat it? Answer: Given that the customer is likely to complain to his friends and acquaintances, Global Voyages can review and utilize the prescriptions provided in Chapter 15 about how service providers can handle customer complaints. Global Voyages can also develop a policy for payments and restrictions and make it known to customers before the transactions are completed. Of course, the policy has to also take into consideration the prevailing cultural context and how the travel agency’s competition is handling such situations. If the payment policy is too restrictive, they are likely to lose customers. 4. In your opinion, is this a case of customer misbehavior or not? Please justify your answer. Answer: The situation with Mr. Teng and Global Voyages might not be a typical definition of consumer misbehavior and the motivation for this kind of misbehavior is harder to determine. In this case, the cultural context that both the customer and service provider find themselves in along with Global Voyages letting the customer get away with overly protracted payments in the past might have led the customer to take advantage of the situation. 5. Which of the characteristics of relationship quality does Global Voyages exhibit in the case? Answer: Global Voyages seems to have exhibited all the characteristics of relationship quality in the past: competence, communication, trust, equity, personalization, and customer orientation. But, in the present situation, the company might be sensing less equity in transactions with Mr. Teng. 6. What would you do if you were the owner of Global Voyages; in other words, how would you deal with the situation? Answer: In this case, students might have a range of answers from firing the customer to giving him one more opportunity to make payments on time. But the key to developing a plan of action is to understand the hi-touch/hi-context situation the company and customer are operating in. Being too harsh with customers is culturally unacceptable and yet the company has to make customers aware of certain restrictions on payments. A combination of customer education about the consequences of delayed payments on both the parties and also being aware of customer sensibilities will be the key to avoiding such problems in the future. Case 5-2 Susan G. Komen for the Cure: Can this Relationship be Saved? 1. How did social media impact the complaining behaviors of donors and participants for Susan G. Komen for the Cure activities? What types of complaining behaviors were most apparent? Answer: The social media backlash was quick as people began posting criticism of the decision to fund Planned Parenthood on their Facebook pages and in their Twitter accounts. The huge outcry was reported in traditional media, mainly newspapers and television news, as well as through online news sources, such as The Huffington Post. Opponents of the decision spontaneously began donating money to Planned Parenthood within the first 48 hours of the story breaking. Susan G. Komen for the Cure received negative WOM, negative public publicity and switching behavior, all before they responded to the complaining behavior or reversed their decision. 2. What was the response by Susan G. Komen for the Cure to negative public publicity after their decision to stop funding mammograms in partnership with Planned Parenthood? Would you have responded differently had you been in charge? Answer: The Komen organization did not make a formal announcement about the decision, and they did not contact corporate sponsors in advance. Once the story broke in late January, they did not respond to the story for four days. This allowed the negative WOM and resulting publicity to reach many of their supporters without telling their side of the story. The lack of response infuriated the former Komen supporters, who felt their concerns were being ignored. After four days, Komen founder Nancy Brinker announced that the organization was backing off of the decision. This was not enough to alleviate the anger of the former supporters. A few days later, the Sr. VP of Political Affairs also resigned, but with comments that did not acknowledge the controversial nature of the decision. Because Komen did not respond quickly, they found themselves reacting rather than acting. In sports terms, they were forced to play “defense” rather than “offense” and thus delayed any recovery that could have occurred. Most customer-oriented organizations would have tried to gauge the reaction of supporters before the decision was made rather than assuming the organization understood the feelings and attitudes of their supporters. 3. Officials at Susan G. Komen for the Cure seemed unprepared for the intensity of response that they encountered. How would an understanding of the difference between customer loyalty and customer inertia have prepared the Komen officials for the reactions they experienced? Answer: Most nonprofit organizations assume that people who donate time or money regularly are more loyal to the organization than those who participate sporadically. Customer inertia occurs when people continue a pattern of behavior until some stronger force motivates them to change. Komen and Planned Parenthood are in the position of two people who share the same friend. One friend may have deeper ties than the other: a longer relationship, more frequent contact, or even more similar views and values. Komen did not understand that some supporters’ loyalty to Planned Parenthood was the primary relationship, and their support for Komen was weaker than they expected. Thus, the supporters felt their contributions to Komen produced something of value, but their contributions to Planned Parenthood were even more important. In the aftermath of new information, once supporters revised their opinions of Komen’s value, it is hard to go back to the previous attitudes. Thus, what appeared to be customer loyalty was in fact only customer inertia. 4. Does the Komen organization demonstrate characteristics of relationship loyalty with their donors? Why or why not? Answer: The characteristics of relationship quality are competency, communication, trust, equity, personalization, and customer orientation. Following the unpopular decision to defund Planned Parenthood grants, Komen supporters were exposed to attacks on the competence of the Komen organization, such as information about where the money was used. The delay in responding to criticism eroded both the communication and trust elements of the relationship. Some contributors also questioned the equity of the relationship when their criticisms and concerns seemed to be ignored. Komen still has the opportunity to personalize the relationship since participants contribute in the name of someone affected by breast cancer. And while Komen demonstrated a lack of customer orientation with a decision that was so “out of step” with their supporters, the use of public relations consultants and customer research indicates a desire to become more customer-oriented in the future. 5. Many Komen supporters switched their donations to Planned Parenthood after the negative public publicity. Use the concept of share of wallet to explain why this might have happened. Answer: Most individuals have a limited amount of disposable income that they give to causes and charities. They distribute their charitable donations according to which causes are most important, most salient, or closest to benefits they value. If the same supporters were donating to both the Komen organization and Planned Parenthood because both causes benefited women, any change in the amount given to one will necessarily reduce the amount of money available to the other organization. When supporters felt Planned Parenthood was threatened, and at the same time were exposed to negative information about Komen, the share of wallet increased for Planned Parenthood, reducing or excluding the share of wallet available for Komen. Case 5-3 Sports Fans Behaving Badly 1. Have you ever witnessed fan misbehavior? Describe the experience and how it impacted the value you received from the experience. Answer: Generally, impact on value for other consumers will center around the consumption situation and setting. Particularly the negative impact fan misbehavior has on their ability to see, hear, or positively experience the event. Fan misbehavior like yelling obscenities at officials typically leaves consumers uncomfortable or afraid. In addition, these types of incidents are disruptions to the consumer experience. Many victims of fan misbehavior report being unable to concentrate on the event or unwilling to fully participate due to fear of reprisal. 2. Is fan misbehavior unethical? Explain your answer. Answer: Although research indicates that misbehaving fans usually see their behavior as appropriate, society at large deems this behavior as unethical. According to the three components of moral beliefs: Moral equity—is this action fair or just? This action is unfair to the victims who tend to be chosen randomly. Contractualism—does this behavior violate a rule or norm? Fan misbehavior is a violation of the code of conduct for fans who are generally supposed to be passive participants. Relativism—fan misbehavior is seen as socially unacceptable. Based on these criteria, fan misbehavior is unethical. Fan misbehavior can indeed be considered unethical, as it involves actions that violate the rights, well-being, or dignity of others and disrupt the intended purpose or atmosphere of an event. Here are some reasons why fan misbehavior can be considered unethical: 1. Disruption of Enjoyment: Fans attend sporting events or other public gatherings to enjoy the experience, support their team, and create a positive atmosphere. Misbehavior such as excessive yelling, cursing, or physical aggression can disrupt this enjoyment for others, detracting from the overall experience and potentially causing discomfort or distress. 2. Violation of Rights: Misbehavior that involves harassment, intimidation, or violence towards players, coaches, officials, or other fans violates their rights to safety, respect, and dignity. Everyone has the right to participate in or spectate sports events without fear of harm or harassment. 3. Negative Impact on Reputation: Fan misbehavior reflects poorly on the reputation of the team, organization, or community associated with the event. It can create a negative image, deter fans from attending future events, and damage relationships with sponsors, partners, or stakeholders. 4. Undermining Sportsmanship: Sports events often promote values such as sportsmanship, fair play, and respect for opponents. Misbehavior that undermines these values, such as taunting, heckling, or unsportsmanlike conduct, goes against the spirit of competition and fair play. 5. Safety Concerns: Certain forms of fan misbehavior, such as physical altercations or throwing objects onto the field or court, can pose safety risks to participants, spectators, and staff. Ensuring the safety and well-being of everyone involved should be a top priority at sporting events. Overall, fan misbehavior undermines the integrity, enjoyment, and purpose of sports events and public gatherings. It disregards the rights and well-being of others, violates ethical principles of respect and fairness, and can have negative consequences for individuals, organizations, and communities. Therefore, it can be considered unethical and should be addressed and prevented through proactive measures such as education, enforcement, and fostering a culture of respect and sportsmanship. 3. What are the motivations of fan misbehavior? Answer: Typically, answers will refer to thrill seeking, lack of moral constraints, pathological socialization, provocative situational factors, and opportunism. Many dysfunctional fans are excited by the act of misbehaving illustrating the thrill-seeking motivation. Research supports the notion that misbehaving fans often do not see anything wrong with their behavior indicating a lack of moral constraints. In some cases, due to pathological socialization, fans believe opposing teams deserve any abuse that may be heaped upon them. Provocative situational factors like crowding, excessive alcohol consumption, and heat may also motivate fan misbehavior. 4. What measures can be taken to prevent or reduce incidents of fan misbehavior? Answer: Managerial remedies to date have included banning or limiting the sale of alcohol in an effort to reduce the chances of fan misbehavior. These strategies are strongly opposed by alcohol selling firms and consumers. Event managers have also tried to reduce incidents of misbehavior by increasing the number of security personnel and asking fans to report behavior violations. Some even propose fining teams or deducting points from teams of misbehaving fans. As a final resort, misbehaving fans have been banned from events. 5. Is fan misbehavior appropriately described as abusive consumer behavior? Answer: Abusive consumer behavior contains four categories: behavior which is verbally or physically abusive; uncooperative customers; drunken customers; and customers who break company policy. Fan misbehavior spans each of the four categories. Misbehaving fans often engage in verbally or physically abusive actions toward opposing teams or officials. Misbehaving fans are generally disruptive and unruly game participants. Many cases of fan misbehavior involve alcohol consumption. Finally, misbehaving fans break rules of society, etiquette, and facilities. Hence, fan misbehavior is appropriately described as abusive consumer behavior. Part 5 Online Case Answers Visit www.login.cengage.com to access the online case studies for CB. Bullying Behavior: It’s Not Just on the Playground Anymore 1. Have you ever experienced or observed cyberbullying? If so, think about the incident and how it affected members of the situation. Answer: More than 32 percent of teenagers report cyberbullying, and millions more unreported incidents occur. These statistics suggest that teenagers 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? Answer: 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? Answer: Many for-profit firms have become involved in socially responsible marketing, which includes anticipating in 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. Green Attitude Leads to Green Action 1. Why do consumers, such as Madhu, think green but not really act green? What are some of the impediments to acting green? Answer: 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 possess adequate knowledge of what is to be done. Consumers may lack understanding of environmental problems or lack belief in the existence of these problems, lack knowledge of human impact on the planet, and lack 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 a 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 products 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. Answer: Based on earlier research experiments and promotional activities by companies, it is well known 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 who could be persuaded by incentives to go green. For example, many European countries and the United 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? Answer: There are many strategies a “green” consumer can adopt in order to reduce their impact on the environment. They include reducing consumption (e.g., less meat), reuse items (e.g., grocery bags as trash bags), convert waste (e.g., composting), trading items no longer used/needed (e.g., old video games for cash or new games), donating older items (e.g., to Goodwill Industries or the Salvation Army), and reselling old items (e.g., 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? Answer: 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 Environmental Protection Agency (EPA) for home appliances. The Green Seal (greenseal.org/) is a non-profit agency that helps consumers find green certified products and services. Green America (greenamerica.org/) provides a seal of approval for environmental and socially responsible businesses and lists them in the National Green Pages. Good Housekeeping magazine has added a “green seal” of approval. According to 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.” Given the evolving nature of green marketing, there are likely to be other organizations or agencies developing green seals of approval, making consumers’ green decision-making less complex. The Ethics of Selling Home Improvement Services 1. Which sales technique discussed in Chapter 16 best describes the one used by Joel? Explain. Answer: Joel demonstrates a considerable degree of savviness in requesting that Don simply let him up on the roof. This then leads to taking up Don’s time with details of what Joel’s company has to offer, which subsequently 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? Answer: As discussed in Chapter 16, foot-in-the-door selling is predicated on self-perception theory. Applying this theory to our case study, a salesperson 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 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. Answer: 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? Answer: 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 salesperson 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. eBay Case 1. Does eBay assess the entire consumption process of its consumers? Why or why not? Suggest different methods for assessing consumer satisfaction that may be useful in eBay’s case. Answer: Relying only on the feedback system, eBay does not assess the entire consumption process. The company only assesses the process up to the point of obtaining the product and not the actual usage, or consumption, of the product. Suggestions from students may include sending out surveys, conducting focus groups, or conducting telephone interviews to assess the other portions of the process after consumers receive the products and begin consuming them. 2. How does the consumption situation differ between eBay consumers and consumers at brick-and-mortar retailers? Answer: Consumers shopping at brick-and-mortar stores receive the traditional benefits of being able to shop socially with others, sample or try on products, physically visit several stores, and so forth. For eBay consumers, the social aspect will be absent or greatly altered because most people do not have eBay shopping friends. There will also be no opportunities to try on clothing and shoes or to otherwise try the products before purchasing. Finally, although the eBay consumer has access to many different products, he or she does not have the opportunity to physically visit different stores as part of the shopping experience. 3. How much did the ACSI score for eBay change from 2005 to 2006, by percentage? What is the significance of these scores and changes, as compared to other large Internet companies represented in the table? Answer: ACSI is an acronym that stands for American Consumer Satisfaction Index and is a validated measure of consumer satisfaction for the companies included in the index. The percentage of change in the eBay ACSI score between 2005 and 2006 is -1.23 percent. If this negative trend continues, eBay will experience a decrease in customer satisfaction. In comparison with the other companies represented in the table, eBay is somewhere in the middle. There is definitely room for eBay to improve its ACSI score. In addition, about one-half of the companies in the table have a positive trend in their ACSI scores, and about one-half are experiencing a negative trend. A good policy for eBay is to remove itself from the middle of the pack, as it is currently, and strive to place itself in the group of better-performing Internet companies. 4. Use the website for the ACSI scores (www.theacsi.org) to find out how the scores for eBay compare with brick-and-mortar retailers, such as Kohl’s, J.C. Penney, Target, Dillard’s, Macy’s, Nordstrom, and Walmart. Explain your findings. Answer:

When compared with these brick-and-mortar retailers, eBay is doing as well as any of them and better than most. It is even performing better than the higher-end stores such as Nordstrom, Macy’s, and Dillard’s. 5. According to the expectancy/disconfirmation theory, what could be one of the problems eBay faces in attempting to increase its consumer satisfaction? Answer: Because it is impossible for a consumer to actually try a product before making the purchase, there is the possibility that a consumer will receive something other than what he/she expected. When a product is not as expected, in most cases it is due to negative disconfirmation because the product turns out to be less than expected. However, it is possible for positive disconfirmation to occur in situations in which the product turns out to be better or more than expected. In either case, the chances for this phenomenon to occur are increased because of the nature of making purchases online in the eBay consumption experience. Healthcare Professionals Case 1. How can Avant Healthcare further leverage its brand loyalty from its HCPs to help in its business? Answer: Avant Healthcare’s brand loyalty can be leveraged into its marketing to attract more HCPs to work for them. This can be done by stressing on their high customer satisfaction in their marketing efforts, such as in advertisements. Avant can also encourage HCPs to tell their friends and colleagues about Avant’s quality programs, which will help attract more HCPs. 2. What is the importance of Avant proactively asking its HCPs about possible concerns? How does this help Avant build brand loyalty? Answer: By encouraging the act of complaining, Avant is able to identify problems and fix them. It also makes HCPs feel supported, which leads to satisfaction and brand loyalty. 3. How do the international medical staffing firms that view customer complaints as nothing more than a pain in their side contribute to customer disconfirmation formation by their HCPs? Answer: International medical staffing firms make HCPs believe that they are only out to make money and are not looking out for the HCPs’ best interests, as exemplified in the negative quotes cited in the article. This negative cognition leads to negative reactions of disgust, anger, skepticism, and frustration, which in turn lead into the behaviors of complaining, negative word of mouth, and leaving their contracts early. 4. What kinds of long-term implications can the negative word-of-mouth have on international medical staffing firms? Answer: Negative word-of-mouth will lead to loss of brand loyalty, negative public publicity, loss of potential future HCPs, and switching behavior from the HCPs who are currently working for them. Identity Theft Case 1. What measures can consumers take in order 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? 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 Piracy 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 of 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: 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. 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 Return Time: 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 college student, is trying to make a return for a dress she has 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 has already worn the dress by the smell and the deodorant stains. Fiona gets irritated by the store’s return policy, which states that one 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 would not shop there again and feels Brett was pressuring her into a purchase that she could not 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 Answers 1. 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 is anything unethical about returning worn merchandise without any defects? Answer: Yes, many people may have found themselves in situations similar to Fiona's, where they purchased an item, used it, and then attempted to return it. The outcome of such attempts can vary depending on store policies, the condition of the merchandise, and the discretion of the store staff. In some cases, individuals may have successfully returned worn merchandise, especially if they encountered defects or issues not apparent during the initial purchase. Retailers often have return policies that allow for returns within a certain time frame, even if the item has been used, as long as it is still in good condition or if there are legitimate reasons for the return, such as manufacturing defects. However, returning worn merchandise without any defects raises ethical questions. While it may seem convenient for the consumer, it can be considered unethical as it essentially amounts to taking advantage of the store's return policy for personal gain. It could also result in losses for the retailer, who may not be able to resell the item as new or may incur additional costs associated with refurbishing or disposing of the returned merchandise. Ultimately, whether returning worn merchandise without defects is unethical depends on various factors, including the specific circumstances, the store's return policy, and societal norms regarding consumer behavior. It's essential for individuals to consider the implications of their actions and strive to act ethically in their interactions with businesses and others. 2. Explain the concept of 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 happen 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 that the decision was difficult to reverse. The store had a strict return policy, so she was not able to get her money back. 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 is on the rise. Consumers are returning items like crazy. The difference with retail borrowing is that the return is premeditated. Fiona did participate in retail borrowing. She bought the dress for a formal event and with the intent to return it after she wore it. Solution Manual for CB Consumer Behaviour Barry J. Babin, Eric G. Harris 9781305403222, 9781305577244