CH-17 Marketing, Ethics, and Social Responsibility in Today’s Consumer Society – Consumer Behavior : Book Guide

Chapter 17 Marketing, Ethics, and Social Responsibility in Today’s Consumer Society CHAPTER SUMMARY Deviant consumer behavior covers both illegal and psychologically/physically abnormal behavior. Deviant acquisition behaviors include compulsive buying, consumer theft, and black markets; deviant consumption behaviors include addictive and compulsive consumption and underage drinking and smoking. These behaviors are fairly pervasive, and although some (such as black markets) can have certain consumer benefits, most have fairly negative effects on consumers and the social groups in which they operate. Critics have questioned whether and/or how much marketing practices influence these behaviors. Advertising has been accused of promoting obesity, perpetuating idealized body images, creating materialistic values, and invading consumer privacy. In response, many companies are adopting strategies to reduce public criticism and put marketing practices in a more favorable light. Marketers are also interested in the social responsibility issues of conservation and environmentally friendly behavior. Consumers are showing their disapproval of practices regarded as unwanted, disreputable, objectionable, and/or unethical through individual resistance, support of advocacy groups, and participation in boycotts. CHAPTER LEARNING OBJECTIVES After studying this chapter, students will be able to 1. Distinguish between social and temporal dilemmas, and explain the search for balance in decisions that can involve such dilemmas. 2. Define marketing ethics and consumer ethics, and identify some of the issues that arise from unethical or deviant acquisition, consumption, and disposition behaviors. 3. Discuss some of the ways in which consumers and organizations use marketing for socially responsible purposes. 4. Describe what consumers can do to resist unwanted marketing practices. CHAPTER OUTLINE I. In Search of Balance A. Self Interest Versus the Interests of Others 1. Me vs. We is a way to frame this. 2. Focusing on “me” is not intrinsically bad. a) Helpful other-focus is sharing of ideas, for instance via social media. b) A social dilemma is when me vs. we conflicts. c) Harmful self-focus is for instance, shoplifting. They diminish the loss to others. 3. Immediate Versus Long-Term Interests a) Temporal dilemma is how will the decision impact interests immediately compared with in the future. b) Positive WOM is often a long-term goal for companies. c) Decisions that push short-term interests may have positive or negative long-term effects. 4. “Dark Side” Versus “Bright Side” Outcomes a) Conflicts that arise from dilemmas in marketing can lead to outcomes that can harm consumers or marketers. b) Financial results came entail a social and temporal dilemma, which could entice some to inflate financial results (e.g., Enron). c) These extreme examples of Enron, World-Com, etc. are rare, but problematic to many when they happen. II. Marketing Ethics, Consumer Ethics, and Deviant Consumer Behavior A. Acquisition Controversies 1. Materialistic Behavior a) Materialism is a value in many cultures. b) It is on the rise in China and Asia, due to more media and branding. c) It is a neutral value. d) Family influences on materialism are strong. Parents who are materialistic tend to pass that down and have materialistic children more than others. e) Consumers who perceive they are less well off than others may be not as satisfied in their life. Although materialism does not buy happiness. 2. Addictive and Compulsive Behavior a) Addictive behavior reflects excessive behaviors typically brought on by chemical dependence. b) Consumers may become addicted to many goods and services including cigarettes, drugs, alcohol, Internet use, TV, video games, etc. c) Addicted individuals feel that stopping is beyond their control. d) Addictive behaviors can be harmful to addicts and those around them. e) Compulsive consumption is an irresistible urge to perform an irrational consumption act. f) Examples of compulsive consumption include compulsive gambling, eating, and shopping. g) Characteristics of compulsive buying (1). Strong emotional component. (2). Compulsive buyers feel anxious when not buying. (3). Emotional arousal from store’s atmosphere. (4). Emotional high followed by remorse, guilt, shame, and depression. h) Why do people buy compulsively? (1). Compulsive buyers have low self-esteem and buying results in attention and social approval. (2). Fantasy orientation is a personality trait linked with compulsive buying. (3). Compulsive buyers often come from families whose member show compulsive or addictive behaviors. i) Compulsive gambling is another type of compulsive consumption. (1). Compulsive gamblers tend to come from families in which other members exhibited addictive or compulsive behaviors, be generally impulsive, and view materialism as a measure of success. (2). There seems to be a link between compulsive gambling and consumption of alcohol, tobacco, and illicit drugs. 3. Consumer Theft a) Prevalence of Consumer Theft (1). Retail losses of $107 billion yearly in the U.S. (2). Theft is increasing and becoming more sophisticated. (3). Identity theft is of particular concern to today’s consumers. b) Factors Affecting Consumer Theft (1). Temptation to Steal (a). Arises when consumers want products they cannot acquire through legitimate forms of acquisition. (b). May be too embarrassed to buy through conventional channels. (c). Represents a contraband item. (d). Thrill-seeking tendency. (2). Rationalizations for Stealing (a). Feel the environment has encouraged it. (b). Social influences encourage theft. (c). More likely to rationalize theft if store has negative public image. (d). Consumers whose moral development is weak may not see the act of stealing as wrong. 4. Black Markets a) Situations where consumers refuse to pay for available items, so they pay for unavailable items b) They may be legal, but in short supply (e.g., university graduation tickets) c) They can also be brands or illegal items (counterfeit goods) 5. Targeting Vulnerable Segments a) Consumers in developing nations, elderly, children, are examples of vulnerable segments. b) Ad messages may prey on children’s needs for sensual satisfaction, play, and affiliation. 6. Marketing Implications a) Does Marketing Perpetuate Materialism? (1) Consumers slow spending during recessions, thus marketing does not cause buying. Marketing is designed to influence spending; it does not cause it. Marketing serves to make acquisition attractive and convenient. It is up to the consumer how much they choose to buy. b) Does Marketing Encourage Addictive and Compulsive Acquisition Behaviors? (1). An ethical issue for marketers is whether marketing activities encourage addictive, compulsive and impulsive behaviors in consumers. (2). There are marketing activities that attempt to reduce addictive and compulsive consumption. c) How Can Marketers Deal with Consumer Theft? (1). Some marketing activities encourage impulsive behavior, such as candy and gum near the checkout lane of a grocery store. Theft has resulted in increased usage of theft-reducing devices. Because retailers have to find a way to pay for lost merchandise and pay for the cost of high-priced security systems, theft increases the price of products. Security systems may interfere with retailers’ ability to serve customers. d) How Can Marketers Deal with Black Markets? (1). Marketers attempt to thwart online and offline black markets. (2). Many products are fake, and the real versions can fight this due to stolen brand equity. (3). Fake merchandise may be hazardous, so marketers should communicate these dangers. e) Should Marketers Target Children? (1). CARU has developed guidelines for children’s advertising. B. Consumption Controversies 1. Underage Drinking and Smoking a) Overuse of alcohol has been implicated in campus violence, campus property damage, academic failures, teen highway fatalities, youth suicides, and campus hazing deaths. 2. Idealized Self-Images a) Advertising may contribute to an idealized self-image based on society’s. b) Thinness is a characteristic of attractive people, and critics question any links to anorexia. 2. Compulsive Gambling a) Impacts six to nine million Americans. b) There are links with alcohol, drugs, and cigarettes with compulsive gambling. c) Industry and marketing practices may perpetuate this, so many casinos run a gambling addiction hotline and support system. 4. Overeating and Obesity a) Obesity is an epidemic. It cannot be blamed on advertising and marketing, although critics claim a link. Marketers can help by communicating nutritional information. b) Advertisers and marketers cannot make someone eat a marketed food; it is up to the consumer what they put in their mouth. c) Consumers tend to underestimate the calorie content of foods they consume, and perceive unhealthy foods to be tastier. 5. Privacy Controversies a) Social media and e-commerce highlight this issue. b) The point of tracking online consumer behavior is to provide consumers with more useful ads based on their interests and history. c) There is concern that businesses take too much personal information. 6. Marketing Implications a) Does Marketing Encourage Underage or Excessive Drinking and Smoking? (1). Distribution systems make it easy for underage consumers to buy these products. (Availability) (2). Advertising for these products heightens young consumers’ interest in them. (Exposure) (3). Mainstream advertisers may send inappropriate messages about cigarette and alcohol even if they do not sell these products. (4). Packaging should more effectively spell out the risks of products. (Warning labels) b) Does Advertising Affect Self-Image? (1). Some are unhappy with their bodies as they compare themselves to thin models; others are happy with their bodies and are hostile to advertisers that portray unrealistic images. (2). Marketers must disclose risks that some take for their body image (e.g., muscle supplements). c) Does Marketing Affect Compulsive Gambling Behavior? (1). The expansion of casinos (e.g., into China) may cause concern to those who have a tendency to compulsive gambling. (2). Most programs set aside funds for consumer education. (3). Online gambling is generally illegal in the US, but legal elsewhere. d) Does Marketing Contribute to Overeating and Obesity? (1). The WHO sees a link between junk food advertising and childhood obesity. Parents play a key role. (2). Advocacy groups are campaigning for more restrictions on junk food. (3). Marketers also encourage healthy behavior. e) Do Marketers Invade Consumers Privacy? (1). Marketers believe the biggest reason for privacy concerns is that consumers do not understand how the information marketers collect is used and might benefit consumers. The point is to better target ads so consumers get ads they are interested in. (2). The EU has the strictest privacy laws. (3). Marketers are doing more to reassure consumer privacy online and off. B. Disposition Controversies 1. Disposing of Products That Still Function a) Give away, trade, sell, donate, auction, recycle vs. throwing away. 2. Disposing of Products That Do Not Function a) Throw them away in an acceptable way-recycle or garbage b) There may be value in the parts. 3. Marketing Implications a) Marketers can communicate how to dispose or recycle (e.g., batteries). b) Goodwill and related charities encourage donations. c) Companies are being pushed to use less product packaging and more eco friendly products and parts. IIII. Social Responsibility Issues in Marketing A. Environmentally Conscious Behavior 1. Marketers can be directly and indirectly involved in efforts to foster environmentally conscious behavior and address concerns about global warming. a) While these marketing behaviors may have additional costs, they also may open up opportunities for additional profits. b) Increased trash in the environment is another concern, and marketing activities such as refillable containers and recycling has had an effect. c) Conservation behavior is key; When are consumers likely to conserve? (1). When they accept personal responsibility for the pollution problem. (2). When there are no barriers to prevent them from conserving. (3). When there is social pressure to conserve. d) Can consumers be motivated to be environmentally friendly? (1). Many organizations are attempting to increase environmentally friendly behavior. (a) Ads encouraging conservation behaviors. (b) Providing consumers with information on how to be environmentally friendly. (c) Most effective is to give consumers incentives to conserve. B. Charitable Behavior 1. The influence of marketing on charitable behavior is researched. d) A consumer’s cognitive resources can deplete upon a foot in the door charity tactic that reduces self-control and has an enhanced outcome of donation. e) Charitable behavior varies by culture. C. Community Involvement 1. Marketing can be a catalyst for community-based social responsibility. 2. Marketers often have policies to encourage employees to get involved in the communities where they do business. 3. This can generate goodwill and WOM. IV. How Can Consumers Resist Marketing Practices? A. Consumers may engage in individual resistant tactics such as choosing not to patronized, complaining to the marketer, and spreading negative WOM when they are dissatisfied with a firm’s marketing practices. B. Formal advocacy groups may engage in resistance by informing the public about socially inappropriate business behaviors. C. Groups may organize boycotts in which consumers avoid purchasing the products or services from a company whose practices are seen as unfair or unjust. 1. Consumers susceptible to normative influence will more likely participate in boycotts. 2. Consumers may attempt to limit guilt or boost self-esteem by participating in boycotts. 3. Boycotts may gain publicity and have more impact than individuals acting on their own. 4. A boycott may be aimed at either a company’s products or its activities. QUESTIONS FOR REVIEW AND DISCUSSION Possible answers are as follows. 1. Why is balance needed in decisions that involve social dilemmas and temporal dilemmas? Answer: Decisions come with potentially conflicting outcomes and consequences. A social dilemma is deciding whether to put self-interest or the interests of others first. Temporal dilemmas refer to deciding whether to put immediate interests on long-term interests first. Thus, it can be a “me vs. we” situation. Thus, there need be a balance among: self-interest versus the interests of others, immediate vs. long-term interests, and dark side vs. bright side outcomes. 2. What is deviant consumer behavior, and is it always unethical? Answer: Deviant consumer behavior is when consumer behavior is unexpected or not sanctioned by members of society. Note, this is not necessarily illegal—nor unethical behavior. For example, one could consider some shopping deviant if a person buys all that is remaining of a hard-to-get product (the iPhone 5) and sells extras to their “friends” for a hefty profit. It is deviating from social and shopping norms. 3. How does addictive behavior differ from compulsive behavior? Answer: Addictive behavior is often physical (e.g., to alcohol, drugs) and needs medical treatment (e.g., to detox the body of the chemicals). Addiction can also be to caffeine, and one may go through withdrawl symptoms (e.g., shaking) when not getting the substance. Yet, some can be “addicted to” shopping, or gambling. Often, this manifests in either compulsive or impulsive behaviors. Compulsive buying is a level of spending in which consumers purchase excessive quantities of items they do not need and sometimes cannot afford. Individuals who buy compulsively gain satisfaction from the buying process, not the owning process. It is a problem when it compromises an individual’s ability to function normally within the confines of daily life and negatively affects the lives of those people important to the consumer. 4. How do temptation and rationalization affect consumer theft? Answer: Temptation to steal arises when consumers want products that they cannot obtain through legitimate forms of acquisition. Sometimes people steal for the thrill of doing something they are not supposed to do. Consumers also engage in theft because they can somehow rationalize their behavior as being either justified or driven by forces outside themselves. Criminals will usually justify their behavior such as “I know I should not have taken that, but it’s a big store and I work hard.” 5. What is social comparison theory, and how does it apply to advertising? Answer: Social comparison theory proposes that individuals have a drive to compare themselves with other people. Advertising often uses social comparison theory. To illustrate, advertisers might use attractive people to sell their products or show a mother using a product for their baby to demonstrate that good, caring mothers use this product. 6. What influences conservation behavior and charitable behavior? Answer: Conservation behavior is limiting the use of scarce natural resources for the purposes of environmental preservation. Consumers are more likely to engage in environmentally conscious consumer behavior when they feel accountable for the problem and feel they can do something about it. Social norms also influence consumers’ behavior toward the environment. Marketers can influence consumers’ environmentally conscious behavior by ads, information and incentives to conserve. 7. What can consumers do to resist unwanted marketing practices? Answer: Consumers can form advocacy groups that engage in resistance by informing the public about business practices they regard as socially inappropriate. Additionally, they might boycott a company and its products whose policies or practices are seen as unfair on unjust. Or, consumers can opt out of e-mail communication, or choose not to “like” a brand on social media. CONSUMER BEHAVIOR CASE Marketing Baby Carrots Like Junk Food Can marketing encourage people to snack on baby carrots as if they were junk food? That’s what California-based Bolthouse Farms has set out to do, with the help of Colorado advertising agency Crispin Porter + Bogusky. Bolthouse CEO Jeff Dunn, a former Coca-Cola marketing executive, remembers thinking that his firm’s baby carrots are “a perfect snack”—low-calorie, inexpensive, good tasting, and nutritious. “But people aren’t eating as much of them as we’d like. So what do we do?” Crispin’s advertising experts told Dunn that baby carrots have a lot in common with junk food. “They’re neon orange, they’re crunchy, they’re dippable, they’re kind of addictive,” said Omid Farhang, the agency’s creative director. Baby carrots may be healthy, but Dunn wanted to avoid messages that discuss nutrition, which he calls “the rational approach.” Instead, the agency aimed to reposition baby carrots by emphasizing their eat-anywhere, bite-size snackability and associating them with skateboarding and other popular, contemporary activities. “It’s about getting baby carrots into a different category,” says Crispin’s CEO. What baby carrots needed was the right positioning, messages, packaging, and distribution. A new campaign was born. Crispin created a catchy slogan: “Baby carrots: Eat ‘em like junk food.” Next, it designed a flashy new bag, much like the packaging that chips come in, with a window so buyers can see that they’re buying fresh vegetables. It set up a Twitter account and YouTube channel to reach out to social-media-savvy consumers, tested three TV commercials, and printed store displays promoting baby carrots as “the original orange doodle.” Also, the agency developed colorful baby carrot vending machines that resemble the machines used to sell chips and other snacks. Finally, it posted engaging online content, marketing baby carrots with fun games and apps. During test-marketing, Bolthouse found that its sales in the test cities were as much as 12 percent higher than its sales in non-test-markets. The vending machines sold as many as 90 snack packs each week, and a number of schools called about putting the machines in cafeteria areas. In short, baby carrot snacks were beginning to catch on. To keep the campaign fresh, Crispin has added new online content and designed additional packaging alternatives to catch the eye of shoppers. Meanwhile, Bolthouse is experimenting with new flavored baby carrots, following the lead of snack marketers that add flavors to their basic chips or pretzels. This will give novelty-seekers more options and may even win over snackers who prefer flavored carrots to plain ones. Other vegetable and fruit marketers are paying close attention because the marketing that makes baby carrots appealing as junk food could very well work for apples and other foods. Baby carrots aren’t going to replace every other snack food on the shelf, but sales are growing little by little as more consumers get the message. For example, U.S. consumers buy millions of extra bags of chips, order millions of pizza slices, and stock up on fizzy soft drinks for Super Bowl Sunday. Lately, however, baby carrots are starting to score: Bolthouse Farms now ships 28 percent more baby carrots during the week leading up to the Super Bowl than in an ordinary week. Case Questions 1. Which is likely to be more effective, marketing baby carrots to young consumers or to parents of young consumers? Why? Answer: Children have a significant influence on the way in which their parents spend money, therefore influencing their tastes (toward eating carrots) will lead them to ask for carrots and actually then eat them. That may be more effective than advertising to parents who cannot then convince their children carrots are a delicious snack. 2. Does the marketing of baby carrots raise any social or temporal dilemmas? Answer: The social dilemma may lie in marketing directly to children and how to do so in a way that isn’t deceptive or misleading. In this case there doesn’t seem to be a significant temporal dilemma because marketing healthy snacks to children now will both increase the company’s profits and potentially lead to healthier eating habits in the future. 3. Is there a potential “dark side” to marketing baby carrots as junk food? Answer: Classifying a healthy food as junk food may confuse children and make it harder for them to distinguish between healthy foods and junk foods as they grow up and begin making more consumption decisions for themselves. 4. Do you agree with this strategy of marketing baby carrots as junk food instead of as a healthy snack? Explain your answer. Answer: No because it may lead to children who can’t distinguish healthy food from junk food. Yes because it’s novel way to market healthy food and has been successful so far; two attributes other health foods have struggled to find. Success in this endeavor is important to the health of the nation as rates of childhood and adult obesity continue to grow in the US. SUGGESTED EXERCISES AND TEACHER GUIDELINES 1. Using library sources, research retailers’ and service companies’ yearly losses due to theft, insights about factors affecting theft, whether theft has been increasing or decreasing in recent years, and what marketers are doing to reduce theft. Report your results to the class. Interview consumers and ask whether they have ever engaged in theft and why. Discuss your findings with other members of the class. Answer: What impact, if any, has technology had in helping retail establishments decrease consumer theft? Is employee theft an issue? What controls are in place to reduce this problem? Yearly Losses: Retailers lose billions annually to theft; the U.S. alone faces about $45 billion in losses. Factors Affecting Theft: Poor security, economic downturns, and store design contribute to theft. Trends: Theft rates are mixed; some reports show a decrease due to better security, while others indicate persistent issues. Marketers’ Actions: Strategies include advanced surveillance, EAS tags, improved store layouts, and employee training. Consumer Interviews: Some consumers engage in theft due to financial need, peer pressure, or perceived low risk. Class Discussion: Examine the impact of theft, discuss preventive strategies, and explore consumer motivations. 2. Collect and share magazine advertisements that deal with cigarettes or alcohol. Do these ads suggest that such advertising (a) is excessive, (b) targets youths, or (c) represents images that are attractive to youths? Answer: It has been stated within the cigarette industry, that since brand loyalty is so high amongst cigarette users, the only way to compete is to capture starters. If you were a marketer for these types of products, would you argue that targeting consumers would benefit rather than harm them by providing consumers with products best suited to their particular needs and wants? Magazine Ads for Cigarettes or Alcohol: Excessive Advertising: Ads often appear frequently, suggesting high levels of promotion. Targeting Youths: Some ads use youthful models or themes that appeal to younger audiences. Attractive Images: Ads may feature glamorous or rebellious imagery to attract youths. Summary: Many cigarette and alcohol ads are criticized for being excessive, targeting youth, and using appealing images to attract younger audiences. 3. Collect and share magazine advertisements that use models. Use these advertisements and your own personal experience to argue for or against the idea that advertising perpetuates negative body images. Answer: How have society’s views of body images changed over time? What might the future hold for these types of marketing techniques? Magazine Ads Using Models: Argument For: Ads often feature idealized, unrealistic body types, which can promote negative body image by setting unattainable standards. Argument Against: Some ads use diverse models and promote body positivity, which can challenge traditional beauty standards. Summary: Many ads perpetuate negative body images by showcasing unrealistic ideals, though some efforts are made to promote body positivity. Personal experience may reflect how these ideals impact self-perception. 4. Collect and share magazine advertisements that portray women, minorities, and mature consumers. Based on your observations, evaluate whether advertisers misrepresent these key segments or represent them in stereotypical ways, Answer: Magazine Ads Portraying Women, Minorities, and Mature Consumers: Women: Often depicted in traditional roles or focusing on beauty and fashion, which can reinforce stereotypes. Minorities: Sometimes shown in limited or stereotypical roles, lacking diversity in representation. Mature Consumers: Ads may portray older adults in limited, often stereotypical ways, like focusing on health or retirement. Summary: Many ads misrepresent or rely on stereotypes for women, minorities, and mature consumers, though there are efforts to improve representation and diversity. 5. Examine the privacy policies of three Internet retailers. What types of data does each retailer say it collects, and why? Under what circumstances can you review the data each site would be collecting about you? What does each retailer say it plans to do with consumers’ personal data? Do you think these sites are addressing consumers’ privacy concerns? What can you suggest to improve these privacy policies? Answer: The answer to this question depends on the Internet retailers that students visit. Most Internet retailers have a privacy policy that describes what they do with your personal information. They either keep it to themselves, sell your email address/personal information to mailing lists, or send you marketing communications. Internet retailers such as Best Buy, Amazon.com, and others are allowing consumers to opt out of advertising communications from the company. To improve consumer’s privacy concerns a retailer should allow consumers to opt out of advertising and having their name sold to a mailing list. Some e-tailers are asking for the consumer’s permission to store their credit card number on their internal server. This at least allows the consumer to have a sense of control and security when it comes to privacy/security on the Internet. Suggestions for improvements to these policies vary, students should focus on opt out clauses, descriptions of what the site does with its personal information, and the steps a consumer needs to take to ensure the company does not share the information with others. For instance, Apple makes the popular iTunes software, which is available free. Yet, when a consumer downloads the iTunes software, there is a box they have to check if they want to receive communications from Apple. Retailer A: Collects personal details, payment info, and browsing history for transactions and marketing. Data can be reviewed through customer service or account settings. Data used for marketing and shared with partners. Retailer B: Gathers personal info, purchase history, and location data for enhancing user experience and targeted ads. Data review possible via privacy settings or formal request. Used for personalization and analytics. Retailer C: Collects account details, payment info, and device data for payments and marketing. Data review available through account dashboard or upon request. Used for marketing and service improvement. Summary: Retailers address privacy concerns but may lack transparency on data sharing. Improve policies by clarifying third-party sharing, providing better opt-out options, and enhancing data control for consumers. SUGGESTED INTERNET EXERCISES WITH SAMPLE ANSWERS NORTH AMERICAN ASSOCIATION OF STATE AND PROVINCIAL LOTTERIES Does the prevalence of government-run lottery games encourage compulsive gambling? The North American Association of State and Provincial Lotteries provides evidence to the contrary at its website, (www.naspl.org). However, the organization’s home page does not solely boost lotteries, but includes links to a wealth of opinions on both sides of this controversial issue. Visit the website for the NASPL and click the various links to associated pages. What information at the site offers lotteries a defense against critics? In what ways might the NASPL’s site help compulsive gamblers? Instructor Notes As a visitor would expect, the North American Association of State and Provincial Lotteries provides considerable evidence to support government-operated lotteries. The site points out that in surveys concerning gambling preferences, about 1 percent of gamblers stated a preference for lotteries over other forms (e.g., cards, video poker, and so forth). In its general description of problem gambling behavior, the NASPL site asserts that only a small fraction of gamblers become compulsive in their behavior; the vast majority enjoy the experience without becoming dysfunctional, just as most social drinkers do not become alcoholics. Furthermore, the site includes an exhaustive list of the uses of lottery revenues in various states and provinces. Foremost are support for education, infrastructure, and social programs. The implication is clear: lotteries provide revenues for these activities that otherwise would come from higher taxes or would not be funded at all. The NASPL’s website offers considerable assistance to compulsive gamblers and those dealing with them. Toll-free phone numbers for problem gambling hotlines appear prominently at the site. Also included is a diagnostic list of behaviors that may indicate the existence of, or potential for, compulsive gambling. Those affected may recognize the problem by comparing their own or another’s behavior with the points on the list, and may actually turn to help before serious repercussions occur. Additional Uses This exercise also relates to concepts in the following chapters: • Chapter 3, From Exposure to Comprehension(subjective miscomprehension concerning lotteries and compulsive gambling) • Chapter 6, Attitudes Based on Low Effort (marketing messages about lotteries as recall cues; affective bases of attitudes) • Chapter 7, Problem Recognition and Information Search (online information search concerning problem gambling) • Chapter 16, Symbolic Consumer Behavior (compulsive gambling and actual and ideal identity schemas) • Appendix, Developing Information About Consumer Behavior (ways to improve consumer research methods for describing and predicting compulsive gambling) Discussion Idea Do you agree with critics of lotteries who claim that they prey on poor consumers? Why, or why not? PLUS-SIZE E-TAILING The average adult consumer is taller and heavier than at any time in US history, yet many marketers continue to include unnaturally thin models in their advertisements. Considerable evidence exists to corroborate the negative effects of exposure to such images on the body images and general psychological health of consumers. A healthy niche market online involves clothing and accessories for so-called plus-size consumers, who often encounter great difficulty shopping for, and locating, fashionable items. Visit the following e-tailers that cater to the needs of this market: Peggy Lutz Fashions (www.plus-size.com); Big and Tall Direct (www.bigtalldirect.com); Repp Menswear (www.casualmale.com); and Lane Bryant Online (www.lanebryant.com). How do the women’s clothing e-tailers comply with, or deviate from, the usual marketer-promoted images of women? Other than the styles of clothing (for women or for men), how do these sites differ from one another? Instructor Notes The women’s clothing e-tailers both deviate from and comply with the usual marketer-promoted, unnaturally thin images of women. In particular, the Lane Bryant site features images of runway models who are of average (or very slightly larger than average) body size, wearing body-revealing clothing such as midriff-baring tops. This reinforces two potentially damaging messages: average-size women are overweight; and sexiness relates to a woman’s willingness to reveal skin, not to her mental or emotional characteristics. On the other hand, the Peggy Lutz Fashions website depicts a larger-than-average woman wearing a flowing garment in a bright, floral print fabric. This defies the conventional wisdom that truly large women must conceal their forms with dark clothing in inconspicuous designs. Both sites seem to emphasize the fashionable nature of their product offerings, rather than focusing on shopping convenience, breadth of selection, or other factors in evidence at both of the men’s e-tail sites. Perhaps because they conform to the stereotype of male as inept or uncomfortable with shopping, the Repp Menswear site and the Big and Tall Direct site provide user-friendly pull-down menus of product offerings. Overall, both of the men’s e-tail sites provided easier navigation and more product information than the women’s sites. Additional Uses This exercise also relates to concepts in the following chapters: • Chapter 3, From Exposure to Comprehension (nonfocal attention to marketing cues at fashion websites) • Chapter 5, Attitudes Based on High Effort (TORA model applications to online fashion shopping) • Chapter 7, Problem Recognition and Information Search (self-definition as large-size consumer as a trigger for online information search) • Chapter 8, Judgment and Decision Making Based on High Effort (brand-based and attribute-based models) • Chapter 11, Social Influences on Consumer Behavior (normative influences on body image) Discussion Idea What are the other advantages to marketers and to large-size consumers of niche marketers online? NATIONAL CHECK FRAUD CENTER Among the fastest-growing forms of consumer theft are check and credit card fraud. Sometimes used to fund other illegal activities, sometimes a way of financing compulsive buying, sometimes simply for greed, a few consumers will use fraudulent means to obtain funds or merchandise. Visit the website for the National Check Fraud Center at www.ckfraud.org. What suggestions does the site provide for consumers to protect themselves from check and credit card fraud? Besides check and credit card fraud, what other criminal activities are described at the NCFC’s website? How has modern technology made check and credit card fraud easier and more lucrative? Instructor Notes The National Check Fraud Center provides several helpful suggestions to reduce the probability of becoming a victim of check or credit card fraud. The key is preventing criminals from obtaining sensitive identifying information (e.g., Social Security numbers, driver’s license numbers) thereby thwarting their attempts to access existing accounts or to create fraudulent ones. First, consumers should provide only the minimum necessary identifying information for check approval at a retailer. Second, consumers should make sure to retrieve all information sources (e.g., driver’s license, credit card) and all receipts before leaving the counter after making a purchase. Third, consumers should secure all receipts in a safe place or shred them. Finally, consumers should guard their purses and wallets carefully to prevent pocket picking. The NCFC’s website also provides information on other financial crimes such as marketing scams and identity theft. Unfortunately, modern technology enables check fraud perpetrators to reproduce very accurate counterfeits of financial documents such as personal checks. Armed with these counterfeits, clever criminals can deplete consumers’ bank accounts and credit lines. Additional Uses This exercise also relates to concepts in the following chapters: • Chapter 2, Motivation, Ability, and Opportunity (impact of motivation, ability, and opportunity on the probability of consumer crime) • Chapter 12, Consumer Diversity (influences of these factors on consumers’ vulnerability to check and credit card fraud) • Chapter 16, Innovations: Adoption, Resistance, and Diffusion (influence of consumer crime on consumer attitudes concerning cashless transactions) Discussion Idea Will credit card fraud and identity theft stop or reverse the trend toward online purchasing? Why, or why not? ADDITIONAL DISCUSSION QUESTION WITH SAMPLE ANSWER This discussion question can be used as an in-class activity or as a thought question that the students consider while reading the chapter or to test their understanding of the material after the reading and lecture are complete. 1. Discuss the psychological factors that primarily impact consumer theft. Answer: The two psychological factors that primarily influence consumer theft are the temptation to steal and the ability to rationalize theft behavior. Consumers are tempted to steal when they do not have legitimate means to acquire a good, are embarrassed to purchase the item, or believe that the theft is worth the risk. Consumers who steal frequently rationalize their behavior by arguing that their behavior is in some way justified. They argue that it is motivated by external factors or encouraged by the environment. ADDITIONAL QUESTIONS 1. Discuss the factors that influence compulsive buying. Focus on those marketing practices that might be particularly problematic for compulsive buyers. Explain what marketers might do to target and help compulsive buyers. Discuss the ethical and legal questions that arise regarding these issues. Answer: Compulsive Buying: • Marketing Practices: Problematic tactics include high-pressure sales and emotional appeals. Marketers should promote responsible consumption and provide financial management resources. • Ethical and Legal Questions: Concerns about exploiting vulnerabilities and legality of high-pressure techniques. 2. Describe the structure of a black market. Explain why such markets exist and the factors that perpetuate them. Answer: Black Market Structure: • Structure: Operates illegally with secrecy and cash transactions. • Existence and Perpetuation: Exists due to high regulation or prohibition, driven by demand and profit. 3. In recent years, compulsive gambling has been on the rise. Discuss the factors that may be causing this rise. Discuss what role, if any, gambling organizations should have in helping compulsive gamblers. Answer: Compulsive Gambling Rise: • Factors: Increased online access, aggressive marketing, and poor regulation. • Role of Gambling Organizations: Should offer responsible gambling measures and support for addiction treatment. 4. Discuss whether advertising creates idealized images of appearance and body type. Discuss the extent to which advertising might influence consumers’ satisfaction with their own appearance. Answer: Advertising and Idealized Images: • Creation: Ads often promote unrealistic beauty standards. • Influence: Can lead to dissatisfaction with one's appearance. 5. Create a list of examples in which you believe advertisements might have influenced consumers’ materialistic values and/or satisfaction with their own material possessions. Answer: Ads Influencing Materialistic Values: • Examples: Luxury brand ads, tech gadget promotions, and beauty product campaigns. 6. Argue both sides of the following statement using logic and evidence to support your views: Advertising encourages sexual, violent, and materialistic values in children. Answer: Advertising and Values in Children: • Supports: Ads can promote sexualized, violent, and materialistic values. • Against: Ads can also educate and promote positive behaviors. 7. Discuss how advertisers have historically represented women, ethnic minorities, and the mature market. Discuss whether these representations are changing. Use examples to support your discussion. Answer: Representation in Advertising: • Historical: Stereotypical roles for women, underrepresentation of minorities, and neglect of older age groups. • Changing: More diverse and realistic portrayals are emerging. 8. Discuss whether advertising saves or costs the consumer. Develop logical arguments and support for both positions. Answer: Advertising: Saves or Costs: • Saves: Informs consumers, promotes competition, and improves choices. • Costs: Can increase spending, drive materialism, and create dissatisfaction. EXPERIENTIAL EXERCISES AND CLASSROOM EXAMPLES Students who learn more readily through visual and tactile stimuli will benefit from the introduction of physical examples into the classroom. 1. “The Bad and the Ugly” Exercise Ask students to bring in to class examples of ads (print, radio, or TV) they find offensive and to explain their reactions. This exercise generally produces a fascinating array of “ugly” advertising. It is great for demonstrating that ugliness is in the eye of the beholder, because what acutely offends one student might not bother others at all. Some students have low “offensive” thresholds, reacting negatively to ads that use sex to sell, that portray an individual or group of individuals in a demeaning fashion, that insult the audience’s intelligence, that stretch the truth, or that use humor inappropriately. Other students have difficulty finding any advertising that bothers them. Reactions often differ widely across genders. Use the exercise to motivate a discussion of whether advertising leads or reflects social values, of where the responsibility for offensive advertising lies (with the client who pays for it, the agency that creates it, or the media that runs it), and of how advertisers can minimize unintended consumer reactions (by developing creative and media strategies that focus more clearly on the target market). 2. End-of-the-Semester Taste Tests Taste tests are always an interesting way to illustrate consumer behavior principles. One obvious example is holding a blind taste test to differentiate between Coke and Pepsi. It is interesting to see how brand loyal consumers (i.e., Coke/Pepsi drinkers) fare under these conditions. An offshoot of the Coke-Pepsi taste test is to prepare two-liter bottles with RC Cola in both. Before class, empty out the contents of a two-liter of both Coke and Pepsi. Pour in RC into both the Pepsi and Coke. Announce to class that there will be a soft-drink taste test. Pull out the doctored two-liter bottles of Coke and Pepsi. Ask for student volunteers to help pour each into a different colored small cup. Student volunteers will help the credibility of the exercise as both colored cups should taste identical, given they are the same product, RC Cola. Eating a cracker in between drinking the two cups should keep them from realizing that the contents are the same. Ask for student input as to how easy it was to tell the difference between the two (most will say it is fairly easy). After some students guess which cup is which soft drink, explain how both cups were filled with RC. It’s guaranteed to get quite a reaction when they learn the truth. Another useful comparison taste test is to have students differentiate between a name-brand item and a generic item of the same product category. Generic/name-brand granola bars and soft-batch cookies make good products to use. CLASSROOM GROUP ACTIVITY Marketing Addictive Substances: 40 Minutes I. Start Up A. Purpose of the activity 1. This activity will give students an opportunity to consider marketers’ social responsibility when bringing offerings into the marketplace. B. What the instructor will do 1. The instructor will divide people into small groups, be available to coach, and help the groups as needed. 2. Optionally, groups may be provided with clear overhead acetates and markers so they can summarize their discussions and make presentations after their analysis and discussion. C. What the participants will do 1. The participants will work in small groups to address concerns marketers should have for promoting the use of cigarettes, alcohol, and caffeine. After a period of small-group discussion, they will make reports to the larger group. D. Rules for this experience 1. Groups are to work separately from each other. Individuals should rely on their knowledge from the book and may refer to their notes and the book as necessary. II. Experience A. Group up. 1. Have students form groups of no more than five. This exercise will work in groups of any size; however, room restrictions that do not allow for moving furniture may make group work more difficult. B. Specific actions for groups 1. The groups are responsible for developing a list of issues associated with the marketing of addictive products. 2. Optionally, groups can summarize their discussions on clear overhead acetates to facilitate presentations after their analysis and discussion. 3. Questions to be answered by small groups a) Discuss whether marketers should be allowed to market products, like cigarettes, that are addictive. What about alcohol? What about caffeine? Consider whether the responsibility for the addictive behavior lies completely with the consumer or completely with the marketer. Take the role of a public policy committee and develop your recommendations regarding the sales and marketing of addictive products like those above. As much as possible, support your recommendations with consumer behavior research and theory. 4. Large-group discussions a) After about 20 minutes of small-group activity, proceed to have each group present its ideas to the class in a round-robin format. III. Debrief and Unveil Concepts A. Discuss the activity itself. 1. The purpose of this discussion is to allow students to express what they felt about the experience itself. 2. Ask students to describe their experiences of doing the activity. a) Likes and dislikes about what just happened b) How they felt during the experience c) What is realistic, unrealistic about the exercise? d) What will be different if they do this outside of the classroom situation? B. Discuss the content of the experience. 1. The purpose of this discussion is to ensure that students “take away” important learning points. 2. Ask students to describe the important points the experience teaches. a) The importance of considering broader social issues when making marketing decisions. 3. Use the chalkboard to record student responses. a) Write down their ideas as they are presented. b) Concentrate on the principles being discussed rather than the examples being used. c) Help them to see the interrelationships among their responses. IV. Execute A. Apply what has been learned. 1. Lead a discussion on how the concepts can be applied in organizations. a) What barriers may be faced in applying the concepts from the exercise? b) What can be done to help others understand the concepts when you use them at work? B. Transfer and use the knowledge. 1. Encourage students to make a record in their notes about how they will use the ideas in the workplace. 2. Even if they do not have a specific job, how will they remember to use what they have learned? Valerie Bauerlein, “Carrots Vie for a Spot on Game Day,” Wall Street Journal, February 2, 2012, www.wsj.com; David Wright and Mary Marsh, “Baby Carrots: The Next Snack Food?” ABC News, February 7, 2012, http://abcnews.go.com; and Douglas McGray, “How Carrots Became the New Junk Food,” Fast Company, April 1, 2011, www.fastcompany.com. Solution Manual for Consumer Behavior Wayne D. Hoyer, Deborah J. MacInnis, Rik Pieters 9780357721292, 9781305507272, 9781133435211