Lesson 1 – FOUNDATIONS OF CONSUMER BEHAVIOR
Unit 2 – Consumer and Social Well-Being
Overview
Mainstream shoppers increasingly choose “green” products that are better for the environment. On the other hand, there has been a lot of hype about “the green revolution”; since the recession, consumers are a lot more cost-conscious. To add to the confusion, even well-intentioned shoppers have trouble figuring out which brands really are better. It’s practically a full-time job to sort out all the competing claims. One solution is for independent rating agencies to develop labeling systems that the shopper can use to decide among options—but even these systems can be overwhelming.
Learning Objectives
• Ethical business is good business.
• Marketers have an obligation to provide safe and functional products as part of their business activities.
• Consumer behavior impacts directly on major public policy issues that confront our society.
• Consumer behavior can be harmful to individuals and to society.
Course materials
Ethical business is good business.
Business ethics are rules of conduct that guide actions in the marketplace; these are the standards against which most people in a culture judge what is right and what is wrong, good or bad. Marketers must confront many ethical issues, especially ones that relate to how much they make consumers “want” things they don’t need or are not good for them. A related issue is materialism, which refers to the importance people attach to worldly possessions, and the role of business in encouraging this outlook.
Marketers have an obligation to provide safe and functional products as part of their business activities.
It is both ethically and financially smart to maximize customer satisfaction. In some cases, external bodies such as the government or industry associations regulate businesses to ensure that their products and advertising are safe, clear, and accurate. Consumer behavior
researchers may play a role in this process and those who do transformative consumer research (TCR) may even work to bring about social change. Companies also play a
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significant role in addressing social conditions through their corporate social responsibility (CSR) practices and social marketing campaigns that promote positive behaviors.
Consumer behavior impacts directly on major public policy issues that confront our society.
Our relationships with companies and other organizations are complex and many issues that impact quality of life relate directly to marketing practices. These include the tradeoff between our privacy and the ability of companies to tailor their offerings to our individual needs. Other issues revolve around market access because many people are unable to navigate the marketplace as a result of disabilities, illiteracy, or other conditions. In addition, our fragile environment requires a commitment to sustainable business practices that attempt to maximize the triple bottom-line that emphasizes financial, social, and environmental benefits.
Consumer behavior can be harmful to individuals and to society.
Although textbooks often paint a picture of the consumer as a rational, informed decision maker, in reality many consumer activities are harmful to individuals or to society. The “dark side” of consumer behavior includes terrorism, addiction, the use of people as products (consumed consumers), and theft or vandalism (anti-consumption).
Read:
Chapter 2 – Consumer and Social Well-Being
Consumer Behavior 12e
by: Michael R. Solomon
Activities/assessment:
Answer the following Review Questions:
1. What are business ethics, and why is this an important topic?
2. The economics of information perspective argues that advertising is important. Why?
3. What are the main features of consumer space? Does it actually work as a methodology?
4. Why should companies encourage consumers to complain? How can this benefit the business?
5. What is greenwashing? Is it ethical? Are consumers likely to be convinced?
6. In what ways is corporate social responsibility different from social marketing?
7. Why is market access an important aspect of consumer well-being? What are some important reasons why consumers can experience limited market access?
8. What is LOHAS, and how is it significant to marketers?