CB-Week14

8/8/2019 CB-Week14

http://slidepdf.com/reader/full/cb-week14 1/19

Based on the text by

Prof.Mowen Lecture by

S.Victor Anandkumar University of Mauritius

Consumerism and the Dark Side of Consumer Behaviour

8/8/2019 CB-Week14


8/8/2019 CB-Week14


Major Public Policy Issues

Deceptive advertising Advertising to children

Telemarketing fraud

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Deceptive Advertising An advertisement which is potentially misleading or literally false is deceptive.

Potentially misleading ads are difficult to evaluate because miscomprehension may often occur.

Miscomprehension is a problem for firms because theaudience does not understand the message being delivered.

Types of deception False objective claim

Puffery

Deception by what is NOT said in an ad

Ads leading to an incorrect inference

Deceptive selling The bait-and-switch technique

Misrepresenting the Selling intent

Incorrect statements or Promises

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Advertising to Children Children influence some $180 billion in US purchases

($1.87 trillion worldwide).

An average child spends 3.5 hours in TV watching and is

exposed to more than 30,000 ads a year Both policy makers and marketing managers have reacted

to criticism of advertising directed at children.

Sweden has banned advertising to children under 12.

Other measures: Using a separator between the program and the ad

Ban on host selling

Encourage truthful and accurate advertising that recognizeschildren¶s cognitive limitations

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Telemarketing Fraud

The elderly are vulnerable to fraud by

telemarketers. A program to combat this fraud is the

Know Fraud Program.

Organizations that fight telemarketing

fraud are the AARP, the FBI, the Post

Office, and others.

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8/8/2019 CB-Week14


Framework for Deviant Consumer Behaviour

W hy

Deviant ?

Deviant acquisition

behaviour

Deviant usage

behaviour

Physical /

Psychological

Abnormality

Compulsive buying Addictive consumption

Smoking

Drugs

Alcohol

Compulsive consumption

Binge eating

Compulsive gambling

Illegal

behaviour

Consumer theft

Black markets

Underage drinking

Underage smoking

Drug use

S tage of the consumer behaviour process

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Consumer theftProduct Factors Enticing product and

unfulfilled aspirations

Contraband item

Embarrassing item

Environmental Factors Low-perceived risk and high-

perceived opportunismAccessible product

Limited security

Crowded store

Consumer Factors Thrill-seeking tendencies

Product Factors

Low-ticket itemEnvironmental Factors Accessible product

Limited security

Crowded store

Consumer Factors Attitudes towards the store

Attitudes towards big biz

Moral development

Differential association

Temptation

Ability to

rationalize

THEFT

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Negative effects of marketing Does advertising make consumers dissatisfied

with their appearance?

Does advertising make consumers materialisticand hence dissatisfied with what they have

achieved?

Does advertising misrepresent segments of

consumers? Does advertising cost or benefit the consumer?

Do marketing practices invade consumers¶

privacy?

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Corporate Social Responsibility

Firms have become viewed as responsible

for more than generating profits.

³Corporate social responsibility´ refers to

the idea that firms have an obligation to

help the larger society by offering some of their resources.

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Succeeding in the Long Run

A business¶s self-interest could be

advanced if the business embraced a long-run view.

This position would permit expenditures in

support of socially responsible activities

and provide future benefits in the form of

consumer approval and loyalty.

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Acquiring a Positive Public Image

One way of showing that companies are

socially responsible is by creating a positive public image.

Another way that firms can show they are

socially responsible is by making speedy product recalls.

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The Diffusion of Rumors

Public peace of mind can be corrupted by

diffusion of rumors.

Rumors often plague both large and small

companies.

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Avoiding Regulation

A final reason to act in a socially responsible

manner is to avoid government regulation.

Most of the burden of social responsibility is

on marketers. They can do best by following

the strategies suggested, and maintaining a

positive initial corporate image andresponding quickly when difficulties arise.

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Managerial Implications Marketing Mix. Pricing, promotion, product

development, and distribution should be socially

responsible.

Segmentation. Some population segments are

more concerned with issues of corporate social

responsibility than are other segments.

CB-Week14

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