BABIN / HARRIS
CB
PART 5
CHAPTER 16
Consumer and Marketing
Misbehavior
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Learning Outcomes
1. Understand the consumer misbehavior phenomenon and how
it affects the exchange process.
2. Distinguish between consumer misbehavior and consumer
problem behavior.
3. Discuss marketing ethics and how marketing ethics guide the
development of marketing programs.
4. Comprehend the role of corporate social responsibility in the
field of marketing.
5. Understand the various forms of regulation that affect
marketing practice.
6. Comprehend the major areas of criticism to which marketers
are subjected.
16-2
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Consumer Misbehavior
and Exchange
• Consumer misbehavior—behavior that
violates generally-accepted norms of
conduct.
• In order for exchanges to occur in an
orderly fashion, the expectations of the
consumer, the marketer, and even other
consumers must coincide with one
another.
LO1
16-3
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
The Focus of Misbehavior: Value
• Misbehaving consumers seek to maximize
the benefits that they receive from an
action while minimizing, or eliminating,
associated costs.
• Unfortunately, other consumers suffer
while misbehaving consumers break
societal norms and laws.
LO1
16-4
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Consumer Ethics and
Misbehavior
• Moral beliefs
• Ethical decision making
• Consumer behavior/misbehavior
LO1
16-5
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Moral Beliefs
• Beliefs about the perceived ethicality or
morality of behaviors.
• Components:
• Moral equity—beliefs regarding an act’s
fairness or justness.
• Contractualism—beliefs about the violation
of written (or unwritten) laws.
• Relativism—beliefs about the social
acceptability of an act.
LO1
16-6
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Ethical Evaluations
• Deontological evaluations—focus on specific
actions. Is this action right?
•
Kant’s Categorical Imperative—one should act in a
way that would be considered a universal law for all
people facing the same situation.
• Teleological evaluations—focus on consequences
of the behaviors and the goodness or badness of
the consequences. How much “good” will result
from this decision?
•
LO1
Issues considered:
•
•
•
•
Perceived consequences for various stakeholders.
Probability of consequences occurring.
Desirability of the consequences for the stakeholders.
Importance of the stakeholder groups to the consumer.
16-7
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Motivations of Misbehavior
•
•
•
•
•
•
•
Unfulfilled aspirations
Thrill-seeking
Moral constraints are absent
Differential association
Pathological socialization
Provocative situational factors
Opportunism
LO1
16-8
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Misbehavior and
Problem Behavior
• Consumer misbehavior—used to describe
behavior deliberately harmful to another
party in an exchange process.
• Consumer problem behaviors—refer to
behaviors that are seemingly outside of a
consumer’s control.
• Distinguish between the two by
considering the issue of self-control.
LO2
16-9
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Consumer Misbehavior
•
•
Shoplifting
Computer-mediated behaviors
•
•
•
•
•
Consumer fraud
Abusive consumer behavior
Dysfunctional sports behavior
Illegitimate complaining
Product misuse
•
•
•
•
•
LO2
Illegal sharing of software and music
Attacks
Aggressive driving
Drunk driving
Cell phone use in cars
16-10
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Compulsive Consumption
• Repetitive, excessive, and purposeful
consumer behaviors that are performed as a
response to tension, anxiety, or obtrusive
thoughts.
•
Differs from addictive consumption, which is a
physiological dependency on the consumption of
a product.
• Forms:
•
•
LO2
Compulsive buying
Compulsive shopping
16-11
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Eating Disorders
• Binge eating—the consumption of large
amounts of food while feeling a general
loss of control over intake.
• Bulimia—includes binge eating episodes
followed by self-induced vomiting or
purging.
• Anorexia—the starving of one’s body in
the pursuit of “thinness.”
LO2
16-12
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Binge Drinking
• The consumption of 5 or more alcoholic
drinks in a single drinking session for males
and 4 or more drinks for women.
• Prevalent among college students.
• Consequences:
•
•
•
•
•
LO2
Suicide attempts
Unsafe sexual practices
Legal problems
Academic disruptions
Death
16-13
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Problem Gambling and
Drug Abuse
• Problem gambling—an obsession with
gambling and the loss of control over
gambling behavior and its consequences.
• Also referred to as “pathological gambling.”
• Drug abuse—both illegal and legal drugs
(such as over-the-counter medications and
prescription drugs) can become
problematic for consumers.
LO2
16-14
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Marketing Ethics and
Consumerism
•
Marketing ethics—consists of societal and professional
standards of right and fair practices that are expected
of marketing managers as they develop and implement
marketing strategies.
•
Consumerism—a term used to describe the activities
of various groups to protect basic consumer rights.
•
Consumer Bill of Rights (1962):
•
•
•
•
LO3
The right to safety.
The right to be informed.
The right to redress and to be heard.
The right to choice.
16-15
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
The Marketing Concept
and the Consumer
• The marketing mix
•
All areas of the marketing mix can be brought
into question. Products can be categorized as:
deficient, salutary, pleasing, desirable.
• Consumer vulnerability and harmfulness
•
Public criticism of marketing strategies tends to
be most intense when a marketer targets
vulnerable consumer groups with harmful
products.
• Employee behavior
•
LO3
Morals—personal standards and beliefs that are
used to guide individual action.
16-16
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Corporate Social Responsibility
• An organization’s activities and status related to its
societal obligations.
• Categories of behavior:
•
•
•
Ethical duties—acting within expected ethical
boundaries.
Altruistic duties—giving back to communities
through philanthropic activities.
Strategic initiatives—strategically engaging in socially
responsible activities to increase the value of the
firm.
• Social Marketing Concept—considers not only the
wants and needs of individual consumers, but also
the needs of society.
LO4
16-17
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Regulation of Marketing
Activities
•
•
•
•
•
•
•
•
•
•
•
•
•
Sherman Antitrust Act (1890)
Federal Food and Drug Act (1906)
Clayton Act (1914)
Wheeler Lea Act (1938)
Fair Packaging and Labeling Act (1966)
Child Protection Act (1966)
Truth in Lending Act (1968)
Consumer Product Safety Act (1972)
Children’s Online Privacy Protection Act (1998)
Anticybersquatting Consumer Protection Act (1999)
Consumer Telephone Records Act (2006)
Consumer Product Safety Improvement Act of 2008
Credit Card Accountability, Responsibility, and
Disclosure Act 2009
Helping Families Save Their Homes Act 2009
•
LO5
16-18
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Public Criticism of Marketing
• Deceptive advertising
•
•
•
•
•
•
•
•
Puffery
Marketing to children
Pollution
Planned obsolescence
True versus artificial needs
Manipulative sales tactics
Stealth marketing
Products liability
LO6
16-19
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Product Liability
• The extent to which businesses are held
responsible for product-related injuries.
• Strict liability—consumers can win a legal
action against a firm if they can
demonstrate in court that an injury
occurred and that the product associated
with the injury was faulty in some way.
• Punitive and compensatory damages.
LO6
16-20
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.