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Chapter 16The Dark Side of ConsumerBehavior

Consumer Behavior - A FrameworkJohn C. MowenMichael S. Minor

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Ke Concepts Deceptive

advertisin!

Children"s a#ilit to

distin!uish pro!ramsand ads

$mprovin! children"sadvertisin!

%e!li!ent consumer#ehavior

&roduct misuse

Drivers ofcompulsiveconsumption

Corporate socialresponsi#ilit

'h (rms want toseem responsi#le

Consumer reactionsto product recalls

Corporate rumors

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$ntroduction )irms ma en!a!e in unscrupulous

#ehavior. Consumers also en!a!e in

ne!li!ent #ehavior. *overnments re!ulate #uin! and

sellin! !oods and services toreduce the harmful e+ects of these#ehaviors.

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Ma,or &u#lic &olic $ssues Deceptive advertisin!

-dvertisin! to children

Telemarketin! fraud

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Deceptive -dvertisin! -n advertisement which is potentiall

misleadin! or literall false is deceptive. &otentiall misleadin! ads are dicult to

evaluate #ecause miscomprehension maoften occur. Miscomprehension is a pro#lem for (rms #ecause

the audience does not understand the messa!e#ein! delivered.

The )TC re!ulates deceptive advertisin!/ #utnot miscomprehension.

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-dvertisin! to Children Both polic makers and marketin!

mana!ers have reacted to criticism of

advertisin! directed at children. Some countries have #anned

advertisin! to children under 10.

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Telemarketin! )raud The elderl are

vulnera#le to fraud #

telemarketers. - pro!ram to com#at

this fraud is the Know)raud &ro!ram.

r!ani2ations that (!httelemarketin! fraud arethe --3&/ the )B$/ the&ost ce/ and others.

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%e!li!ent Consumer

Behavior %e!li!ent #ehavior is composed of

actions and inactions that ma

ne!ativel a+ect the lon!4term 5ualitof life of individuals and societ.

This tpe of #ehavior can occur in two

di+erent contets7 &roduct Misuse Consumption of 8a2ardous &roducts

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&roduct Misuse Man in,uries result from

misuse of a safe product4 not from product

defects. 9sin! a cell phone while

drivin! is #ein! outlawedin some areas.

:The most dan!erous

component is theconsumer/ and there"s nowa to recall him.;

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Consumin! 8a2ardous

&roducts Between 1conomic Disincentives

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Compulsive Behavior Some products are ha2ardous and consumption

can #ecome compulsive or addictive over time.

ther #ehaviors are not harmful in moderation#ut #ecome addictive when the #ecomecompulsive. Smokin!

Compulsive Drinkin! *am#lin! Compulsive Shoppin!

ther Compulsions

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Smokin! Consumers until the late 1

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Compulsive Drinkin! -s mentioned earlier/ there has #een a

decline in alcohol4related deaths on the

road. This su!!ests a decline in alcoholconsumption.

Despite the decrease in sales of hardli5uor/ there is an increase in alcoholic

soft drinks. These taste like colas or fruit ,uices #ut ma

contain more alcohol than #eer does.

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*am#lin! *am#lin! a+ects an estimated = to 10

million people.

*am#lin! takes place in casinos in ase!as/ %ew Jerse/ on river #oats andelsewhere.

State4run lotteries make it eas to!am#le # visitin! a convenience store.

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Compulsive Shoppin! Some consumers :shop

till the drop; #ecause

shoppin! can #ecomean addiction similar toalcohol or dru!s.

There are dru!savaila#le to help

relieve this compulsion. Compulsive shoppin!

ma #e hereditar.

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ther Compulsions

verworkin! andovereatin! are someother compulsions.

3esearch hasstressed sociolo!icaland pscholo!icalinuences. Chemical

im#alances ma also#e important. Multiple compulsions

ma occur to!ether.

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Corporate Social

3esponsi#ilit )irms have #ecome viewed as

responsi#le for more than !eneratin!pro(ts.

:Corporate social responsi#ilit; refersto the idea that (rms have an o#li!ation

to help the lar!er societ # o+erin!some of their resources.

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Succeedin! in the on!

3un - #usiness"s self4interest could #e

advanced if the #usiness em#raced a

lon!4run view. This position would permit ependitures

in support of sociall responsi#leactivities and provide future #ene(ts in

the form of consumer approval andloalt.

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-c5uirin! a &ositive &u#lic

$ma!e ne wa of showin! that companies are

sociall responsi#le is # creatin! a

positive pu#lic ima!e. -nother wa that (rms can show the

are sociall responsi#le is # makin!speed product recalls.

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The Di+usion of 3umors &u#lic peace of mind can #e corrupted

# di+usion of rumors.

3umors often pla!ue #oth lar!e andsmall companies.

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Tpes of 3umors Pipe dreamrumors represent wishful thinkin! onthe part of the circulators.

The bogie rumor is a fear rumor that spooks themarket place.

Self-fulllingrumors are #ased on a perceptionof what could happen in the future if somethin!else were to occur.

$n premeditatedrumors individuals spread

rumors that ma help them (nanciall orotherwise. Spontaneousrumors arise when people seek

eplanations for unusual events.

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-voidin! 3e!ulation - (nal reason to act in a sociall

responsi#le manner is to avoid

!overnment re!ulation. Most of the #urden of social

responsi#ilit is on marketers. The cando #est # followin! the strate!ies

su!!ested/ and maintainin! a positiveinitial corporate ima!e and respondin!5uickl when diculties arise.

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Mana!erial $mplications &ositionin!. The concept of corporate social

responsi#ilit has direct implications for thepositionin! of a compan. >+orts to create a

:!ood4citi2en; ima!e help to position a (rm asone that puts customers (rst.

>nvironmental -nalsis. - compan"s actionsmust #e in compliance with laws andre!ulation. - (rm should #e in a position to respond promptl

if a response is warranted7 -n :earl4warnin!sstem; needs to #e in place and functionin!continuousl.

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$mplications continuedE 3esearch. Market research should #e used to

determine how consumers view the compan. Market research ma also help determine whether

customers are usin! a (rm"s product in a novelmanner that ma #e unsafe.

Marketin! Mi. &ricin!/ promotion/ productdevelopment/ and distri#ution should #esociall responsi#le.

Se!mentation. Some population se!mentsare more concerned with issues of corporatesocial responsi#ilit than are other se!ments.