Consumer Behavior: Consumer and Social Well-Being

What is consumer addiction?

Consumer addiction- psychological dependency on products or services

What is compulsive consumption?

Compulsive consumption- excessive purchasing of products to relieve tension/stress

What are examples of consumed consumers and

Consumed consumers-people who are used or exploited, willingly or not, for commercial gain. Ex. prostitution, the red market for body parts, surrogacy

What are some of the dark sides of consumer behavior?

Cyber-bulling- harm to people via the internet Excessive drinking and cigarette smoking; stems from societal pressures. Exposure to unattainable ideals of beauty and success creates dissatisfactions with our bodies or our achievements.

What are the three major public policy issues relevant to consumer behavior? Be familiar with each.

Data Protection- protecting consumer digital data Market Access -limitation to purchase goods & services for people w/disabilities Sustainability & Environmental Stewardship- the negative impact & carbon footprint on the environment

What are some of the major regulatory agencies and their responsibilities?

FDA- protects against advertising claims, contents of edible products, and pharmaceuticals. EPA-develops and enforces regulations aimed at protecting the environment Federal Communications Commission FCC-regulates telephone, radio, and television content

What are green marketing and greenwashing ?

Green marketing- strategy to produce and promote environmentally friendly products Greenwashing- companies false advertise about how environmentally friendly their products are

What are examples of crimes against businesses?

Shrinkage- inventory and cash loss caused by shoplifting and employee theft. Serial wardrobers- buy a garment, wear it once, and return it Counterfeiting- companies or individuals sell fake versions of real products to customers.

What is the economics of information perspective regarding the role of advertising?

The perspective called "the economics of information" shows how consumers benefit from viewing advertising. By providing information, advertising reduces consumers' search costs (time spent looking for products) and reduces disutility (unhappiness or lost value) from picking the wrong products.

What 3 options do dissatisfied consumers have?

Voice response-complaints to the company directly private response-1:1 convo from company --> consumer 3rd party response- public dissatisfaction (social media)

What is the triple-bottom line approach to business?

business strategies that strive to maximize return in three ways: financial, social, and environmental

What are business ethics, and why are they important for marketing?

businesses must be honest and transparent with consumers about their products and company ethics

Why is market regulation needed?

consumers can be protected from the products they consume

What is corrective advertising?

correcting a deceptive campagin/ad and must inform the consumers of the wrong info provided

What are (is) social marketing and corporate social responsibility?

social marketing- companies encourage positive behaviors and discourage negative activities; focus on the responsibility of its employees & environment corporate social responsibility CSR-encourage consumers to change their behaviors in a positive way

Define materialism

the value placed on worldly possessions can lead to shoplifting & insurance fraud

What is sustainability?

to decrease the negative impacts on the environment

What is cause marketing?

when companies partner with organizations to drive sales and gives profit back to the charity