The Why of The Buy 301 481

Summary for marketers includes the need to present a consis-
tent brand message across all media, whether tradi-

The term social media refers to the collection of tional or social. Privacy and security of consumers’
online spaces and tools that enable users to gener- personal information is perhaps the most serious
ate content and engage in peer-to-peer conversa- ethical issue facing consumers and marketers who
tion and interaction. The concepts and technology use social media.
of social media change at seismic rates, but all are
enabled by the evolution of the Web and the devel-
opment of Web 2.0. Consumers have a variety of
KEY TERMS
different platforms on which to engage, including Blog
social networking, blogs, microblogs, video and Crowdsourcing
photo sharing sites, social shopping sites, and oth- Hashtag
ers. The lines among the classifications are often Microblog
blurred, with many social media sites incorporating Social media
more than one aspect of content and interaction. Social media marketing (SMM)
Social media play a key role in consumer behav- Social networking
ior; research confirms that consumers are influ- Social shopping
enced by social media when deciding what to buy.
Fashion consumers turn to social media to seek
product and brand information, to find recom-
mendations, to provide customer feedback, and to
QUESTIONS FOR REVIEW
obtain special deals and discounts, among other
1. In what ways did the development of Web 2.0
reasons. As a result, marketers have incorporated
enable the birth and growth of social media?
social media marketing into their total marketing
2. What are four types of social media that have
strategy. Among the uses are to collect data to bet-
an influence on fashion consumers’ behavior?
ter understand target customers, to communicate
3. Name three ways in which consumers use social
product and brand information to consumers, to
media to help them make a purchase decision.
interact with customers, and to drive sales.
4. Why is it important for marketers to have a
Along with the many benefits of social media to
presence on social media?
both consumers and marketers, there are several
5. What is the biggest concern for consumers who
areas that present challenges or potential prob-
share their information on social media?
lems. Keeping pace with the rapidly changing social
media landscape is one challenging aspect, which
280 Part IV: How Fashion Marketers Communicate and Consumers Decide
9781609018986.indb 280 8/18/14 3:00 PM

ACTIVITIES REFERENCES
1. Suzanne Vranica, “Tweets Spawn Ad Campaigns,”
1. Select one product or service that you Wall Street Journal, October 22, 2012, p. B5.
purchased recently, and exemplify consumer 2. Susan Reda, “J. Crew’s Pinterest First,” Stores,
activities that relate to each of the periods October 2013, http://www.stores.org/content
shown in Table 11.1, Evolution of the Web. /jcrew%E2%80%99s-pinterest-first.
2. Explain how the concept of crowdsourcing 3. www.facebook.com, JCPenney home page.
works and how you could apply this process to 4. Ayaz Nanji, “Why People Share on Social Media,”
either something that relates directly to you or MarketingProfs, September 6, 2013, www
to a marketer’s planned activities. .marketingprofs.com/charts/2013/11564
3. Select two social media sites you have used, and /why-people-share-on-social-media.
explain how content on those sites influenced 5. Ayaz Nanji, “Moms More Likely to Use Social
you to buy or not to buy a product. Media and Mobile, and to Shop Online,”
4. Refer to Table 11.4, Consumer Digital MarketingProfs, May 6, 2013, www.marketing
Purchasing Steps. Think of two purchases you profs.com/charts/2013/10704/moms-more-
would like to make, one costing between $10 likely-to-use-social-media-and-mobile-and-to-
and $15 and one between $100 and $500. shop-online.
Describe how you might go through each of
6. Zoe Fox, “Twitter Dethrones Facebook as
the steps shown in the table, and which would Teens’ Favorite Social Network for Shopping,”
be most important to you when purchasing an Mashable, October 23, 2013, www.mashable
item in each of the price ranges.
.com/2013/10/23/teens-favorite-social-
5. Identify a brand that you follow and discuss network/.
how its social media communications keep you
7. Verizon, “Web 3.0: Its Promise and Implications
loyal to the brand. for Consumers and Business,” White paper, 2010.
8. John Koetsier, “Facebook: 15 Million
MINI-P ROJECT Businesses, Companies, and Organizations
Now Have a Facebook Page,” Venture Beat,
Select a fashion-oriented blog and choose a post March 5, 2013, http://venturebeat.com/2013
that tries to influence readers to consider purchas- /03/05/facebook-15-million-businesses-
ing a particular product. Describe the overall focus of companies-and-organizations-now-have-a-
the blog, then cite three reasons why the persuasive facebook-page/.
message of the post you chose appeals to you. Then 9. “10 Facts about Consumer Behavior on
state any drawbacks or areas the blog does not cover Facebook,” Social Media Quickstarter, http://
that might cause you to lose interest in its message. www.socialquickstarter.com/content/103-10
What might you do to correct that drawback? How _facts_about_consumer_behavior_on
would you write the post to be more influential? _facebook.
CHAPTER 11: Social Media and the Fashion Consumer 281
9781609018986.indb 281 8/18/14 3:00 PM

10. Lenna Garibian, “Digital Influence: Blogs Beat 20. Ayaz Nanji, “Moms More Likely . . . ”
Social Networks for Driving Purchases,” 21. Lenna Garibian, “Digital Influence . . . ”
MarketingProfs, March 18, 2013, www.marketing 22. Ibid.
profs.com/charts/2013/10336/digital- 23. Dara Kerr, “Fortune 500 Companies Give Social
influence-blogs-beat-social-networks-for- Media a Thumbs-Up,” CNET, July 24, 2013,
driving-purchases. http://news.cnet.com/8301-1023_3-57595401-
11. Emanuella Grinberg, “Style Bloggers to Follow 93/fortune-500-companies-give-social-media-
in Any Season,” CNN, February 20, 2013, a-thumbs-up/.
http://www.cnn.com/2013/02/20/living 24. Antony Young, “ANA Meeting Takeaway: Social
/nyfw-fashion-bloggers/. Is Now a Core Driver of Strategy,” Ad Age,
12. Zoe Fox, “Twitter Dethrones . . . ” October 8, 2013, http://adage.com/article
13. David K. Williams, “How the Smartest /special-report-ana-annual-meeting-2013
Companies Leverage Visual Social Media,” Forbes, /ana-takeaway-social-a-core-driver-strategy
October 27, 2012, http://www.forbes.com /244626/.
/sites/davidkwilliams/2012/10/27/how-the- 25. Tricia Carr, “Saks Calls Attention to Revamped
smartest-companies-leverage-visual-social- Shoe Floor Via All-Encompassing Digital
media/. Efforts,” Luxury Daily, August 31, 2012,
14. Kara Kamenec, “10 Best Social Shopping Sites www.luxurydaily.com/saks-calls-attention-to-
Right Now,” PCMag.com, September 27, 2013, revamped-shoe-floor-via-all-encompassing-
http://www.pcmag.com/article2/0,2817 digital-efforts/.
,2424709,00.asp. 26. Lauren Indvik, “Topshop to Use Chirp App to
15. Maeve Duggan, “It’s a Woman’s (Social Media) Distribute Runway Looks via Sound,” Mashable,
World,” Pew Research Center, September 12, September 12, 2013, http://mashable.com
2013, www.pewresearch.org/fact-tank/2013 /2013/09/12/topshop-show-chirp/.
/09/12/its-a-womans-social-media-world/. 27. Adam Broitman, “Get Ready for the Loyalty
16. Lenna Garibian, “Digital Influence . . . ” Marketing Renaissance of 2013,” Ad Age,
17. NetBase Solutions Inc., “Social Channels of September 4, 2012, http://adage.com/article
Influence in the Fashion Industry: A Consumer /digitalnext/ready-loyalty-marketing-
Study.” renaissance-2013/236999/.
18. Lenna Garibian, “Digital Influence . . .” 28. Lon Safko, The Social Media Bible: Tactics, Tools
19. Michelle B. Kunz, Brittany Hackworth, Peggy and Strategies for Business Success, 2nd ed.
Osborne, and J. Dustin High, “Fans, Friends, (Hoboken, NJ: John Wiley & Sons, Inc).
and Followers: Social Media in the Retailers’ 29. Lydia Dishman, “J. Crew’s Smart Pinterest Play:
Marketing Mix,” The Journal of Applied Business Move Beyond Inspiration to Make a Sale,”
and Economics, 12(3), 61-68, http://www Forbes, August 20, 2013, www.forbes.com
.na- businesspress.com/JABE/KunzWeb.pdf. /siteslydiadishman/2013/08/20/j-crews-
9781609018986.indb 282 8/18/14 3:00 PM

smart-pinterest-play-move-beyond- /adagestat/demographics-facebook-linkedin-
inspiration-to-make-a-sale/. myspace-twitter/227569/.
30. Joe McCarthy, “Bloomingdale’s Balances Selfies Cavico, F. J., B. G. Mujtaba, S. C. Muffler, and
with Beauty Tips in Instagram Contest,” Luxury M. Samuel. “Social Media and the Workplace:
Daily, October 31, 2013, www.luxurydaily.com Legal, Ethical, and Practical Considerations for
/bloomingdales-balances-selfies-with-beauty- Management.” Journal of Law, Policy and
tips-in-instagram-contest/. Globalization 12 (2013). http://iiste.org/Journals
/index.php/JLPG/article/viewFile/5261/5265.
Cooper, M. “Unlocking the Power of Social Data.”
ADDITIONAL RESOURCES Chief Executive, December 20, 2012. http://chief
Baird, H. C., and G. Parasnis. “From Social Media to executive.net/unlocking-the-power-of-social-
Social Customer Relationship Management.” data.
Strategy & Leadership 39(5), 30–37. doi: http:// Cora, I. D., V. Tomita, D. Stuparu, and M. Stanciu.
dx.doi.org/10.1108/10878571111161507. “The Mechanisms of the Influence of Viral
Banda, T. “7 Popular Types of Social Media Fans.” Marketing in Social Media.” Economics,
Reach Local. http://blog.reachlocal.com/699691 Management and Financial Markets, 2010. 5(3),
/2013/05/17/7-popular-types-of-social-media- 278–282. http://search.proquest.com/docview
fans-infographic.html. /815240043?accountid=130772.
Bard, M. “15 Categories of Social Media.” Mirna Dash, R. “The 10 Social Media Metrics Your
Bard. http://www.mirnabard.com/2010/02/15- Company Should Monitor.” Social Times, May 22,
categories-of-social-media. 2013. http://socialtimes.com/social-media-
Bloch, E.. “Social Media Demographics: Who’s Using metrics_b2950.
Which Sites.” Flow Town, April 9, 2010.http:// Dave, R. “Global Marketing via Social Media and
www.flowtown.com/blog/social-media- E-commerce.” 2010. Dell Report.
demographics-whos-using-which-sites. Edosomwan, S., K. P. Sitalaskshmi, D. Kouame,
Bower, K. “Marketing Sherpa 2012 Search J. Watson, and T. Seymour. “The History of Social
Marketing Benchmark Report-SEO Edition.” Media and Its Impact on Business.” Journal of
Marketing Sherpa. http://www.marketingsherpa Applied Management and Entrepreneurship, 16(3),
.com/2012SearchMBRSEOExcerpt.pdf. 79-91. Retrieved from http://search.proquest
Breur, T. Data “Analysis across Various Media: Data .com/docview/889143980?accountid=130772
Fusion, Direct Marketing, Clickstream Data and Flew, T. New Media: An Introduction. 3rd ed. Australia
Social Media.” Journal of Direct, Data and Digital and New Zealand: Oxford University Press,
Marketing Practice. 2011. 13(2), 95–105. doi: 2007.
http://dx.doi.org/10.1057/dddmp.2011.32. Gaebler. “How Much Do Television Ads Cost?”
Carmichael, M.. “The Demographics of Social Media.” Resources for Entrepreneurs. http://www.gaebler
Ad Age, May 16, 2011, http://adage.com/article .com/Television-Advertising-Costs.htm.
9781609018986.indb 283 8/18/14 3:00 PM

Garibian, L. “Social Networking: 45% Check Legal, Operational—Be Mitigated?” Ace Group
Out Brands’ Pages.” Marketing Profs, 2013. Progress Report, 2011. http://www.acegroup
http://www.marketingprofs.com/charts/2013 .com/us-en/assets/ace-progress-report-social-
/9944/social-networking-45-check-out-brands- media.pdf.
pages?adref=nlt012913. Mershon, P. “How B2B Marketers Use Social Media:
Guglielmo, C. “Facebook Facts, Stats, and Trivia for New Research.” Social Media Examiner, April 24,
Future Jeopardy Contestants.” Forbes, May 17, 2012. http://www.socialmediaexaminer.com
2012. http://www.forbes.com/sites/connie /b2b-social-media-marketing-research/.
guglielmo/2012/05/17/facebook-facts-stats- Metscher, R. “Ensure that Strategy, Not Tactics,
and-trivia-for-future-jeopardy-contestants/. Drives Your Social Media.” Marketing Profs, May
“Italy’s Finest Fashion in Social Media.” Social 31, 2013. http://www.marketingprofs.com
Bakers. http://www.socialbakers.com/storage /articles/2013/10784/ensure-that-strategy-not-
/www/italian-fashion-final.pdf. tactics-drives-your-social-media?adref=nlt053113.
Kaushik, A. “Best Social Media Metrics: Michaels, A. “Social Media Study: Why Consumers
Conversation, Amplification, Applause, Engage With Brands.” Social Media Management.
Economic Value.” Occam’s Razor, 2011. Ann Michaels & Associates, January 9, 2012,
http://www.kaushik.net/avinash/best-social- http://www.socialmediamanagement.net
media-metrics-conversation-amplification- /blog/2012/01/09/social-media-study-why-
applause-economic-value/. consumers-engage-with-brands/.
Kim, A. J., and E. Ko. “Do Social Media Marketing Moorman, C. “Measuring Social Media ROI:
Activities Enhance Customer Equity? An Companies Emphasize Voice Metrics.” Forbes,
Empirical Study of Luxury Fashion Brand.” May 21, 2013. http://www.forbes.com/sites
Journal of Business Research 65 (2012): /christinemoorman/2013/05/21/measuring-
1480–1486. doi: 10.1016/j.busres.2011.10.014. social-media-roi-companies-emphasize-voice-
Larson, D. “Spring 2012 Social Media User metrics/.
Statistics.” Infographic, May 15, 2012. http:// Olenski, S., “When It Comes to Brands, Consumers
blog.tweetsmarter.com/social-media/spring- Use Social Media for This More Than Anything
2012-social-media-user-statistics/. Else.” Social Media Today, October 4, 2011.
Lauby, S. “Ethics and Social Media: Where Should http://socialmediatoday.com/steve-olenski
You Draw the Line?” Open Forum, March 17, /370277/when-it-comes-brands-consumers-use-
2012. https://www.openforum.com/articles social-media-more-anything-else.
/ethics-and-social-media-where-should-you- Patrick, R. G., and J. Dangelo. 2012. “The Evolution
draw-the-line/. of Social Media as a Marketing Tool for
Merrill, T., K. Latham, R. Santalesa, and D. Navetta. Entrepreneurs.” The Entrepreneurial Executive 17:
“Social Media: The Business Benefits May Be 61–68. http://search.proquest.com/docview/10
Enormous, but Can the Risks—Reputational, 37409443?accountid=130772.
9781609018986.indb 284 8/18/14 3:00 PM

Rao, L., “How Social Media Drives New Business: Solis, B. “ROI: How to Measure Return on
Six Case Studies.” Tech Crunch, July 17, 2010. Investment in Social Media.” Brian Solis, 2010.
http://techcrunch.com/2010/07/17/how-social- http://www.briansolis.com/2010/02/roi-how-
media-drives-new-business-six-case-studies/. to-measure-return-on-investment-in-social-
Redsicker, P. “9 Consumer Social Media Trends That media/.
Could Impact Marketers.” Social Media Examiner, Stacy, M. P. S., and L. R. David. “Social Media: More
February 6, 2013. http://www.socialmedia Available Marketing Tools.” The Business Review,
examiner.com/9-consumer-social-media-trends- Cambridge 18.2 (December 2011): 37–43.
that-could-impact-marketers/. http://search.proquest.com/docview/925638744
Shin, N. “7 Steps for a Successful Social Media ?accountid=130772.
Strategy.” Social Media Examiner, July 21, 2010. Sterne, J. Social Media Metrics: How to Measure and
http://www.socialmediaexaminer.com/7-steps- Optimize Your Marketing Investment. Hoboken,
for-a-successful-social-media-strategy/. NJ: John Wiley & Sons, 2010.
“Social media.” Dictionary.com Unabridged. http://
dictionary.reference.com/browse/Social media.
9781609018986.indb 285 8/18/14 3:00 PM

Chapter 12
Consumer Decision Making
WHAT DO I NEED TO KNOW ABOUT CONSUMER DECISION MAKING?
✔✔ The five basic steps most consumers take in making a purchase decision
✔✔ How perceived risk influences consumers’ purchase decisions
✔✔ What methods of comparison shopping consumers use and why
✔✔ The three types of decision making
✔✔ How market habits influence an individual’s decision-making process
O
n the way to his part-time job, Peter had and operating system would be best? He’d seen a
dropped his cell phone (again) and the couple of people whose phones had screens almost
screen cracked, so he knew that he really as big as a tablet computer, but did he really want
had to get himself a new one this time. one that large? Some had built-in GPS navigation,
But what should he get? He’d been slower he knew, and front-facing cameras, good for taking
to upgrade than many of his friends, and he knew “selfies”; some had wireless charging, which might
that he’d have a lot of choices to make. Right off the be nice. One of his friends even had a phone with
bat, he’d need to decide whether to stay loyal to his HD playback so he could watch streaming movies
wireless carrier or switch to a different company when he was traveling. No matter what other fea-
if he could get a better deal or better service that tures he might decide on, Peter knew he must have
way. And should he stick with a more basic feature one with scratch-resistant glass! The rest of the
phone to keep his costs low or splurge on one of the decisions would have to wait until he could poke
latest smartphones with a full data plan for access- around online, talk to some friends, and check out
ing the Internet—and if he did that, which brand some phones in person at the store.
286
9781609018986.indb 286 8/18/14 3:00 PM

Like every consumer, Peter must go through a THE DECISION-MAKING PROCESS
number of steps before making a decision. He may
While they may not realize it, most people go
consciously or unconsciously consider alterna-
through five basic steps when making a decision, as
tives, and also evaluate those alternatives logically
shown in Figure 12.1: (1) recognize or identify the
or emotionally. This chapter addresses common
problem, (2) collect information about alternative
issues that surface in the course of making a buy-
solutions, (3) evaluate the alternatives, (4) choose
ing decision. We will discuss the components of
the best alternative, and (5) evaluate the decision.
the decision-making process, the effort involved in
Let’s look at each of those steps in detail.
making different choices, and some considerations
that may arise before, during, or after the selection.
1. Recognize/Identify the Problem
or Lack of Something
How Consumers Make Problem awareness occurs when someone per-
ceives an imbalance between his or her current
Their Choice situation (“as is”) and an ideal (“should be”) situ-
ation. If this gap (the distance between these two
You’ll remember from Chapter 4 that consumers are
opposites) is large and important to the person,
motivated to make a purchase after they recognize
and potential solutions are available, the person
some type of need. We don’t have what we’d like or
becomes aware that there must be a change. If, on
need to have, so we make the decision to buy. Deci-
sions are required because we have options. If we
didn’t have options (and ones that might lead to
favorable results), we’d probably live very simpli-
fied lives. Imagine having just one possible shirt or
a single pair of shoes available for you to buy when
you needed them. Shopping would be very quick
and easy, but also very boring!
In marketing jargon, a consumer who’s mak-
ing a decision is actually trying to “solve a prob-
lem.” According to psychologist Lars Perner, Ph.D.,
a problem is “a discrepancy between a desired state
and an ideal state, which is sufficient to arouse and
activate a decision process.”1 So, when there are
choices, people must generally think about and eval-
uate alternatives, move forward with a selection,
then review the benefits to see if the final decision FIGURE 12.1 The staircase identifies the steps that go
was a good one. into making a decision.
CHAPTER 12: Consumer Decision Making 287
9781609018986.indb 287 8/18/14 3:00 PM

POINT OF VIEW 12.1
Choosing the Right Fragrance: The Nose Knows
It’s safe to say most people would agree that certain smells are truly unpleasant; think skunk, dead
animals, and rotten sauerkraut, to name a few. But there is much more room for personal opinion
when it comes to what smells really wonderful—a fact that suits the fragrance industry just fine,
as perfume marketers develop thousands of different scents and market them in ways designed to
entice consumers into a decision to buy.
Those thousands of different scents, however, can make it very difficult to choose which one is
right for you as your own “signature” scent (or which one will please a friend or loved one as a gift).
Whether you’ve never worn perfume or you’re simply ready to try something new, the decision obvi-
ously rests on your personal preferences. You may know that you prefer a fruity fragrance to a spicy
one. Or maybe you simply hate scents that seem “heavy” and know you’d like something lighter. Per-
haps you aren’t even sure of that much and simply know that you’ll recognize the right scent when
you smell it!
Because there is such an abundance of options found everywhere from the discount store shelf
to the upscale department store beauty counter, knowing the basics can help you start to narrow
your choices, since perfumes tend to fall into a number of specific categories of scent—although
fragrance chemists mix and match among those to create each unique formula. That said, the basic
categories include: Floral, the most popular, containing the fragrance of one specific flower or a bou-
quet of several varieties; Oriental, offering a richer, spicier, muskier aroma; Chypre, with an earthy,
woodsy, mossy scent; Green, imbued with fresh, grassy, outdoorsy scents; and Fougere, character-
ized by mossy ferns and fresh herbs, and often used in men’s fragrances.
Ready to make your decision? Not just yet, since almost every perfume contains layers of scents,
referred to as “notes,” to create its unique bouquet. When you first apply a perfume, what you smell
right away are the top notes, and these evaporate quickly, usually within 15 minutes. As the top notes
begin to dissipate, the heart or middle notes emerge; these are what make up the majority of the
scent. Base notes, on the other hand, are what linger on the skin, and may not be detectable until
you’ve been wearing the fragrance for a while. The base notes enhance the middle notes to create
the fragrance’s dominant theme.
Think you’re all set now? Think again. There are also different formulations of fragrances that
represent the concentration of perfume oil in what is usually an alcohol base, ranging from the high-
est 20 to 30 percent concentration in perfume (also called parfum), and working down through eau
(continued)
9781609018986.indb 288 8/18/14 3:00 PM

POINT OF VIEW 12.1 (continued)
de parfum, eau de toilette, eau de cologne, to eau fraiche (1 to 3 percent concentration). You can also
choose between sprays and splash versions.
Didn’t realize it would be so complicated? It doesn’t have to be if you understand that it really
boils down to thinking of your favorite smells in everyday life and using those to choose a perfume
with similar notes. And don’t hesitate to ask your friends and family what they think of a fragrance.
The choice is ultimately yours, but a second (or third) opinion on whether others think it suits you
never hurts!
Sources: Jessica Padykula, “Types of Perfume: Finding the Right Fragrance for You,” SheKnows.com, March 7, 2011, www.sheknows.com
/beauty-and-style/articles/825299/how-to-choose-a-fragrance; Susan Fenton, “Common Scents: 6 Basic Fragrance Types,” Bankrate, February
6, 2006, http://www.bankrate.com/brm/news/advice/20040213b1.asp; The Fragrance Shop, “Fragrance Guide,” http://www.thefragranceshop
.co.uk/fragrance-guide.aspx
the other hand, the gap is not large enough to cause and feels as if the jeans had fit her better when she
some level of discomfort, the person is not likely to bought them last month, there’s a very good chance
make a change (see Figure 12.2). We become aware that she will seriously consider doing something that
of a “problem” because of a stimulus, something will result in her looking and feeling better—that is,
that attracts or directs our attention and opens our there is a large gap between the “as is” and “should be”
eyes to a possible lack of something, causing a state situations. (See Section A of Figure 12.2.)
of discomfort brought about by an unsatisfied want Recognition of these gaps can occur either inter-
or need. (These internal factors are discussed in nally, from within the individual herself, or exter-
Chapters 3 and 4.) In turn, this stimulus motivates nally, as a result of marketing influences. Here are
a response, some kind of reaction to the stimulus some examples of the kind of situations that would
(Figure 12.3). cause internal recognition, defined as awareness
For example, if Rachel looks at herself in the mir- of a need or problem that originates within the
ror when she puts on her new pair of jeans and thinks individual: (1) Don runs out of breakfast cereal, or
she looks OK or pretty good, she probably will not be realizes the heels on his shoes are badly worn; (2)
very concerned about purchasing a gym membership Lynette uses up her eyeliner or finds nothing in her
to work on slimming down—in other words, there is closet that’s suitable to wear to an upcoming party;
a small gap between the “as is” and “should be” situ- (3) Nicole colors her hair and then realizes she also
ation. However, if she doesn’t like the way she looks needs a deep conditioning shampoo.
9781609018986.indb 289 8/18/14 3:00 PM

Problem Awareness Model
A. Large Gap: Person is convinced that things will improve if he or she makes a new choice.
Should Be (ideal situation)
Stimulus
Large Gap = much discomfort and probable change
As Is (current status)
B. Small Gap: Person does not see value in making a change.
Should Be (ideal situation)
As Is (current status) Small Gap = little discomfort and probably no change

is necessary
FIGURE 12.2 Problem-awareness model.
FIGURE 12.3 A stimulus leads to a response.
On the other hand, it is the job of marketers to touched her emotionally; she feels the desire to buy
create external recognition—awareness of a need or the jeans because she thinks her wardrobe needs a
“problem” that is stimulated by an outside source and little more “spice” and the jeans will add it.
that might be solved with a new or different product
or service. Marketers work to create external recogni- 2. Collect Information or Data about
tion by using various advertising, sales, promotional, Alternative Solutions
or public relations initiatives. For example, Rachel After identifying a problem, the next step involves
sees an ad on her iPad for jeans with new details collecting information about ways to eliminate the
that she loves. The ad has caught her attention and problem, thereby easing the discomfort. Information
9781609018986.indb 290 8/18/14 3:00 PM

collection includes the search for and selection of Another factor that plays a role in the decision-
information that provides alternative foundations making process is the element of risk (the chance
for making good decisions. Therefore, we identify of loss). People handle risk—or the perception of
some alternatives and determine which ones are suit- risk—differently. Some people have personalities
able. A person considering an expensive purchase that process risk more comfortably; others struggle
usually devotes fairly significant time to thinking with it constantly.
about the purchase and collecting information (high Perceived risk is the risk a customer believes
involvement), whereas someone making an inex- exists in the purchase of goods or services from a
pensive choice may spend little time and effort (low specific retailer, whether or not a risk actually exists.3
involvement). The following five risk areas are of particular concern
The search for information takes place both to consumers in relation to the purchase of goods and
internally and externally. An internal search is services:
simply thinking about prior purchase experiences ●● Functional. Does it work/perform as expected?
to remind ourselves what was good or bad about ●● Monetary. Is there a higher value than cost to me
each. Consumers today also rely heavily on exter- for using this product or service?
nal information sources such as the Internet, prod- ●● Physical. Are there any potential issues of comfort
uct reviews on social media or other sites, product or safety related to using this?
testing organizations, reference guides, friends, ●● Psychological. How accurately does this product or
expert sources, or just shopping at various stores service reflect my self-image?
(Table 12.1). We collect data whether we actively ●● Social. Will friends and others view me in a posi-
look for information, consider our past experiences, tive light if I use this?
or remember advertising we previously heard or saw
when we weren’t really looking for a particular prod-
TABLE 12.1 External Information Sources
uct or service (marketers refer to this last type as
“low-dose” advertising2). Traditional Internet-based
What happens next? Information filtering—
Coworkers www.google.com
sorting through all the collected data, then prioritiz-
ing and selecting that which is most useful to us in Doctors www.webmd.com
our decision making. For example, Rachel does not
find information about the specific jeans she’s con- Family www.bing.com
sidering on YouTube or Pinterest, but she does get
Friends www.facebook.com
helpful tips from a couple of fashion blogs and mag-
azine photos before she talks to her most trusted Libraries www.wikipedia.com
friends for their advice on which jeans to buy. Note
Media www.lycos.com
that consumers are influenced in their information
search as well as in their ultimate decision by the Schools www.census.gov
same social influencers discussed in Chapter 8.
9781609018986.indb 291 8/18/14 3:00 PM

Perceived risk is generally low when a consumer (psychological). Lindsey selects a fabric purse over a
doesn’t really know too much about potential prob- leather one because it has more features she likes but
lems that might arise when using a product or wonders if it will hold up to the wear-and-tear dur-
service. Conversely, when consumers mentally exag- ing her typical day (functional); she doesn’t worry too
gerate potential problems, the associated risk is per- much, however, since the store accepts returns for any
ceived to be high. defect for up to a year. (See Figure 12.4.)
Effective marketing campaigns address consumer
perceptions of potential problems. Marketers may
highlight specific customer benefits that minimize Let’s Talk
risk (no-questions return policy if not satisfied) or
Have you bought something or considered buying
demonstrate how their brand provides a better solu-
something recently that you perceived had some
tion than another brand, perhaps through positive
type of risk? Which of the five risk areas did it
testimonials from actual consumers. Marketers help
entail? Did the marketer do anything specific to
us “see” the logical and emotional benefits associated
minimize the risk for you? How did you make your
with a specific product or service as a way of reducing
final decision?
the perception of risk. For example, before buying a
pair of stilettos, Eleshia considers the potential foot
problems (physical) associated with wearing them, 3. Review/Evaluate the Alternatives
but goes ahead with the purchase because the designer
How did Eleshia, Guo, and Lindsey work through
shoes are only for special occasions and will definitely
their respective concerns? They first identified some
impress her friends more than the chunkier-heeled
alternatives, and then weighed the benefits associ-
pair (social). Guo decides to buy a high-end watch that
ated with the various choices before making their
is a little out of his price range (monetary) because it
decision. By collecting and filtering sufficient infor-
matches his desired self-image for his new job much
mation, we can usually identify a number of viable
better than the lower-priced models he looked at
alternatives to bridge the gap between what we have
(our “as is”) and what we want (our “should be”). If
we then take the time to consider the pros (why it
will work well) and cons (why it won’t work well) of
each possible choice, we’ll make a more informed
and probably successful selection. The review and
evaluation process consists of three steps:
1. Figuring out the standards or guidelines on
which to base a decision
2. Determining the importance of each standard
FIGURE 12.4 Perceived risk: “Should I really experiment

or guideline
with some new or untried product or service?” 3. Prioritizing (ranking) the alternatives
9781609018986.indb 292 8/18/14 3:00 PM

For example, you want to go to dinner with your sig-
nificant other, and you have to decide where to go.
You have already suggested four or five places. Using
Let’s Talk
How much influence do retailers have on you as
the three-step process mentioned above, your con-
you evaluate alternatives in a purchasing decision?
versation might sound like this:
Do you seek out store guidance for some types
“How are we going to decide which restaurant we of products more than others? Give two product
should go to tonight?” (The standards or guidelines
examples and explain why you do or do not look to
under consideration might include ambience, conve-
the retailer for guidelines in making your decision.
nience, dress code, entertainment, type of food, loca-
tion, price, promotional coupons, and service.)
“OK, how important are each of these to you?” (The In order to fully weigh the pros and cons of their
guidelines are then ranked as very important, not so alternatives, many people undertake comparison
important, completely unimportant.) shopping, a process whereby a consumer gathers as
much information as possible about similar prod-
“Let’s figure out our top two choices and then discuss
ucts and services in order to compare their features,
them.” (The alternatives are prioritized.)
pricing, and other details before deciding which to
If it’s too difficult to evaluate the importance of purchase. This activity consists of doing the nec-
each standard or guideline (the second of the three- essary research, which nowadays may well begin
step process mentioned above), consumers might online with an initial search for possible product
revert to brand equity, the “added value a brand options, and perhaps a look at several manufacturer
name/identity brings to a product or service beyond or retailer websites. Comparison shopping might
4
the functional benefits provided.” And if none of also include going to one or more stores to exam-
the alternatives meets or exceeds expectations, con- ine the merchandise first-hand, and to read more
sumers might decide to not purchase the product or detailed information on the product’s packaging or
service at that time; for instance, if all the restau- labels, or on point-of-purchase displays (store fix-
rants you and your boyfriend/girlfriend were con- tures that hold merchandise and often feature addi-
sidering turn out to be either too pricey or too far tional product information).
away to suit you, you might simply choose to cook Comparison shopping today could be considered
dinner at home instead. What role do marketers easier or more complicated, depending on a consum-
play in this process? They try to educate consumers er’s tolerance for stimulation, desire for information,
about which standards or guidelines should be used, and ability to process the information. While the
guide them in the ranking or prioritizing of these wealth of information that’s available on the Internet
guidelines—and sometimes adapt their own strate- can be overwhelming, there are tools that can make
gies and operations if that’s necessary for capturing the comparison process organized and efficient.
or keeping consumers’ purchasing dollars and loy- Search engines, such as Google and Bing, can pro-
alty. (See Case in Point 12.1.) vide consumers with an initial foundation for what’s
9781609018986.indb 293 8/18/14 3:00 PM

CASE IN POINT 12.1
When Consumers Choose Online Alternatives to Stores,

the Emporium Strikes Back
When Jessops, a British camera store that went to shop. For one thing, retailers understand that
out of business after 78 years, closed its doors for shopping is about entertainment, not just pur-
the final time, a sarcastic note on the door said: chasing. When consumers shop, they are explor-
“The staff at Jessops would like to thank you for ing and discovering new things to want, not just
shopping with Amazon.” The explosion of online fulfilling a need. Plus, unlike a computer screen
shopping had taken its toll on the retailer—just as that may be visually appealing only, a success-
changes in technology and the marketplace have ful shop will enthrall all the senses, making
pushed out once-prominent U.S. retailers, too, the experience immersive. A perfect example is
such as Borders, whose book selection couldn’t Apple, whose showrooms encourage custom-
keep pace with the emergence of e-books, ers to play with the merchandise—and in terms
and Tower Records, one of a number of music of sales per square foot, its stores surpass all
megastores that were doomed when consumers other American retailers.
shifted focus from CDs to digital tracks they could In other words, consumers evaluate their
download straight to their MP3 players. shopping alternatives and may revisit the brick
The sad truth for many traditional retailers and mortar stores when those retailers offer the
is that shoppers are increasingly choosing to go right blend of merchandise, price, convenience,
online to browse and to purchase. And the sim- and entertainment to sway consumers in their
ple retail formula that worked so successfully decision making. In a physical store, retailers can
for so many years—find a concept that resonates guide customers in their evaluation of purchase
with customers, open additional branches and alternatives—such as explaining how buying cer-
draw more shoppers to existing ones, then use tain accessories, like a computer bag or cables,
that growing sales volume to negotiate better will complement their purchase of a laptop. Mar-
prices from suppliers—just doesn’t cut it any- keters can also influence consumers’ decision to
more. So do we sound the death knell for brick- shop in-store by offering rewards, such as shop-
and-mortar retailers? Are these stores out of ping points or a gift-with-purchase goodie bag.
options and ready to lie down and play dead? So, will you buy more or fewer things online
On the contrary, the smartest stores are or go into stores to enjoy the experience? What
adapting to the new landscape and finding ways factors that marketers bring to your attention
to influence consumers’ decisions about where will help you evaluate the alternatives?
Source: “The Emporium Strikes Back,” The Economist, July 13, 2013, http://www.economist.com/news/briefing/21581755-retailers-rich-world-
are-suffering-people-buy-more-things-online-they-are-finding.
9781609018986.indb 294 8/18/14 3:00 PM

available; and there is also a multitude of comparison differentiate the choices. But how do we actually
shopping websites (also known as comparison shop- choose the best alternative? What kind of guide-
ping engines)—such as PriceGrabber, Woot, NexTag, lines, technological tools, or influences from others
and ShopLocal—that provide instant data on where direct us to select one item over another as being the
a product is sold and how much it costs at different best choice? In many cases, marketers, understand-
retailers. A rapidly growing number of consumers ing their target customers’ needs and wants, pro-
are also turning to their smartphones and mobile vide those guidelines and influences to consumers.
apps to comparison shop, making use of technol- Michael Solomon, a well-known consumer behavior
ogy that enables them to be looking at a product in scholar and author, calls the features that differenti-
one store and simultaneously check it out or look for ate our choices determinant attributes and suggests
other alternatives at another store or online. Aside that a marketer’s job done well will frequently result
from the technology-related tools that make the in the successful education of consumers to select
evaluation process work more smoothly, there are key factors to be used in the decision-making pro-
also simple mental rules of thumb (methods based cess.5 Once we select the major criteria or features
on common sense) that help people make decisions we think will provide the greatest benefits, we can
more quickly. Because we don’t always make deci- move forward with the best alternative choice.
sions rationally or objectively, we use these rules of Marketers create advertising and promotional
thumb or mental generalizations, termed heuristics, campaigns designed to emphasize the existence of
to help in weighing our choices and alternatives. a large gap between the customer’s “as is” situation
For example, Kourtney, who wants to buy a (what is currently owned or used) and the “should be”
car, tells her friend that she will not buy one from status (the ideal—the total benefits when using the
a used car lot because her past experiences lead her product or service), as illustrated in Figure 12.5. If the
to believe that it’s really better to go directly to an marketer has done a good job of convincing custom-
authorized pre-owned dealer or to buy one through ers of their need and persuading them that its product
the Internet. Or Graham, who wants to buy a single- solves their problem, the consumer’s best alternative
family house, remembers how difficult it was for a is to buy the marketer’s product or service.
friend of his to buy a condo on his own instead of Consumers generally select the alternative that
using the services of a real estate agent. After three has made the strongest impression; that is, the
months, the friend finally hired a real estate agent, marketer has created the widest distance between
who reduced the stress associated with making an the “as is” and the “should be.” When the marketer
offer, keeping the deal together, and finally closing makes it easy for the consumer to (1) understand
and taking possession of the property. the differences among competing brands, (2) relate
to and visualize the sizable improvements gained,
4. Choose the Best Alternative and (3) minimize the difficulty in decision mak-
The next step in the decision-making process is the ing, the consumer can select much more easily and
evaluation of key points—the pros and cons—that confidently, and then make the decision to buy
9781609018986.indb 295 8/18/14 3:00 PM

“Could Be/Ideal”— Potential benefits/ value for the consumer
Marketer creates a large gap (stretches this distance)
“As Is”— What the consumer currently uses or owns
“Could Be/Ideal”— Potential benefits/ value for the consumer
Marketer does not create a large gap (did not stretch this distance enough)
“As Is”— What the consumer currently uses or owns
FIGURE 12.5
Marketers strive to create a large gap between the “as is” and “could be/ideal.”
the product or service. (This last step is referred to that a cabinet to hold your Blu-ray player and Xbox
as “purchase behavior.”) For example, a computer would work nicely underneath. And then there’s
salesperson demonstrates added features that sig- the experience of feeling guilty or having second
nificantly improve productivity, efficiency, and the thoughts about what you just bought and thinking
“fun factor” between a customer’s current computer that maybe you should not have purchased it. This
and a new one. sense of uneasiness is known as buyer’s remorse
or post-purchase dissonance (also discussed in
5. Evaluate the Decision or Purchase Chapter 4).
Obviously, both consumers and marketers want During post-purchase evaluation, consum-
the end result of the purchase behavior and post- ers judge whether the product or service they
purchase evaluation to be very positive. Have you bought has met, exceeded, or not met their expec-
ever had good or bad feelings about a purchase you tations (Figure 12.6). Situations such as the ones
just made, or decided you needed to buy something described above can lead to either additional pur-
else to go with your initial purchase? For example, chases or reconsideration of the original purchase
you buy a pair of boots and then realize how well decision. The marketer’s objective in either sce-
a particular belt would go with them, or that you nario is to anticipate and address these common
really need a thicker pair of socks to wear with kinds of thoughts after the purchase. This is done
them. Or perhaps you’re buying a new flat-screen, to increase the purchaser’s long-term satisfac-
wall-mounted HDTV for your living room and feel tion and customer loyalty and to reduce product
9781609018986.indb 296 8/18/14 3:00 PM

After Purchase Decision
Postpurchase
Added Comfort Evaluation
Value Level −Consumer
−Marketer
Decision to Purchase
+ Purchase + Behavior = Purchase
Stress Convenience
Factor(s)
Consumer
Met = May Buy Again Expectations

Not Met = Find an Alternative
Exceeded = Brand Loyalty
FIGURE 12.6 Decision making continues through post-purchase evaluation, which helps consumers decide whether or
not the product or brand met their expectations.
returns. Repeat purchases signal that the custom-

ers’ experiences have been positive. Savvy mar-
Types of Decision Making
keters address potential post-purchase issues by Although this chapter has presented a common
finding ways to positively reinforce the value and method for decision making, there is really no sin-
benefits attached to their products. For example, a gle way to make decisions. If you use more logically
sales associate forwards an article to a client who based, left-brain thinking to process information
just purchased an item; the article reinforces how and carefully review the pros and cons, you are using
others are enjoying and benefiting from a simi- what researchers call the rational perspective.
lar purchase. Or an online retailer might ask cus- Marketers who understand how rational perspec-
tomers to share a review of their purchase on the tive consumers learn, retrieve, collect, analyze, and
website. These customer reviews not only provide process information can implement strategies into
invaluable feedback to the retailer and the prod- marketing campaigns that appropriately target this
uct’s manufacturer, letting them know what cus- type of analytical consumer. Stanford University
tomers liked and didn’t like about the goods and marketing professor Itamar Simonson suggests that
the purchasing experience, but can also help other consumers who consciously choose specific store
consumers who might be starting their own deci- environments and experiences are more likely to
sion-making process and collecting information consciously process a marketer’s strategy—in other
about alternative solutions. words, it is not lost in the “noise” of a typical store.6
9781609018986.indb 297 8/18/14 3:00 PM

CASE IN POINT 12.2
Customer Reviews Gain Clout

In the age of Web 2.0 and social media, consum- doing business. Particularly when a consumer is
ers have at their fingertips an enormous volume unhappy with something, being on top of the dis-
of online information that can assist them in cussion allows a marketer to address the prob-
weighing alternatives and making a purchase lem and rectify it before the complaint goes viral.
decision. And among the most powerful tools Best Buy is one retailer that is paying close
they can access are customer reviews. attention and taking its customer reviews
According to one study, nearly two thirds very seriously, initiating a variety of actions
of consumers (63 percent) said they are more to address issues that are raised in reviews,
likely to purchase from an e-commerce site that including sharing feedback with applicable ven-
has user reviews, in essence because their level dors. In fact, the retailer places such high value
of trust increases when they’re able to learn on the tool that it openly encourages customers
what other customers thought about a product. to review their purchases, sometimes offer-
Even negative reviews can actually have a posi- ing a reward such as points that can be used
tive influence on consumer buying behavior— toward future purchases. And going forward,
and can also help decrease product returns the retailer plans to expand the program by
at the same time. For example, if a potential presenting not just individual customer reviews,
customer is considering a particular dress on a but a range of different types, including product
retail website, and several reviews mention that reviews by experts in a category, crowdsourced
the dress seems to run one size too large, she reviews from the entire Best Buy customer
will be more likely to choose the correct size for community, and even reviews written by friends
herself before ordering, assuming everything in the customers’ social media sphere.
else about the dress is acceptable.
For marketers, monitoring reviews, both
good and bad, has become a critical element of
Sources: Stephanie Landsman, “Love It or Leave It—Growing Power of Customer Reviews,” CNBC.com, June 9, 2013, www.cnbc.com
/id/100792646; and Natalie Beigel, “Why Every Online Merchant Should Use Product Reviews,” Prestashop, August 1, 2013, www.prestashop
.com/blog/en/why-every-online-merchant-should-use-product-reviews/.
9781609018986.indb 298 8/18/14 3:00 PM

On the other hand, actions consumers have retail website, gotten an e-mail from a retailer about
learned in response to specific stimuli are collectively a new product arrival that reflects your preferences
called the behavioral perspective. (See the discus- based on prior purchases, or paid for a product or
sions in Chapter 3 about behavioral learning condi- service by strategically tapping your smart card at
tions and Chapter 4 about rational versus emotional the checkout counter.
motives.) Study of decision-making behaviors at Consumers can also use technology to pre-
Duke University and Stanford University, among program their own decisions; examples of this
others, suggests that this type of specific learned include using a DVR to record television programs
response to stimuli provides the framework of habit- for later viewing; using e-mail filters to automati-
ual or automatic responses that people use to make cally sort messages into folders for more efficient
or improve judgments or choices. reviewing; using e-mail and browser features that
Low-involvement decision making in fashion- can help detect and eliminate spam (unsolicited
oriented purchases is sometimes referred to as and unwanted commercial messages) and phishing
“impulse buying.” Marketers use store design, (e-mail scam conducted for the purposes of infor-
product placement, even scents to trigger impulse mation or identity theft); and the re-programming
purchases. Richard L. Petersen, M.D., a Stanford of your home security and thermostat systems from
University neuroeconomics research scientist, a remote location.
noted that “when someone views a potential gain
in the environment, the brain’s cycle of reward
approach motivation is set into action.” This all Consumers’ Effort Level
in Decision Making
7
leads to the choice selection.
Finally, someone using the experiential per-
spective (explained by gestalt psychology, discussed How much effort do we put into making a
in Chapter 3, and the ABCs of attitude covered in decision—not much, a moderate amount, or a lot?
Chapter 5) considers the overall experience, not just Consumer behaviorists use the terms “routine,”
8
a particular point or the “how” of the situation. “limited,” and “extensive,” respectively, to describe
These are the metaphorical “lenses” in the con- the various levels of effort expended by consumers
sumer’s glasses that incorporate the values, beliefs, in decision making.
behaviors, and domestic and global views that influ- Naturally, each category is relative to the individ-
ence that person’s decisions. (See TORA described ual’s situation and personality; for example, a person
in Chapter 5.) buying his or her first car may see it as a very signifi-
Technology also provides solution alternatives. cant decision-making process, while another person
For example, you may have price-compared a poten- who trades in a car every couple of years might view
tial purchase item by scanning it with your mobile it as requiring limited effort. We can characterize
device, had an e-receipt with a thank-you sent to routine or habitual decision making as an autopilot
you after a purchase, viewed a selection of products mechanism, a low-involvement situation in which
related to your current search that appeared on a not much thought is needed to make a decision (for
9781609018986.indb 299 8/18/14 3:00 PM

TABLE 12.2 Effort Exerted in Making Purchase Decisions
Purchase
Type of Effort Time Line Cost Search Effort Example
Routine Frequent Low Minimal Fast food

Breakfast cereal
Disposable pen
Lip gloss
Limited Periodic Moderate Moderate Prescription sunglasses

Brand name handbag
Bridge jewelry
Extensive Not very often High High Graduate school

Furniture
Car
example, buying the daily newspaper). Limited deci- an inertia habit frequently buy the same brand
sion making is a process that involves some thought, because it takes little or no energy; thus any com-
but frequently involves general rules of thumb we’ve petitor that makes the purchase of a similar product
learned or borrowed from others (for example, buying even easier may win over a customer. A brand-loyal
winter boots that are waterproof and have a non-slip person sticks with the same brand of product or ser-
sole). With extensive decision making, necessary vice, frequently due to both logical and emotional
for high-involvement situations, we take more time rewards (benefits received) learned through past
to weigh the pros and cons, along with the perceived experiences. For example, a brand-loyal consumer
risks and benefits (for example, selecting a college or repeatedly buys a specific make of athletic gear or
signing a lease on an apartment). (See Table 12.2.) the same brand of underwear because the products
have consistently met all the criteria for satisfac-
tion. And finally, another group of consumers with
MARKET HABITS
a distinguishable market habit are those who prefer
Consumers often behave in certain patterns with to keep consumption choices that belong and relate
regard to their purchases; these are known as specifically to their own culture; this is called ethno-
“market habits.” In addition to heuristics (previ- centrism. (See discussions of culture as it relates to
ously defined as mental generalizations that help consumer behavior in Chapters 1, 9, and 14.)
us make decisions more quickly), people also use Because the decision-making process is so com-
other decision-making methods (Table 12.3) that plex, it’s very important that marketers understand
are considered less sophisticated than the models not only the steps consumers go through to make a
discussed earlier in the chapter. Customers with decision, but all the factors that can influence them
9781609018986.indb 300 8/18/14 3:00 PM

TABLE 12.3 Market Habits that Affect Consumer Purchase Decisions
Consumer Pattern Description Example of customer response
Brand loyal Choice based on logical and “I’ll never switch because the product
emotional benefits learned always works great and I like that the
through past experience company supports good causes.”
Ethnocentric Choice that specifically relates to “I buy American-made products

one’s own culture whenever I can.”
Heuristics Choice based on rules of thumb, “I didn’t know Company X made

or mental generalizations and this product, but I like their other
shortcuts products, so this should be good, too.”
Inertia Choice made out of habit or “This is the toothpaste my mom

laziness always bought and I don’t need to try
another brand.”
before, during, and after a purchase is made. That

means that ongoing communication with custom-
Summary
ers, and feedback from both those who bought and Decision making is a multistep process that is influ-
those who didn’t buy, is important to marketers in enced by both internal and external forces. These
ensuring they understand and are meeting their forces can play a role before, during, or after the
customers’ needs. decision is made. The five-step decision-making
The next question is, where and how do consum- process helps consumers identify, evaluate, and feel
ers buy fashion products? Chapter 13 explores these satisfied about the results of their decision. The pro-
issues. cess begins with problem awareness, a consumer’s
response to a stimulus that leads to recognition of a
gap (distance) between the current “as is” and ideal
Let’s Talk “should be” situations. Marketers try to stretch this

gap when it is small and use various media to alert,
Have you ever written an online review of a educate, and persuade consumers to accept their
product you bought? If yes, did you leave positive particular product or service as a solution to the
or negative feedback? When you’re researching a problem. When consumers perceive this added value
potential purchase, do you give more weight or less (that is, when the gap is large and the product or ser-
weight to positive reviews versus negative ones, or vice will help close that gap) and judge a perceived
do you consider them equally? Explain your answer. risk to be manageable, the decision to buy is usually
the result. Online tools enable consumers to collect
9781609018986.indb 301 8/18/14 3:00 PM

and filter abundant information about alternative
solutions; consumers may also use simple, mental
QUESTIONS FOR REVIEW
rules of thumb (heuristics) to help make them evalu-
1. Why are marketers thought of as problem
ate the pros and cons of different alternatives.
solvers, and how can marketers create wants?
Some important decision-making factors that
2. What are the five steps in the decision-making
marketers try to address in advance are (1) the
process? Which of these steps is the most
amount of energy consumers will expend in making
important?
a decision, (2) how consumers perceive the benefits
3. How does the problem awareness model relate
expected from a purchase, and (3) the level of stress
a large gap versus small gap to the probability
associated with the decision. If a customer’s expec-
of success in a marketer’s attempt to influence
tations are met, a repeat purchase might happen; if
a consumer decision?
expectations are not met, consumers might decide
4. What are the differences between actual
to consider a substitute product or service. Market-
and perceived risk, and why are these ideas
ers who anticipate and exceed customer expecta-
important to consumers and marketers?
tions often create brand loyalty, whereby customers
5. How do the rational, behavioral, and experiential
continue to make positive buying decisions about
perspectives in decision making differ?
specific products or services.
KEY TERMS ACTIVITIES

Behavioral perspective
Comparison shopping 1. Name a product and a service you are going to
Ethnocentrism purchase in the next three to ten weeks. Use each
Experiential perspective of the terms noted in the Problem Awareness
Extensive decision making Model, Figure 12.2, (for example, “as is,” “should
External recognition be,” “stimulus”), and specifically identify and
Heuristics relate them to your actions and thoughts as you
Inertia habit become aware of your “problem.”
Information collection 2. Identify two fashion products or services and
Information filtering two different media stimuli sources that guided
Internal recognition you to recognize a “problem.”
Limited decision making 3. Illustrate the concept of information filtering,
Perceived risk and relate it to your purchase of a fashion
Problem awareness product or service you have bought during the
Rational perspective last 12 months.
Routine/habitual decision making
9781609018986.indb 302 8/18/14 3:00 PM

4. Create and explain a table of data that identifies 3. Melody Vargas, Retail Glossary of Terminology,
two positive and two negative reasons that accessed August 31, 2007, http://retailindustry
someone would consider after purchasing an .about.com/library/terms/p/bld_perceivedrisk
item that was clearly more expensive than .htm.
originally anticipated. 4. Jacob Jacoby and Leon B. Kaplan, “The
5. Interview several consumers who recently Components of Perceived Risk,” Advances in
purchased a product or service primarily based Consumer Research 3 (1972): 6–10 and 382–83.
on choices that related specifically to their own 5. Michael Solomon, Consumer Behavior: Buying,
culture. Having and Being (Upper Saddle River, NJ:
Prentice Hall, 2007), 321.
6. Itamar Simonson, “In Defense of
MINI-PROJECTS Consciousness: The Role of Conscious and

Unconscious Inputs in Consumer Choice,”
Teaming with two other class members, identify a Journal of Consumer Psychology 5, no.3 (2005).
product or service that each team member recently 7. Howard Greenfield, “Neuromarketing:
purchased using either routine, limited, or extensive Unlocking the Decision-Making Process,”
decision making. (Note: Each team member should accessed September 7, 2004, www
select a different decision-making category so that .marketingprofs.com/4/greenfield1.asp.
each one is discussed.) Then: 8. Clare Torrans and Dr. Nada Dabbagh, “Gestalt
and Instructional Design,” George Mason
1. Describe your purchase and explain the type,
University, March 8, 1999.
purchase time line, cost, and search effort used
(that is, how you got your information).
2. Discuss the major factor(s) that influenced your
ADDITIONAL RESOURCES
decision making (for example, value, comfort
Berman, Barry, and Joel R. Evans. Retail
level, convenience, and/or stress issues). Rank
Management A Strategic Approach, 10th ed. Upper
these factors in order of importance.
Saddle River, NJ: Prentice Hall, 2007.
BPlans.com. Glossary of Business Terms. www
.bplans.com/site_search/?q=glossary+of+
REFERENCES
business+terms
1. Lars Perner, “Decision Making,” The Psychology
SearchSecurity.com. Glossary. http://whatis.tech
of Consumers: Consumer Behavior and
target.com
Marketing, accessed August 31, 2007, www
Wolff, David. “Exactly What Is ‘Experiential
.consumerpsychologist.com/#Decision.
Marketing’?” Ageless Marketing Blog. January
2. Girish Punj, “Presearch Decision Making in
12, 2005. Accessed August 31, 2007. http://
Consumer Durable Purchases,” Journal of
agelessmarketing.typepad.com/ageless
Consumer Marketing 4 (Winter 1987).
_marketing/2005/01/exactly_what_is.html.
9781609018986.indb 303 8/18/14 3:00 PM

Chapter 13
How Fashion Consumers Buy
WHAT DO I NEED TO KNOW ABOUT HOW FASHION CONSUMERS BUY?
✔✔ The influence of the fashion life cycle on consumer purchasing

✔✔ What is meant by fast fashion and how it has changed the fashion life cycle
✔✔ What omnichannel retailing is and how it is being driven by consumer buying behavior
✔✔ The variety of places consumers can shop for fashion and how they differ
✔✔ How the shopping environment and level of service influence fashion consumers
O
nce upon a time, when your grandparents as townsfolk gathering in the square to await the
and probably your parents were your age, if arrival of mail and packages on the Wells Fargo
they needed or wanted to purchase a prod- wagon. In fact, for today’s consumers (maybe even
uct, they had to leave their home, travel to a your grandparents), the idea of not being able to
retailer during normal store hours, and hope shop at virtually any retailer and buy virtually any
that the store had the item they were looking for. product on any day, at any hour, and from any-
Yes, they could shop from a catalog from the com- where, is unthinkable. Yes, consumers can and still
fort of their couch. But they’d likely have to wait two do visit nearby stores to shop and purchase on the
or three weeks for the order to arrive (especially if spot. But thanks to the Internet and the increased
they mailed an order form versus ordering over the capabilities of digital devices, they can also browse
phone)—plus, they might not be able to order at all the merchandise of retailers across town, across
if they didn’t have the desired catalog in hand. the country, or across oceans, and purchase goods
Fast forward to today, and those constraints on with a few clicks or taps on their computer, tablet,
purchasing seem almost as quaint and old-fashioned or smartphone. And forget about waiting weeks to
304
9781609018986.indb 304 8/18/14 3:00 PM

have an item in their possession. The promise of look at how different consumers make different pur-
quick deliveries, often within a day or two, is now chase decisions based on the newness of a fashion,
the norm for many sellers eager to solidify customer or its stage in the fashion life cycle.
satisfaction and loyalty. Or if consumers don’t want
to wait even that long, there are many products they
FASHION LEADERS
can order digitally and then pick up in person within
AND FOLLOWERS
minutes at a brick-and-mortar location.
As we’ve seen in previous chapters, many factors
come into play whenever consumers need (or want)
Changes in Fashion and to purchase something. Similarly, how they go about
Fashion Consumption shopping and buying can depend on everything from

what item they’re seeking, to how much time they
Where and how people buy products is as much have, and even what mood they’re in on a given day.
a part of consumer behavior as what they buy and When it comes to fashion merchandise, the purchas-
why, especially with the wealth of shopping options ing process also depends on what kind of fashion
made possible by today’s technology. No longer consumer a person is—that is, how the individual
are consumers willing to settle for the selection of relates to products within the fashion life cycle.
goods they can find at the local mall—and retailers As you can tell from observing people, both in
know it. In 2013, the National Retail Federation’s your own surroundings and on television and in
NRF Foundation released a report, entitled “Retail other media, some people are fashion leaders and
Insight: Spotlight on Modern Retail,” to highlight some are fashion followers. As discussed in Chap-
the transformational shift taking place this decade. ter 6, fashion leaders—also known as fashion
The report gathered examples from research as well innovators—
are those people who seek out new
as facts from government resources, the media, and fashion and wear it before it becomes generally
retail industry reports, and one of the key take- accepted. The evolution of style seems to come so
aways was that the consumer is not only in charge, naturally to fashion innovators that they often sim-
but is driving innovation in the retail industry. ply trust their instincts and buy clothing on impulse.
“From finding an item online, to checking customer The majority of people are fashion followers,
reviews in an app, to finding it in the store, consum- those who adopt a look only after they are sure
ers expect—if not demand—a seamless experience,” of a fashion trend. There are several reasons why
1
the report stated. In other words, consumers want consumers might be fashion followers. They may
to be able to shop in a manner that is most conve- not have the time, money, or interest to spend on
nient for them at any given time, using online, fashion pursuits; or they may be insecure about
in-store, catalog, and mobile shopping interchange- their own tastes, so they look to others to deter-
ably. We’ll examine this concept of “omnichannel” mine what is acceptable and appropriate, including
retailing a little later in this chapter. But first, let’s imitating people they admire. They might follow to
CHAPTER 13: How Fashion Consumers Buy 305
9781609018986.indb 305 8/18/14 3:00 PM

keep pace with neighbors or to be accepted by their will be at the launch of a new designer collection for
peer group, or they might simply need to be exposed the coming season, where only a few garments are
2
to new styles for a while before accepting them. produced and their prices are at a high level. Only a
Whatever their reason, fashion followers are cru- small number of consumers can afford this couture
cial to the fashion industry because they, as much apparel, and its availability is limited to a handful
as fashion leaders, contribute greatly to the ebb and of exclusive ateliers. Some styles are rejected out-
flow of styles known as the fashion life cycle. right by the public, which may include retailers and
the media, and never make it past the introduction
stage. But if a style catches on and is wanted by con-
THE FASHION LIFE CYCLE
sumers, it enters the next phase.
All products have a life cycle, and fashions are no dif-
Rise
ferent. A fashion life cycle is the length of time that
a given look or style is popular. Whether a fashion The rise phase is the period when a look is growing
look begins in a designer’s runway show or on the in popularity. Early in this stage, a style that started
streets of a city, its life cycle consists of five stages: at the couture level will generally spread first to the
introduction, rise, peak, decline, and obsolescence higher-end department and specialty stores, such as
or rejection. That cycle is generally represented by a Neiman Marcus or Saks Fifth Avenue. In time, the
bell-shaped curve, as shown in Figure 13.1. style will be copied at a wider range of price levels
and appear in mainstream department and spe-
Introduction cialty stores such as Macy’s and The Limited.
The introduction phase of the fashion life cycle is The rise phase of the fashion life cycle is depen-
when a new style first appears. Many times, that dent on knock-offs, the industry term for copies
Fashion Life Cycle

(measured in sales volume)
Peak
Acceptance
Rise Decline
Obsolescence/
Introduction Rejection
Introductory Acceptance Rejection (Time)

phase phase phase
FIGURE 13.1 Fashion life cycle.
9781609018986.indb 306 8/18/14 3:00 PM

of the original styles. Some apparel makers spe- Peak
cialize in copying high-fashion apparel; one of the A style that is in the peak phase of its life cycle
best known is designer Victor Costa, who at one is at the height of its acceptance and popularity
time was called the “Copy-Cat King.” Knock-offs (Figure 13.2). At this stage, it is widely available at
can be exact duplicates of an original designer gar- all price ranges and may be found in a wide variety of
ment (minus the designer label), referred to as store types, including popularly priced department
“line-for-line copies.” At other times, knock-offs and chain stores such as JCPenney and Kohl’s, and
modify or reinterpret the style, incorporating cer- discount retailers such as Target and Ross Stores.
tain key features of the original such as a specific
neckline or sleeve treatment; these are known Decline
as “adaptations.” Once a style has saturated the market, people
You might think that apparel knock-offs would begin to tire of it and the most fashion-conscious
be illegal, but under current U.S. copyright law, they
are not. A rule within the law states that copyright
does not protect the design of “useful” articles like
clothing, since their aesthetic features are not sepa-
rable from their utilitarian function—in this case,
covering the body. However, fashion accessories
such as handbags are protected by copyright law, so
knock-offs of those items are considered counterfeit
and are illegal to produce or sell. (Counterfeits are
discussed in greater detail in Chapters 15 and 16.)
Some people in the fashion industry are push-
ing to extend copyright protection to apparel
designs, and several pieces of legislation have
been proposed in the U.S. Senate but not enacted,
the most recent being the Innovative Design Pro-
tection Act of 2012 (also known as the “Fashion
Bill”). Others in the fashion business, however,
believe that copying is actually good for the indus-
try, accelerating the fashion life cycle and stimu-
lating greater interest in and development of new
fashions.3 Even renowned designer Karl Lagerfeld
said, about being imitated, “[Coco] Chanel called it
FIGURE 13.2 At the peak phase of the fashion life cycle,
flattery. For me, it’s good because it pushes me to a style—such as this woman’s yoga pants—can be seen
things they can’t copy.”4 seemingly everywhere.
9781609018986.indb 307 8/18/14 3:00 PM

consumers have already turned their attention to current. Examples of fashion classics include the
newer looks. At that point, the style is in the decline Chanel jacket, Keds sneakers, button-down shirts,
phase, experiencing decreasing sales and availabil- and trench coats (Figure 13.3a).
ity only in the lower price ranges. Retailers will not A fad, on the other hand, is a short-lived fash-
order any new garments in the style and will try to ion that bursts onto the scene, is wildly popular
sell any leftover inventory at sale or clearance prices. among a target group of consumers, then disap-
pears, sometimes in a year or two, sometimes in a
Obsolescence or Rejection single season (Figure 13.3b). A fad may reflect some
The obsolescence or rejection phase marks the cultural phenomenon of its time, and in general,
end of a style’s life cycle, indicating that the look is either its concept is too extreme or it does not have
out-of-date and no longer being sold, except per- strong enough design elements to ensure long-term
haps in thrift stores. From time to time, an obsolete acceptance. Some fads over the years have included
style will be revived and reintroduced in an updated poodle skirts in the 1950s, pet rocks in the 1970s,
version. For example, bell-bottom pants (first pop- and stirrup pants in the 1990s. Recent fads that you
ular in the 1960s) were reborn in the late 1990s as might remember are Snuggie blankets with sleeves,
boot-cut or flare-leg trousers. platform shoes (repeating a 1970s fad), low-rise
jeans, the DanceDanceRevolution videogame, and
cause-related plastic wristbands.
Let’s Talk
Can you think of a fashion look that is currently in FAST FASHION
the rise phase of the life cycle? How about one in
decline? What local stores might be carrying each The twenty-first century has seen a dramatic accel-
of those? eration of the fashion life cycle, made possible in
part by advanced technology and instant global
communications, which can give consumers imme-
diate exposure to new fashion looks from anywhere
LENGTH OF FASHION CYCLES
in the world. The use of digital photography, stream-
The basic progression of a fashion life cycle is the ing Internet video, text and picture messaging, and
same for all looks and styles, although the length other mobile communications tools means that
of time from introduction to rejection can vary dra- a new style seen on a fashion show runway can be
matically and a certain style may drop out of the transmitted almost immediately to a knock-off pro-
fashion life cycle at any time or remain in vogue for ducer’s factory—and the knock-off might actually
decades. A classic style, for example, is one that is arrive in stores before the original! This rapid dis-
characterized by a simplicity of design that keeps semination of fashion information, along with the
it from becoming easily dated, and therefore it has development of computerized equipment enabling
an extended life cycle that may last many years, speedier production, has spawned a new breed of
with occasional modifications to keep it fresh and retailers that practice “fast fashion.” Fast fashion
9781609018986.indb 308 8/18/14 3:00 PM

FIGURE 13.3 Classic styles, like the Chanel jacket (left),
can be in style for many years. Fads (right), however, are
popular for only a short time.
is the term for offering consumers the latest fash- fast-fashion approach include Forever 21, Charlotte
ions as quickly as possible. Because the apparel is Russe, Japan-based Uniqlo, and British chain Top-
also designed to be very affordable, it has some- shop, which opened its first U.S. stores in 2007.
times been called “disposable chic” or “cheap chic” In addition to its speed to market, another
(a phrase that some people have also used to aspect of fast-fashion apparel is that it is generally
describe Target’s trendy, inexpensive apparel). produced in small quantities, so that some of the
One of the best-known fast-fashion retailers most popular items might arrive in stores and be
in the United States is Sweden-based H&M, which, sold out less than a week later. That perceived scar-
because of its direct relationship with hundreds of city of hot items contributes to the stores’ appeal
manufacturers worldwide, can move a trendy new to their target customers, since consumers who are
design from the studio to the store in a matter of eager for the latest look feel the need to grab a new
weeks (Figure 13.4a). Zara, a fast-fashion retail style quickly before it’s gone.
chain based in Spain, moves even more quickly: The growth of fast fashion has had an impact
Because the company maintains its own production on the entire fashion field, forcing the industry
facilities near its design and distribution headquar- out of its traditional two-season calendar in which
ters, it is able to take the hottest current designs retailers committed to the bulk of their inven-
from the drawing board to the store shelf in as little tory at least six months in advance and assort-
as two weeks (Figure 13.4b). Other retailers taking a ments were swapped out based more on dates than
9781609018986.indb 309 8/18/14 3:00 PM

FIGURE 13.4 Retailers such as H&M and Zara take a “fast fashion” approach to get new looks to consumers within weeks
of their introduction.
on timeliness. (You may remember shopping as a set up a general store to sell necessities to fron-
kid for bulky back-to-school clothes in the heat of tier farmers and homesteaders, to the first Inter-
August, since by winter, the store would already be net entrepreneur who saw a way to sell products
putting spring apparel on display.) Now, even non- through cyberspace, the retail industry has continu-
fast fashion stores tend to introduce new apparel on ally adapted to meet constantly shifting consumer
a year-round basis, meeting consumers’ appetite for lifestyles, desires, and behaviors.
the latest trends and for styles they can wear right Today’s fashion retailers face an even greater
away. There is a downside to fast fashion, however. necessity to adapt, as digital technologies continue
Because it is produced so rapidly, the apparel’s qual- to turn traditional shopping behavior on its head.
ity and longevity have come under scrutiny, and When Internet shopping proved its viability more
some question the environmental responsibility of than a decade ago, marketers began to realize that
creating massive amounts of what some consider the model of separate and distinct channels for
disposable fashion. (See Point of View 13.1.) What- buying goods—physical stores, catalogs, the Inter-
ever direction the concept moves in coming years, net, and direct selling—was no longer workable;
however, its impact on the fashion business and its customers might still want to buy from a given
appeal to fashion-seeking consumers will remain. retailer, but they liked having a choice of whether
to buy in person, at home on their computer, or
whatever way was most convenient for them at the
RETAIL MARKETING OF FASHION
moment. That recognition led to the birth of multi
The emergence and growth of fast fashion is a cur- channel retailing—the use of catalogs, stores, and
rent illustration of the fact that retailers have the Internet in a coordinated marketing plan—
always sought ways to provide consumers with the as stores rushed to create websites, catalog and
products they want and need, when they want and online retailers looked to open stores, and the lines
need them. From the first enterprising pioneer who between channels began to blur.
9781609018986.indb 310 8/18/14 3:00 PM

POINT OF VIEW 13.1
Consumers Like Their Fashion Fast—
But Do They Also Want It to Last?
In fashion, styles have always come and gone as consumers tired of one look and fell in love with the
next. But never before has the speed of that change been as quick—and consumers’ hunger for the
latest trends as obvious—as it has since the appearance of fast fashion retailing. Indeed, the proof
comes from the stunning growth and success of the leading fast fashion chains: H&M is now the sec-
ond largest apparel retailer in the world, surpassed only by Inditex SA, parent company of Zara—not
to mention that the chief executive officer of Uniqlo’s parent company, Fast Retailing, is the wealthi-
est man in Japan.
While each of those retail chains has its own distinct model for sourcing, production, and mer-
chandise assortment, what they have in common is a deep understanding of what their customers
want and need. Far from simply guessing about what the next hot style will be, the retailers have
developed sophisticated systems for identifying consumer preferences and desires. H&M, in particu-
lar, is renowned for its focus on researching and predicting emerging trends.
That said, the very core of fast fashion is dependent not only on speed to market of current styles,
but also affordability, enabling consumers of average means to purchase new apparel frequently. As
a result, the quality of the clothing can suffer, with some items reported to survive only a few wash-
ings before falling apart.
Compounding the quality issue, some people have begun taking fast fashion retailers to task for
environmental reasons. Critics cite a waste of resources, such as fuel and water, used to produce so
much cheap apparel—as well as the fact that clothing may be thrown away as opposed to donated or
sold to consignment shops due to its poor construction. That has led some people to call the goods
“landfill fashion.”
The perception of poor quality has imbued negative connotations to the very term “fast fashion”—
to the point where Uniqlo and H&M choose not to identify themselves by that label. Uniqlo, in fact,
takes pride in keeping its quality high and its prices low by locking in factory time in advance and
creating garments at a steady pace all year long, rather than chasing the latest trend and rushing
shoddy garments through at specialty factories.
What does this mean for the future of fast fashion? As with all retailing, companies will likely
adapt, perhaps slowing their pace slightly, perhaps raising their prices a little, perhaps adjusting in
(continued)
9781609018986.indb 311 8/18/14 3:00 PM

other ways. But in the end, it is doubtful that the concept of getting current fashion to eager consum-
ers on a timely basis will go away; consumers have overwhelmingly voted with their wallets that they
want new styles while they’re still new.
Sources: Jim Zarroli, “In Trendy World of Fast Fashion, Styles Aren’t Made to Last,” NPR.org, March 11, 2013, www.npr.org/2013/03/11
/174013774/in-trendy-world-of-fast-fashion-styles-arent-made-to-last; Greg Petro, “The Future of Fashion Retailing: Part 1 – Uniqlo,”
Forbes, October 23, 2012, www.forbes.com/sites/gregpetro/2012/10/23/the-future-of-fashion-retailing-part-1-uniqlo/; Greg Petro, “The
Future of Fashion Retailing: The Zara Approach (Part 2 of 3),” Forbes, October 25, 2012, www.forbes.com/sites/gregpetro/2012/10/25/the-
future-of-fashion-retailing-the-zara-approach-part-2-of-3/; Greg Petro, “The Future of Fashion Retailing—The H&M Approach (Part 3 of 3),”
Forbes, November 5, 2012, www.forbes.com/sites/gregpetro/2012/11/05/the-future-of-fashion-retailing-the-hm-approach-part-3-of-3/; Seth
Stevenson, “Polka Dots Are In? Polka Dots It Is! How Zara Gets Fresh Styles to Stores Insanely Fast—Within Weeks,” Slate.com, June 21, 2012,
www.slate.com/articles/arts/operations/2012/06/zara_s_fast_fashion_how_the_company_gets_new_styles_to_stores_so_quickly_.html.
But change did not end with multichannel retail- The end result is that modern retail is adapting
ing. Consumers quickly became frustrated if an item once more and becoming omnichannel retailing,
found on a retailer’s website was not available in the a structure in which merchants focus on engaging
store, or if an item that was ordered and didn’t fit and serving their customers in a seamless manner
could not be returned to a store location for credit regardless of the method, online or offline, those
or exchange. They also, as you learned in Chapter customers are using to shop. Whereas multichan-
11, began turning increasingly to social media for nel retailing enabled consumers to complete trans-
information and recommendations on what to buy actions through multiple connected channels, such
and where. What’s more, a growing number of con- as in a brick-and-mortar store as well as a retail
sumers began using smartphones and other mobile website, omnichannel retailing goes further, with
devices to access the Internet from anywhere they the goal of offering consumers the same experi-
found themselves, taking advantage of the ability to ence across any and all channels. The approach may
research products, compare prices, download cou- vary somewhat among individual retail companies.
pons from retail apps, and make purchase decisions Some, such as Staples, for instance, are featuring
based on information literally at their fingertips. In in-store kiosks that, in essence, recreate an online
some cases, consumers started engaging in show- shopping experience within the store, allowing
rooming, or visiting a physical store to examine consumers to find more information on products
goods first-hand but then looking for a lower price or purchase goods for later pick-up. Others, such
and purchasing online. as Best Buy, enable consumers to purchase an item
9781609018986.indb 312 8/18/14 3:00 PM

online but pick it up, usually within the hour, at a Store Retailing
local store location. Still others are using mobile Despite the fact that consumers’ options regarding
apps to enhance consumers’ shopping experience; where to spend their shopping dollars have dramati-
Sephora’s mobile app, for instance, lets customers cally increased, as much as 90 percent of purchases
view their past purchases, read or write product in recent years were still made in “brick-and-
reviews, create a shopping list, and more, and can be mortar” retail venues—that is, in physical stores
used in-store (thanks to free WiFi) to scan products (Figure 13.5).6 Within that overall category, con-
or find special offers. sumers’ shopping options range from large depart-
Of course, as pointed out above, one of the ment stores, to specialty shops, to discount stores,
biggest constants in retailing is change, and what boutiques, designer outlets, and more.
works for fashion retailers and consumers today Department stores, with their broad assort-
may not be as effective in years to come. Consider- ments of styles and brands for women, men, and
ing the seismic shifts in technology and consumer children, remain a top choice for fashion purchases.
behavior already taking place this century, a 2013
report by the Shop.org Think Tank views omnichan-
nel as simply a bridge to the retail organization of
the future, noting: “Growth retail companies in
2023 will bear little resemblance to today’s orga-
nization. . . . The successful retailer in 2023 will be
driven by and designed around a consumer who
demands a holistic, customer-focused shopping
experience.”5
WHERE CONSUMERS
BUY FASHION
Even with the strong trend to omnichannel retail-
ing, there are still broad categories that define dif-
ferent types of fashion merchants today. Some retail
classifications are based on price, some on breadth
of product assortment or level of service, and some
on the method by which consumers purchase.
Let’s look at the key categories of store retailing,
e-commerce, catalogs, and television shopping, as
well as some other important ways in which con- FIGURE 13.5 Department stores are still a favorite place
sumers obtain fashion. for women consumers to shop for apparel.
9781609018986.indb 313 8/18/14 3:00 PM

CASE IN POINT 13.1
Burberry Brings Digital Shopping to Life

With consumers clamoring for the conve- sends a signal that causes multimedia content
niences of omnichannel shopping, retailers of related to the product to appear on a nearby
all stripes have been revamping their design screen or mirror, such as information about the
strategies and incorporating technology to item’s construction, or a video of the piece as
weave their online and offline entities into one it was worn on the runway. Pop-ups can even
seamless whole. Among those retailers is the appear on a mirror that let the customer know
iconic Burberry. When customers enter the what others have bought after looking at the
renovated Burberry store on London’s historic item being examined, much in the way online
Regent Street, it’s like no store they’ve ever retailers offer suggestions for additional or
seen before. As the retailer’s then chief execu- alternate purchases. In addition, store associ-
tive officer said at the store’s September 2012 ates are equipped with iPads that enable them
unveiling, “Burberry Regent Street brings our to call up a customer’s purchase history and
digital world to life in a physical space for the preferences—yet one more way that the store is
first time, where customers can experience erasing the lines between online and store.
every facet of the brand through immersive What about U.S. consumers? Are they left
multimedia content exactly as they do online.” out of this high-tech shopping experience?
Among its highlights, the store features 100 Not at all. Burberry opened a similarly outfit-
video screens and 500 speakers, all synchro- ted store in Chicago, complete with digitally
nized to disseminate information and brand enhanced architecture, interactive environment,
content to shoppers as they browse. Apparel iPad-equipped sales associates, a new “collect-
is tagged with RFID devices, so when a cus- in-store” service, and more omnichannel shop-
tomer picks up a jacket, for instance, the tag ping touches.
Sources: Fred Minnick, “Burberry’s New Look,” Stores, January 2013, http://www.stores.org/stores%20magazine%20january%202013
/burberry%E2%80%99s-new-look; Burberry website, www.burberry.com.
While the number of individual department store retailers such as Neiman Marcus, Nordstrom, Saks
companies has shrunk over the past two decades Fifth Avenue, and Bloomingdale’s, which cater to
(and particularly after a major merger in 2005 an upscale clientele, carry designer and upper-tier
that converted a number of other retail names labels, and tend to offer more customer service.
to Macy’s), department stores still attract shop- Mid- and lower-price department stores are less
pers who want a wide selection of better-quality known for service than they used to be, but offer a
fashion merchandise. At the higher price levels are strong assortment of national brand, designer, and
9781609018986.indb 314 8/18/14 3:00 PM

their own private label fashions. Among the most luggage and leather goods. Talbot’s, Casual Male,
prominent department store names in this category Victoria’s Secret, Foot Locker, Claire’s, and Bed Bath
are Macy’s, JCPenney, Kohl’s, Dillard’s, and Sears. & Beyond are all examples of specialty stores.
In addition, some higher-end chains have launched On occasion, an existing specialty store company
or expanded their own lower-priced stores to target sees an opportunity to target a different consumer
customers who want the look and taste level of the segment and launches a new retail venture, a strat-
brand but who cannot or do not wish to pay top dol- egy that may or may not prove to be successful. Ann
lar for the goods found in the original store. Nord- Taylor Stores, known for career wear, created Ann
strom Rack, Saks Off Fifth, and Last Call Studio by Taylor Loft to sell lower-priced casual clothes, and
Neiman Marcus are examples. the concept—now called simply LOFT—has become
Discount stores have taken a bigger portion of one of the leading women’s specialty fashion brands
consumers’ fashion dollars in recent years, as they in North America. American Eagle Outfitters, on
have raised the fashion level of their merchan- the other hand, launched Martin + Osa to offer
dise while maintaining prices that are affordable sportswear for men and women ages 25 to 40, an
to most consumers. Leading the pack of discount- older demographic than the typical American Eagle
ers is Target, whose on-trend assortment of “cheap customer, but sales were not as robust as hoped and
chic” apparel became so popular that it led other the stores closed after four years. The company’s
discounters to try adding more upscale fashions to
their merchandise mix. While discount stores gener-
ally carry a mixture of national brands and private
label apparel, Target has differentiated itself by
offering a number of exclusive apparel collections
by designers such as Isaac Mizrahi, Missoni, Phillip
Lim, and Peter Pilotto.
Specialty stores are another important channel
for consumers shopping for fashion goods. As the
name implies, specialty stores focus on a relatively
narrow segment of apparel or other goods to attract
a specific target consumer. Within the apparel cat-
egory, there are specialty stores that carry clothing
for children, for teens, for men, for plus sizes, and
many other target groups (Figure 13.6). Some stores
limit their offerings to a lifestyle category such as
active sportswear or career wear, or to a particu-
lar price range. There are also specialty stores that FIGURE 13.6 Specialty stores focus on a limited range of
merchandise. Apparel specialty stores, such as Old Navy,
focus on non-apparel fashion goods, such as jew- may also target certain size ranges within their selection
elry, accessories, home furnishings, footwear, and of apparel.
9781609018986.indb 315 8/18/14 3:00 PM

Aerie chain, however, which sells intimate apparel Mark Twain, it’s clear that those early reports of the
and sleepwear targeted to 15- to 21-year-old girls, death of online shopping were greatly exaggerated!
has grown to more than 140 stand-alone stores, as Helping propel the growth of e-commerce is the
well as having merchandise sold within the Ameri- dramatic rise in the use of mobile devices. At the end
can Eagle stores. of 2013, nearly two thirds of U.S. consumers owned
In addition, a growing number of apparel brands a smartphone and more than a third owned a tablet,
and designers have established their own full-price meaning that they could take the Internet with them
retail stores, giving consumers an opportunity almost anywhere they went. The ease of accessing
to buy a complete range of merchandise under a websites or using mobile apps to check product avail-
single label. Among the companies operating their ability, read user reviews, compare prices, and click to
own retail locations are Ralph Lauren, Coach, Kate purchase, even while browsing a physical store, has
Spade, and Lacoste. given consumers a new set of tools in deciding what
to buy and where. As a result, the sub-category of
E-Commerce m-commerce, or shopping using a mobile device, is
Shopping done on the Internet by means of a com- growing rapidly. One study estimated that American
puter, tablet, smartphone, or any other electronic consumers used mobile devices to make purchases
device is known as e-commerce, sometimes called of more than $25 billion in 2013;9 another research
e-tailing. It might be hard to believe, but in the year company put that figure at over $41 billion—and
2000, many people thought Internet retailing— projected that by 2017, retail sales made on mobile
which was still in its infancy—was already dying. devices would climb to well over $100 billion.10
Some thought that consumers would only buy Online retailing was initially dominated by “dot-
products they could touch first or see in person, or coms,” or retailers that sold only on the Internet,
wouldn’t want to wait for their purchases to arrive; and there are still numerous “pure-play” e-tailers
others believed concerns about the security of per- (as Internet retailers without a physical store are
sonal information and credit card details would called). Amazon.com, Zappos.com, and Bluefly.
keep consumers away. Clearly, that was not the case, com are three examples. Today, however, most
and as retailers got better at their presentation and brick-and-mortar retailers are also using the Inter-
logistics, consumers became more comfortable with net as an additional outlet to supplement their
the idea of clicking to buy. According to Forrester in-store business; this two-pronged approach has
Research, by 2003, online sales in the United States been nicknamed “click-and-mortar.” Most of these
(not including travel) had passed the $100 billion retailers feature full online sales and support of
mark, and between 2003 and 2006, they more than their merchandise offerings—in fact, retailers fre-
7
doubled, to nearly $220 billion. By 2013, that num- quently offer a wider selection of products on their
ber had climbed to $262 billion, representing about websites than they can physically stock in their
8 percent of all retail sales, and was predicted to stores. Sometimes the extended selection includes
8
skyrocket to $370 billion by 2017. To borrow from a greater breadth of items from a particular brand
9781609018986.indb 316 8/18/14 3:00 PM

or designer, or it may include sizes outside the for a product elsewhere if they know returning it
most common range, for which there is less in-store could be inconvenient or costly.
demand. Even luxury goods are increasingly being
sold online, both by upscale retailers such as Nord-
strom and Bergdorf Goodman, and by Internet-only Let’s Talk
companies like Net-a-porter.com and Yoox.com. What products would you consider purchasing
For fashion consumers, shopping online offers online or via mobile app? Are there any items you’d
both advantages and disadvantages. On the nega- prefer to buy in a physical store? Why or why not?
tive side, consumers can’t touch and examine the
products before buying, and in the case of apparel,
they obviously can’t try on the clothes before pur- Catalogs
chasing them. The social aspect and face-to-face With the growth of the Internet and online shop-
interaction of shopping in a store is also missing— ping, many people thought printed catalogs would
although some consumers enjoy a virtual inter- become obsolete. But that has hardly been the case.
action with other consumers via social shopping For one thing, the growing use of tablet computers
sites (see Chapter 11). Some consumers are still has meant an increase in the number of catalogs
uncomfortable using a credit card over the Inter- that shoppers can browse on their tablet screen, rep-
net, and others don’t like to pay the shipping costs. licating the page-turning of a print catalog and reac-
On the positive side, shopping online gives fashion quainting consumers with that form of shopping.
consumers access to a far wider selection of retail- That said, more than 12.5 billion printed catalogs
ers and merchandise than is available in their local are still sent to U.S. homes every year, according to
shopping area. Online tools such as product search, the Direct Marketing Association; and nearly three
price comparisons, and reviews by other consumers in ten Americans made a catalog purchase in 2011.11
can also help them to find the right item at the best Catalog shopping has some of the same advan-
price. In addition, to address consumer resistance to tages and disadvantages of online shopping, includ-
paying extra to receive goods, many retailers offer ing the benefit of being able to purchase from a
free shipping, sometimes tied to a minimum order retailer without a nearby location, as well as the
amount; and some, particularly footwear e-tailers downside of not being able to try on apparel before
such as Zappos.com and Shoebuy.com, also offer buying. Catalogs, however, may be preferred by
free return shipping for items that the customer those remaining consumers who are not computer-
decides not to keep due to poor fit or any other savvy or who feel uneasy about giving credit card
reason. Many click-and-mortar retailers also allow information online—or who simply like the per-
customers to return online purchases to a physical sonal contact of speaking to someone on the phone
store, saving the hassle of return shipping. Consum- to place their order. A printed catalog also offers the
ers frequently double-check the return policy of a benefit of being tactile and able to be marked up,
retail website before placing an order, and may look put down, and returned to later to browse further,
9781609018986.indb 317 8/18/14 3:00 PM

without the need to type or search on a screen. Imagine: press a few buttons on the remote and the
Increasingly, many consumers may use a printed Gap shirt you’re admiring on the American Idol con-
catalog to make their decision about what to buy, testant is on its way to your home!
but then go online to place the order on the retail- Among the major companies that have jumped
er’s website or to the store to see the item in person. on the t-commerce bandwagon is American Express,
Some companies that began their business as which is partnering with Fox and NBC Universal to
catalog-only, such as Norm Thompson (which sells enable consumers to purchase certain products they
men’s and women’s apparel, home décor, and gour- see on shows such as New Girl and Fashion Police.13
met foods), have translated their catalog to a com- Another is consumer electronics giant Samsung,
plementary website sales operation. Others, such as which has pre-loaded a t-commerce app created
J. Crew and upscale women’s apparel retailer Cold- by Delivery Agent, Inc., on some of its Smart TVs.
water Creek (which filed for bankruptcy in 2014), The app is built on a platform that maps more than
have gone online and also added physical stores to a million products across more than 500 shows by
expand on their catalog sales. On the other hand, network, program, episode, character, scene, or ad,
illustrating the continued viability of catalogs, some and then makes those products available for sale via
traditional store retailers have added catalogs to consumers’ remote control.14
their mix or reinforced their use of catalogs in recent
years. Bath & Body Works, for example, followed Other Ways Consumers Buy Fashion Goods
the launch of its retail website a few years ago with Department, discount, and specialty stores, along
12
the launch of a print catalog; and Victoria’s Secret with the Internet, catalogs, and television, may be
continues to send catalogs on a regular basis, reach- the primary places where consumers shop for fash-
ing more than 390 million customers each year. ion, but they are not the only places. In the brick-
and-mortar world, many consumers delight in
Television Shopping finding bargains on top brand merchandise at out-
Television shopping, via networks such as QVC let stores, which have increased in number as some
and HSN, has been a favorite consumer pastime companies seek ways to enhance awareness and
for more than three decades, enabling pajama-clad sales of their brand. While outlet stores originated
consumers to go on day or night shopping sprees as a means for marketers to sell their discontinued
long before PCs and the Internet were an every- or defective merchandise, that is no longer strictly
day part of most households. But with advances the case, since many brands saw a greater oppor-
in interactive technology, a new incarnation tunity to market to the consumers flocking to the
called “t-commerce”—combining television with stores in search of value and a great deal. Some
e-commerce—is poised to take off. This updated fashion companies now use these stores to test
version of television shopping allows consumers to new designs before introducing them on a wider
use their TV’s remote control to order products they basis; and some, like Brooks Brothers and Gap, even
see on the screen on a range of networks and within design some merchandise exclusively for their fac-
regular (not just shopping channel) programming. tory and outlet stores.15
9781609018986.indb 318 8/18/14 3:00 PM

Consumers can also shop for fashion merchan- can rent the handbag or jewelry of their dreams for a
dise via the direct sales method, such as through one-month period, and then exchange it for another
Avon Products, which sells apparel and accessories when they’re ready for a new look. Le Tote, on the
in addition to its signature cosmetics and skin care other hand, offers a fashion rental model similar to
products; and via house parties, where consumers Netflix’s DVD rental program. For a modest monthly
can socialize while buying products ranging from lin- fee, consumers can borrow a choice of either jewelry
gerie, to cosmetics, to shoes, and more. And for fash- only or full outfits and accessories, keeping them for
ion consumers whose pocketbook can’t keep up with as long as they’d like or returning them for a new
their tastes, there are a number of retailers, both look at any time. Yet another approach is offered
online and off, that will let customers rent luxury by Rent the Runway (Figure 13.7), which does not
products (from a Chanel handbag, to a Vera Wang require a membership fee but enables consumers
necklace, to a Zac Posen gown) for a fraction of the to rent dresses from more than 170 designers, pay-
price of buying them. One of the best known is Bag ing just a fraction of what it would cost to purchase
Borrow or Steal, a website through which consumers them. (See Case in Point 13.2.)
FIGURE 13.7 Some retailers, such as Rent the Runway, allow consumers to rent designer or luxury fashions for far less
than it would cost to purchase the goods.
9781609018986.indb 319 8/18/14 3:00 PM

CASE IN POINT 13.2
Renting Glamour
Until a few years ago, when a woman needed a occasion they’re renting the dress for, provides
dress for a special occasion, she could re-wear a wealth of built-in marketing information that
something already in her closet (which might not Rent the Runway can then use to adjust its
be an up-to-date style); spend hundreds or even assortment or services going forward.
thousands of dollars on a chic new dress at a Understanding the market and consumer
high-end retailer (which she might not be able to behavior is actually a big key to the company’s
afford); or buy something more reasonably priced success, according to Candace Corlett, presi-
(which probably wouldn’t make her feel as fabu- dent of WSL Strategic Retail, who attributes
lously fashionable). acceptance of the rental model to the Millennial
Then along came Rent the Runway—and now generation. Millennials, she said, “are part of a
any woman can be decked out in a designer frock generation that has grown up buying and selling
for a big event, without shelling out big bucks. things on eBay. Reselling and buying pre-owned
With more than three million members, the is part of their mindset, so it makes perfect sense
website boasts partnerships with 170 designer that they would be receptive to renting a designer
brands and offers 35,000 dresses, all available dress. This generation wants the best, but they’re
for a four-day or eight-day rental period for as also more cognizant of excess and of the need to
little as $30 (and up to about $500). live within their means.”
One aspect making Rent the Runway unique To reach even more consumers with more
is that customers do not have to choose a dress options, Rent the Runway has begun a push into
based solely on how it looks on a professional brick-and-mortar, with its first venture being a
model. The site is chock-full of photos that showroom at the Henri Bendel flagship store on
actual renters have uploaded of themselves New York’s Fifth Avenue. Consumers can try on
wearing the clothing, with the option to provide and rent a selection of dresses available on-site;
their height, weight, and chest size along with staff in the showroom lend assistance and can
a review. New renters are able to search for scan each dress a customer tries on with an iPad,
women of a certain age, shape, or size (includ- adding it to the consumer’s virtual closet for later
ing plus-size, recently added to the selection), reference. A second showroom opened in early
to see how a dress looks on someone similar 2014 at the Cosmopolitan of Las Vegas, offering
to themselves before ordering. That consumer more than 1,000 dresses for consumers to rent
data, including where the renters live and what on the spot and return the next day.
Sources: Susan Reda, “Leasing the Latest Looks,” Stores, May 2013, http://www.stores.org/STORES%20Magazine%20May%202013/leasing-
latest-looks; Lauren Walker, “Rent the Runway Teams Up with Henri Bendel for Brick-and-Mortar Experience,” FashionMag.com, October 18,
2013, http://us.fashionmag.com/news/Rent-the-Runway-teams-up-with-Henri-Bendel-for-brick-and-mortar-experience,362897.html#
.UtW_Y7SFf8k; and Renttherunway.com.
9781609018986.indb 320 8/18/14 3:00 PM

Some fashion consumers also enjoy bidding for previous purchases there made the shopper feel or
items in online auctions, such as at eBay, or grabbing how prestigious the retailer is with the consumer’s
goods offered in a flash sale—an online, limited- peer group. The retailer’s services and product mix
time discount on branded, sometimes high-end are also important, as is the atmosphere of a brick-
merchandise, such as through sites including Gilt and-mortar store, and retailers focus heavily on
Groupe, RueLaLa, and Groupon, or offered by retail- these areas in their planning and marketing in order
ers such as upscale Neiman Marcus. Others choose to win consumers’ interest and loyalty.
to browse in thrift shops, consignment shops, and
vintage clothing stores, perhaps searching for a bar- Physical Surroundings
gain on a gently used designer item or hunting for A survey conducted by IBM found that 46 percent of
a one-of-a-kind treasure to enhance their wardrobe shoppers said they tend to stay away from retailers
or their home décor. Those shopping venues can that look and feel the same as other retailers, and
also become a source for consumers who are ready about a third avoid stores that are disorganized.16
to part with fashion items. Unless an item is ripped, What do those numbers tell us? They confirm that
stained, or otherwise too worn to be reused, many the appearance and ambience of a store are very
consumers donate their clothing or home fashions important to consumers in deciding where they
to a charity or thrift shop. For better items in good want to shop when they shop in person.
condition, they might decide to resell them online The physical features of a store are often what
or through a consignment shop, where the shop give consumers their first impression of a retailer,
takes a percentage of the sale price. Another grow- so most stores devote considerable effort to design-
ing trend, made possible by mobile technology, is ing a look and atmosphere that will create a favor-
a clothing swap, in which consumers use an app to able impression as well as differentiate them from
find and list apparel or accessories they can trade other stores. That mind-set applies to the store’s
with other fashionistas, enabling both parties to exterior as well as its interior. Architectural details
freshen their wardrobes at minimal expense. and meticulously designed display windows are
frequently used to capture the style and essence of
a store’s merchandise—and catch the eye of target
INFLUENCE OF SHOPPING
consumers. But a few mall-based stores have taken
ENVIRONMENTS
another approach, differentiating themselves by
As discussed in Chapter 12, a variety of conscious doing away with the traditional floor-to-ceiling glass
and unconscious techniques are involved in con- storefront. For example, the storefronts of Hollis-
sumers’ decision making, including the choice of ter, an Abercrombie & Fitch lifestyle fashion brand
where to shop for a particular product. Rational aimed at high schoolers, have an exterior that mim-
aspects, such as a retailer’s general price range or a ics a beach shack with wooden shuttered windows.
store’s proximity to the consumer, will enter into A store’s interior is designed to both accentu-
the decision, as will emotional aspects, such as how ate the merchandise and appeal to the store’s target
9781609018986.indb 321 8/18/14 3:00 PM

consumers. Retailers scrutinize everything from experience for customers, including some six million
color schemes and lighting, to the genre and vol- tourists who visit the Herald Square landmark each
ume of background music, to the size and comfort of year. The makeover includes a street-level grand hall
dressing rooms when planning a store’s layout and dotted with top designers’ wares and luxury goods
ambiance (Figure 13.8). When Barneys New York showcases, set off by white marble floors, high ceil-
opened a new Boston store, it was designed to reflect ings, and a wraparound mezzanine overlooking the
the retailer’s luxe image, with décor that includes cosmetics and luxury handbag counters.18 By con-
an elegant staircase, huge skylight, and a women’s trast, big-box stores such as Home Depot and Costco
shoe department with chic sofas and banquettes and use a purposely spartan décor to emphasize their
17
a fireplace. At its New York flagship store, Macy’s extensive selection and low prices.
recently undertook a $400 million renovation meant Retailers that target a younger, hipper con-
to help capture a bigger portion of the booming sumer also design their stores to reflect the likes
luxury goods market, as well as to enhance the store and lifestyles of those customers. For example,
FIGURE 13.8 Retailers devote much effort to creating a store ambience that will appeal to their target consumers and give
them a reason to come to the brick-and-mortar store. Burberry’s renovated Regent Street store in London, for instance,
incorporates video screens and other high-tech amenities.
9781609018986.indb 322 8/18/14 3:00 PM

CASE IN POINT 13.3
Hointer Gives Consumers a Glimpse of the Store of the Future

Imagine combining the things you like best consumers enter a size and color and head to
about shopping in a brick-and-mortar store the dressing room. Within 30 seconds, an auto-
(touching, feeling, trying on, walking out with mated robotic system plucks the clothing from
your selection) with the things you like best the micro-warehouse and delivers it right to the
about shopping online (efficiency, easy selec- customer. If the jeans fit, customers can swipe a
tion, unlimited inventory) . . . and you might be credit card right then and there and be on their
imagining Hointer, which opened its first shop in way. If not, they place the unwanted items in a
2012 in Seattle—not with the goal of becoming return chute and they’re automatically removed
the next big retail chain, but rather to provide an from the app’s shopping cart; or they can use the
innovation and learning incubator to take retail- app to request that a different size or color be
ing into the future. whisked to them automatically, all without leav-
Initially targeting shopping-averse men, the ing the dressing room.
Hointer store is divided into a showroom and a While Hointer’s founder Nadia Shouraboura,
micro-warehouse in back. The showroom, fea- a former Amazon supply chain and fulfillment
turing primarily jeans, looks sparse but offers tech exec, expected customers to quickly select
about ten times the selection of a typical store— jeans and be “in and out in a minute,” she was
just not piled and scattered on shelves, tables, or surprised to find that wasn’t the case at all.
traditional racks. Instead, a single pair of each “Men were coming in and actually enjoying it.
style of pants hangs from a bar, attached by They were spending more time in a store than
carabiners to be easily viewed from all angles. they had ever spent before. First it was all about
Customers can download a Hointer app to their how fast it could be. But it turned into some-
smartphone or use a store-supplied tablet to thing much more about allowing people to dis-
scan or tap an item’s tag, and up pops what cover, to try things on, to learn more about the
looks like the product page of an e-commerce different brands. Men come in now and might
site, complete with description, Instagram pho- try on 10 different pairs, 20 different pairs, and
tos, and even competing prices. To try on a pair, we hear them laughing, having fun.”
Sources: Fiona Soltes, “Automatic for the People,” Stores, March 2013, http://www.stores.org/STORES%20Magazine%20March%202013
/automatic-people; Dan Berthiaume, “Hands-On Shopping,” Chain Store Age, November 2013, p. 21; Carol Spieckerman, “Hointer’s New Tricks
for Bricks,” RetailWire, August 29, 2013, www.retailwire.com/new-article/16991/hointers-new-tricks-for-bricks; “Innovation Watch: Hointer
Uses Robotic Technology to Pull in Male Shoppers,” RetailWeek, October 21, 2013, www.retail-week.com/home/innovation-watch-hointer-
uses-robotic-technology-to-pull-in-male-shoppers/5054126.article; “Hointer—Bringing Together the Best of In-Store and Online Shopping,”
Retailsedge, June 7, 2013, http://retailsedge.com/2013/06/07/hointer-bringing-together-the-best-of-in-store-and-online-shopping/.
9781609018986.indb 323 8/18/14 3:00 PM

when Aeropostale created a new prototype store survey, two-thirds of shoppers said it was extremely
in Garden City, New York, a couple of years ago, important for retail employees to be courteous,
the chain traded in its usual sleek, clean design for and 61 percent found it important that employees
a moodier, more textured look, meant to be more be available to ask for help. For online shoppers,
in line with today’s teen personality, with touches good customer service translated to on-time deliv-
including exposed brick walls, fixtures made from eries for 73 percent of respondents, while 74 per-
reclaimed wood, and murals featuring iconic New cent wanted the retailer to handle questions and
York landmarks and neighborhoods. Along with the requests quickly.21
visual changes, the store added a high-tech note to Some retailers have turned to technology to help
the design with in-store iPad kiosks that not only let improve their customer service, such as installing
customers scan products to read reviews or access in-store computer kiosks that let shoppers instantly
a “build your own outfit” guide, but that personal- order an item or size that might not be in stock,
ize the music playing while they shop. Tablets in the or providing GPS-type functionality in their apps
fitting rooms allow customers to choose the tunes that helps guide consumers more quickly to the
they’re listening to while trying on clothes; but even aisle with the goods they’re seeking (Figure 13.9).
more captivating is a crowdsourcing iPad jukebox Online retailers have also stepped up their service
that lets shoppers choose songs they’d like to hear levels, such as with enhancements to the “live chat”
played store-wide—inspiring them to stick around options that allow consumers to ask for help in real
19
and shop while they wait for their song to come on. time. Designer clothing e-tailer Bluefly, for instance,
introduced a chat service in which, if a customer
Service and Amenities searches for more than three items in five minutes
As retail consultant Anthony Stokan, author of Naked (which presumably indicates more than just casual
Consumption: Retail Trends Uncovered, pointed out, browsing), a pop-up window appears featuring a
modern consumers expect more than mere satisfac- friendly face offering help.22
tion from retailers. They want to be delighted, so that As brick-and-mortar retailers face ever-stiffer
20
they will feel passionate about the retailer. In many competition for consumers’ time and money, both
cases, that means retailers, both online and offline, from other retailers and from the Internet, many
must go above and beyond providing the right mer- are focusing on ways to enhance the shopping expe-
chandise in the right setting by also offering excep- rience in ways that customers can’t enjoy online—a
tional service—and sometimes additional “extras.” tactic also meant to reduce consumers’ showroom-
Obviously, good customer service means differing tendencies. Some have expanded their services
ent things to different shoppers, but it is at least and implemented customer amenities that range
somewhat important to a whopping 99 percent from play areas for children, to Wi-Fi access, to spe-
of consumers when deciding to make a purchase, cial events and entertainment. Nordstrom, one of
according to a national survey conducted by the numerous retailers to recognize and address the dis-
NRF Foundation and American Express. In the tinct shopping preferences of men in recent years,
9781609018986.indb 324 8/18/14 3:00 PM

FIGURE 13.9 The concept of customer service extends to the convenience of being able to get merchandise information
whenever and wherever consumers want it—in store, online, or via mobile apps.
included a coffee bar, complimentary shaves, and solutions that their products can offer customers,
lots of gadgets when it opened a temporary men’s perhaps grouping items that complement each other
23
store in New York’s SoHo neighborhood. On the within a single display. Bed Bath & Beyond and The
other hand, boutique-style clothing store White Container Store, for example, have both created
House Black Market taps into the social tendencies model dorm rooms at college campuses to give stu-
of its female clientele by encouraging shoppers to dents (and their parents) ideas on how to make their
model apparel in front of a large mirror placed in the own room more comfortable and organized.25
center of the store.24
Malls and shopping centers are equally involved
in trying to give consumers added reason to leave
their couch and spend time shopping or browsing by Let’s Talk
staging concerts and art shows, hosting farmers mar- What service do you expect to receive from stores
kets and community events, and incorporating des- where you shop? Do you expect more attention from
tination tenants such as restaurants, movie theaters, a clothing store than a drug store? Does the level of
health clubs, and more. In many cases, stores are service influence whether you’ll shop there again?
also focusing not just on products but on presenting
9781609018986.indb 325 8/18/14 3:01 PM

Product Mix This new-millennium trend is also documented
Even the most wonderful store ambience, spec- in Treasure Hunt: Inside the Mind of the New Con-
tacular website, or outstanding service will not sat- sumer, whose authors see the end of only the rich
isfy consumers if they can’t find the products they buying expensive goods, the middle class buying
want at a given retailer. So retailers must continu- mid-priced products, and the poor buying cheap
ally adjust their merchandise to meet the needs and merchandise. Instead, consumers at all income
expectations of their target customers, as well as levels are shopping at lower-priced stores such as
work closely with manufacturers to make sure that Wal-Mart, Target, and Costco—partly because they
products are available when consumers want them. don’t want to overpay for an item, but also because
Despite the fact that all retailers have a defined getting a bargain on one purchase gives them more
group of target consumers, offering the right mix money to splurge on a luxury or indulgence.29 That
of merchandise requires constant attention to what growing tendency of consumers to cross-shop is
customers are looking for, since needs can change. even changing the tenant mix in many malls, which
Plus-size consumers, for instance, have told retail- are rethinking the conventional formula of depart-
ers that they are interested in more fashion-forward ment store anchors supporting a blend of smaller
apparel and, as a result, stores including Ann Taylor specialty stores. Some malls now feature discount-
and Banana Republic, as well as designers including ers such as Target next to high-end department
Eileen Fisher, are offering fashions in larger sizes.26 stores such as Neiman Marcus, along with other
Similarly, Gap recently introduced its women’s prod- stores, such as Best Buy and Bed Bath & Beyond,
ucts in petite and tall sizing, although the sizes are which were not traditionally found in malls.
available only on the retailer’s website.27 In the next chapter, we’ll look at the global con-
sumption of fashion, and explore the ways in which
Shopping Up and Shopping Down various nationalities and ethnicities exhibit differ-
One of the big differences in the way consumers ent buying behaviors while sharing certain universal
buy today is that their income does not automati- fashion traits.
cally translate to where they decide to shop or how
Summary
much they spend. A consumer might shop at a high-
end boutique and splurge on a designer dress for an
important occasion, but then go to a discount store Where and how consumers buy fashion products
for a bargain on sheets. Lois Huff, senior vice presi- is an important aspect of consumer behavior. Con-
dent at research and consulting firm Retail Forward, sumers are either fashion leaders or fashion fol-
referred to this phenomenon as “bipolar purchasing,” lowers, depending on how they relate to products
in which shoppers “can go down and get some great within the fashion life cycle. All fashion products
fashions at the lower prices, but then they also go up follow the same cycle of introduction, rise, peak,
28
and get something that really satisfies the ego.” decline, and rejection or obsolescence, although the
9781609018986.indb 326 8/18/14 3:01 PM

length of time from introduction to rejection can which retailers design to enhance their merchandise
vary tremendously. The rise phase of the cycle is and to attract their target consumers. Service is also
characterized by knock-offs, which are lower-priced important to shoppers, who increasingly expect
copies of an original style. Getting the latest fash- additional amenities from retailers, such as enter-
ions to consumers as quickly as possible is termed tainment or personalized assistance. Other factors
“fast fashion,” and practiced by retailers includ- affecting where consumers shop are the retailer’s
ing H&M and Zara. The popularity of fast fashion, assortment of merchandise and the availability of
which meets consumers’ desire for having on-trend products consumers are seeking. A trend in shopping
merchandise available in a timely manner, has behavior that has emerged in recent years is the ten-
influenced other retailers to new merchandise on a dency of consumers to shop either up or down from
year-round basis, instead of on a more traditional their traditional income level.
two-season schedule.
Consumers have many choices for purchasing
fashion, and their desire to be able to buy offline KEY TERMS
or online equally easily has led to the growth of
omnichannel retailing, in which retailers seamlessly Classic style
blend the purchase process among store, online, cata- Decline phase
log, and mobile. Despite the growth of e-commerce, E-commerce
about 90 percent of apparel purchases in recent years Fad
were still made in brick-and-mortar stores. Fash- Fashion followers
ion consumers shop most frequently in department Fashion life cycle
stores, followed by discount stores and specialty Fast fashion
stores. Specialty retailers target a narrow consumer Flash sale
group or specific style or price range, and some- Introduction phase
times create new retail concepts to address a differ- Knock-offs
ent target market. A growing number of consumers M-commerce
are shopping for fashion goods on the Internet, and Multichannel retailing
“pure-play” e-tailers have been joined online by brick- Obsolescence or rejection phase
and-mortar retailers adding Web sales to their opera- Omnichannel retailing
tions. Catalogs remain another important shopping Peak phase
source for fashion consumers, who have additional Rise phase
shopping options including outlet stores, television Showrooming
shopping, and even luxury rental stores.

Consumers are influenced in their shopping
choices by a store’s physical features and atmosphere,
9781609018986.indb 327 8/18/14 3:01 PM

QUESTIONS FOR REVIEW In your opinion, why do you think the item
caught on? Why do you think it won’t remain
popular? Survey your classmates for their
1. What are the five phases of a fashion life cycle?
views.
Describe what occurs in each phase.
3. Pick two different specialty stores to visit and
2. Describe what omnichannel retailing is and
compare how their store environments are
explain the changes in consumer behavior that
designed to appeal to their target customer.
helped push retailers to adopt the omnichannel
Make note of elements, including the
model.
storefront, the style of merchandise sold and
3. Name three types of stores where consumers
the way it is displayed, the lighting and music,
can make fashion purchases, and give an
the appearance of the sales associates, and
example of each.
so on, and how those elements contribute to
4. What are some of the advantages of shopping
the total ambience. How successful are the
for fashion goods on the Internet or from a
stores in conveying an immediate image? If
catalog? What are some of the disadvantages?
they are targeting a similar consumer, how do
5. What are three key aspects of a shopping
their approaches differ? How are they similar?
environment that influence consumers’ desire
Present your findings to the class.
to shop at a particular store?
4. Pretend you are planning to buy a particular
item of clothing. Choose three different
retailers that sell apparel online, and browse
ACTIVITIES their websites. How easy or difficult is it to
search each site? Can you find size and color
1. Look through a variety of magazines or store
information easily? What tools does each
circulars, or browse online, and find an example
e-tailer provide to help you find your item and/
of a style at each phase of the fashion life cycle.
or any similar styles? Do any of the sites pop up
Make a note of where you found each example.
suggestions for complementary or alternative
How does the source help you determine
items? Do they let you know whether the item
whether the style is in the first half or second
is available in your size, or whether it’s available
half of its cycle? Can you find multiple
for pick up at a nearby bricks-and-mortar
examples of a peaking style at different prices
store? Do they provide clear information on
or offered by retailers at different price tiers?
how merchandise can be returned? Make a
2. Think of a fashion product or style that is
chart comparing the features and ease of use of
currently or has recently been a fad. List the
the three sites.
attributes of the item, including the gender(s)
5. Visit a local thrift store or consignment shop
and age group(s) it appeals to, where or how it
or go to an online auction site (such as eBay)
began (for example, from a movie or celebrity,
and browse through a selection of the clothing
etc.), and how long it was or has been popular.
9781609018986.indb 328 8/18/14 3:01 PM

for sale. How much appears to be recently at 3. Chris Sprigman, “Fashion’s Piracy Paradox,”
the end of its fashion life cycle, and how much University of Chicago Law School Faculty Blog,
would be considered vintage styles? Do you see November 13, 2006. http://uchicagolaw
any current styles? If you’re looking online, find .typepad.com/faculty/2006/11/fashions
two or three items that are drawing multiple _piracy.html
bids, and see how they are described, whether 4. Marion Hume, “If You’ve Got It, Flaunt It,”
new or used, vintage, and so on. If you’re in Time, March 20, 2005, www.time.com/time
a shop, see if you can speak to the owner or /magazine/article/0,9171,1039713,00.html.
manager, and find out what criteria he or she 5. Shop.org Think Tank, “The Retail Organization
has for accepting items for sale and what types of 2023: The Customer Is King (For Real),”
of items seem to sell fastest. NRF.com, October 2013, https://nrf.com
/resources/retail-library/the-retail-
organization-of-2023-the-customer-is-king-
MINI-PROJECT real
6. Christopher Matthews, “Future of Retail: How
Imagine you are going to open your own apparel Companies Can Employ Big Data to Create a
store. Remembering all the factors that influ- Better Shopping Experience,” Time, August 31,
ence consumers as they shop and buy, write a full 2012, http://business.time.com/2012/08
description of what your store would be like, includ- /31/future-of-retail-how-companies-can-
ing customers you’d target, types of merchandise employ-big-data-to-create-a-better-shopping-
you’d carry, price ranges of the merchandise (low, experience/?id=gs-main-mostpop2.
medium, high), features of the store ambience (for 7. National Retail Federation and Forrester
example, styles of lighting, displays, music, etc.), Research, Inc., “Online Clothing Sales Surpass
level of customer service you’d offer, how you would Computers, According to Shop.Org/Forrester
incorporate online and/or mobile sales, and so Research Study,” News release, May 14, 2007.
forth. Present your “store” to the class. 8. Forrester Research, “U.S. Online Retail Sales
to Reach $370 Billion by 2017,” News release,
March 13, 2013.
REFERENCES 9. Morgan Sims, “What Effect Do Smartphones
1. NRF Foundation, “Retail Insight: Spotlight on Have on E-Commerce?,” iMediaConnection,
Modern Retail,” October 2013, http://research September 10, 2013, http://blogs.imedia
.nrffoundation.com/Default.aspx?pg=9001 connection.com/blog/2013/09/10/what-effect-
#.UsmsgbSFf8k. do-smartphones-have-on-ecommerce/.
2. Gini Stephens Frings, Fashion from Concept 10. eMarketer, “Mobile Devices to Boost US
to Consumer. 4th ed. (Englewood Cliffs, NJ: Holiday Ecommerce Sales Growth,” News
Prentice Hall, 1994), 61. release, September 5, 2013.
9781609018986.indb 329 8/18/14 3:01 PM

11. Katie Little, “Not Your Grandma’s Catalog— .com/displayanddesignideas/magazine/Mood-
A Retail Mainstay’s Reinvention,” CNBC.com, swing-9075.shtml.
October 12, 2012, www.cnbc.com/id/49387775/. 20. David Graham, “Tuning in to Teens,” Toronto
12. Melissa Dowling, “Bath & Body Works Goes Star, May 1, 2006, http://pqasb.pqarchiver
Direct,” Multichannel Merchant, May 1, 2006, .com/thestar/access/1029517821.html?dids=1
http://multichannelmerchant.com/mag/bath 029517821:1029517821&FMT=ABS&FMTS=
_body_works_05012–n6/. ABS:FT&date—ay+1%2C+2006&author=David
13. Bill Hardekopf, “American Express Dives into +Graham&pub=Toronto+Star&edition=&start
‘T-Commerce,’” Forbes, November 28, 2012, page=E.01&desc=Tuning+in+to+teens+Tuning
http://www.forbes.com/sites/moneybuilder +in+to+%27+the+dark+side%27.
/2012/11/28/american-express-dives-into-t- 21. National Retail Federation, “Importance
commerce/. of Customer Service Reinforced in NRF
14. Delivery Agent, Inc., “Samsung Electronics Foundation/American Express Study,” News
and Delivery Agent Launch T-Commerce release, November 23, 2004.
Shopping,” News release, July 16, 2013. 22. Bob Tedeschi, “Salesmanship Comes to the
15. “Retailers Eye Outlet Stores for Growth,” Online Stores, but Please Call It a Chat,”
Reuters, January 28, 2006, http://asia.news New York Times, August 7, 2006, www.nytimes
.yahoo.com/060127/3/2eu3z.html. .com/2006/08/07/technology/07ecom.html
16. IBM, “Retailers Offering a ‘One Size Fits All’ ?ex=1184558400&en=6122c9b16afa8281&
Shopping Experience Will Lose Customer ei=5070.
Loyalty,” News release, May 24, 2005. 23. Eric Wilson, “New Wrinkle in Men’s Wear:
17. “Barneys’ Luxe Brand of Hip Balances Cool with Shops Just for Men,” New York Times,
Commerce,” Boston Globe, April 9, 2006, www September 5, 2012, www.nytimes.com/2012
.boston.com/business/globe/articles/2006/04 /09/06/fashion/new-york-fashion-week-new-
/09/barneys_luxe_brand_of_hip_balances wrinkle-in-mens-wear-shops-for-men-only
_cool_with_commerce/. .html?_r=0.
18. Julie Satow, “Macy’s Splurges on a Makeover 24. Sanette Tanaka, “His and Hers Shopping
on 34th Street,” New York Times, November 5, Rules,” Wall Street Journal, September 5, 2012,
2013, www.nytimes.com/2013/11/06/real http://online.wsj.com/news/articles/SB10000
estate/commercial/macys-splurges-on-a- 872396390444273704577633472444777942.
makeover-on-34th-street.html?adxnnl=1& 25. Zachary A. Goldfarb, “Retailers Seize Dorm-
adxnnlx=1383924448-x6yKZYVN3g7UpjKQe Decorating Moment,” Wall Street Journal,
/2XxQ. August 16, 2005, http://online.wsj.com/article
19. Janet Groeber, “Mood Swing,” Design:Retail, /0,,SB112415052745013871,00.html.
March 25, 2013, http://www.designretailonline 26. Susan Chandler, “Retailers Are Sizing Up an
Overlooked Market,” Chicago Tribune, May 28,
9781609018986.indb 330 8/18/14 3:01 PM

2006, www.redorbit.com/news/science 2005, http://knowledge.wharton.upenn.edu
/525673/retailers_are_sizing_up_an /article.cfm?articleid=1158&CFID=2866161&
_overlooked_market_department_stores_and CFTOKEN=53701311.
/index.html. 29. Laura Landro, “When Luxury Meets
27. Gap Inc., “Gap Introduces Petite & Tall Sizes for Parsimony,” Wall Street Journal, June 22, 2006,
Women,” News release, January 18, 2006. http://online.wsj.com/article/SB115092941
28. “Attention Shoppers: Great Deals in Retail 682786837.html.
Mergers.” Knowledge@Wharton, March 30,
9781609018986.indb 331 8/18/14 3:01 PM

Chapter 14
Global Consumers of
Fashion and Design
WHAT DO I NEED TO KNOW ABOUT GLOBAL CONSUMERS OF FASHION

AND DESIGN?
✔✔ The influence of culture on the kinds of products and marketing strategies to which
consumers around the globe respond
✔✔ The importance of understanding the various subcultures in the United States and how
their distinct values affect purchasing behavior
✔✔ Why mistakes are made by marketers who are insensitive to the customs and symbols
that are important to consumers of other cultures
✔✔ How fashion and design unify the world despite cultural differences among nations and
societies
✔✔ The vital roles that importing and exporting play in the global economy and
dissemination of fashion trends
332
9781609018986.indb 332 8/18/14 3:01 PM

F
rom Japan to Jakarta and from Nevada to forward to fireworks on the Fourth of July, favor
North Carolina, consumers’ purchasing habits democracy, and love Superman and Mickey Mouse,
appear to be quite similar—and at the same researchers have learned that members of these
time, quite different. What human beings need, groups do not necessarily share all the same pref-
what we desire, and what we value definitely erences when it comes to consumer goods. Addi-
vary from country to country and culture to culture; tionally, these differing preferences are much more
yet many of the things we all want and enjoy, includ- complex than simply favoring Thai food over Chi-
ing in the realm of fashion, are actually universal. nese or straight-leg jeans over boot-cut jeans, and
they must be studied and understood if marketers
are to address and appeal to the varied interests and
Are We All Alike? desires of U.S. shoppers. Read Case in Point 14.1
and you’ll get a glimpse of how consumers in three
To be successful, marketers need to understand
important ethnic groups differ from one another
how people differ from place to place, especially in
and the U.S. population as a whole.
today’s interconnected world. In the United States
alone, people of different nationalities, religions,
locations, political parties, and social classes have Let’s Talk
beliefs and customs that are unique. Can they all
Are subcultural behaviors passed down from
want the same products among the dizzying array of
generation to generation, or are they transmitted
goods available? (see Figure 14.1.)
in other ways? Do you think we inherit them,
learn them, or adopt them? Are you a member of a
Subcultural Differences Influence subculture? If you think you are, how did you come to
understand the behaviors that are expected of you?
American Buying Habits
The United States is composed of a multitude of sub-
MARKETING TO DIVERSITY
cultures, smaller groups within the larger society/
culture, such as persons of the same age, political Diversity is a concept that is of great interest to the
ideology, ethnicity, social class, sexual orientation, modern businessperson. Diversity is that which
and so on, that possess distinct beliefs, goals, inter- makes us dissimilar or different from one another.
ests, and values that differentiate them from the Americans are a diverse bunch, made up of people
dominant culture. Hispanic, Italian, Irish, Polish, who’ve come to the United States from all over the
Indian, and Arab people compose some of the many world and who live their day-to-day lives in very dif-
ethnic subcultural groups that are living, working, ferent ways. Although we may have in common our
and raising families in the United States. However, respect for the ideals of freedom and independence
while they all might call this country “home,” look (even though exactly what those ideals mean to each
CHAPTER 14: Global Consumers of Fashion and Design 333
9781609018986.indb 333 8/18/14 3:01 PM

FIGURE 14.1 Do consumers the world over want the same things? The answer is yes . . . and also, no.
9781609018986.indb 334 8/18/14 3:01 PM

CASE IN POINT 14.1
A Look at Three Key American Subcultural Groups

The buying power of African Americans, already 146 for the total market. Smaller retailers gen-
at the $1 trillion mark, is expected to reach erally have the most appeal to blacks, with drug
$1.3 trillion by 2017—which clearly makes this stores, convenience stores, dollar stores, and
segment of the population a critical consumer beauty supply stores among the outlets most
market in the United States. What’s more, Afri- frequently visited.
can Americans, who number some 43 million, The Nielsen research also found that African
have distinct shopping characteristics from Americans have unique digital and mobile habits.
other consumer groups, according to research More than 7 in 10 own a smartphone, compared
conducted by the Nielsen Company. with just 62 percent for the total U.S. population;
For one thing, Nielson finds, African Ameri- and they spend 44 percent more time on educa-
cans are more aggressive consumers of media, tion and career websites. Contributing further
watching more television, reading more finan- to the market impact of the group is the fact that
cial magazines, and spending more than twice a higher percentage of African Americans are
the time at personal hosted websites as any attending college; and the number of African
other group. In addition, they shop more fre- American households earning $75,000 or more
quently than all other groups, making an aver- has grown by 63.9 percent in the last decade, a
age of 156 shopping trips per year, compared to greater rate than for the overall population.
Sources: The Nielsen Company, “African-American Consumers Are More Relevant then Ever,” News release, September 19, 2013; Kunbi
Tinuoye, “Shopping Habits of African-Americans Revealed by Nielsen Research,” The Grio, January 7, 2012, http://thegrio.com/2012/01/07
/shopping-habits-of-african-americans-revealed-by-nielsen-research/.
✴✴✴✴✴✴
At 52 million strong, the U.S. Hispanic popula- groceries, beauty products, technology, and
tion has a buying power of $1.2 trillion—and the cars, marketers are paying very close attention.
consumers holding the purse strings for the Making this group even more intriguing is
group are the women. According to a study by that the modern Latina is “ambicultural”; in
Nielsen, 86 percent of Latinas consider them- other words, she can pivot effortlessly back
selves to be the decision makers in household and forth between the English and Spanish
spending. And with that spending expected languages and cultures. She is more likely to
to pass $1.5 trillion by mid-decade, spread have children—63 percent of Latinas have kids
across a range of product categories including under 18 years old, compared to just 40 percent
(continued)
9781609018986.indb 335 8/18/14 3:01 PM

CASE IN POINT 14.1 (continued)
of non-Hispanic white females—but she is also 2060, closing the gap with the non-Hispanic
better educated than ever before: According white female population (expected to drop to
to Nielsen, for the first time, more Latinas are 43 percent), Latinas’ tastes, values, and prefer-
enrolling in college than non-Hispanic females. ences will become a larger part of the main-
What’s more, because U.S. Census data stream market, with the lines between what is
estimate that Hispanic women will comprise considered “American” and what is considered
30 percent of the total female population by “Latino” becoming increasingly blurred.
Sources: The Nielsen Company, “Latinas Are a Driving Force Behind Hispanic Purchasing Power in the U.S.,” News release, August 1, 2013;
Nina Terrero, “How Latinas Are Increasingly Influencing What Products You Will Be Buying,” NBC Latino, August 2, 2013, http://nbclatino.com
/2013/08/02/how-latinas-are-increasingly-influencing-what-products-you-will-be-buying/.
✴✴✴✴✴✴
Asian Americans number more than 19 million, shoppers, about 35 percent of whom told
and they are one of the fastest-growing multi- Nielsen they were “swayable shopaholics,”
cultural demographics in the country, surging in indicating they take pleasure in the act of buy-
number by 58 percent between 2000 and 2013. ing, may buy on impulse, and are willing to pay
A more staggering statistic, however, relates extra for products they want. Asian Americans
to the group’s buying power: It has grown more also do more online shopping than the general
than 520 percent, to some $720 billion, since population, with 77 percent noting they’d bought
1990 and is expected to top $1 trillion within a something online in the past year, compared
few years, according to research by the Nielsen with 61 percent of other consumer groups.
Company. Contributing to that buying power is In addition, Asian Americans are tech-savvy
the fact that Asian-American households are and well-educated, with half of those over age
54 percent more likely than U.S. households 25 holding a bachelor’s degree; only 28 percent
overall to have annual incomes greater than of the general population can say the same. And
$100,000. although 61 percent say they speak English very
Asian Americans tend to shop more often well, more than 75 percent speak another lan-
than their white counterparts, particularly in guage when they’re at home, which means mar-
the categories of food, apparel, housing, and keters might want to consider a multi-lingual
transportation. Name brands matter to these strategy to reach this powerful consumer group.
Sources: The Nielsen Company, “Significant, Sophisticated and Savvy: The Profile of the Asian American Shopper,” News release, December 3,
2013; Tiffany Hsu, “Asian American Consumers: Nearing $1 Trillion in Buying Power,” Los Angeles Times, November 20, 2012, http://articles
.latimes.com/2012/nov/20/business/la-fi-mo-asian-americans-nielsen-consumers-20121120.
9781609018986.indb 336 8/18/14 3:01 PM

of us probably differs), our unique orientations can’t been born into it. Eating turkey on Thanksgiv-
help but influence our behavioral (including con- ing, sporting baseball caps with our favorite team’s
sumer) patterns. name, wearing denim with everything, and prefer-
Adding to the issue of diversity are the regional ring Nike to other shoe brands are all signals that
consumption behaviors and preferences that exist some degree of acculturation has occurred. Accul-
in various geographic locations in the United States. turation is the process of adapting to a new pri-
People living on the far northeastern coast need cold- mary or mainstream culture. Those who are born
weather clothes for at least half the year, while those into a culture go through the much easier process
living in the deserts of the Southwest might not even of enculturation, whereby humans learn about and
own coats. Marketers need to recognize such differ- act according to the expectations of their own cul-
ences (in this example, weather-influenced behavior) ture from birth on. Although most people living in
so they can tailor strategies to meet the needs of the the Unites States identify, at least somewhat, with
marketplace, whatever they might be. the ethnic and religious groups into which they were
Diverse lifestyles also have a place in the subcul- born, or the countries where their relatives came
tural mix. A lifestyle (discussed in Chapter 9) is an from, many make at least some effort to adapt to the
individual’s distinctive way of living—a pattern that predominating culture in an attempt to identify with
influences a person’s choices in all areas of life, from those around them (an example could be learning to
how one spends his or her time to how one spends speak and read English). Such adaptation allows for a
his or her money. Consumer researchers continu- certain degree of comfort, security, and convenience.
ously identify, track, and study emerging and alter-
native lifestyles, knowing that distinctive lifestyles
CONSUMPTION MIRRORS
often produce new kinds of buyers with new and
CULTURAL VALUES
specific needs. And, as we know, new needs create
new opportunities for products and the marketing As discussed in Chapter 9, values are ideas we con-
of those products. sider important, principles for behavior that mat-
Clearly, as much as Americans share in terms of ter to us. A value system is “a learned organization
certain beliefs and behaviors, there are many kinds of principles and rules to help one choose between
of people who are part of this country; this makes alternatives, resolve conflicts, and make decisions.”1
the United States a multicultural society, with a Every culture has certain values that its members
dominant culture that includes many subcultures. share, and although it seems that some values
We all consume goods, but do so in different ways. change over time, it’s probably more accurate to say
As varied as our buying behavior is, however, that the methods or symbols used to express the
there are certain products and consumption activi- values are what actually change. Therefore, market-
ties that not only communicate connectedness, but ers must be careful not to misuse these methods
function as symbols that tell observers we all belong and/or symbols, since misinterpretation can lead to
to the same culture, even though we may not have misunderstanding. For example, Jean Paul Gaultier,
9781609018986.indb 337 8/18/14 3:01 PM

POINT OF VIEW 14.1
A British View of American Consumers
The following tongue-in-cheek opinions from a British observer focus on the American lifestyle and con-
sumption habits, as excerpted from a guide meant to help transplants from other countries adapt to U.S.
life. The observations reveal some of the ways Americans are viewed by others—admittedly with exag-
gerations. Some are favorable, others unflattering, but are they accurate?
The United States is one of the most cosmopolitan countries in the world and primarily a nation of
foreigners who have as much in common with one other as Africans have with Australians or Asians
with Europeans. However, despite its diverse mix, the U.S. isn’t necessarily the popularly depicted
melting pot, but a potpourri of ethnic splinter groups often living entirely separate lives with their
own neighborhoods, shops, clubs, newspapers, and even television and radio stations.
If there’s one single motivation uniting all Americans, it’s their desire to be rich and famous (I
want it all NOW!). Americans not only believe that you can have everything, but that you owe it to
yourself to have it all: beauty, education, fame, health, intelligence, love, money, etc., but if they can-
not have it all, most Americans will settle for money. To be considered seriously rich in the U.S., you
must be fabulously wealthy with a fleet of gold-plated Cadillacs, luxury yacht, private jet, and a man-
sion “on the hill” with scores of servants. The best of everything is every American’s birthright, and
they will borrow themselves into bankruptcy if they have to in order to provide it for themselves and
their families.
Americans are the greatest consumers in the history of the world and their primary occupation is
spending money—when not spending money they’re thinking about spending it. Displaying the cor-
rect “labels” is vital, as your status is determined by what you wear, drive, inhabit, or own. Status is
everything to Americans, who buy more status symbols than any other nation and believe there’s no
point in buying anything expensive if it isn’t instantly recognizable and desirable. Ostentatious con-
sumption is the order of the day (if you’ve got it, flaunt it!).
Size is everything and bigger is always better; big cars, big homes, big breasts, big pay checks,
big cities, big football players, big Macs, big stores—everything is big (most things in the US come in
three sizes: big, huge and gigantic!). To Americans, size and quality are inextricably linked and your
success in life is illustrated by the size of your office and the number of zeros on the end of your sal-
ary. Likewise new, which always equates to improved, and is infinitely better than old in the Ameri-
can throwaway society. Americans are continually “trashing” or trading in last year’s model, whether
it’s their car, home, or spouse.
(continued)
9781609018986.indb 338 8/18/14 3:01 PM

Americans do have many good points: they’re kinder, more generous, and more hospitable than
almost any other people. Their benevolence is legendary, and American philanthropists are the world’s
most generous. Despite the occasional rumors of the U.S.’s imminent economic collapse, it remains
the fount of invention and innovation, and is the most productive nation in the world. It also has one of
the world’s highest standards of living, while at the same time enjoying the lowest cost of living in the
western world. Most Americans have extraordinary faith in themselves and eternal optimism for the
future, firmly believing there’s always a bright dawn ahead. To an American, nothing is impossible.
No other nation provides such endless opportunities and has such an irrepressible and exciting
lifestyle. For sheer vitality and love of life, the U.S. has few equals and is, above all, the ultimate land
in which to turn your dreams into reality.
Excerpted with permission from: David Hampshire, Living and Working in America, 7th ed., London: Survival Books Ltd., 2008.
the avant-garde French couturier, is famous for or symbols unless their exact meanings and proper
what is referred to as cultural borrowing, the use usages are understood, in order to avoid misinter-
of symbols that are meaningful to other cultures. pretations. Another factor marketers must acknowl-
But borrowing these symbols does not necessarily edge when targeting multiple cultures is that in each
mean they are truly understood by the users, or are value system, the values are ranked differently. For
properly used. Why not? For the simple reason that example, speed and efficiency are high priorities in
they’ve been taken out of their original context. In some cultures, while in others it is patience that’s
one of Gaultier’s collections, he created clothing considered crucial. Additionally, some values are
based on the traditional dress of Hasidim, the ultra- culture-specific. Individualism for example, is one of
orthodox sect of the Jewish religion, which included the most prized American values, whereas in Japan,
dark gray or black gabardine suits, oversized long the focus is on fulfilling one’s obligations to others,
suit jackets, and wide-brimmed, fur-trimmed hats. which is viewed as a far greater achievement than
This caused numerous debates and articles about serving the self.2 Obtaining a state of self-assurance
whether Gaultier went “too far” or showed a lack of and independence would not be something to aim
respect for the religion he used as his inspiration. for in Japanese culture; instead, one’s efforts should
Marketers agree that in most situations, it’s go toward the creation of harmony and consider-
best not to use certain religious or cultural images ation for what is in the best interest of the group to
9781609018986.indb 339 8/18/14 3:01 PM

which one belongs. Japanese-Americans also tend to
rank obligation and harmony high, but convey them
in a way that is “acceptable” in the United States.
Belonging and achievement are important goals
for members of cultures that value individualism
(see Maslow’s Hierarchy of Needs, Chapter 4). One
way for cultures and subcultures to attain these
goals is through the purchase of similar items, espe-
cially those that are fashion and/or design related.
This is because the possession of designed goods is
largely symbolic; owning/wearing certain products
is a way of conveying social status, letting others
know you understand what a given culture values,
and clarifying your own position in that culture.
Thus, when Japanese people become part of Ameri-
can culture, they are likely to choose products that
help them express a combination of values from
both countries. For example, a Japanese-American
might serve dinner to his guests on red lacquer
plates with antique chopsticks, but have the guests
sit at his chrome-and-glass dining room table,
rather than on floor cushions. FIGURE 14.2 The symbolic value of a tailored Ralph
Lauren Purple Label suit, worn here by Jay-Z on the
In the 1970s, researcher Jonathan Gutman
Academy Awards red carpet, goes far beyond the cost of
explored the role that cultural values play in influ- the suit itself.
encing purchase behavior. His means-end chain
is a structure that links a consumer’s knowledge the portrayal of a product and how it’s presented
about a product’s attributes (benefits or risks) with and positioned is frequently more important than
the desired cultural value state the person wants its functionality or utility.
to achieve. In other words, the means = the prod- Marketers have a challenging task in today’s
3
uct, the end = the desired value/outcome. Thus, an mobile and global world, where so many cultural
impeccably tailored suit by Ralph Lauren (an exam- influences must be studied and understood. How
ple of a highly symbolic product) would be a means do marketers determine which product attributes
by which a consumer could enjoy a positive conse- (product properties and the benefits they provide)
quence, be it status, a feeling of belonging, or any are most meaningful to so many consumers in so
positive experience (Figure 14.2). When marketers many cultural groups? They identify the beliefs (val-
are trying to attract the attention of multicultural ues) that are important to the society/group that’s
consumers, they must be continuously aware that being targeted, focus on the ones that are most
9781609018986.indb 340 8/18/14 3:01 PM

POINT OF VIEW 14.2
Cultural Anthropology Plays a Role in Cross-Cultural Marketing
Looking at the world today, one would be safe in saying that globalization is an inevitable process. Does it
follow then that cross-culturalization will also be inevitable?
There is no question that the world is becoming more homogeneous. Numerous studies conducted
by cultural anthropologists investigating how culture impacts human behavior show that there are fewer
and less pronounced distinctions between the markets of various nations; and for some products, those
distinctions no longer exist at all, meaning that marketers do not always need to adapt their goods for
consumers in different countries.
But at the same time, there are some cultural differences between nations, regions, and ethnic groups
that are actually becoming stronger. This means that a true understanding of cultural differences on a
national, local, and ethnic level is one of the most significant skills for firms to develop in order to have a
competitive advantage in international business.
One clear example of how using cultural anthropology helped one group of marketers succeed while
another did not relates to the marketing of color televisions in Asia. Back in the early 1980s, both Japanese
and European TV manufacturers were considering entering the Chinese market, so they conducted com-
prehensive studies to determine the market’s viability for their products. Based on their research, European
marketers concluded that, because of China’s low GDP (gross domestic product—the total dollar value of all
goods and services produced over a specific time period, which indicates the size and growth of a country’s econ-
omy), it was not likely that Chinese consumers would have the means to buy luxuries like color televisions.
So they decided not to try to sell their products in China.
On the other hand, the Japanese TV marketers’ research looked beyond just the economics. Their stud-
ies showed that the Chinese have a strong cultural tradition of saving that is passed down from one gener-
ation to the next. What’s more, unlike Western culture, in which people spend money they don’t yet have to
buy goods immediately, the Chinese save money with the goal of buying something in the future. The Japa-
nese research discovered that almost every family in China had been saving for two to three years for the
express purpose of owning a color TV. In addition, even though there were Chinese companies that manu-
factured TVs, Chinese consumers expressed more confidence in products imported from another country.
As a result, the Japanese marketers came to the conclusion that Chinese families would indeed buy high-
quality Japanese color televisions, and they were right. Throughout the late 1980s and 1990s, Japanese-made
color TVs dominated the imported television market in China, and those marketers profited greatly—because
they made the effort to understand a facet of Chinese culture that their European competitors did not.
Source: Kathy Tian and Luis Borges, “Cross-Cultural Issues in Marketing Communications: An Anthropological Perspective of International
Business,” Journal of China Marketing, Vol. 2(1) 2011, http://www.na-businesspress.com/IJCM/TianKWeb2_1_.pdf.
9781609018986.indb 341 8/18/14 3:01 PM

heavily weighted, develop products that are innova- African-American golf champions, and Latino
tive and well designed (while continuously referring film stars, all of whom demonstrate the new kind
to those beliefs), and devise the marketing stimuli of socioeconomic power in the United States, are
most likely to appeal to each group. To do this, mod- reflecting the changing demographic and con-
ern marketers have turned to revisit an old field sumer makeup of the country. The United States
of study. Anthropology, the study of human cul- has evolved from a “melting pot” to a “salad bowl”
tural characteristics that include habits, customs, of all kinds of people with different interests, expe-
and relationships, is no longer only about studying riences, and orientations, and these groups have
the artifacts left behind by past peoples; rather, in become a new and influential multiethnic block of
its newer incarnation, it has become an aid to the tastemakers and trendsetters.4
understanding of what members of varying cul-
tures want today. Cultural anthropology focuses on
the common symbols, values, and beliefs of social Fashion and Design as
groups and institutions.
Unifying Forces
Marketers consider the importance of all of these
factors in their development of sound marketing In addition to studying the differences among the
strategies. Marketers also use ongoing research about members of our diverse population, marketers also
emerging design trends in the multicultural mar- have discovered that the purchase and ownership of
ketplace compiled by trend forecasting services, fashion-related goods can bring people together in
which provide advisories formulated by professional many ways. Many people interested in fashion and
observers of cultural shifts that contain calculated design are curious about how others around the world
predictions about the likely direction in which design view, wear, and create designed goods. The designed
preferences are moving. (See Chapter 1 for additional items we choose are regarded by many researchers as
information about trends and forecasting.) an unspoken language that can communicate infor-
Awareness of the direction in which trends are mation about our universal similarities and function
moving is crucial to the efforts of anyone plan- as a unifying device (see Case in Point 14.2).
ning a marketing strategy, whether it’s for a global
or local audience. Award-winning journalist and
WE ARE THE WORLD
multimedia entrepreneur Guy Garcia offers some
astute observations in his book, The New Main- A dominant issue for many companies in the mod-
stream: How the Buying Habits of Ethnic Groups Are ern marketplace is globalization, the ability to offer
Creating a New American Identity, pointing out and market a product any place in the world where
that products today are endorsed by a variety of a demand for it exists. Continuing to grow and
individuals who, not that long ago, would have increase profits is a common business objective, and
been considered “outsiders” rather than the celeb- today many businesses do that by entering foreign
rities they are now. Chinese basketball players, markets and expanding their customer bases.
9781609018986.indb 342 8/18/14 3:01 PM

CASE IN POINT 14.2
What Do Fashionistas in Los Angeles, Paris,

and Shanghai Have in Common?
As more and more consumers around the world jewelry, shoes, and handbags. Since Los Ange-
are able to connect regularly and instantly les is primarily a beach culture, “legs are con-
with designers, marketers, and other fashion stantly on show, hair is blonde from the sun,
fans via digital communications and social and make-up is kept very minimal,” the agency
media, fashion preferences are becoming more found. In addition, sub-cultural touches are
standardized among countries and cultures. often integrated into the L.A. look, such as the
However, although merging preferences have popular boho and new-age trends.
brought us closer to a homogenized global Chinese women, on the other hand, particu-
fashion image, there still remain highly differ- larly those in Shanghai, exude flawless sophis-
ing tastes and cultural preferences across a tication and are quite willing to embrace lengthy
variety of global markets. That is what led Mar- beauty regimens to achieve a desired outcome.
tine Leherpeur Conseil (MLC), a strategy and Noted Laetitia Orlandi, head of MLC’s Shanghai
consultancy agency based in Paris, to study the branch, “Very much reflecting the image of the
similar and dissimilar tastes of 25- to 35-year- city, the Shanghai woman is somewhere between
old female fashion consumers living in cities the the East and the West;” she strives for elegant
agency identified as three “aspirational fashion style, but adds a dash of confidence and indepen-
hot spots”: Los Angeles, Shanghai, and Paris. dence. Her stylishness is often established by
MLC presented its findings at a Who’s Next her outerwear, such as a structured coat, leather
trade show highlighting fashion trends and jacket, or fur, along with the all-important hand-
innovations, and according to reporting from the bag, which is an important signifier of status. As
presentation, the L.A. fashionista is “far from in southern California, the weather in Shanghai
the cliché ‘bimbo’ stereotype” but neither is is warm much of the year, so Chinese fashionis-
she one to blend into the crowd; rather, noted tas also like to flaunt bare legs.
Jean-Philippe Evrard, MLC’s managing director, Unlike the Shanghai women who pursue per-
“There is certainly a slight ‘look-at-me’ factor, fection, Parisian fashionistas strive for “effort-
but nothing too ostentatious.” In Los Angeles, less chic.” A look considered quite voguish is the
“effortless glam” is the name of the game. definitive trench coat worn with ballet flats and a
This could mean a pair of shorts (L.A.’s favor- chignon in slight disarray, representing “a pen-
ite clothing item) worn with boots or simple, chant for classic looks with a modern twist.”
low-key pieces paired with statement-making Sneakers, vintage bags, and buttoned-to-the-top
(continued)
9781609018986.indb 343 8/18/14 3:01 PM

shirts are a few of the newer trends that fashion- As Evrard concluded, “Global fashion is dot-
able French women are sporting. ted with local trends and differing personali-
Despite the differences in attitude and ties.” Hmmmm. So, is there really such a thing
approach to style among these global fashion as a “global image”? Clearly, establishing a
centers, MLC identified some items that are single personality for an international brand is
important in all three locales: Celine handbags, not as easy as it may seem—at least not without
skinny jeans, ankle boots, stilettos, and nail pol- a bit of local adaptation.
ish, among them—all interpreted in ways dis-
tinct to each location, of course.
Source: Anais Lereverend, “What Do LA, Paris and Shanghai Fashionistas Have in Common?”, FashionMag, July 12, 2013, http://us.fashionmag
.com/news/What-do-LA-Paris-and-Shanghai-fashionistas-have-in-common-,341678.html#.UhojAT88Xae.
The United States is one of the biggest importers

of fashion-related goods. Imports are those goods Let’s Talk
and services provided by foreign producers that are
If you were to look through your closet, how
purchased and brought into a country. Exports are
much of your wardrobe do you guess was made in
any goods or commodities produced in one country
another country? Do you pay attention to where
and transported to another country in a legitimate
something was produced when you’re shopping?
fashion, typically for use in trade. Exported goods
Has that ever influenced your decision to buy or
or services are provided to foreign consumers by
not buy?
domestic producers. To be considered legitimate,
all trading must be done in accordance with the
receiving country’s regulations, including tariffs When a country imports more than it exports,
or duties, additional monies or taxes on imports it creates a trade deficit. Conversely, when a coun-
imposed by the country receiving those goods, try exports more than it imports, it creates a trade
and quotas, limits on the quantities of certain surplus. At the start of the new millennium, a
goods that can be brought into a country. Both are combination of factors (including expired trade
ways a country can protect its own producers since agreements and lower prices offered to American
both, referred to as trade barriers, usually result in companies by overseas manufacturers of a variety
decreased demand for foreign goods and increased of goods) left the United States with a significant
demand for similar products made in the home trade deficit. The deficit shrank somewhat as the
country. world struggled to recover from the economic crisis
9781609018986.indb 344 8/18/14 3:01 PM

CASE IN POINT 14.3
Asos.com Conquers the World with Fashion

If you’ve ever shopped at Asos.com, you’re not in France, Germany, Russia, Australia, the
alone. In fact, you would be one of the nearly United States, Spain, the United Kingdom, Italy,
8 million active customers that Asos boasts— or China.
and also one of the 20 million unique visits the Asos sells its own brand of apparel but
online-only retailer receives on its website also partners with other retailers to sell their
each day, from fashion consumers all around products, making it a one-stop shop for target
the world. consumers. Its platform gives those partners a
That global customer base is precisely what global reach they wouldn’t otherwise have with-
Nick Robertson, co-founder and chief execu- out taking it upon themselves to open their own
tive officer, has aimed for, based on his belief physical stores around the world or introduce
that what consumers buy should not have to be their own multi-language websites—either of
dictated by where they live. So the British-based which would involve far more investment of
retailer targets primarily twenty-something time and finances than piggybacking on Asos’s
consumers, an age group that spends about established framework.
40 percent of its fashion budget online—and a What exactly does that global reach trans-
group that Robertson wants to enable to buy late to? For one thing, the almost 8 million
anything it desires, regardless of language or active customers is a huge increase from the
geography. retailer’s less than half a million customers in
That philosophy is the heart and soul of the 2006, and more than double the 3.2 million it
company’s focus, and it is what has propelled tallied in 2011. And looking at the barometer
Asos into the enviable position of being the of social media, its numbers continue to grow,
fastest-growing online fashion retailer in the as well: Asos has garnered well over 3 million
world. Contributing heavily to the company’s Facebook “likes,” and has more than half a
success are its country-specific websites that million followers on Twitter and 2.3 million on
speak customers’ language whether they live Google+.
Sources: Asos website, www.asos.com; Vicki M. Young, “WWD CEO Summit: Asos.com’s Nick Robertson Looks to the Future,” WWD, October 30,
2013, http://www.wwd.com/retail-news/direct-internet-catalogue/asoscoms-nick-robertson-looks-to-the-future-7255134?navSection=packag
e&navId=7253694&module=Retail-hero.
9781609018986.indb 345 8/18/14 3:01 PM

and recession late in the decade, but remains a topic economic expansion, and slows during times of con-
of discussion among the government, industry, and traction. Certainly part of the trade imbalance can
economists to ensure that the U.S. economy is not be traced to the outsourcing of manufacturing jobs
negatively impacted. by many U.S. companies, resulting in fewer goods
These factors, plus many more, have combined actually produced in the United States, and therefore
to make marketing U.S. products globally a critical fewer to export. However, in 2012 the total U.S. trade
issue for many companies. World trade has exploded, deficit decreased slightly from 2011, a good sign to
fueled by peoples’ frequent exposure to other cul- those who see it as an indication that the economy
tures and their practices. Exchanging information is strengthening. A lower deficit means exports are
about lifestyles, products, and events through travel, starting to gain on imports, and this is good for busi-
television, social media, music, movies, mobile com- ness, since it will eventually create more U.S. jobs.5
munications, and the Internet has become the norm, So, is a trade deficit good or bad? Many econo-
resulting in widespread interest in foreign products mists, including the late Milton Friedman, highly
by people around the world. There are obviously tre- respected winner of the Nobel Prize in Economics,
mendous opportunities beyond our borders, and have taken the position that a large trade deficit
as consumers from overseas market segments have (importation of goods) actually signals that the cur-
shown, they are just as interested in acquiring inter- rency of the recipient country is strong and desir-
national products as Americans are. able. To them, a trade deficit simply means that
Global business expansion continues to grow at consumers get to purchase and enjoy more goods
a remarkable pace. Estée Lauder products are sold at lower prices; conversely, a trade surplus implies
in Russia, Nike is popular in Vietnam, and Star- that a country exported goods that its own citizens
bucks has opened coffeehouses in India. Similarly, did not get to consume and enjoy, and that they paid
merchandise from European companies such as higher prices for the goods that were consumed.
Sephora, Mango, and French Connection are now According to Friedman, “A fallacy seldom contra-
in many American homes. Becoming active and dicted is that exports are good, imports bad. The
competitive in the global marketplace has become truth is very different. Our gain from foreign trade is
the key to ongoing success for many companies. what we import. Exports are the price we pay to get
And maintaining a more equal balance between a imports; the citizens of a nation benefit from getting
country’s imports and exports, referred to as a bal- as large a volume of imports as possible in return for
ance of trade, would appear to be advantageous, its exports or, equivalently, from exporting as little
although there is some disagreement among experts as possible to pay for its imports.”6 While a widely
as to whether or not this is actually true. accepted premise for many years, economists have
The United States has posted a trade deficit since recently started to rethink Friedman’s contentions.
the 1970s, and it rapidly increased after 1997. Some For instance, others, like New York Times colum-
evidence suggests this is because ours is a dominant nist Paul Krugman, himself a Nobel laureate, have
economy, and global business profits are high, indi- said that a trade deficit indicates that America is
cating that a trade deficit increases during times of living beyond its means, spending far more than it
9781609018986.indb 346 8/18/14 3:01 PM

earns. Several years ago, Krugman suggested that the
trade deficit would eventually have to become smaller
or a decline in the foreign exchange value of the dol-
lar would result. If that happened, he said, consumers
would be unable to continue buying as many products
from other countries. Furthermore, Krugman pre-
dicted that American workers, especially those with
less formal educations, would see their jobs shipped
overseas, or find their wages decreased, as others
with similar qualifications crowd into their industries
looking for employment to replace the jobs they lost
to foreign competitors7 who charge lower prices to
produce many items. How many of these predictions
have actually come to pass?
Regardless what school of economic thought
one subscribes to, one trend is clearly emerging—
consumers everywhere are more interested than
ever in goods from outside their own countries,
while at the same time questioning the wisdom
of continuing to send jobs overseas. In the United
States, there is a growing movement among con-
sumers to buy “Made in USA” merchandise, as one
means to help the job market and improve the over-
all economy. A current rise in labor costs for some
overseas manufacturers means that certain goods
will become less economically advantageous to
produce in foreign countries, which could also help
revive U.S. manufacturing.
That hardly means that international trade will FIGURE 14.3 Japan-based clothing giant Uniqlo is one
slow down—particularly when it comes to fashion, of the world’s most successful fast fashion retailers. Its
affordable and stylish basics and its excellent customer
since consumers around the world are continually service translate well to virtually any market in any country.
looking for the latest products and trends, wher-
ever they may have originated. So we can expect to American (Barneys New York, Ben & Jerry’s, Colum-
see global companies continuing to make their way bia Pictures). Like it or not, no one disagrees that
to the U.S. marketplace, both by supplying us with business is now an international activity conducted
products we desire (Uniqlo, Zara, L’Occitane) and in a connected and complicated international envi-
by purchasing companies we think of as irrefutably ronment (Figure 14.3).
9781609018986.indb 347 8/18/14 3:01 PM

UNDERSTANDING AND forces (location, natural resources, climate), finan-
ACCOMMODATING THE GLOBAL cial/economic forces (banking practices, currency
CONSUMER stability), sociocultural forces, historic and political
forces, labor and production capabilities, and access
More and more, companies are incorporating global to technology. Those wishing to successfully com-
thinking into the design of their marketing strate- pete in the global market must also assess competi-
gies (Figure 14.4). But how does one think globally tive forces, determine the amount of investment
when accustomed to only “thinking locally”? After all, required, and gauge the company’s ability and will-
thought processes are influenced by experiences, and ingness to adapt products and marketing strategies
those processes are based on a one-country experi- to the needs and demands of customers with differ-
8
ence or what’s been called a “domestic mind-set.” ent orientations.
For marketers, developing a global way of think- Obviously, the global marketplace is both
ing involves closely examining and analyzing the large and complex. So, how can a marketer
forces at play within the targeted country—physical determine where specific opportunities are?
FIGURE 14.4 The opulent BurJuman shopping mall in Dubai is known for its beautiful architecture, stunning décor, and
elegant high-end retail shops, designed to appeal to affluent customers from all over the world.
9781609018986.indb 348 8/18/14 3:01 PM

POINT OF VIEW 14.3
Going “Glocal”: How Smart Brands Adapt to Foreign Markets
Imagine walking into McDonald’s and ordering a shrimp burger and fragrant tea for dinner instead
of a Big Mac and a Coke. Or maybe you prefer KFC. How would you like a Peking duck burger instead
of fried chicken and biscuits? Those alternate items certainly wouldn’t be on the menu in any of the
chains’ U.S. restaurants. But the brands, which are as American as apple pie (or Big Macs or buckets
of chicken), have expanded their businesses on a global scale—and have done so by understanding
that they can only be successful in foreign markets by adapting to local tastes, attitudes, and values . . .
hence the shrimp burgers offered in Tokyo and the Peking duck in Shanghai.
It’s a concept that Sylvia Vorhauser-Smith, a contributor to Forbes, dubs “glocalization.” The
word may not be in any dictionary (yet!), but the concept of a “hybrid of global and local” certainly
has merit, she says, noting, “Ten years ago, we might have seen global and local as the two ends of a
dichotomous spectrum, but today we are appreciating that we can be both, we can be glocal.”
The reason, according to Vorhauser-Smith, is that despite the enormous globalization that
has taken place in recent decades, people still tend to find comfort in the familiarity of their local
environment—including the language, the music, the food, the atmosphere of the neighborhood. At
the same time, through the reach of television, the Internet, and social media, people are exposed to
other cultures far more than ever in the past. A more mobile society means that immigrants bring
their customs to new locales, opening shops and restaurants, and giving their new neighbors both the
desire and the opportunity to sample some of the unique offerings of cultures other than their own.
As Vorhauser-Smith points out, your own tastes in food are probably “much more diverse than
those of your grandparents. Chances are you have traveled abroad to experience a different culture.
Chances are your work colleagues come from at least half a dozen different ethnic backgrounds.
You’re already a glocal!”
So, how does a marketer tap into the glocal qualities of target market and use them successfully?
As Vorhauser-Smith says, it requires new skills that reflect cultural awareness, flexibility, and the
ability to adjust to behaviors different from one’s own. “Studies show that successful cross-cultural
leaders can combine general intelligence IQ with emotional intelligence EQ and provide the appropri-
ate context via cultural intelligence CQ,” she states. “These are high order, strategic, new-generation
abilities that will distinguish real global citizens from those with a one-dimensional mindset.”
Source: Sylvia Vorhauser-Smith, “Going ‘Glocal’: How Smart Brands Adapt To Foreign Markets,” Forbes, June 22, 2012, http://www.forbes.com
/sites/sylviavorhausersmith/2012/06/22/cultural-homogeneity-is-not-an-automatic-by-product-of-globalization/.
9781609018986.indb 349 8/18/14 3:01 PM

CASE IN POINT 14.4
Asia Goes “Cheap Chic”

Attention Chanel, Louis Vuitton, Gucci, and other growing middle class—want brands that match
ultra-high-end retailers. The statistics are in. In their more modest budgets. Chen Jing, for
China and throughout Asia, luxury brands are instance, a 20-year-old living in Beijing, would
taking a backseat to inexpensive fast fashion be hard-pressed to buy many luxury items
chains. Known for their cheap and chic fashions on her restaurant salary of 3,000 yuan ($485)
(most items are priced at considerably less than a month. But she said she loves to shop fre-
$100), retailers such as Uniqlo, Zara, and H&M quently for stylish clothes at H&M and Zara.
have been stirring up increasing interest in mar- Also, younger Chinese consumers have
kets around the world—and now that Chinese more disposable income than their parents did
consumers have jumped on the bandwagon as at their age, and are eager to spend it on the lat-
well, the growth of fast fashion in Asian coun- est fashions. As 24-year old Shao Wenbi noted,
tries is outpacing that of luxury for the first time. “We’re all looking for what’s new. No one wants
This trend comes at a time when Asia is a to look out-of-date.” He tends to frequent H&M
more significant consumer market in general to find casual outfits or clothing to wear to his
than it ever was in the past. In fact, according to job as a market researcher.
market research firm Canadean, Asia recently The growth of a number of “local” fashion
zoomed past the United States to become the brands based in Japan and Korea is yet another
world’s biggest retail market, with sales that factor contributing to Asia’s changing shopping
climbed to $3.8 trillion in 2011—a full 41 per- habits. Japan-based Uniqlo, for instance, has
cent of the global total—from $3.2 trillion been opening two stores a week, on average,
(31 percent) just five years earlier. throughout Asia, and is now the continent’s
Until recently in China, the luxury sector largest apparel chain. In addition, fueled by a
had accounted for a large chunk of the boom burgeoning global interest in Korean pop cul-
in consumer purchasing, as wealthy business- ture (think Psy and “Gangnam Style”), a number
men and government officials eagerly snapped of brands and clothing retailers from South
up expensive goods for themselves or as gifts. Korea are expanding in China, Singapore, and
Now, however, several high-end brands that throughout Asia.
had enjoyed tremendous success in China have The end result of all these trends is that
slowed their expansion plans, recognizing that a apparel sales in China are on a huge upward
change is occurring. trajectory. The Boston Consulting Group proj-
What’s causing this change? A new and even ects that those sales will exceed 800 billion
larger group of shoppers—members of China’s yuan, or about $130 billion, by 2015, nearly
(continued)
9781609018986.indb 350 8/18/14 3:01 PM

doubling from 460 billion yuan in 2011. The firm sneakers and fur-trimmed leather coats to its
also estimates that within the total global fash- lower-end NEO brand skinny jeans and gingham
ion market, China alone will account for 30 per- shirts. And Gap Inc. recently announced plans
cent of the growth in the next five years. to expand further into the Chinese market, with
Those numbers have other fashion market- 35 new Gap stores set to join the 47 already in
ers paying serious attention. German sports- place. The company was also considering open-
wear company Adidas, for example, has upped ing Old Navy and Banana Republic stores, rec-
the roster of fashion options it is offering in ognizing that Chinese consumers are hungry for
China, spanning everything from high-heeled both global brands and American style.
Source: Mariko Sanchanta and Laurie Burkitt, “Asia Gravitates to Cheap Chic,” The Wall Street Journal, April 13, 2013, http://online.wsj.com
/article/SB10001424127887324874204578438343105661244.html?mod=dist_smartbrief.
Research and experience show that the largest mar- Although the ever-changing dynamics of today’s
kets for U.S. goods are in countries with the following: marketplace are providing a wealth of exciting
●● A sophisticated infrastructure opportunities, it’s essential for all global market-
●● A large industrial base ers to remember that when a company does decide
●● A stable financial base to expand globally, it’s not enough to simply trans-
●● A transportation network fer to another country a product that’s been well
received in the home country, no matter how many
Another positive indicator is that the country is already consumers have responded favorably to it. Although
doing its own importing and exporting of products. that’s certainly a solid reason to begin exploring
Developing countries present different kinds of expansion options, it’s not a guarantee of success.
opportunities, including specific demand patterns As previously stated, the keys to success in the
and economic needs that have to be met in accor- global business world are evaluating the environ-
dance with their limited financial resources. How- ment (cultural, economic, political) and designing
ever, the marketplace of each nation is fluid, and strategies that will connect with people in the host
the possibility exists that interest in fashion goods culture. Adaptation is key.
could develop anywhere. (See Case in Point 14.4.) Finally, it’s essential that global marketers not
Therefore, in-depth examination and assessment of only develop global information systems but that
a country’s market attractiveness is a prerequisite to they also develop themselves, personally, by learn-
9
sound selection of potential trading partners. ing a language other than English and by making
9781609018986.indb 351 8/18/14 3:01 PM

genuine efforts to consider non-judgmentally the marketers consider the meanings of cultural sym-
practices of people from countries with which bols in order to avoid their misuse. Using cultural
they’re unfamiliar. Traveling abroad can be both anthropology as a basis for analysis of preferences
educational and helpful in developing personal can be helpful, as can information from trend fore-
connections with people from other countries. To casting services and research firms that track the
successfully reach and service consumers, under- needs and wants of diverse market segments.
standing and addressing both universal and diverse Globalization efforts must be carefully planned
human values and needs is at the core of the pro- and conducted. As long as accurate information is
cess. Only then can marketers begin to create busi- obtained, trade agreements are understood and
ness relationships that truly span the globe. enforced, and appropriate marketing strategies are
Today, successful businesspeople have to sur- used, the import and export of goods and services
mount many challenges, whether marketing products can be beneficial and rewarding.
locally or abroad. Demonstrating social responsibil-
ity, adhering to quality standards, and supporting
fair treatment of workers are just some of the ethical KEY TERMS
issues that we will address next in Chapter 15.
Acculturation
Anthropology
Summary Balance of trade
Cultural anthropology
Although people from different parts of the world
Cultural borrowing
differ in many ways, research and observation have
Diversity
shown that, despite these differences, we are all very
Duties
interested in goods and services from other coun-
Enculturation
tries. Additionally, sharing products and practices
Exports
tends to foster relationship building and increase
Globalization
acceptance, both of which grow from recognizing
Imports
our similarities and appreciating our differences.
Means-end chain
Whether targeting subcultural groups within
Multicultural
the United States or those in foreign countries, con-
Quotas
sumer behaviorists know that understanding and
Tariffs
respecting diverse cultures, lifestyles, and values are
Trade deficit
key factors in the growth of any business, no matter
Trade surplus
who the customers are or where they live. Entering
Trend forecasting service
any new market requires the assessment of needs,
Value system
preferences, and potential buying power of that
culture prior to expansion. It’s also imperative that
9781609018986.indb 352 8/18/14 3:01 PM

QUESTIONS FOR REVIEW from those of Americans? Do the marketing
practices also differ? Present your findings in a
three- to five-minute report to the class.
1. Define “subculture.” How can subcultural
3. Choose a group within the United States that
differences affect consumer purchases?
practices an alternative lifestyle. Investigate
2. What is a lifestyle? How are subculture and
the value system, customs, shopping habits,
lifestyle related? Make a list of specific products
and product preferences of its members, and
that could be termed “lifestyle products,”
discuss your findings with classmates and their
and explain your reasons for choosing those
implications for marketers.
products.
4. Choose an American product that is currently
3. Explain cultural borrowing and how it
being sold in another country, and determine
might be misinterpreted if used without
how it and/or the accompanying marketing
sufficient research. Discuss the importance of
strategies have been modified for the host
understanding cultural values when using this
culture. Discuss possible reasons for the
technique.
modifications with classmates.
4. How can marketers use trend forecasts to meet
5. The majority of fashion goods in the United
consumer needs? Give examples that relate to
States are now made outside of this country.
marketing designed goods.
Choose an American apparel designer/
5. Define “globalization.” List three specific
manufacturer that has its goods produced
considerations that should be addressed by any
overseas. In class, lead a discussion about the
business seeking to introduce a new product to
fashion industry’s reasons for using foreign
another country.
labor rather than keeping jobs within the
United States.
ACTIVITIES
1. Watch the film Monsoon Wedding with a
MINI-PROJECTS
classmate. Discuss how the buying behavior
1. The North American Free Trade Agreement
of the bride’s father reflects both the Indian
virtually eliminates tariffs and quotas on
culture and the universal desires of fathers of
imports and exports among Canada, Mexico,
brides everywhere. Submit a written summary
and the United States. In a well-organized
of your conclusions.
two- to three-page paper, cite and discuss three
2. Interview a student from another country. Ask
ways this agreement is intended to benefit
him or her to describe the shopping habits,
consumers in all three countries and whether
product preferences, and availability of designed
or not expectations are being met.
goods in his or her culture. How do they differ
9781609018986.indb 353 8/18/14 3:01 PM

2. Many people in the United States endorse an 1997, http://www.hoover.org/publications
increase in trade barriers such as quotas and /hoover-digest/article/7125.
tariffs, believing that buying fewer goods from 7. Paul Krugman, “Trouble with Trade,” The New
other countries will protect the jobs of U.S. York Times, December 28, 2007.
citizens and avoid dependence on foreigners. 8. Jean-Pierre Jeannet and H. David Hennessey,
“Buy American” is the basic premise of this Global Marketing Strategies, 6th ed. (Boston:
theory, known as protectionism. Investigate Houghton Mifflin Company, 2004), 217–18.
the origins, strategies, and proposed policies 9. Ibid., 267.
behind protectionism, and in a well-organized
two- to three-page paper, discuss how this
policy could be beneficial and/or harmful to the ADDITIONAL RESOURCES
United States. Assael, Henry. Consumer Behavior: A Strategic
Approach. Boston: Houghton Mifflin Company,
2004.
REFERENCES Butler, Sara. “M&S to Contact Workers in Asia
1. Milton Rokeach. The Nature of Human Values, by Mobile to Check Factory Conditions.” The
New York: The Free Press, 1973, 10. Guardian, September 17, 2013, http://www
2. Marieke K. de Mooij, Global Marketing and .theguardian.com/business/2013/sep/17
Advertising, “Values and Marketing,” http:// /marks-spencer-factory-workers-asia-mobile.
www.sagepub.com/upm-data/5314_De_Mooij Chaney, Lillian H., and Jeannette S. Martin.
_chap_5.pdf. accessed 12/12/13 Intercultural Business Communication, 3rd ed.
3. Jonathan Gutman. “A Means-End Chain Model Upper Saddle River, NJ: Pearson Prentice Hall,
Based on Consumer Categorization Processes,” 2004.
Journal of Marketing 46, no. 2, Spring 1982. Ferraro, Gary P. The Cultural Dimension of
4. Knowledge@Wharton, Review of Guy International Business, 3rd ed. Upper Saddle
Garcia’s The New Mainstream: How the Buying River, NJ: Prentice Hall, 1990.
Habits of Ethnic Groups Are Creating a New Harrell, Gilbert D. Marketing: Connecting with
American Identity, November 21, 2005, http:// Customers, 2nd ed. Upper Saddle River, NJ:
knowledge.wharton.upenn.edu/article.cfm Prentice Hall, 2002.
?articleid=1270. Hoyer, Wayne D., and Deborah J. MacInnis.
5. Kimberly Amadeo. “The U.S. Trade Deficit,” Consumer Behavior, 4th ed. Boston: Houghton
updated March 8, 2013, http://useconomy Mifflin Company, 2007.
.about.com/od/tradepolicy/p/Trade_Deficit Morse, David. “As People, and as Consumers, Many
.htm. Asian-Americans Must Balance the Demands of
6. Milton Friedman and Rose Friedman, “The Two Cultures.” Quirks, June 2008, http://www
Case for Free Trade,” Hoover Digest, October 30, .quirks.com/articles/2008/20080604.aspx
?searchID=623124179&sort=5&pg=1.
9781609018986.indb 354 8/18/14 3:01 PM

Taborda, Joana. “United States Balance of Trade.” Weil, Eric. “Study Looks at Habits of African-
U.S. Census Bureau. September 4, 2013, http:// American Students as Consumers.” Target
www.tradingeconomics.com/united-states Market News, September 8, 2006. http://
/balance-of-trade. targetmarketnews.com/storyid07210602.htm.
“The American Style: Culture, Politic, Mentality and Wilson, Eric, and Michael Barbaro. “Basic Chic from
Lifestyle,” Just Landed. January 15, 2009. http:// Japan. But Will It Sell?” New York Times. November
www.justlanded.com/english/USA/USA-Guide 10, 2006. http://www.nytimes.com/2006/11/10
/Culture/The-American-style. /business/worldbusiness/10retailhtml?page
Sherwood, Seth. “The Oz of the Middle East.” New wanted=all&_r=0.
York Times, May 8, 2005.
9781609018986.indb 355 8/18/14 3:01 PM

9781609018986.indb 356 8/18/14 3:01 PM
Part V
FASHION CONSUMERS AND
RESPONSIBLE CITIZENSHIP
JUST like any other industry, the fashion business functions

within the greater framework of society, subject to the rules
and standards of behavior that govern both individual and
corporate entities—some of which are examined in Part V.
How ethical issues shape consumer behavior and fashion
buying decisions is explored in Chapter 15, along with a look
at some of the ways fashion businesses address their social
and environmental responsibilities, often earning customer
loyalty at the same time. Chapter 16 describes the role of the
government and other organizations in developing laws or
programs to help protect consumers of fashion from harm, as
well as to help them make more informed purchase decisions.
9781609018986.indb 357 8/18/14 3:01 PM

9781609018986.indb 358 8/18/14 3:01 PM
Chapter 15
How Ethics and Social
Responsibility Impact
Consumer Behavior
WHAT DO I NEED TO KNOW ABOUT THE IMPACT OF ETHICS AND SOCIAL

RESPONSIBILITY ON CONSUMER BEHAVIOR?
✔✔ What the concepts of ethics and social responsibility encompass

✔✔ How specific ethical and social issues can influence consumer buying decisions
✔✔ Why consumer theft and counterfeiting affect consumers as well as fashion marketers
✔✔ Why consumer privacy is a growing ethical issue for businesses and their customers
✔✔ How fashion marketers incorporate social responsibility into their businesses and why
359
9781609018986.indb 359 8/18/14 3:01 PM

Imagine what you would do in each of these purchase decision a consumer makes. For a growing
situations: number of consumers in the 21st century, those fac-
●● You’re browsing in a store’s accessories depart- tors include ethical considerations. Ethics is a sys-
ment with two friends and one dares the other tem of moral values, or a set of principles that define
to throw a scarf around his neck when no one is right and wrong. In some cases, ethical standards are
looking and walk out without paying for it. established for an entire culture or profession; medi-
●● You’re sightseeing with friends in New York City’s cal ethics, for example, prescribe that physicians shall
Chinatown and a smiling woman invites you provide competent medical care, with compassion
through a nondescript doorway to show you a and respect for human dignity and rights, and shall
Kate Spade bag you can have “very cheap.” support access to medical care for all people. Individ-
●● Your best friend is dying to show you the great vin- uals also have their own personal ethical standards,
tage coat she thinks you should buy at the consign- formed by a combination of upbringing, experiences,
ment shop, and when she leads you to the rack, and beliefs, such as the “golden rule” of treating oth-
you love the style but see that it’s made of real fur. ers as you would want to be treated. Consumers’ per-
●● You read a news update about a fire that killed a sonal ethics might lead them to reject apparel made
dozen workers in an overseas factory after the out of animal fur, or to bypass a street vendor hawk-
owners ignored repeated safety warnings, and ing $30 “Louis Vuitton” bags. Laws are generally
learn that your favorite brand of jeans was pro- based on ethics—for example, in the United States,
ducing some of its apparel there. it is both illegal and unethical to plagiarize someone
●● You notice several friends tweeting about a else’s work. Other ethical standards are not actually
designer you’d never cared for, mentioning that law, even if they are commonly accepted as being
his brand would be donating $2 million to an wrong, and may even carry some form of punish-
environmental cause you hold near and dear. ment. For instance, most people would agree that it
is unethical to cheat on a test, and that act can have
What do you think you would say or do in each of consequences specific to a school’s set of rules, even
these situations? How would these situations influ- though it is not a crime in the eyes of the law.
ence your future behavior? Your responses depend Going hand in hand with ethics is social respon-
on a number of factors, but the most fundamental sibility. Social responsibility refers to the principle
of those is your ingrained sense of moral values and that everyone is responsible for making the world a
principles, which can be powerful forces in con- better place for all its inhabitants. In business, the
sumer behavior. concept means that companies, for the privilege
of conducting their business, should contribute to
Defining Ethics the welfare of society and not be solely devoted to

maximizing profits. When a company provides free
As you’ve learned throughout this book, many child care to its employees, or organizes a recycling
conscious and unconscious factors go into every program for its used products, it is being socially
360 Part V: Fashion Consumers and responsible citizenship
9781609018986.indb 360 8/18/14 3:01 PM

responsible. On an individual consumer level, social stealing more than $2.1 million in jewels from her
responsibility can take the form of a charitable act, then-employer.
such as donating a still-good winter coat to a home-
less shelter to benefit someone less fortunate, or
SHOPLIFTING
volunteering a weekend to help build a house for
Habitat for Humanity. Individual social responsi- Shoplifting has actually declined slightly in recent
bility also extends to consumers’ choice of prod- years, and accounts for just over one-quarter of
ucts, such as the conscious decision to buy clothing retail losses.2 Shoplifting is not only a crime, but a
made of bamboo—which is renewable and grown in consumer behavior that is often not based on need.
an environmentally friendly way—or to buy goods The action of a desperate Hurricane Katrina victim
from a company that donates a portion of its sales stealing bread to feed a child is understandable; but
to help save the rainforests. what about the celebrity caught shoplifting a mas-
In this chapter, we will explore how ethics and cara from a local CVS? There have been quite a few
social responsibility come into play in the fashion instances over the years of famous and presumably
world, examining the way consumers incorporate wealthy people stealing from stores, perhaps simply
these concepts into their buying behavior, as well as for the “thrill” of it. Notably, actress Lindsey Lohan
the way marketers use them not only to do what’s added more negative headlines to her resume when
right, but to help influence customer loyalty. she was accused in 2011 of taking a $2,500 necklace
from a Venice, California, jewelry shop. Most shop-
Consumer Theft lifting is on a smaller scale, and some people might

try to rationalize the theft of a candy bar or lipstick
One of the most obvious breaches of ethics is steal- as being inconsequential. But even those “small”
ing; and it is a crime in every country in the world. crimes contribute to an overall problem that hurts
Yet, as you know, not everyone obeys the law, both retailers and other consumers. In an effort to
and inventory shrinkage—a term that includes thwart both employee theft and shoplifters, retail-
employee theft, shoplifting, vendor fraud, and ers have to spend millions of dollars on security,
administrative error—
is an enormous problem, ranging from uniformed or undercover security
costing U.S. retailers more than $35 billion a year, guards to often cumbersome security systems, such
according to an annual survey conducted by the as bulky plastic tags that have to be removed from
University of Florida. That number represents about apparel and accessories once consumers pay for
1.4 percent of retailers’ total annual sales, with them (Figure 15.1). That expense gets built into the
employee theft, known as “pilferage,” accounting for prices retailers charge consumers for their goods,
1
the largest losses, or about 44 percent. One of the and even then, since no security system is foolproof,
boldest examples of employee theft in recent years stores may be forced to raise their prices to make up
involved a former vice president of product devel- for sales lost to theft—a solution that affects the
opment for Tiffany & Company, who pled guilty to store’s entire customer base.
CHAPTER 15: How Ethics and Social Responsibility Impact Consumer Behavior 361
9781609018986.indb 361 8/18/14 3:01 PM

together to steal larger quantities of products,
which are stolen not for personal use, but to resell
through fencing operations (individuals or groups
that receive and dispose of stolen goods) or per-
haps at flea markets or on the Internet. Industry
experts estimate that losses due to organized retail
theft cost the United States $30 billion a year, and
the problem has grown so significantly in the past
decade that retail industry groups, government, and
law enforcement are all looking at ways to specifi-
cally address the problem. In 2004, retailers formed
the National Retail Federation (NRF)/FBI Intelli-
gence Network in an effort to better share informa-
tion and identify active criminal operations around
the country. In addition, legislation passed in 2006
established an Organized Retail Theft Task Force at
the FBI. Thanks to the increased law enforcement
efforts, several crime rings around the country have
been caught and dismantled in recent years, includ-
ing one in Texas that was responsible for stealing
FIGURE 15.1 Retailers employ a variety of security measures to

some $10 million in merchandise each year from
combat theft by both employees and shoplifters. 2008 to 2012.3
FRAUDULENT RETURNS
A related issue involves people who make dishonest
Let’s Talk returns to stores. Have you ever known someone
What would you do if you were in a store and who bought an expensive dress, wore it to a party
noticed someone shoplifting? Would you notify or other event with the tags tucked inside, and then
store personnel? Discuss why or why not. returned it to the store as new? Retailers call this
practice of returning used merchandise that is not
defective “wardrobing,” and not only is it unethi-
In recent years, a new breed of thieves has com- cal, it is just one type of return fraud that costs U.S.
pounded the problem. Their crime is called orga- retailers nearly $9 billion each year.4
nized retail theft, also known as “boosting,” and Other examples of fraudulent returns include
it usually involves multiple shoplifters working people returning an item to a store using a
9781609018986.indb 362 8/18/14 3:01 PM

counterfeit receipt or an altered e-receipt from an person surrounded by similar influences chooses to
online purchase, or shoplifting merchandise and act in a more ethical manner.
then returning it for cash or store credit. In some
cases, individuals sell actual store receipts that have
not expired, and the buyers shoplift identical mer-
Counterfeiting
chandise that they then “return” to the store with
the receipt and obtain credit in the form of a gift When you hear the word “counterfeit,” your first
card. Taking it a step further, some thieves who have thought may be of fake $20 bills. But counterfeiting
obtained store gift cards for fraudulent returns then is actually a much larger issue—and one that today
try to sell the cards online, a tactic that led eBay to represents a sophisticated, worldwide operation
begin limiting sellers to one gift card auction per costing the global economy as much as $250 bil-
week, with a maximum value per card of $500. lion a year.6 We’re talking about counterfeit goods,
The problem of return fraud has forced many unauthorized copies of designer or branded prod-
stores to adopt stricter return policies that affect ucts designed to mimic the authentic goods (down
all customers. Because retailers estimate that some to the detailing, logo, and even the label). Their
13 percent of returns made without a receipt are appeal to consumers is clearly that they look like the
fraudulent, nearly three-quarters now require cus- real thing, yet are sold for only a fraction of the price
tomers returning items with no receipt to show of the original. While apparel and fashion accesso-
identification. Some, including Victoria’s Secret ries make up the largest category of products being
and Bath & Body Works, employ database services targeted by counterfeiters, it’s important to note
to track return patterns and identify customers that counterfeit apparel is not the same as apparel
whose return activity is suspicious. Those custom- knockoffs, which do not pretend to be an original
ers may then be refused future return privileges. brand and which are considered an integral part of
Other stores have shortened the time period dur- the fashion life cycle (see Chapter 12). Popular jeans
ing which customers can return goods to the store. and sports jerseys are among the most common
REI, for instance, recently placed a one-year limit on counterfeit clothing items seized by U.S. authori-
returns of its outdoor clothing and gear after years ties, valued at nearly $15 million in one recent year.
of accepting returned merchandise no matter how Shoes rank even higher, with more than $25 million
5
long ago it had been purchased. Bloomingdale’s has worth of counterfeit seizures that same year; and
adopted yet another tactic, as you’ll see in Case in while they used to comprise mostly athletic foot-
Point 15.1. wear, the fake shoes now include popular brands
Whether we’re talking about outright theft or like Ugg and luxury brands like Christian Loubou-
fraudulent returns, it is difficult to know what com- tin and Jimmy Choo. In addition to mimicking the
bination of internal and external factors and per- style down to the smallest detail (like the Loubou-
sonality traits may motivate a specific individual to tin signature red sole), a clever counterfeit will
commit illegal or unethical acts—and why another include a replica shoebox, dust bag, and even minor
9781609018986.indb 363 8/18/14 3:01 PM

CASE IN POINT 15.1
Retailers Change Tactics to Combat “Wardrobing”

Until businesses like Rent the Runway came the dress to be worn in public without the tag
along a few years ago, there was no legitimate being seen. Store associates are tasked with
way for fashionistas of limited means to wear explaining to consumers that they can take the
a fancy frock to a gala event and then return garment home without removing the tag, until
the dress afterward. But that didn’t stop some they’re sure they want to keep it; and shoppers
consumers from trying. High-end retailers have on the Bloomingdale’s website are alerted to
long been plagued with the problem of wardrob- the presence of the tag on a dress’s product
ing, where customers purchase a pricey dress page details, so they aren’t taken by surprise
for a special occasion and then return it to the when the order arrives. After that, once the tag
store the next day—without admitting it was is snapped off, the apparel cannot be returned.
worn, of course. And while retailers are well Taking a more subtle tack is Nordstrom,
within their rights to refuse a return, some feel which is not using chunky plastic anti-wardrobing
the risk of alienating a loyal customer is not devices but instead is affixing silver-colored paper
worth it, so they bite the bullet and offer the tags under the arm or sleeve of its expensive
refund. Says Richard Mellor, vice president of special-occasion dresses. The tags must still be
loss prevention at the National Retail Federa- attached to a dress in order for it to be returned.
tion, “It is a delicate balance of loss prevention After Bloomingdale’s began using the black
and good customer service, and the relationship tags, some complaints quickly began to appear
has to be handled with appropriate finesse.” on social media—such as one Twitter user
Clearly, it’s a tricky situation. But because of who said the tags tore some items when she
an uptick of wardrobing activity in recent years, removed them at home—and other retailers
many merchants have decided it’s time to take will surely be paying close attention to how the
a firmer stance regarding the practice. Among policy plays out. But Bloomies stood by the tags’
them: Bloomingdale’s and Nordstrom. use, saying they reinforce that the company
In early 2013, Bloomingdale’s started plac- “will be unable to accept return merchandise
ing three-inch black plastic tags, nicknamed that has been worn, washed, damaged, used,
“b-tags,” on dresses that cost more than $150. and/or altered.” And noted one retail consul-
The tags, along with a paper tag explaining tant, “They [Bloomingdale’s] are going to alien-
the devices’ purpose and how to remove them, ate customers that abuse the policy. And I don’t
are placed conspicuously—such as in the front think that is so bad.”
along the hemline—to make it impossible for
Sources: Cotton Timberlake, “Don’t Even Think about Returning that Dress,” Businessweek, September 26, 2013, http://www.businessweek
.com/articles/2013-09-26/return-fraud-clothing-and-electronics-retailers-fight-back; Cotten Timberlake and Renee Dudley, “Bloomingdale’s
Black Tags End Party for Next-Day Returns,” Bloomberg Businessweek, September 17, 2013, www.businessweek.com/news/2013-09-17
/bloomingdale-s-black-tags-end-party-for-next-day-returns; Eun Kyung Kim, “Bloomingdale’s New B-tags Block Used Clothing Returns,”
Today, September 19, 2013, http://www.today.com/money/bloomingdales-new-b-tags-block-used-clothing-returns-4B11199683.
9781609018986.indb 364 8/18/14 3:01 PM

Table 15.1a Top Nine Counterfeited Products
in the US in 2013
1. Handbags/wallets
2. Watches/jewelry
3. Consumer electronics/parts
4. Wearing apparel/accessories
5. Pharmaceuticals/personal care
6. Footwear
7. Computers/accessories
8. Labels/tags
9. Optical media
*based on retail value of seizures by U.S. Customs and Border

Protection
Source: 24/7 Wall St.
Table 15.1b Some of the Most Frequently

Counterfeited Fashion Brands
1. Louis Vuitton 6. Adidas

2. Christian Louboutin 7. Gucci
3. Tiffany 8. Uggs
4. Rolex 9. Chanel
5. Nike 10. Coach
FIGURE 15.2 Street vendors are one potential source of
counterfeit goods, but even reputable retailers have been Source: CocoKouture.com
accused of selling fakes.
motivations (social acceptance, limited finances,

packaging details like the little moisture-absorbing need for self-esteem, and others) override ethical
micro-tech insert. Perfume, watches, and handbags considerations.
(Figure 15.2) are other products found on lists of Because counterfeiting has become such a huge
7
most counterfeited fashion goods. (See Table 15.1.) issue in the marketplace—worldwide, the manu-
Selling counterfeit merchandise is against the facture and sale of fake goods is estimated to be a
law; and while it is not illegal to purchase fake goods, $650 billion-a-year industry—businesses are tak-
it is unethical to knowingly do so. In some cases, ing unprecedented steps to combat it. Brands such
consumers may truly believe (or want to believe) as Fendi, Gucci, Yves Saint Laurent, and Bottega
that they’ve found an exceptional deal on a normally Veneta sew holograms into the lining of their hand-
high-priced item. (Point of View 15.1 describes how bags, boots, and even mink coats, with encrypted
to spot a fake product.) In other cases, they may be codes that allow police and customs officials to
aware that they’re buying a counterfeit but other authenticate the products with a special magnifying
CHAPTER 15: How Ethics and Social Responsibilit y Impact Consumer Behavior 365
9781609018986.indb 365 8/18/14 3:01 PM

POINT OF VIEW 15.1
How to Spot a Fake
OK, so it’s not illegal to knowingly buy a counterfeit Rolex watch or Coach handbag . . . and those
companies have tons of money anyway, so what can it hurt? Well, for one thing, it might be hurting
women or children somewhere in the world who are working in unsafe conditions, being paid next to
nothing, to churn out the fake goods.
If that argument gives you pause, your next question might be: How can I tell if I’m buying a fake?
It’s actually pretty simple if you follow these tips from the International AntiCounterfeiting Coalition.
Does the price seem too good to be true? It helps to be familiar with the normal price range for a
product you’re considering, and if the vendor is selling it for a fraction of what you know it should be,
chances are it’s not the real deal.
Is this the type of retail venue where the product would normally be sold? It’s a safe bet that brands
you would find in high-end department stores or designer boutiques are not going to expand their
distribution to street vendors in New York’s Chinatown or Los Angeles’ Santee Alley.
Does the product, labeling, and packaging look the way it should? If the seller wants to attach a
designer label or brand logo to the product, or you notice that “Calvin Klein” is spelled “Calvin Kline,”
you’d do best to walk away.
Source: The International AntiCounterfeiting Coalition.
device.8 Some companies hire private investigators ●● Coach Inc. was awarded a $257 million judgment
to track down counterfeit merchandise and the in a lawsuit against 573 online vendors that were
people making or selling it. A number of well-known selling counterfeit merchandise with the Coach
brands have also taken successful legal action to trademark.10
stop copy-cats, such as: ●● LVMH Moet Hennessy Louis Vuitton settled a
●● Versace SpA was awarded $20 million in damages lawsuit against Walmart for selling counterfeit
for counterfeiting and trademark violations in Fendi brand bags and wallets in its Sam’s Club
a case against 72 retail stores in Southern Cali- stores.11 The giant retailer had previously settled
fornia and Arizona that were selling counterfeit similar lawsuits brought against it by Tommy Hil-
products including Versace, Gianni Versace, Ver- figer, Nike, Nautica, Polo, and the Fubu group at
9
sace Jeans Couture, and V2. Inter Parfums.12
9781609018986.indb 366 8/18/14 3:01 PM

In addition to businesses’ efforts to fight back
against counterfeiters, government and law enforce-
Business Ethics
ment are playing a stronger role by passing tougher While counterfeiting is a clear-cut violation of the
laws and cracking down on sellers, shippers, and even law, there are many decisions that legitimate busi-
landlords who rent to businesses marketing fake nesses make every day that involve ethical consid-
goods. For example, as part of an operation dubbed erations. In some cases, making a decision that is
Project Copy Cat, federal law enforcement agencies unethical leads to committing an illegal act. News
recently seized 70 websites that were illegally selling headlines in the early 2000s were dominated by
counterfeit merchandise ranging from baby carriers ethics scandals at corporate giants Enron, Tyco,
and professional sports jerseys to jewelry and luxury and Adelphia, to name some of the most promi-
goods. All the sites closely mimicked legitimate web- nent, in which business and accounting rules were
sites selling authentic merchandise, duping consum- bent and/or broken, resulting in enormous losses
13
ers into unknowingly buying counterfeit goods. for the companies’ employees and shareholders, as
(See Chapter 16 for more on the role of government.) well as prison terms for key executives involved in
The concern regarding counterfeiting is not only the criminal actions. A few years later, the actions
that the legitimate companies stand to lose busi- and activities of a number of major banks and
ness and sales, but also that manufacturers of coun- financial institutions were considered responsible
terfeit products do not pay taxes, which hurts the for the economic crisis and recession that dealt an
economy for everyone, and they likely do not pay enormous blow to the job market, the housing mar-
fair wages or benefits to workers, who might even ket, and virtually all areas of the economy around
be children if the goods originate in countries with- the world. Yet, for the most part, those actions did
out strict labor laws. Designers and manufacturers not lead to prosecutions, despite the fact that most
hope that by making the public more aware of all of the general public felt that ethical, and perhaps
those factors, consumers will choose to act ethi- legal, boundaries had been crossed. In other words,
cally and pass up the next “great deal” they see on a the line between unethical and illegal is not always
branded or designer product, thereby making it less clearly defined, and company executives must often
profitable for counterfeiters to stay in business. rely on their own sense of right and wrong to reach
a decision.
Let’s Talk Sometimes, listening to customers can help a
Have you ever bought something you knew was a business determine the best course of action, par-
counterfeit? Knowing all the negative effects that ticularly when dealing with an issue about which
counterfeits have on legitimate businesses and the consumers feel strongly and make their opinions
economy, would you buy one in the future? Why known. Monitoring comments and feedback on
might you discourage a friend from buying one? social media (see Chapter 11) makes it much easier
Discuss your reasons. than in the past for marketers to keep a finger on
the pulse of what customers are thinking, and by
9781609018986.indb 367 8/18/14 3:01 PM

extension, to adjust their strategies to meet cus- for marketers who gather and retain customers’
tomer expectations. The penalty for ignoring cus- personal data.
tomers’ opinion in matters of ethics may well be For example, like many consumers, you may
the loss of their business and loyalty. A recent study belong to one or more retail loyalty programs,
on global corporate social responsibility found that which offer a reward or an incentive to keep shop-
91 percent of respondents believe companies must pers returning to the store. One of the most com-
go beyond the minimum standards required by law mon forms of loyalty programs is the “frequent
to operate responsibly—and 90 percent of consum- shopper card” that enables you to get discounted
ers would stop buying a company’s products if they prices at your local supermarket or drugstore. Other
learned that company had engaged in irresponsible retailers may use their store credit card as a “reward”
14
or deceptive business practices. Let’s examine card, tracking the dollar amount of your purchases
a few of the ethical areas that affect the fashion and offering special sale prices, exclusive sale days,
industry. and other perks to keep you coming back to their
store (Figure 15.3).
While loyalty programs offer benefits for con-
CONSUMER PRIVACY
sumers, they also benefit retailers, enabling them to
Consumers have always viewed certain personal collect purchasing information that can help them
information—for example, their tax returns and
medical records—as being private. With modern
technology, however, those and other personal
records are no longer primarily stored on paper in
a filing cabinet, but instead are recorded digitally
on computers and other electronic media that are
potentially vulnerable to theft or to hacking (unau-
thorized computer access). In recent years, promi-
nent retailers including Target and Michaels had
their data security breached, and private informa-
tion of tens of millions of customers was compro-
mised. If key information, such as a person’s social
security number, falls into the wrong hands, it can
lead to identity theft, in which a criminal obtains
credit and spends sometimes massive amounts
of money using another person’s identity, leav-
ing the innocent person responsible for clearing
FIGURE 15.3 Store credit cards provide benefits to
his or her name. As a result, protecting consum- consumers through their loyalty programs, but they also
ers’ privacy has become a serious ethical issue gather personal information that raises privacy issues.
9781609018986.indb 368 8/18/14 3:01 PM

identify trends and fine-
tune their merchandise tracking. Because of privacy concerns, however—
assortment. In some cases, retailers use knowledge and particularly after revelations that the federal
of a customer’s previous purchases in order to per- government’s National Security Administration
sonalize offers with other products that the store was engaged in widespread monitoring of Internet
thinks might be of interest to that consumer. (The activity—
more consumers started deleting cook-
concept of marketing customization was intro- ies stored on their computer, or blocking cookies
duced in Chapter 2.) While receiving personalized from being installed to begin with, making them
messages about products targeting their needs can less useful for marketers. While still widely used,
be useful, some consumers fear that the amount cookies may be replaced in coming years by other,
of information retailers gather about them could more sophisticated methods that are already being
become intrusive or be misused; or they worry that developed, deployed, and improved upon, such as
the retailer might sell the information to another authenticated tracking, browser fingerprinting,
company that in turn might misuse it or not keep cross-device tracking, and others.16 Some of these
it safe. One study found that the information shop- newer methods have the added benefit for market-
pers find most acceptable to give retailers includes ers of being able to glean information from consum-
their name (89.8 percent), e-mail address (78.1 per- ers’ mobile devices, which cookies cannot. Whatever
cent), and street address (60.7 percent). Less than technologies are implemented, it seems certain that
half (46.8 percent) found it acceptable for retailers there will be new or continuing concerns regarding
15
to collect information on past transactions. how much or how little they protect consumers’
Online activity, whether it’s shopping or social privacy when using a digital device. (See Point of
networking, raises additional privacy issues and View 15.2.)
concerns. With the rapid growth of e-commerce, There are also privacy concerns that surround
online marketers looked for ways to better under- the growing use of RFID (radio-frequency identifi-
stand and serve customers in cyberspace, and began cation) tags on merchandise. Considered a boon to
using cookies to record and store information about manufacturers and retailers, the inexpensive chips,
consumers who visited their site. As discussed in which are often smaller than a grain of sand, can
Chapter 10, cookies are tiny pieces of software that be embedded in virtually any merchandise—from
websites download onto consumers’ computers so a piece of apparel to a pack of gum—and read by a
they can document how often consumers visit their wireless device from several yards away, providing
site, what they look at or buy, and, with the develop- a cost-effective way to automate inventory levels
ment of tracking cookies, what they do before and and track merchandise all the way from factory to
after visiting the site. Some sites, including social store checkout. But because each chip has a unique
media sites, require users to register with certain ID code, some people worry that they could also be
personal information and then log in with a pass- used to track consumers themselves as they carry
word each time they return, as a way of authenti- or wear products with embedded chips. That is
cating the user’s identity but also to enable better an ethical issue that privacy watchdogs and some
9781609018986.indb 369 8/18/14 3:01 PM

POINT OF VIEW 15.2
Connecting the Dots on Consumers’ Private Data
Smartphones are remarkable devices that offer consumers communication, entertainment, and
information, at any time and in (almost) any place. But what you might not think about when you’re
sending a text, making a call, or using an app is the fact that your smartphone contains a lot of infor-
mation about you—such as where you are at any given time, what you’ve searched for online, what
you may have bought . . . information that advertisers and tech companies like Google and Facebook
would just love to be able to tap into. Why? Because just as they use cookies to follow people with
tracking ads as they browse various websites, these companies are eager to translate that capability
to the mobile universe, and to be able to reach smartphone users with the same type of personal-
ized, ultra-targeted advertising that’s used online.
The challenge up to now has been that cookies don’t work on mobile devices. But leave it to the
wizards of technology at a number of start-up companies, including one called Drawbridge, to find
another solution—and even more significantly, one that uses complex statistical algorithms in order
to link various unconnected devices to one user. Previously, there was no way to determine that a
single consumer was using a particular home computer, work computer, cell phone, and tablet
if those devices were not digitally connected. With the Drawbridge technology, however, a user’s
behavior can be triangulated among devices using anonymous, relatively non-invasive data, such as
the browser client, site accessed, and time stamp; then a “bridging” algorithm assesses the prob-
ability of two different devices being associated with the same person. When a specified level of
probability is reached, the company calls it a match.
More than 1.5 billion devices have been linked in this way by Drawbridge. So what does that really
mean? It could mean that if Ted browses a retail website one evening on his laptop at home, he might
see an ad for that retailer on his smartphone the next day on the train to work. Or if Felice uses her
lunch break to research a vacation in Puerto Rico on her work computer, an ad for a resort in San
Juan might pop up on her tablet that evening. What’s more, the technology pinpoints users so accu-
rately that it could actually show different, personalized ads to two different family members on a
single tablet they share.
This advanced technology could be the beginning of a whole new era for customized market-
ing; but it could also be ushering in a slew of new privacy concerns. Privacy advocates have already
expressed concern that consumers do not have a clue about the extent of their private information
(continued)
9781609018986.indb 370 8/18/14 3:01 PM

residing on their phone, or how vulnerable it might be when they perform even everyday functions
like downloading and using apps. Drawbridge is quick to point out that it is not using direct tracking
or geolocation tools, which could set off all kinds of privacy alarm bells. But others are skeptical that
personal information will remain truly anonymous—and the debate over this and other aspects of
digital privacy will likely continue for many years to come.
Sources: Claire Cain Miller and Somini Sengupta, “Selling Secrets of Phone Users to Advertisers,” New York Times, October 5, 2013; “Tracking
Adverts Set to Jump across Gadgets,” BBC, December 7, 2012, http://www.bbc.co.uk/news/technology-20638132; and Jessica Leber,
“Get Ready for Ads that Follow You from One Device to the Next,” Technology Review, December 5, 2012, http://www.technologyreview.com
/news/508176/get-ready-for-ads-that-follow-you-from-one-device-to-the-next/.
lawmakers are urging industry to address as use be considered unethical. Today’s consumers, how-
of RFID tags becomes more widespread. Already, ever, have grown up surrounded by advertising and,
amusement parks have begun using RFID tags to for the most part, understand its intent; in general,
help lost children get back to their parents, and mar- they are not easily manipulated by an ad’s pitch. In
athon runners can wear RFID-equipped bracelets so addition, advertisers who make outright false or
friends and relatives can follow their progress in a misleading claims are subject to prosecution under
17
race, among other applications of the technology. the truth in advertising laws enforced by the Federal
Trade Commission (FTC). (See Chapter 16.)
Of greater concern to some consumers is the
ETHICAL ADVERTISING
content of certain advertising. Obviously, the pur-
Advertising is a critical tool by which fashion mar- pose of advertising is to get a product or brand
keters communicate with their target customers, noticed. But what if it is attracting attention by fea-
but there are aspects of advertising that can raise turing scantily clad models (Figure 15.4), subtle or
questions of ethics. One of the most basic is the not-so-subtle sexual innuendoes, or other elements
long-standing question of whether advertisers try that push the envelope of good taste? Because mar-
to create a need where none exists. In the fashion keters are competing for consumers’ attention amid
world, one could argue that clothes generally do an increasing array of media and messages, they
not wear out after one season, and therefore try- may sometimes use questionable taste to try to
ing to convince consumers that they need to buy a break through the “clutter.” What’s more, since taste
new wardrobe that reflects the newest styles could is subjective, advertising content that one audience
9781609018986.indb 371 8/18/14 3:01 PM

even from those who like the clothing, the company
did not change its risqué ad strategy.
There are occasions when advertisers them-
selves take the initiative to counteract what some
consider objectionable content or images, as Dove
did when it began using “real” women with real-life
shapes in ad campaigns for its body-care products.
(See Chapter 6, Case in Point 6.1.) At other times,
if an ad is offensive to enough people, it can cause
a consumer backlash against the company. That
is especially true if the advertising is directed at
children or teenagers. A Macy’s store in Portland,
Oregon, for example, came under fire for a back-to-
school ad that featured T-shirts emblazoned with
“Beer Pong” and other beer-related slogans on dis-
play in the store’s teen section. After complaints
from a local substance-abuse prevention group and
a TV news report spotlighting the controversy,
FIGURE 15.4 Victoria’s Secret has pushed the boundaries
Macy’s removed the shirts from all its stores across
with its sexy ads, which entice some consumers but may
offend others. the country.19
FUR AND ANIMAL TESTING

finds acceptable may be offensive to another audi-
ence. Some fans of American Apparel’s hip cloth- One of the most emotional topics for those discuss-
ing, for example, may enjoy the company’s racy ads, ing ethics in fashion involves the use of animal fur
while others might find them sexist and in bad taste. in apparel. People who oppose cruelty to animals
Two recent ads (one picturing a woman in nothing believe that using fur in clothing and accessories
but an oversized sweater, lounging with her legs in is both unethical and immoral; some particularly
the air) were actually banned by the British Adver- aggressive anti-fur activists have been known to
tising Standards Authority, based on at least one throw red paint (symbolizing blood) on women
complaint it received about the ads being “overtly wearing fur coats, although the ethics of such
sexual.” American Apparel decided to post the ads behavior could certainly themselves be called ques-
on Facebook and Twitter and ask its followers what tionable. Less violent protests have been organized
18
they thought —perhaps more as a way to stir up by various groups, notably People for the Ethi-
buzz than to actually gain insight for future ads, cal Treatment of Animals (PETA), a global animal
since despite a good number of negative comments, rights group, which often enlists celebrities to help
9781609018986.indb 372 8/18/14 3:01 PM

raise the visibility of the anti-fur message. Among
those who have appeared in PETA ads are actors
Charlize Theron, Jamie Bamber, and Alyssa Milano,
and Olympic gold medalist Amanda Beard; actress
Pamela Anderson even stripped down to a G-string
in a London shop window on behalf of PETA,
under a banner that read “Rather bare skin than
wear skin.”20 In 2013, West Hollywood, California,
became the first city in the United States to actually
ban the sale of fur used in wearing apparel, although
some small retailers were fighting the ban.
Because many consumers oppose the use of fur
in fashion, and because there are many alternatives,
including high-quality fake fur, a growing number
of designers and apparel marketers have made the
decision not to use real fur in their lines or sell it in
their stores. Among them are J. Crew, Stella McCart-
ney, Polo Ralph Lauren, Calvin Klein, Tommy Hil-
figer, Ann Taylor, Uniqlo, and many more. Others,
however, continue to incorporate fur into their
apparel (Figure 15.5). One of those is Carolina Her-
rera, whose fall and winter 2013 collection featured FIGURE 15.5 Some designers and apparel manufacturers
still use real fur in their lines, despite the fact that many
a variety of pieces using fur, some of it dyed in deep
consumers find it unethical.
violet and rich green hues.21
A related ethical issue involves the use of ani-

mals in testing the safety of cosmetics and cosmet-
Let’s Talk ics ingredients. Many consumers believe it is wrong
Do you think that Carolina Herrera incorporated to deliberately harm animals in the development
fur into her collection because she thought it of new beauty and personal care products, and go
worked best for her design concepts or because she out of their way to purchase from companies that
thought her customers would want to buy it—or maintain a no-
animal-
testing policy. Some indi-
both? Do you think she did marketing research viduals or groups even boycott companies that
first to gauge customer opinion on the topic? Why test on animals; that is, consumers make the con-
or why not? scious decision not to purchase any of the compa-
nies’ products as a protest and moral statement.
9781609018986.indb 373 8/18/14 3:01 PM

A growing number of beauty companies have lis- numerous labor laws, the prevalence of sweatshops
tened to consumers’ views and tailor their market- in the United States has been growing since the
ing message to that audience by promoting their 1970s, according to Slaves to Fashion author Rob-
products as “not tested on animals.” The Leaping ert Ross, who estimates that there were still some
Bunny program of the Coalition for Consumer Infor- 255,000 workers toiling in U.S. sweatshops in 2000,
mation on Cosmetics, a group of animal-protection primarily in New York City, Texas, and California.22
organizations that encourages consumers to pur- Between 2008 and 2012, the U.S. Department
chase non-animal-tested products, has developed a of Labor investigated more than 1,500 garment
cruelty-free standard for companies producing cos- industry employers in Los Angeles, San Diego,
metic, personal care, and household products. Its and surrounding areas, and found labor law viola-
website, leapingbunny.org, also offers a list of com- tions, primarily involving wages, in 93 percent of
panies that comply with the standard (such as Burt’s the cases; most of the workers involved were Latin
Bees, The Body Shop, and Kiss My Face), helping American and Asian immigrants.23
consumers find and choose products from manufac- Examples of poor working conditions in the
turers that share their belief. Consumers in Europe United States persist despite the fact that less than
seeking cruelty-free cosmetics have it even easier: 20 years ago, actress and TV celebrity Kathie Lee Gif-
As of 2013, the use of animal testing for personal ford made front-page news when it was discovered
products was banned by the European Union for all that her Kathie Lee clothing line, sold by Walmart,
member countries. was made by sweatshop workers in Honduras and
in New York City. The publicity from this case did
help raise awareness of the prevalence of sweatshops
LABOR PRACTICES
and harsh working conditions in the global fashion
Over the past several decades, American industry, which in turn led to public pressure on
manufacturers—
including fashion companies— companies to verify that the products they sell have
have moved an increasing proportion of their been manufactured according to ethical labor prac-
production to countries where it costs less to man- tices, wherever in the world they are produced. Some
ufacture the goods. In some cases, those countries companies are actively addressing the issue. In 2004,
may not have or enforce laws to protect workers the Fair Factories Clearinghouse (FFC) was formed
from unsafe conditions or to ensure they are paid through a partnership of Reebok International Ltd.,
a living wage. Such workplaces are often referred the National Retail Federation, Retail Council of
to as sweatshops, or factories where workers are Canada, and World Monitors Inc., with the mission
obliged to work long hours, under poor conditions, of creating a global database of information on facto-
for very little pay. Most Americans probably think ries and workplace conditions. The information can
of such factories as strictly a third-world problem be easily shared among members—which include
and a long-gone relic of the 19th and early 20th Burberry, Cole Hahn, L.L. Bean, Levi’s, Nike, and
centuries in their own country. But in fact, despite many more—enabling manufacturers and retailers
9781609018986.indb 374 8/18/14 3:01 PM

to make informed decisions as they source (find sup- foreign factories from which it buys clothes, shoes,
pliers for) merchandise and to improve factory work- toys, and other products, although critics main-
24
place conditions around the world. tained that the chain was still not doing enough;27
The problem is hardly solved, however, and the in fact, the retailer has been fined for repeat viola-
issue of safe working conditions leapt to the fore- tions of workplace safety and health standards at
front again in 2013, when an eight-story factory some of its U.S. stores.28 Yet other companies have
complex in Bangladesh collapsed, killing more than been founded specifically for the purpose of creat-
1,100 workers in one of the world’s worst indus- ing apparel according to fair-trade practices, or
trial accidents. A fire in another Bangladesh factory standards for working conditions, environmental
six months earlier killed more than 100 workers. responsibility, and fair pricing that are based not
The workers who died in the collapse were report- only on ethical labor practices but also on the intent
edly earning only $38 a month, and were produc- to provide opportunity to disadvantaged workers
ing clothing for American and European marketers. and help alleviate poverty.29 Originally limited to
Among the U.S. companies known to have used commodities such as coffee, tea, fruits, and cotton,
factories in Bangladesh (although not necessarily the concept of fair trade has gotten a strong toe-
at the time) include Walmart, JCPenney, Benetton, hold in the clothing marketplace, some of it inspired
Children’s Place, Dress Barn, and the Walt Disney by U2 lead singer and activist, Bono. In 2005,
Company. The tragedy quickly led to heightened Bono introduced Edun, a fair-trade line of apparel
efforts to improve and ensure safe working condi- made from organic materials, which has been sold
tions, with European companies banding together through high-end stores including Saks and Nord-
to take action, and a separate alliance of nearly 20 strom (Figure 15.6). More recently, a group of for-
North American retailers (including Walmart, Gap, mer Lands’ End executives launched Fair Indigo,
Target, and Macy’s) creating a five-year safety plan offering its own line of fair-trade apparel.30 The
for Bangladesh garment factories. The plan commit- selection is designed for mainstream consumers
ted $42 million for worker safety, including inspect- and includes men’s and women’s apparel, as well as
ing every factory within a year, along with more accessories, jewelry, and gift items.
than $100 million in loans and other financing to
help owners of Bangladeshi facilities correct safety
SOCIAL ISSUES
problems.25
The movement toward ethical labor practices Anyone who reads or watches the news cannot help
has also spread to other companies in the apparel but be aware of challenges that affect the entire
industry. For example, manufacturers including planet, from environmental issues such as climate
Nike and Tommy Hilfiger have formalized codes of change and dependency on fossil fuels, to soci-
conduct for their factories, prohibiting child labor etal issues such as poverty and disease. Individuals
26
and requiring that legal minimum wages be paid. and companies that work to address some of those
Walmart increased its inspections of thousands of challenges—whether or not the hardships directly
9781609018986.indb 375 8/18/14 3:01 PM

would buy a product with a social or environmen-
tal benefit if given the opportunity, and 84 percent
would tell their friends and family about a compa-
ny’s corporate social responsibility efforts.31 (See
Figure 15.7 for other data from the study.)
ENVIRONMENT
Some people consider protecting and preserving the
environment to be one of the most serious issues
of our time. Countless scientific studies have dem-
onstrated the toll that modern human activities
are taking on the earth and its atmosphere, and an
increasing number of people are looking for ways to
lessen their own impact on the environment. As a
result, numerous companies in the fashion industry
have been exploring ways of doing business that are
more environmentally friendly.
For example, Timberland, the outdoor clothing
manufacturer, has long been committed to lessen-
ing the environmental impact of its manufacturing,
FIGURE 15.6 A growing fair-trade movement has
including efforts to reduce its use of harmful chemi-
spawned new apparel companies, such as Edun, that
operate with ethical labor practices and use organic cals and increase its use of more-sustainable natu-
materials in their clothing. ral resources. More than a decade ago, the company
began exploring ways to reduce its carbon emissions
and developed a multifaceted plan that included
affect them—are taking social responsibility and building a wind farm in the Dominican Republic,
acting in an ethical manner. While many actions installing solar panels at one of its distribution cen-
on the part of businesses come from a true sense ters in California, and purchasing power generated
of wanting to “do good,” for marketers it can also by renewable resources. By 2006, the company had
make good business sense: According to the same cut its emission of greenhouse gases by 17 percent;32
global study on corporate social responsibility men- and in 2009, it shrank the carbon footprint of its U.S.
tioned earlier in this chapter, 91 percent of consum- stores another 11 percent by switching more than two
ers, if offered comparable price and quality, would thirds of its North American stores to LED lighting.33
switch brands to one associated with a good cause. Among the company’s other environmental initia-
The study also found that 92 percent of consumers tives, it pioneered eco-labels on its apparel, modeling
9781609018986.indb 376 8/18/14 3:01 PM

Consumers want to get engaged with corporate social responsibility efforts:
If given the opportunity, I would buy a product with a social

92%
and/or environmental benefit
If I learned of a company’s irresponsible or deceptive

90%
business practices, I would stop buying its products
I would tell my friends and family about a company’s

CSR efforts 84%
If given the opportunity, I would donate to a charity

supported by a company I trust 78%
If given the opportunity, I would voice my opinion to a

company about its corporate social responsibility efforts 78%
(e.g., provide comments on the company’s website or blog,
review products)
If given the opportunity, I would volunteer for a cause that a 77%
company I trust supports
0 20 40 60 80 100
FIGURE 15.7 How important is corporate social responsibility to consumers?
Source: Cone Communications/Echo, 2013 Global CSR Study
them after nutrition labels on food packaging and other materials on recycled paper to reducing excess
giving consumers a way to instantly measure a poten- packaging, converting facilities to wind and solar
tial purchase for its level of climate impact, resource energy, cutting pollution by eliminating vehicle
34
consumption, and eco-conscious materials. idling, and more (Figure 15.8). Providing a showcase
Companies across the spectrum of fashion example of environmental commitment is Destiny
industries have joined the “green” movement—not USA, a super-regional shopping center in Syracuse,
only to demonstrate concern for the environment, New York, built on a former landfill on Lake Onon-
but also because they recognize that it’s good busi- daga. Not only did the developers take responsibil-
ness. In addition to the potential cost savings they ity for clearing oil tanks and other environmental
can gain from reducing the materials and energy clean-up, but in a recent expansion of the mall, they
their operations consume, marketers stand to ben- worked in cooperation with the United States Green
efit from increased sales and customer loyalty, Building Council to earn its Leadership in Energy
since consumers who feel strongly about doing and Environmental Design (LEED) certification,
their part tend to seek out products that they feel becoming the largest LEED Gold Certified commer-
do the least harm to the planet. As a result, recent cial retail structure in the United States and third
years have seen manufacturers and retailers imple- largest in the world. Retail tenants are also required
ment programs ranging from printing catalogs and to adhere to LEED specifications in areas including
9781609018986.indb 377 8/18/14 3:01 PM

CASE IN POINT 15.2
Here Comes the Sun—and It’s Lighting Up Retail Stores

Shop in almost any retail store today and retail chains. And those retailers are exploring
you’re sure to see environmentally friendly other forms of renewable energy, as well. For
merchandise—maybe T-shirts made with example:
organic cotton, furniture made from recycled
• Drugstore chain Walgreens had installed
plastic or reclaimed wood, or hairbrushes with
134 solar systems across the country by
handles fashioned out of highly renewable
mid-2012, with plans for many more.
bamboo. But going beyond the products being
• IKEA planned to have solar arrays on
sold, U.S. retailers, and particularly large chain
virtually all its furniture stores and
stores, are leading the environmental charge in
distribution centers by the end of 2012,
even more critical ways.
and also incorporated a geothermal
Whether it’s installing solar panels on the
power system at a new store it built in
roof or a wind turbine in the parking lot, big-
Colorado.
box retailers are going green to save green—
• Kohl’s already had more than 150 solar
and to help save the planet while they’re at
locations by the end of 2012, and was also
it. Said Rhone Resch, chief executive of the
testing wind energy, along with adding
Solar Energy Industries Association and the
more electric vehicle charging stations at
Vote Solar Initiative, “Five or six years ago, you
its stores.
probably would have read about a pledge in an
• And Walmart was on track to have 1,000
annual report about what they’re doing for the
solar installations in place by 2020, while
environment. Now what you’re seeing is it’s a
also testing out wind power. Not only
smart investment that they’re making for their
did the giant retailer install a huge one-
shareholders, and this is a standard business
megawatt wind turbine at a distribution
practice.”
center in California, but it has also placed
Whatever their motivation, major retail-
smaller wind turbines on the tops of lamp
ers are seeing the (sun)light: Nearly half of the
posts in some of its stores’ parking lots.
top 20 commercial solar power customers are
Source: Diane Cardwell, “Chain Stores Said to Lead Firms in Use of Sun Power,” New York Times, September 12, 2012.
9781609018986.indb 378 8/18/14 3:01 PM

Concern for the environment also extends to
fashion products themselves, as an increasing num-
ber of consumers choose products that they know
are made in an eco-friendly manner. Manufacturers
and designers are meeting that demand with apparel
made from a variety of sustainable and environmen-
tally sound fabrics, such as organic cotton, soy, corn,
and bamboo, and even material made from “repur-
posed” (recycled) fur, leather, and denim or blended
of cotton and recycled plastic soda bottles.
Organic fiber sales in the United States have
been growing by double digits in recent years, to
over $708 million, according to the Organic Trade
Association.36 Organic cotton, which is grown using
no chemical fertilizers, pesticides, or herbicides,
is one of the fastest-growing eco-friendly fabrics.
Jeans maker Levi’s began offering organic cotton
versions of its most popular styles in 2006; and
organic cotton’s use in home textiles has also blos-
FIGURE 15.8 Many fashion retailers and manufacturers
somed, with companies including Welspun and Anna
are addressing environmental issues through the use of
renewable energy and other initiatives. Sova Luxury Organics creating towels, sheets, and
blankets from the fabric. Bamboo is also increasingly
finding its way into apparel and home textiles prod-
ucts, and is appreciated for the fact that it is highly
energy efficiency, water efficiency, improved indoor
renewable, can grow a foot or more in a day, and can
air quality, and construction material initiatives.35
grow to heights of 80 or 90 feet, making its fiber
plentiful. Soy is another renewable fabric source that
Let’s Talk is increasing in importance in fashion. The company

2(x)ist even offers a line of soybean fiber blend men’s
Have you noticed changes in environmental
underwear, T-shirts, and socks.
awareness in any of the retailers you regularly
shop or brands you regularly buy—such as stores
offering reusable cloth bags or manufacturers CAUSES AND
reducing their excess packaging? Would changes CHARITABLE GIVING
such as these influence your shopping decisions? In addition to concern for the environment, social
Why or why not? responsibility can encompass a wide variety of
direct actions to help people who are sick, hungry,
9781609018986.indb 379 8/18/14 3:01 PM

CASE IN POINT 15.3
Patagonia Ups the Ante on Social Responsibility

It’s a bold move for an apparel company to where it sells reconditioned garments that cus-
encourage consumers not to buy so many tomers have traded in for store credit.
clothes—but that’s exactly what Patagonia has What’s more, Patagonia is taking its social
been doing for a couple of years now. It began responsibility efforts beyond just the environ-
with a pre-holidays full page ad in the New York ment. For one thing, the company announced
Times in 2011 that proclaimed, “Don’t buy this the 2014 introduction of a line of “Fair Trade
jacket.” Since then, the outdoor apparel retailer certified” clothing, produced in factories that
has been beseeching consumers to “buy less” are monitored and certified by the nonprofit Fair
stuff, including via a 28-minute documentary Trade USA organization using social and envi-
film the company produced, called Worn Wear. ronmental standards for fair wages and safe
The film features hard-core customers wear- conditions. The initial offering includes nine
ing Patagonia apparel until it is literally falling yoga styles, and for every piece of clothing sold,
apart, at which point they slap on some duct Patagonia will pay a premium into a workers’
tape to hold the clothes together and wear them fund that can be used for scholarships, medical
some more. care, disaster relief, or whatever the workers
The campaign may seem slightly hypocriti- themselves collectively decide.
cal for a retailer that’s in the business of selling Going even further, Patagonia recently
goods—and in fact, in the two years following launched a corporate campaign that is meant
the jacket ad, the company’s sales actually to address more than just new technologies
increased by almost 38 percent. Nonetheless, that can help protect the planet by reducing
it is very much in keeping with the overriding resource use and waste. Its “Responsible Econ-
Patagonia philosophy of taking better care of omy” project goes deeper to the core of what it
the planet. For three decades, the company has identifies as a greater societal issue: namely,
pledged 1 percent of sales to the preservation growth-based capitalism, and the assumption
and restoration of the natural environment, and that a growth economy equals prosperity and a
has donated more than $46 million to grass- healthy society. The goal is to inspire other busi-
roots environmental groups. And it encourages nesses to reexamine their business models that
customers to collaborate in efforts to repair, rely strictly on compound annual growth, and
reuse, and recycle its clothing, even adding start a conversation that might lead to a more
a “Worn Wear” section to some of its stores, sustainable future for everyone on the planet.
Sources: Kyle Stock, “Why Patagonia Wants to Sell You Ratty Old Swim Trunks,” Bloomberg Businessweek, September 25, 2013, www.business
week.com/articles/2013-09-25/why-patagonia-wants-to-sell-you-ratty-old-swim-trunks; Susanna Kim, “Are Fair Trade Clothes a Fair Deal?,”
ABC News, October 24, 2013, http://abcnews.go.com/Business/major-retailer-signs-sell-fair-trade-clothing-customers/story?id=20660596&
singlePage=true; Kyle Stock, “Patagonia’s Confusing and Effective Campaign to Grudgingly Sell Stuff,” Bloomberg Businessweek, November 25,
2013, www.businessweek.com/articles/2013-11-25/patagonias-confusing-and-effective-campaign-to-grudgingly-sell-stuff; Patagonia website,
www.patagonia.com.
9781609018986.indb 380 8/18/14 3:01 PM

poor, or homeless. Socially responsible companies other local charities across the country.38 Similarly,
often support charitable organizations that work through its Kohl’s Cares program, Kohl’s supports
to alleviate problems challenging people and societ- women’s health initiatives as well as kids’ health and
ies. This trend is strong and growing in the fashion education through the sale of special merchandise,
business, as in other industries. While there was such as an exclusive collection of Tek Gear athletic
only a handful of retailers in the 1990s that were apparel for which 100 percent of the net profit was
socially active—ice cream maker and retailer Ben donated to support the fight against breast cancer.
& Jerry’s is a prominent example—the number has In other instances, companies make a longer-
grown dramatically since then. As Tracy Mullin, term commitment to a cause, aligning themselves
former president and CEO of the National Retail with a particular charitable organization and incor-
Federation, the world’s largest retail trade associa- porating it into their marketing plans on an ongo-
tion, stated, “As our shoppers vote with their wal- ing basis. One of the best-known examples is (RED),
lets, retailers are recognizing that customers want founded by Bono and Bobby Shriver in 2006 as a
37
them to make a difference.” At upscale women’s method for helping provide a sustainable flow of
clothing designer and retailer Eileen Fisher Inc., the money from the private sector to fight AIDS. Many
corporate commitment to social responsibility is iconic brands and organizations—
including Gap,
so strong that there is an executive with the title of Apple, Beats by Dr. Dre, Bed Bath & Beyond, Con-
“Director of Social Consciousness.” verse, Starbucks, and Motorola—
have partnered
One way that companies can express social with the nonprofit organization to develop (RED)-
responsibility is through cause-
based or cause- branded products and services, designating a por-
related marketing, in which—
you’ll recall from tion of the profits from those goods for donation to
Chapter 2—they identify a charity or other cause the Global Fund to Fight AIDS.
to which a specified portion of profits from one Natural disasters and other crises also provide
or more products in their line will be donated. By manufacturers and retailers with an opportunity
mentioning the donation in the product’s market- to act in a socially responsible manner by donat-
ing materials, such as in ads and on packaging or ing money and/or products to help people in need.
hangtags, companies can often influence consum- After Hurricane Katrina devastated New Orleans
ers who support the cause to purchase those items and the Gulf Coast in 2005, as well as following Hur-
over another product. In some cases, marketers des- ricane Sandy’s destruction in parts of the North-
ignate an exclusive product or create a limited-time east in 2012, many companies stepped forward to
promotion to benefit a cause. Macy’s conducts an assist with donations of needed supplies and other
annual Shop for a Cause event, in which participat- acts of generosity. In the aftermath of Katrina, for
ing nonprofit organizations sell savings passes for instance, Walmart rushed to reopen stores that had
$5, for which they keep 100 percent of the proceeds been closed by the storm, enabling victims to buy
and purchasers receive a discount when they shop at much-needed supplies, and also gave approximately
a Macy’s store on the designated day. A recent event $5 million in emergency cash to affected employ-
raised $3.8 million for the March of Dimes and ees. Best Buy offered cash advances to its displaced
9781609018986.indb 381 8/18/14 3:01 PM

employees and also set up banks of computers with of shoplifters work together to steal larger quan-
Internet connections in stores so that hurricane vic- tities of merchandise that is usually then resold.
tims could contact family members and reach the Fraudulent returns are also an issue of concern for
39
Red Cross and other assistance agencies. retailers, some of which are now using software sys-
One of the longest-
running charitable pro- tems to track returns and try to identify dishonest
grams within the fashion industry is Kids in Dis- customers.
tressed Situations (K.I.D.S.), a global charity made Counterfeiting of designer or branded products
up of leading retailers, manufacturers, and licen- is a huge, global problem. It is illegal to manufacture
sors of children’s and youth products. For more or sell counterfeit goods, but knowingly purchas-
than 25 years, K.I.D.S. has worked in partnership ing them is not illegal, only unethical. Businesses,
with major foundations to help improve the lives of government, and law enforcement are all increas-
children and their families who are ill, living in pov- ing their efforts to find and stop counterfeiters, who
erty, or the victims of natural disasters, collecting may also break other laws, including labor laws, or
donations of new merchandise from members (and help fund terrorist groups.
others) to deliver wherever they are needed. After Businesses face ethical decisions in many
the tsunami disaster in Southeast Asia in Decem- aspects of their daily operations. Safeguarding the
ber 2004, for instance, K.I.D.S. collected and dis- privacy of consumers is one ethical concern, since
tributed more than $4 million worth of children’s the increasing amount of personal information that
clothing, shoes, and blankets donated by its mem- is being gathered could be vulnerable to theft or
bers. In 2012 alone, the organization distributed computer hacking. Ethical considerations in adver-
$112 million worth of brand-new goods around tising include the ads’ truthfulness, as well as the
40
the world. appropriateness of their content, which can some-
times offend an audience. The use of fur in fash-
Summary ion and product testing on animals are two ethical

issues that are highly emotional for many consum-
Consumer behavior is sometimes influenced by eth- ers, and a number of designers and manufacturers
ics, a system of moral values or principles of right have eliminated the practices as a show of compas-
and wrong. Unethical actions are sometimes, but sion. Marketers are also making efforts to eliminate
not always, illegal as well. One aspect of ethics is the use of sweatshops in the production of their
social responsibility, the principle that everyone is products and are implementing ethical labor prac-
responsible for making the world a better place for tices that include safe workplace conditions and
all its inhabitants. Individuals as well as companies fair wages. A growing number of apparel companies
operate under their own ethical standards. operate under fair-trade principles, incorporating
Consumer theft is both unethical and illegal; not only ethical labor practices but also the intent to
shoplifting is a prominent example. Organized provide opportunity to disadvantaged workers and
retail theft is a growing problem in which teams help alleviate poverty.
9781609018986.indb 382 8/18/14 3:01 PM

Many people see protecting the environment 4. What are some of the unethical labor practices
as one of today’s most serious ethical issues, and a that are being addressed by many companies
number of fashion manufacturers and retailers have and associations in the fashion industry?
taken steps to lessen the environmental impact of 5. Name at least three ways in which some
their operations. Fashion products themselves are retailers and manufacturers are working
increasingly being made with eco-friendly fibers and to make their operations or products more
fabrics, such as organic cotton, bamboo, and soy. environmentally friendly.
Fashion companies also address social responsibil-
ity through charitable giving, including cause-based
marketing and other donations to charities or vic- ACTIVITIES
tims of disaster.
1. Visit a local store and see how many security
KEY TERMS measures you can identify that the store is

using to prevent theft. Make a list of both the
Boycott visible deterrents (for example, locked cases,
Counterfeit goods security tags on products, security guard)
Ethics and more discreet techniques (for example,
Fair-trade practices electronic device at exit, one-way glass from an
Inventory shrinkage office area). If you are able to, interview a store
Loyalty programs manager to learn which of the methods the
Organized retail theft store finds to be most effective.
Social responsibility 2. Do an online search for sellers of “fake handbags”
Sweatshop or “replica handbags.” Choose a site and compare
one of the fake items to a genuine product at
that brand’s own website. Do you think the
differences are distinct enough for the item
QUESTIONS FOR REVIEW not to be considered a counterfeit? See if the
site selling the fakes has a disclaimer that tells
1. What are two common types of consumer theft consumers its products are not “the real thing.”
from retailers? How does organized retail theft 3. Find an ad in a fashion magazine that you think
differ from regular shoplifting? some people might consider sexist, indecent, or
2. What are some of the steps fashion marketers otherwise offensive in some way. Show it to a
are taking to combat counterfeit goods? variety of people of different ages and genders,
3. Name three ways in which marketers might and ask them for their reaction. Keep track of
collect information about consumers that could the responses and see whether the negative
raise concerns about privacy of personal data. reactions come more from younger or older
9781609018986.indb 383 8/18/14 3:01 PM

people, or more from males or females. Do REFERENCES
any people feel so strongly about the ad that 1. Tyco Integrated Security, “National Retail
they would either boycott the company or, at Security Survey Reveals U.S. Retail Industry
the other extreme, make a point of buying the Lost More Than $35.28 Billion to Theft in
product being sold? Present your findings to 2011,” News release, November 27, 2012.
the class. 2. ibid.
4. Select one of your favorite designers or brands 3. The Federal Bureau of Investigation,
and go to the company’s website. See if you “Organized Retail Theft: Major Middle Eastern
can find information on causes that the Crime Ring Dismantled,” News release, March
company supports or ways in which it is socially 12, 2013.
responsible. Does the company give information 4. National Retail Federation, “Return Fraud to
on its efforts to be more environmentally Cost Retailers $2.9 Billion This Holiday Season,
friendly? Does its website discuss its labor According to NRF Survey Return Fraud Survey
practices or policies? Are you surprised by how 2012,” News release, December 4, 2012.
much or how little the company is doing, based 5. Cotton Timberlake, “Don’t Even Think about
on its site? Does the information make you Returning that Dress,” Businessweek, September
feel more or less favorable toward the company 26, 2013, http://www.businessweek.com
than you did before? Discuss your findings and /articles/2013-09-26/return-fraud-clothing-
reaction with the class. and-electronics-retailers-fight-back.
6. Thomas C. Frohlich, Alexander E.M. Hess, and
Vince Calio, “The Nine Most Counterfeited
MINI-P ROJECT Products in America,” 24/7 Wall St., March
27, 2014, http://247wallst.com/special-
Create a questionnaire with 8 to 10 questions that
report/2014/03/27/americas-nine-most-
will let you determine people’s opinions on various
counterfeited-items/.
ethical and social issues as they relate to fashion.
7. Steve Hargreaves, “Counterfeit Goods
For example, you could create attitude scales (see
Becoming More Dangerous,” CNN Money,
Chapter 10) asking questions such as how likely
September 27, 2012, http://money.cnn.com
your respondents would be to shop at a retailer
/2012/09/27/news/economy/counterfeit-
that sells apparel made with fur, how favorably
goods/index.html.
they would view a designer who uses organic fabrics
8. Christina Passariello, “Holograms Tell Fake
or actively seeks fair trade suppliers, or how likely
from Fendi,” Wall Street Journal, February 22,
they would be to purchase an item they knew or sus-
2006, http://online.wsj.com/news/articles
pected was counterfeit. Survey at least 15 different
/SB114057680060579777.
people from different age groups, and write a report
9. “Versace Awarded $20 Million in Damages,”
of your findings.
Daily Front Row, May 6, 2010, http://www
9781609018986.indb 384 8/18/14 3:01 PM

.fashionweekdaily.com/the-fix/article/versace- /business/article/Privacy-concerns-grow-with-
awarded-20-million-in-damages. the-use-of-RFID-tags-3175330.php.
10. Mark Brohan, “Coach Wins a $257 Million 18. Ellie Krupnick, “American Apparel, ASA On
Judgment against Web Counterfeiters,” Internet The Outs Again With New Banned Ads,”
Retailer, November 5, 2012, http://www.internet Huffington Post, April 12, 2013, http://www
retailer.com/2012/11/05/coach-wins-judgment- .huffingtonpost.com/2013/04/10/american-
against-web-counterfeiters. apparel-asa-banned-ads_n_3051751.html.
11. David Glovin, “Wal-Mart, Fendi Settle Lawsuit 19. Andrew A. Newman, “Overage Logos, Underage
Over Knockoff Bags (Update2),” Bloomberg, Market,” New York Times, October 16, 2006,
June 6, 2007, http://www.bloomberg.com www.nytimes.com/2006/10/16/business
/apps/news?pid=newsarchive&sid=aoip /media/16beer.html.
.LC2na_w. 20. “Pamela Anderson Strips for Anti-Fur Protest,”
12. Pallavi Gogoi, “Wal-Mart’s Luxury Problem,” ExpoSay.com, June 29, 2006, www.exposay
BusinessWeek, June 13, 2006, www.business .com/pamela-anderson-strips-for-anti-fur-
week.com/investor/content/jun2006/pi200 protest/v/2470/.
60613_187965.htm. 21. “Carolina Herrera Plays with Fur at New York
13. U.S. Immigration and Customs Enforcement, Fashion Week,” FashionMag.com, February 12,
“ICE-led IPR Center Seizes 70 Websites 2013, http://us.fashionmag.com/news
Duping Consumers into Buying Counterfeit /Carolina-Herrera-plays-with-fur-at-New-York-
Merchandise,” News release, July 12, 2012. Fashion-Week,310894.html#.UllfKxBWiV4.
14. Cone Communications, “2013 Cone 22. Jessica De Jesus and Tabea Kay, “Ethical Style:
Communications/Echo Global CSR Study,” There Are Still Sweatshops in America,” Good.Is,
http://www.conecomm.com/global-CSR-study. March 29, 2012, http://magazine.good.is
15. National Retail Federation, “Shoppers Want /articles/ethical-style-there-are-still-
Loyalty Programs, But Not at the Cost of sweatshops-in-america.
Privacy, According to New NRF Foundation 23. “Does ‘Made in the USA’ Mean Not In a Sweat
/Adjoined Consulting Research,” News release, shop?,” Green American, July/August 2013,
January 16, 2006. http://www.greenamerica.org/pubs/green
16. James Temple, “Stale Cookies: How companies american/articles/JulyAugust2013/Does-
are tracking you online today,” SFGate, October Made-in-the-USA-Mean-Not-In-a-Sweatshop
2, 2013, http://blog.sfgate.com/techchron .cfm.
/2013/10/02/stale-cookies-how-companies- 24. Fair Factories Clearinghouse, www.fair
are-tracking-you-online-today/. factories.org.
17. Alejandro Martínez-Cabrera, “Privacy Concerns 25. Jessica Wohl, “North American Retailers Set
Grow with the Use of RFID Tags,” SFGate, 5-Year Bangladesh Factory Plan,” Reuters,
September 6, 2010, http://www.sfgate.com July 10, 2013, http://www.reuters.com/article
9781609018986.indb 385 8/18/14 3:01 PM

/2013/07/10/bangladesh-factories- 32. Jad Mouawad, “The Greener Guys,” New York
northamerica-idUSL1N0FG0HB20130710. Times, May 30, 2006, C1.
26. Bob Tedeschi, “A Click on Clothes to Support 33. Corporate Timeline, Timberland, http://www
Fair Trade,” New York Times, September 25, .timberland.com/about-timberland/timeline/.
2006, www.nytimes.com/2006/09/25 34. Andrea Newell, “Timberland Eco-labels Go
/technology/25ecom.html?ex=1184558400&e Beyond Green Info,” TriplePundit, January 26,
n=3f09deab7bbb1840&ei=5070. 2012, http://www.triplepundit.com/2012/01
27. “Wal-Mart Finds More Foreign Violations at /timberland-ecolabels-beyond-green-info/.
Factories,” Associated Press, September 27, 35. Destiny USA’s Sustainability Commitment,
2006, http://www.nbcnews.com/id/15033280 http://www.destinyusa.com/green.
/#.Ulq0UBBWiV4. 36. Organic Cotton Facts, Organic Trade
28. Marcus Baram, “Walmart Fined For Association, http://www.ota.com/organic
‘Unacceptable’ Workplace Violations,” /fiber/organic-cotton-facts.html.
Huffington Post, February 10, 2012, http:// 37. Tracy Mullin, “An Awakened Conscience,”
www.huffingtonpost.com/2012/02/10 Stores, August 2006. Retrieved August 22,
/walmart-fined-for-unaccep_n_1268475.html. 2007, from www.stores.org/archives/2006/8
29. IFAT: The International Fair Trade Association, /President’sColumn.asp.
“The 10 Standards of Fair Trade,” http://ifat 38. “About Shop for a Cause,” Macy’s, http://
.org/ftrinciples.shtml. shopforacause.macysinc.com/About.aspx.
30. Susan Chandler, “‘Fair-Trade’ Label Reaches 39. H. J. Cummins, “Target, Best Buy Taking Care
Retail Market,” Chicago Tribune, October 8, of Gulf Coast Workers,” Minneapolis Star
2006, http://articles.chicagotribune.com Tribune, September 18, 2005. Retrieved August
/2006-10-08/business/0610080038_1_fair- 22, 2007, from www.cebcglobal.org/Newsroom
trade-wage-lands-end. /News/News_092005.htm.
31. Cone Communications, “2013 Cone 40. Kids in Distressed Situations, http://www
Communications/Echo Global CSR Study,” .kidsdonations.org/index.htm.
http://www.conecomm.com/global-CSR-study.
9781609018986.indb 386 8/18/14 3:01 PM

Chapter 16
The Role of Government for
Fashion Consumers
WHAT DO I NEED TO KNOW ABOUT THE ROLE OF GOVERNMENT FOR

FASHION CONSUMERS?
✔✔ How government plays a part in the way fashion companies produce and market their
products
✔✔ Which federal agencies have oversight of different aspects of the fashion industry
✔✔ How government rules and standards enable fashion consumers to make informed
purchasing decisions
✔✔ What regulations protect consumers from buying products that could cause them harm
✔✔ How government and independent agencies work to improve fairness and ethics in the
marketplace
387
9781609018986.indb 387 8/18/14 3:01 PM

H
ave you ever fallen in love with a great- take a look at some of those agencies, regulations,
looking pair of pants at the store, bought and organizations to see how they affect the fashion
them to wear to a party that night, and then industry and how the work they do can influence
when you gathered them up with your other consumer behavior.
laundry to throw in the washing machine,
you happen to notice that the tag says “dry clean
only”? You’re surely not alone if you’ve faced that Federal Agencies
quandary and kicked yourself for not checking the
label at the store. But did you ever think about why Through the work of various agencies, the federal
that label is on the apparel to begin with? If you’re government provides oversight, creates standards,
a careful shopper, you may well scrutinize all the and enforces regulations designed to protect the
tags, labels, and packaging for an item before mak- public from unsafe products or unfair business prac-
ing a purchase, even when it’s a relatively low- tices. Those efforts may be supplemented with addi-
involvement decision. You might also look closely at tional regulations implemented by individual state
a product’s advertising, trying to separate the real governments, and with the programs of industry
benefits from the hype. Or you may not worry about associations, which sometimes take it upon them-
any of that and simply choose based on your past selves to adopt voluntary standards for their mem-
experience and perceptions of the brand or type of ber companies to follow.
product.
When shopping for fashion goods, not all con-
CONSUMER PRODUCT
sumers do take the time to research their purchases
SAFETY COMMISSION
or “read all the fine print.” And in many cases, it
may not matter. But unfortunately, as discussed When you think of fashion products, the issue of
in Chapter 15, not all companies follow strict ethi- safety probably doesn’t immediately spring to mind.
cal guidelines to ensure that everything about their But there are several areas where safety could be a
products, their manufacturing, and their market- concern if it were not for government oversight.
ing is completely aboveboard, and consumers may Imagine your jeans bursting into flames if you acci-
unwittingly pay the price. That is where govern- dentally dropped a lit match on them, or a small
ment can play an important role, both in passing child choking on a decorative teddy bear appliqué
and enforcing laws to ensure that products are safe that pulled loose too easily from his jacket. Fortu-
and marketed truthfully, and in giving consumers nately, those are situations that are very unlikely to
the tools they need to make an informed purchase. occur, thanks to the efforts of the U.S. Consumer
What’s more, there are a number of independent Product Safety Commission (CPSC).
organizations that provide resources to help edu- Created in 1972 by Congress under the Con-
cate consumers and to help businesses better meet sumer Product Safety Act, the CPSC has as its direc-
the needs of their customers. In this chapter, we’ll tive to protect the public “against unreasonable
9781609018986.indb 388 8/18/14 3:01 PM

risks of injuries associated with consumer prod-
ucts.” An independent agency—meaning it does not
report to and is not part of any other department
or agency in the federal government—the CPSC’s
staff of about 500 is responsible for monitoring
the safety of more than 15,000 kinds of consumer
products sold in the United States, ranging from air
fresheners, beds, and carpet to sunglasses, toys, and
windows, and much more (Figure 16.1). Since 1972,
the work of the CPSC has contributed to a 30 per-
cent decline in the rate of deaths and injuries associ-
ated with consumer products.1
Despite the CPSC’s track record, products that
pose a potential hazard can still occasionally find
their way into the marketplace. When that happens,
and it is brought to the agency’s attention, the result
is generally a recall. In a recall, announcements are
issued to the public alerting them to the danger,
urging them to stop using the product immediately,
and providing them with further information on
what to do with the product or how to contact the
manufacturer. If the problem is something that can FIGURE 16.1 More than 15,000 different products,
including toys and clothing, are monitored for safety by the
be fixed, the recall notice will provide instructions
Consumer Product Safety Commission.
on how consumers can have the product repaired.
If it cannot be fixed, consumers are usually notified
of the ways they can get a replacement product or a
refund.
Because the year 2007 saw a record number of products, and required the CPSC to create a public
recalls—
many of them involving high lead con- database of products.
tent in toys and other products—Congress passed
the Consumer Product Safety Improvement Act of Flammable Fabrics Act
2008. The new bill increased funding and staffing One of the specific areas the CPSC monitors is the
for the CPSC, placed stricter limits on lead levels flammability of clothing and household furnishings,
in children’s products, restricted certain phthalates using the guidelines set forth in the federal Flam-
in children’s toys and child care articles, required mable Fabrics Act. Passed in 1953, the Flamma-
mandatory testing and certification of applicable ble Fabrics Act was written initially to regulate the
CHAPTER 16: The Role of Government for Fashion Consumers 389
9781609018986.indb 389 8/18/14 3:01 PM

manufacture of highly flammable clothing, such as sleepwear garments self-extinguish after exposure
brushed rayon sweaters. But Congress amended the to a small open flame. The standards target sleep-
act in 1967 and expanded its coverage so that it now wear because statistics show that children are most
regulates the flammability not only of clothing but at risk from burn injuries that result from playing
also of home furnishings, as well as paper, plastic, with matches, candles, stove burners, and other fire
foam, and other materials used both in apparel and sources just before bedtime and just after rising in
interior furnishings. Responsibility for administer- the morning.2
ing the Flammable Fabrics Act was transferred to In 1996, after a review of the circumstances
the CPSC when that agency was created in 1972. surrounding children’s burn injuries, the CPSC
The CPSC has established mandatory flammabil- amended the flammability standards for children’s
ity standards for clothing textiles, vinyl plastic film sleepwear to exclude garments sized for infants
used in clothing, carpets and rugs, children’s sleep- nine months of age or younger, and to exclude
wear, and mattresses and mattress pads. Mandatory tight-fitting sleepwear garments. The amendments
standards mean that all manufacturers, retailers, were based on the premise that those categories do
importers, and distributors must ensure that the not present an unreasonable risk of burn deaths
products they are selling meet specific safety criteria and injuries, and by revising the rules, the agency
that the agency has set forth. The federal mandatory would enable consumers to have a greater selection
standards for fabric flammability are based on how of sleepwear for children while still being protected
quickly and how intensely a given material burns by safety standards. As a result, children’s sleepwear
when exposed to a small open flame. Based on the that is not flame-resistant is permitted as long as it
fact that certain fabrics have consistently met the fits the child snugly. To alert shoppers to the poten-
standards, they are exempt from testing and consid- tial danger of loose-fitting children’s sleepwear not
ered safe for use in apparel. Among those are fabrics made of flame-
resistant fabric, the CPSC issued
made entirely of acrylic, modacrylic, nylon, olefin, a new requirement in 2000 that children’s snug-
polyester, and wool. Other fabrics must be guaran- fitting sleepwear made of cotton or cotton blends
teed to have passed the flammability tests before must carry a hangtag or permanent label remind-
being used in apparel. ing consumers that it must fit snugly for safety
Because children can be particularly vulnerable, (Figure 16.2).
there are even more stringent safety rules for chil-
dren’s sleepwear. The Standard for the Flammability Other Product Hazards
of Children’s Sleepwear: Sizes 0 through 6X became Flammability of clothing and home furnishings is
effective in 1972, and the Standard for the Flam- an important safety issue, but there also are many
mability of Children’s Sleepwear: Sizes 7 through other areas in which the CPSC monitors and regu-
14 took effect in 1975. The two standards are nearly lates safety. The agency frequently issues specific
identical and prescribe a test requiring that speci- safety alerts when it identifies a potential hazard;
mens of the fabric, seams, and trim from children’s alerts in recent years have included such topics as
9781609018986.indb 390 8/18/14 3:01 PM

For child’s safety, garment should fit snugly.
This garment is not flame resistant.
Loose-fitting garment is more likely to catch fire.
FIGURE 16.2 The CPSC requires children’s sleepwear that is not flame-resistant to carry a yellow hangtag like this one, or
to include a permanent label sewn into the neck of the garment that says, “Wear snug-fitting. Not flame resistant.”
the danger of strangulation from cords of window with the CPSC because the decorative stitching on
coverings and the risk of bunk bed mattresses fall- the blanket’s edge could come loose, allowing a child
ing if not properly supported. In many cases, the to become entangled in the yarn, posing a strangu-
CPSC works closely with industry to develop vol- lation hazard to young children.5 Also, thousands of
untary safety standards. To improve the safety of necklaces, bracelets, earrings, and hair accessories
cribs, for instance, the CPSC worked with the Juve- were recalled by American Girl Place,6 and 300,000
nile Products Manufacturers Association, which children’s charm bracelets were recalled by Reebok,7
administers a voluntary program to certify cribs both due to the products’ high lead content, which
meeting specific standards. The toy industry also would pose a serious health hazard if ingested.
actively collaborates with the CPSC and other test- The past decade also saw numerous recalls of
ing organizations to develop voluntary standards certain children’s outerwear items, such as jackets
for concerns such as small parts that could become a and sweatshirts, that included a drawstring at the
choking hazard if swallowed by a young child. neck or waist. Those drawstrings had been known to
In the fashion industries, the volume of product get caught on playground equipment, in bus doors,
recalls is relatively small, but there have been a num- or on other objects, with sometimes deadly results.
ber in recent years. Columbia Sportswear Company In the late 1990s, the CPSC issued guidelines
recalled several models of its Omni-Heat electric regarding the length of the drawstring, how it is
heated jackets when it was found that the heated attached to the garment, and other criteria to mini-
inner wrist cuff could overheat, posing a burn haz- mize the danger of injury, and those guidelines were
3
ard; and Victoria’s Secret Direct (the catalog and incorporated into a voluntary standard for manu-
online division of Victoria’s Secret) voluntarily facturers and retailers of children’s apparel. After
recalled about 500 silk kimono tops because the gar- the standard was introduced, fatal incidents involv-
ments failed to meet mandatory standards for fabric ing garments with drawstrings through the neck or
4
flammability. About 92,000 chamois blankets were hood decreased by 75 percent, and fatalities associ-
voluntarily recalled by Pottery Barn in cooperation ated with drawstrings through the waist or bottom
9781609018986.indb 391 8/18/14 3:01 PM

CASE IN POINT 16.1
Smokescreen Surrounds Fire Safety Standard for Upholstery

While the Consumer Product Safety Com- states’ passing a patchwork of different leg-
mission has long enforced strict regulations islation, supported a 2004 federal proposal to
regarding the flammability of clothes and a impose a flammability standard covering open-
range of household goods made with fabric, flame ignition sources such as lighters and
it has yet to issue a comprehensive standard candles, as well as cigarettes. But despite the
regarding upholstered furniture—despite the CPSC offering preliminary approval, the legisla-
fact that, according to the CPSC’s own statis- tion never went any further.
tics, fires originating in upholstered furniture Nonetheless, the furniture industry has
account for 20 percent of all fire-related deaths “made great strides in reducing the flammabil-
in the United States and kill an average of ten ity risks associated with its products,” according
people a week. The danger lies in the foam to the American Home Furnishings Alliance,
used in a wide range of upholstered furniture, which noted that most upholstered furniture
because the petroleum-based material creates makers follow a voluntary set of construction
a much thicker, blacker smoke than wood or guidelines created through an Upholstered Fur-
paper. What’s more, that smoke is highly toxic, niture Action Council program. And even though
making it particularly deadly to consumers, as the wheels of government tend to turn slowly,
well as to firefighters responding to the blaze. there may still be hope of a CPSC ruling in the
The National Association of State Fire Mar- not-too-distant future: In April 2013, the com-
shals has repeatedly called for a national fire mission hosted a public meeting on fire safety
safety standard for upholstery, and watchdog technologies to focus on “current and antici-
group Citizens against Government Waste has pated progress on fire barrier technologies and
also pushed for a standard, saying that the other options to reduce the fire hazard posed by
CPSC has delayed a decision for years. Even the residential furniture.”
furniture industry, in an effort to avoid individual
Sources: Gary Evans, “CPSC Blasted for Delay on Upholstery Open-Flame Standards,” Furniture Today, September 20, 2006; Susan M. Andrews,
“Fire Marshals Call for Upholstery FR Standard,” Furniture Today, October 31, 2006; and Jessica Franken and Dawnee Giammittorio, “CPSC
Holds Upholstered Furniture Fire Safety Technology Meeting,” Nonwovens Industry, June 12, 2013, http://www.nonwovens-industry.com
/contents/view_capitol-comments/2013-06-12/cpsc-holds-upholstered-furniture-fire-safety-technology-meeting/; Consumer Product Safety
Commission, Federal Register Notice: Upholstered Furniture Fire Safety Technology Meeting, http://www.cpsc.gov/en/Regulations-Laws—
Standards/Federal-Register-Notices/2013/Upholstered-Furniture-Fire-Safety-Technology-Meeting/.
9781609018986.indb 392 8/18/14 3:01 PM

dropped 100 percent. However, from 2006 through to the establishment of the FDA, initially to ensure
2010, the agency participated in 115 recalls of non- the safety specifically of food and drug products. In
complying products, leading it to establish in 2011 a 1938, however, the FDA’s authority was extended
mandatory federal safety rule regarding drawstrings to cover the cosmetics industry when the Federal
8
in children’s apparel. Food, Drug, and Cosmetic Act was passed.
Federal Food, Drug, and Cosmetic Act

Let’s Talk One of the two most important laws covering cos-
Do you think manufacturers would be as careful metics marketed in the United States, the Federal
about product safety if there were no government Food, Drug, and Cosmetic Act (FD&C Act) prohib-
agency monitoring the issue? Why or why not? its the marketing of adulterated (contaminated) or
misbranded cosmetics in interstate commerce (busi-
ness conducted between parties in different states).
U.S. Food and Drug Administration As defined by the act, the term “cosmetic” means
While the CPSC monitors the safety of thousands of “articles intended to be rubbed, poured, sprinkled,
types of products, there are other product catego- or sprayed on, introduced into, or otherwise applied
ries over which the agency has no jurisdiction. One to the human body or any part thereof for cleans-
of those categories is cosmetics, which is regulated ing, beautifying, promoting attractiveness, or alter-
by the U.S. Food and Drug Administration (FDA). ing the appearance,” as well as components of such
The FDA was established in 1930 and is now part of articles, excluding soap (Figure 16.3). If that sounds
the U.S. Department of Health and Human Services. like it covers a lot, it does: The FDA estimates that
As described by its mission statement, the FDA more than 40,000 different cosmetic product for-
“is responsible for protecting the public health by mulations are being marketed in the United States,
assuring the safety, efficacy, and security of human incorporating more than 7,000 different cosmetic
and veterinary drugs, biological products, medical ingredients and 4,000 fragrance ingredients.9 To
devices, our nation’s food supply, cosmetics, and help manage the vast number and variety of prod-
products that emit radiation.” ucts under its umbrella, the FDA maintains six
The need for a government entity to monitor product-oriented centers that carry out its mission.
food and drugs became clear in the early part of Cosmetics are monitored by the Center for Food
the twentieth century, when journalists and oth- Safety and Applied Nutrition, known as CFSAN.
ers began uncovering and publicizing serious prob- Although the FDA has legal authority over
lems in the processing of meat and other foods, and cosmetics, that authority is somewhat different
exposing the fact that some companies were includ- from other products it regulates. Pharmaceutical
ing dangerous ingredients in their patent medicines drugs, for example, must undergo a stringent and
(trademarked, nonprescription drugs). That report- lengthy testing and approval process by the FDA
ing led to the Food and Drug Act of 1906, and later before they’re allowed on the market. But with the
9781609018986.indb 393 8/18/14 3:01 PM

FIGURE 16.3 A wide range of personal care products, including skin moisturizers, perfumes, lipsticks, fingernail polishes, face
makeup, shampoos, hair colors, toothpastes, and deodorants, are regulated by the Food and Drug Administration.
9781609018986.indb 394 8/18/14 3:01 PM

exception of color additives, the FDA does not test Environmental Working Group (EWG) have cre-
or give approval to cosmetic products or ingredients ated tools to help consumers research what they are
before they go to market. In other words, it is up to applying to their bodies. For more than a decade,
cosmetic firms to substantiate the safety of their EWG’s Skin Deep Cosmetics Database website has
products and ingredients before marketing them allowed consumers to check for potentially hazard-
to the public. That includes not only ensuring that ous ingredients in their skin care products. More
the product and its ingredients are safe but that the recently, the EWG launched a Skin Deep mobile
product has been prepared, packed, handled, and app, similar to another app called Think Dirty; both
shipped in a way that prevents it from becoming enable consumers to scan a product’s barcode and
adulterated. receive an instant score on the ingredients, along
The FDA can and does, however, inspect cos- with suggestions for other products that might have
metic manufacturing facilities to ensure product safer ingredients.11 Some consumers have taken
safety and accurate branding and, as part of that action themselves both to raise awareness of poten-
plant inspection, collects product samples for exam- tial dangers lurking in cosmetics and to put pressure
ination and analysis. The agency may also conduct on manufacturers and the government to better
research on cosmetic products and ingredients to ensure product safety. (See Point of View 16.1.) In
address safety concerns, and as a follow-up to any addition, manufacturers are encouraged to register
complaints of adverse reactions from a product. their companies and file Cosmetic Product Ingredi-
One ingredient that was being studied for safety in ent Statements with the FDA’s Voluntary Cosmetic
recent years, for example, is phthalates (pronounced Registration Program (VCRP), although there is no
“thallets”), a group of chemicals found in hundreds requirement to do so.
of products ranging from toys and wall coverings
to personal care products, such as nail polish, hair Fair Packaging and Labeling Act
sprays, soaps, and shampoos. Some research indi- The FD&C Act goes further in permitting the FDA
cates that phthalates might affect sexual develop- to take action against companies selling cosmetics
10
ment in humans, and in 2008, Congress banned that are improperly labeled or deceptively pack-
the chemicals from children’s products including aged. Under the act, a cosmetic is considered to
toys. But despite warnings from a number of medi- be misbranded if its labeling is false or mislead-
cal groups regarding exposure to the chemicals, the ing in any particular, or its label does not include
FDA had not yet found conclusive evidence that all the required information, among other stipula-
phthalates pose a human health risk to warrant ban- tions. Those requirements are defined further by
ning them from personal care and beauty products. the Fair Packaging and Labeling Act, which was
Because there remain questions about the safety passed in 1966. Under this act, all cosmetics prod-
of some chemicals in everyday beauty products, ucts must list their ingredients in descending order
health research and advocacy groups such as the of predominance (as illustrated by the example
9781609018986.indb 395 8/18/14 3:01 PM

POINT OF VIEW 16.1
Consumer Advocates Take on the Cosmetics Industry
When women buy cosmetics or other beauty products, they shouldn’t have to worry that those
creams, lotions, shampoos, gels, and other personal care items might be harmful to their health. But
how is the average consumer supposed to know what’s really inside those bottles, jars, and tubes?
Take a look at a few and you’ll see that the lists of ingredients can read like a chemistry book—and
even if you could decipher what some of the names are, you still probably wouldn’t know what poten-
tially adverse effect they could have on your body and health.
That conundrum is precisely what inspired four San Francisco women to step up to the plate
and do something decisive, by founding the Campaign for Safe Cosmetics, a national coalition of
environmental, health, and women’s groups. The Campaign’s mission is to do everything possible to
eliminate dangerous chemicals from cosmetics and personal care products, using science and an
engaged public not only to pressure companies to make safer products, but to convince the govern-
ment to pass laws that better protect our health. How has it worked out? Let’s just say that observ-
ers credit the group for launching the first large-scale grassroots challenge to the $60 billion beauty
products industry ever.
It was concern about phthalates that really started the ball rolling. One of the Campaign’s co-
founders was alarmed after reading research from a number of medical and scientific bodies that
indicated the chemicals, even in low doses, may be linked to birth defects and reproductive dis-
orders, among other health issues. She was also concerned by the fact that women are generally
exposed to more phthalates than men are, through beauty products. But because chemicals aren’t
always disclosed on product labels, there was no way to measure the extent of their use—until the
Campaign for Safe Cosmetics founders sent dozens of different beauty products to a lab to be tested
and analyzed. The results showed that a full three quarters of the products contained phthalates.
Said one of the group’s co-founders, “We just felt like this was such a violation of women’s trust
and human rights. These are chemicals that you are applying directly to your body.”
Over the course of its first decade, the Campaign’s focus has expanded to include many other
chemicals found in personal care products. And in that relatively short time, the group has logged an
impressive list of successes. By 2008, more than 1,000 cosmetics companies had signed the Cam-
paign’s “Compact for Safe Cosmetics,” a pledge to remove phthalates from their products and to
replace all hazardous chemicals with safer alternatives. Global giants L’Oreal and Revlon, respond-
ing to the Campaign’s request, agreed to remove chemicals banned in Europe from their cosmetics
sold in the United States and elsewhere around the world. Even Wal-Mart changed its policy at the
(continued)
9781609018986.indb 396 8/18/14 3:01 PM

POINT OF VIEW 16.1 (CONTINUED)
Campaign’s behest and banned some chemicals identified as being harmful from the beauty mer-
chandise it sells in its stores.
Among its other accomplishments, the Campaign for Safe Cosmetics helped push through pas-
sage of California’s Safe Cosmetics Act in 2005, the first law of its kind in the United States, which
requires cosmetic companies to disclose to public health officials the ingredients in the products
they sell in California. The group has also been instrumental in promoting federal legislation; with
its support, the Safe Cosmetics and Personal Care Products Act of 2013 was introduced in Congress,
although passage remains uncertain. Should it or a subsequent effort become law, however, it would
mark the first change in legislation governing cosmetics since 1938. And consumers can thank four
ordinary women who decided to make a difference.
Sources: The Campaign for Safe Cosmetics, “Campaign Victories and History,” www.safecosmetics.org/article.php?id=343; Heather Somerville,
“Consumer Advocates Turn Heads in Taking on Cosmetics Industry,” The Seattle Times, October 14, 2013, http://seattletimes.com/html
/businesstechnology/2022044233_cosmeticsafetyxml.html; Amy Westervelt, “New and Improved Safe Cosmetics Act Could Boost Green
Chemistry,” Forbes, June 27, 2011, http://www.forbes.com/sites/amywestervelt/2011/06/27/new-and-improved-safe-cosmetics-act-could-
boost-green-chemistry/.
in Figure 16.4) and the packaging must give the

net quantity of contents—for example, the actual
weight of the face powder without the compact
case, or the volume of mascara minus the tube and
wand. Cosmetics that do not comply with the Fair
Packaging and Labeling Act regulations are consid-
ered misbranded under the FD&C Act, and subject
to enforcement by the FDA.
Both the Federal Food, Drug, and Cosmetic
Act and the Fair Packaging and Labeling Act, along
with their related regulations, are intended to pro-
tect consumers from health hazards and deceptive
practices and to help them make informed purchase
FIGURE 16.4 FDA labeling rules require ingredients in
decisions. If the FDA has information that a cos-
cosmetics to be listed in order of predominance. How many
metic product is adulterated or misbranded, it can ingredients do you recognize?
pursue action through the federal court system to
9781609018986.indb 397 8/18/14 3:01 PM

remove that product from the market and/or initi- competition in commerce, as part of a campaign of
ate criminal action against the violator. In the case “trust-busting.” The term trust refers to large busi-
of a cosmetic product that represents a hazard or ness entities that succeed in controlling a market,
is somehow defective, the FDA is not authorized in essence becoming a monopoly. Over the years,
to require a recall, but it does monitor manufactur- Congress has passed additional laws giving the FTC
ers or distributors that initiate a voluntary recall greater authority to police anticompetitive prac-
of a product. The agency, like the CPSC, also issues tices beyond just antitrust measures. Among those
alerts, warnings, and informational publications is the Wheeler-Lea Amendment, passed in 1938,
to let the public know about possible safety issues. which includes a broad prohibition against “unfair
For instance, one such notice warned consumers and deceptive acts or practices,” and the Magnuson-
of possible allergic reactions to the color additives Moss Act, passed in 1975, which gives the FTC
in temporary decal-type tattoos, and the agency authority to adopt trade regulations that define
has recommended specific labeling for products unfair or deceptive acts in particular industries.
containing alpha hydroxy acid (AHA) to make con- The FTC divides its wide-ranging work among
sumers aware that use of the product could increase the Bureau of Consumer Protection (whose mandate
their skin’s sensitivity to the sun and the possibility is to protect consumers against unfair, deceptive, or
12
of sunburn. fraudulent practices), the Bureau of Competition
(which is the FTC’s antitrust arm, seeking to pre-
vent anticompetitive mergers and other anticom-
FEDERAL TRADE COMMISSION
petitive business practices in the marketplace), and
Another U.S. government agency that helps pro- the Bureau of Economics (which helps the FTC eval-
tect consumers is the Federal Trade Commis- uate the economic impact of its actions). Let’s look
sion, or FTC. Even if you don’t think you know at some of the specific areas in which the FTC has
anything about the FTC, you are certainly famil- an impact on the fashion industries and consumer
iar with some of its work—and it probably influ- behavior.
ences your behavior and decisions as a consumer,
whether you are conscious of it or not. Every time Textile Products Labeling
you check the care label on a shirt before throwing Among the FTC’s most visible mandates are the laws
it in the wash, or trust a TV ad to be truthful about that require specific labeling of most clothing as well
what a product can do, or enjoy a family dinner as textile products commonly used in a household.
without interruptions from telephone sales calls, These labels must include key pieces of information,
you are benefiting from some of the rules and laws including the fabric’s fiber content, care instruc-
enforced by the FTC. tions, manufacturer identification, and country of
The FTC, an independent agency of the U.S. origin. Depending on what a product is made of, it
government, was created by the Federal Trade Com- may be covered by one or more of several different
mission Act of 1914 to prevent unfair methods of laws and official guidelines.
9781609018986.indb 398 8/18/14 3:01 PM

Textile Fiber Products Identification Act. of predominance, and the percentage of the prod-
The Textile Fiber Products Identification Act, also uct’s weight represented by each fiber. For example,
known as the Textile Act, states that any company a T-shirt might be labeled “100% Cotton,” or a throw
that advertises or sells clothing or fabric household “65% Silk, 20% Nylon, 15% Angora.” Fibers that rep-
items must label its products to accurately reflect their resent less than 5 percent of the item’s weight must be
fiber content (Figure 16.5). Enforced by the FTC, the listed simply as “other fiber(s).” However, if the fiber
Textile Act covers fibers, yarns, and fabrics, as well has a functional significance, even in small amounts,
as an array of household textile products made from it may be listed. For instance, spandex might be pres-
them, such as clothing and accessories, draperies, tow- ent as only 4 percent of a garment’s weight, but with-
els and washcloths, bedding, cushions—even iron- out it, the garment would offer no elasticity, so the
ing board covers and umbrellas. Any product that is manufacturer may list it by name on the label.
covered by the act must include a fiber content state- The Textile Act includes additional stipulations
ment that lists the generic name of each fiber in order for manufacturers in their fiber content labeling,
FIGURE 16.5 Fiber content labels such as these must be permanently affixed to virtually all clothing and household items
made of fabric. Do you check to see what an apparel item is made of before making a purchase?
9781609018986.indb 399 8/18/14 3:02 PM

covering issues such as fiber trademarks, which of wool are subject to the specific requirements of
can be used but only if they appear immediately the Wool Products Labeling Act, also known as the
next to the generic fiber name. Lycra, for instance, Wool Act. Under the rules of the Wool Act, even if
is a trademark for a specific type of spandex made wool accounts for less than 5 percent of the weight
by Invista, so its use in a garment cannot be stated of the product, it must be listed on the label.
on the label simply as “Lycra,” but must say “Lycra The Wool Act addresses the use of specialty wool
Spandex.” Other requirements are meant to ensure fibers—such as cashmere, camel hair, mohair, alpaca,
that labeling is not deceptive. For example, if the llama, and vicuna—as well as the more common
base fabric of a towel is made of upland cotton and sheep or lamb’s wool in apparel and home goods.
the loops are of pima cotton, a label stating “100% A garment made of any of those fibers individually
Pima Cotton” would not be acceptable—
but the or in combination may be called simply “100% Wool”
manufacturer could label the towel “100% Cotton, or “All Wool,” assuming it has no other fiber content;
Pima Cotton Loops” or “100% Cotton, 100% Pima or if it were made only of cashmere, it could be called
Cotton Loops,” without misleading consumers. Sim- “100% Cashmere.” However, a sweater or blanket
ilarly, if a printed advertisement for a product men- made half of wool and half of cashmere would have
tions its fiber content, the ad must also do so in a to be labeled either “100% Wool” or “50% Cashmere,
way that is not false, deceptive, or misleading. 50% Wool,” and to avoid misleading consumers, the
product’s hangtag or other packaging could not sim-
Wool Products Labeling Act. While the Tex- ply say “Fine Cashmere Garment.” The same holds
tile Act covers most apparel and fabric home fur- true for any printed advertising descriptions, as with
nishings items, products that contain any amount the Textile Act rules (Figure 16.6).
FIGURE 16.6 Catalogs and websites must give accurate fiber content information, since shoppers cannot look at the
products’ labels in person. This blanket has been clearly identified by the online seller as “100% wool.”
9781609018986.indb 400 8/18/14 3:02 PM

cited by the FTC twice in recent years over issues
Let’s Talk of improper fur labeling, including a 2009 investi-

gation involving coats that were labeled “faux fur”
Do you check the fiber content label whenever
when the fur was actually real. In a more recent case,
you’re buying clothes? Does the fiber content
the store allegedly misrepresented that a rabbit fur
influence your purchase decision? If so, how?
product had mink fur, as well as advertising gar-
ments on its website as being “fake fur” when they
Fur Products Labeling Act. Garments made of were actually real fur. The labels on the garments
fur must follow similar but distinct rules and regula- themselves were correct, but because online shop-
tions as set forth in the Fur Products Labeling Act. pers have no way of examining the label until after
Under this act’s rules, garments made either entirely they’ve made the purchase, the FTC requires full
or partly with fur must have a label disclosing, and accurate information to be given in descriptions
among other things, the type of animal; if the fur on an e-commerce site.13
is used or damaged; and if the fur product is com-
posed in whole or substantial part of pieces, such Down, Leather, and Jewelry Products
as paws, tails, bellies, scraps, heads, and so on. The Guidelines. While there is not a separate law
label must also disclose if the fur is pointed (mean- regarding the labeling of products made with down
ing that separate hairs are inserted into the fur, or feathers, up until the late 1990s the FTC did have
often either to repair damaged areas or to simulate official Down Guides for manufacturers to follow.
other furs), dyed, bleached, or artificially colored; They were rescinded in 1998, however, since the FTC
or if those treatments don’t apply, the fur must be believed that some of the stipulations were based
labeled “natural.” In addition, the label must provide on outdated manufacturing capabilities, and actu-
the textile or wool content of the product. ally promoted inaccurate labeling and advertising.
While the FTC’s fur labeling guide provides a list The International Down and Feather Testing Labo-
of animals whose fur could be used in a garment, ratory and Institute (IDFL) has since published its
just because an animal name appears on the list own labeling standards for the industry.14 The FTC
does not mean it is necessarily legal to sell that fur still offers a brochure of guidelines for manufactur-
in the United States. If the animal is an endangered ers, since the overall rules of the Textile Act remain
species, for instance, the sale of its fur is prohibited applicable to down and feather items, along with
by the Endangered Species Act of 1973. Similarly, general FTC rules regarding deceptive advertising.
the Dog and Cat Protection Act of 2000 prohibits General guidelines for the labeling and adver-
the distribution, importation, or sale of any prod- tising of leather and simulated leather products
ucts made with dog or cat fur. Under the Fur Prod- are also available from the FTC. In addition, the
ucts Labeling Act, it is also illegal to label a fur with agency publishes Jewelry Guides that cover adver-
the name of any animal other than the animal that tising claims made for gold, silver, platinum, pew-
produced the fur, or to use invented or fictitious ter, diamonds, gemstones, and pearls, and define
animal names. Upscale retailer Neiman Marcus was how certain common terms may be used in ads. For
9781609018986.indb 401 8/18/14 3:02 PM

CASE IN POINT 16.2
Is That Fido in Your Fur Coat?

So you’re an animal lover who would never under raccoons, but from raccoon dogs, an Asian
any circumstances buy apparel made with real canine breed that looks like an oversized, fluffy
fur. You find a to-die-for jacket that’s trimmed raccoon and whose fur is known to be stripped
with cozy faux fur and take it home . . . only to in a particularly cruel and gruesome manner.
hear on the news a week later that the fake fur Because raccoon dogs are not domesticated,
on your wonderful jacket is not only not fake, but importing their fur is not illegal (yet), but mis-
is actually fur from a dog. How could that be? representing and mislabeling it does violate the
Although it’s been illegal since 2000 to federal Fur Products Labeling Act.
import domestic dog (and cat) fur—and it’s a Many other reputable retailers and design-
federal crime to intentionally sell it in the United ers have been caught up in the fur maelstrom
States—there have still been numerous cases at some point. A few years back, the Humane
over the past decade in which apparel that was Society purchased 25 different coats that were
labeled as being faux fur turned out to contain labeled as fake fur, only to discover that the fur
the real thing, and sometimes from man’s (and trim on three of them—one from Nordstrom,
woman’s) best friend. Many of these cases were one from Tommy Hilfiger, and one from Andrew
brought to light by the Humane Society of the Marc—came from domestic dogs. How could
United States, which frequently conducts under- they tell? Following up on a tip from a consumer
cover investigations to call out offending manu- who’d bought one of the coats, the Humane
facturers and retailers. Society sent it for testing by mass spectrom-
It’s hardly just fly-by-night marketers that etry, a technique that measures the mass and
have been snagged in Humane Society investi- sequence of proteins, to determine what spe-
gations, either. One of the most recent revela- cies of animal the fur came from. Equally dis-
tions involved Marc by Marc Jacobs jackets that turbing, out of 25 coats tested, all but one were
were being sold in-store and online by Century either mislabeled or misadvertised, most using
21 and advertised by the retailer as having faux fur from raccoon dogs.
fur trim. When the Humane Society purchased Snafus with fur can often occur because
several of the jackets, however, the actual retailers or designers trust their supplier and are
labels indicated that it was “real raccoon fur,” themselves led astray. That doesn’t mean they
meaning Century 21 had mischaracterized the don’t take responsibility though. In the above
garments, which is against the law. But it gets situation, for example, Tommy Hilfiger commu-
worse: Testing found that the fur was not from nicated its concern to customers and eliminated
(continued)
9781609018986.indb 402 8/18/14 3:02 PM

the fur-trimmed garment from its line, while JCPenney, Macy’s, Burlington Coat Factory, Lord
Nordstrom allowed customers who had bought & Taylor, Donna Karan’s DKNY, Michael Kors,
the vests in question to return them, as well as and Oscar de la Renta. In addition, Sean “Diddy”
discontinuing its purchases of fur-trimmed prod- Combs stopped producing and selling coats
ucts from the vendor that had supplied them. from his Sean John line and rapper Jay-Z pulled
Yet other fashion companies that have faced coats from his Rocawear label, both because the
issues with mislabeled fur products include coats featured fur from raccoon dogs.
Sources: Kasie Hunt, “Is Your Fur Fake, or Is It Fido?” The Associated Press, February 23, 2007, http://www.nbcnews.com/id/17298301/#
.Ul1jrBDfIzo; Larry Mcshane, Glenn Blain, and Tina Moore, “Marc Jacobs’ ‘Faux Fur’ Garments Actually Use the Coats of Chinese Canines:
Humane Society Report,” New York Daily News, March 7, 2013, http://www.nydailynews.com/life-style/fashion/century-21-selling-real-fur-faux-
humane-society-article-1.1282382; The Humane Society of the United States, “N.Y. Retailer Sold Marc Jacobs, Other Fur Garments as Faux,”
News release, March 7, 2013.
example, the guides explain when a product can be USA” or an equivalent phrase. In some cases, a gar-
called “gold-plated” or when a diamond can be called ment or other product is partially made in another
“flawless.” country but finished in the United States, or is man-
ufactured in the United States from imported mate-
Country of Origin and Manufacturer Iden- rials. In either situation, the label must identify the
tification. In addition to fiber content and other originating country for both the materials and the
labeling requirements, products covered by the manufacture. For clothing that is sold online, retail-
Textile and Wool Acts, as well as the Fur Products ers must state its country of origin in the product
Labeling Act, must include the product’s country of description.
origin on the label. A special rule for socks, requir- Product labels must also include identifica-
ing that the country of origin be placed on the tion of the manufacturer, importer, or other firm
front of the packaging, took effect in March 2006. that may be marketing, distributing, or otherwise
Imported products must identify the country where handling the product. This can be either the full
they were processed or manufactured; products company name or the company’s Registered Identi-
made entirely in the United States of materials also fication Number (RN), as issued by the FTC to U.S.
made in the United States must be labeled “Made in companies.
9781609018986.indb 403 8/18/14 3:02 PM

Care Labeling Rule. Another way in which the Since 1997, the FTC has permitted manufac-
FTC helps consumers make informed purchasing turers to use specified care symbols instead of
decisions is through its Care Labeling Rule, which written instructions on garment labels (as shown
requires manufacturers and importers to attach care in Figure 16.7). The symbols are intended to allow
instructions to their garments. As the FTC notes in companies to include the same care labels on gar-
its guide for businesses, “Clothes Captioning: Com- ments being sold in Canada or Mexico, as well as
plying with the Care Labeling Rule,” care labels are the United States. A minimum of four symbols are
often a deciding factor when consumers shop for required for laundering instructions—
washing,
clothing, since many consumers prefer the economy bleaching, drying, and ironing—with one symbol
of laundering clothes by machine, while others think required for dry-
cleaning instructions. Manufac-
that dropping off clothes for dry cleaning is more turers may and often do use additional symbols or
convenient. Either way, the FTC Care Labeling Rule
lets consumers make the choice that is best for them.
The Care Labeling Rule covers all textile apparel
with a few exceptions, such as shoes, gloves, hats,
belts, and neckties. Piece goods, or lengths of fabric
sold for making apparel at home, are also covered.
On the label for each garment, manufacturers must
provide complete instructions about regular care, or
provide warnings if certain procedures would harm
the product. For example, consumers would assume
that a pair of pants labeled safe for washing would
also be able to be ironed; so if ironing could harm
the pants, the label should state, “Do not iron.” In
addition, manufacturers must ensure that the care
labels are easily seen or found by consumers at the
point of sale, and that they will remain attached
and legible throughout the useful life of the prod-
uct. With both consumers and marketers express-
ing increased interest in greener ways of caring for
clothes, in 2013, the FTC began looking into the
possibility of allowing manufacturers and import-
ers to include professional instructions for wet
FIGURE 16.7 The FTC has permitted the use of these
cleaning—an environmentally friendly alternative symbols on fabric care labels since 1997. Do you know
to dry cleaning—on labels.15 what they mean without an explanation?
9781609018986.indb 404 8/18/14 3:02 PM

words, or both, to clarify the instructions for con- Truth in Advertising
sumers; but fortunately for those who cannot deci-
As part of its mandate to protect consumers against
pher the symbols, if there is no clarification on the
unfair, deceptive, or fraudulent practices, the FTC
label, there are numerous websites (including the
devotes considerable resources to enforcing the
FTC’s) that provide a translation.
nation’s truth-in-advertising laws. These laws
Violations of the Care Labeling Rule are subject
require advertisers—
whether in newspapers or
to enforcement actions by the FTC and penalties
magazines, on television or radio, on the Inter-
of up to $11,000 for each offense. Relatively few
net or in any other medium—to create advertis-
cases have been pursued in recent years, but two of
ing that is truthful and to be able to support any
the largest in the past involved Tommy Hilfiger and
claims about a product with reliable, objective evi-
Jones Apparel, each of which paid $300,000 in pen-
dence (Figure 16.8). The agency is even starting to
alties. In the Hilfiger case, the garments in question
look at social media to make sure marketers don’t
were labeled with a washing instruction that, when
slip unsubstantiated or deceptive claims onto their
followed, resulted in dye bleeding from one portion
Facebook page or other social media outlet.18
16
of the garment to another. In the Jones Apparel
According to the FTC’s Deception Policy State-
case, some garments faded when dry-
cleaned,
ment, an ad is deceptive if
while with other garments that featured flocking
●● It contains a statement or omits information that
(a raised design), the flocking disappeared when the
is likely to mislead consumers acting reasonably
garments were dry-
cleaned according to instruc-
under the circumstances.
tions. The complaint against Jones Apparel also
●● The information is “material”—
that is, impor-
included some cashmere sweaters that were labeled
tant to a consumer’s decision to buy or use the
“dry clean only” but that could actually be safely
product.
hand-washed.17
Similarly, the FTC’s Unfairness Policy Statement
deems an ad or business practice unfair if
Let’s Talk ●● It causes or is likely to cause substantial consumer

injury that a consumer could not reasonably
When you’re shopping for fashion goods, do avoid.
you make a point of checking the label for the ●● It is not outweighed by the benefit to consumers.
country of origin? Are you influenced (positively
or negatively) in your purchase decision based To determine whether an ad is deceptive, the
on where the garment was made? Would you be FTC looks at it from the point of view of a “reason-
willing to spend a little more for goods that were able” or typical consumer, taking the entire ad in
made in the USA? Why or why not? context to judge what it conveys to consumers, and
what it fails to say that could leave consumers with
9781609018986.indb 405 8/18/14 3:02 PM

FIGURE 16.8 Advertisers must be able to prove any claims they make—whether the claims are express or implied.
a misleading impression about the product. The FTC With increased consumer interest in purchas-
also looks at both express claims and implied claims ing green products, the FTC issued Environmen-
in an ad. Express claims are those that are made tal Guides (often referred to as “Green Guides”) in
literally; for example, “ABC Mouthwash prevents 1992, and updated them in 1998, to specifically
colds.” Implied claims are those that are made indi- address environmental advertising and marketing
rectly or by inference; for example, “ABC Mouth- claims within the context of truth in advertising.
wash kills the germs that cause colds.” Although the The guides cover how words like “biodegradable,”
second example does not literally say the mouth- “recyclable,” and “environmentally friendly” can
wash will prevent colds, it would be reasonable for a be used in ads, and reinforce the requirement for
consumer to conclude from the statement, “kills the all claims to be fully substantiated. Because of con-
germs that cause colds,” that it will prevent colds. tinuing changes in both green technology and green
Under the law, advertisers must have proof, such marketing, the FTC produced another update to the
as research results, to support both express and Green Guides in 2012, incorporating newer terms
implied claims in their ads. such as “renewable” and “sustainable.” Perhaps the
9781609018986.indb 406 8/18/14 3:02 PM

most impactful change in the revised guides is that its shoes as well as restricting when retailers could
they now expressly prohibit marketers from mak- hold sales and promotions.19 However, in 2007, a
ing “general environmental benefit claims.” These Supreme Court ruling (Leegin Creative Leather Prod-
include statements such as “green,” “eco-friendly,” ucts, Inc v. PSKS, Inc.) stated that manufacturers may
and “environmentally sound,” which imply that a sometimes set minimum prices for their products.
product or service is good for the environment with- The case was brought by Leegin, manufacturer of
out making clear exactly why or how. Brighton brand women’s accessories, which had
introduced a marketing initiative designed to pro-
vide incentives to retailers that created a separate
Let’s Talk section for the Brighton brand within their stores.
Can you give an example of advertising that made To participate, retailers had to pledge to “follow
you wonder about how truthful the advertiser’s the Brighton Suggested Pricing Policy at all times.”
claims were? Do you think advertisers sometimes In 2002, Leegin learned that one of its retailers,
try to bend the rules to make their point, without PSKS, had violated the pricing policy by discounting
technically breaking the law? Do you think this is a Brighton merchandise. In response to this violation,
question of ethics? Why or why not? Leegin suspended all shipments to PSKS, leading to
the lawsuit and eventual Supreme Court ruling. The
long-term marketplace impact of the ruling remains
Price Fixing to be seen. It has not eliminated all complaints,
As part of its regulation of anticompetitive busi- however, since in 2013, Apple was found guilty of
ness practices, the FTC enforces federal laws against price fixing in a case regarding e-books, a ruling that
price fixing. Price fixing occurs when business was being appealed.
competitors make an agreement to set the price for
which their products will be sold in a given market. Other FTC Regulations
The result of price fixing is generally higher prices There are many other areas in which the FTC is
for the consumer and higher profits for the compa- involved in protecting consumers and enforcing fed-
nies fixing their prices. The laws against price fix- eral rules and regulations. For instance, the agency
ing are the reason many products are marked with has developed consumer protection guidelines for
a “manufacturer’s suggested retail price,” since by a use of facial recognition tools, such as those used in
long-standing law, companies were not permitted to virtual makeovers where a consumer uploads a per-
give retailers a minimum or specific price at which sonal photo to a website. The agency gives particular
they must sell their products. In 2000, women’s focus to advertising and marketing directed to chil-
shoe company Nine West Group agreed to settle dren, since they are more vulnerable to certain kinds
charges with the FTC and individual states that it of deception, and reviews those ads from a child’s
engaged in resale price fixing with certain retailers. perspective rather than an adult’s. For example, in
The company was accused of fixing retail prices for 1998 the FTC oversaw passage of the Children’s
9781609018986.indb 407 8/18/14 3:02 PM

Online Privacy Protection Act, a federal law requiring right to know what information about them is filed
websites to obtain verifiable parental consent before in their reports. To further promote informed con-
collecting, using, or disclosing personal information sumer choice, the FTC maintains the website www
from children; and in late 2012, the agency proposed .consumer.gov in partnership with the FDA, CPSC,
an update to the law to bring it into the twenty-first and other agencies; this site features links to many
century. Among other changes, the update acknowl- other sources of consumer information.
edges the massive growth of mobile device usage
among kids and the data collection that goes along
FEDERAL ANTI-C OUNTERFEITING
with it, and categorizes geolocation information,
PROGRAMS
photos, and videos as personal information.20
Catalog marketers and online retailers are sub- As discussed in Chapter 15, counterfeit goods are
ject to the FTC’s oversight when it enforces laws increasingly prevalent in the marketplace, and the
including the Mail or Telephone Order Merchan- federal government is working to combat that trend
dise Rule, which requires companies to ship pur- on several fronts. The first line of defense is the U.S.
chases when promised (or within 30 days if no time Patent and Trademark Office, an agency within the
is specified), or give consumers the option to cancel Department of Commerce. By registering trade-
their order for a refund. Under the conditions of marks, the agency helps businesses protect their
the Do Not Call Registry, established by the FTC intellectual property investments and promote their
in 2003, telemarketers are prohibited from calling goods and services, and helps safeguard consumers
consumers who have placed their phone number against confusion and deception in the marketplace.
on the list—although companies with which a con- Those trademarks are further protected by the Lan-
sumer has already done business can still call, unless ham Act of 1946, also known as the Trademark Act,
directly requested not to. Cell phones can be added which gives trademark users exclusive rights to
to the registry, but because telemarketers are pro- their marks; as well as by the Trademark Counter-
hibited from calling cell numbers with auto-dialers, feiting Act of 1984, which makes intentional use of
it is generally not necessary. a counterfeit trademark a federal offense.
Consumer credit and financial privacy are also Other agencies working to stop the marketing
areas where the FTC wields its power. The agency is of counterfeit goods include Customs and Border
responsible for enforcing the Truth in Lending Act, Protection, part of the Department of Homeland
which requires creditors to disclose in writing cer- Security, which devotes substantial resources to
tain cost information, including annual percentage intercepting and seizing shipments of counterfeit
rate, before consumers enter into a credit agree- goods crossing U.S. borders. The Federal Bureau of
ment. The FTC also enforces the Fair Credit Report- Investigation (FBI) investigates cases of criminal
ing Act, which ensures the accuracy and privacy of counterfeiting, and the Department of Justice pros-
information kept by credit bureaus and other con- ecutes intellectual property crimes on behalf of the
sumer reporting agencies, and gives consumers the United States.
9781609018986.indb 408 8/18/14 3:02 PM

To further coordinate the effort, the Strategy
for Targeting Organized Piracy (STOP!) initia-
Other Government Programs
tive was launched in 2004, bringing together all the There are many other federal laws and agencies that
key agencies in a comprehensive program. In 2006, play a role in the way fashion products are marketed
anti-
counterfeiting laws were strengthened even and sold, and that can influence the behavior of
further with the signing of the Stop Counterfeiting consumers. The Equal Employment Opportunity
in Manufactured Goods Act. While the shipment Commission enforces the nation’s Equal Employ-
and sale of counterfeit goods was already illegal, the ment Opportunity (EEO) laws, which prohibit dis-
new legislation closed a loophole that had permit- crimination in hiring based on race, color, religion,
ted the shipment of fake labels or packaging, which sex, national origin, or disability, and which protect
counterfeiters could then attach to fake products men and women who perform substantially equal
(Figure 16.9). work in the same establishment from sex-
based
wage discrimination, among other things. For
example, a retailer may break the law in refusing to
hire employees based strictly on the fact that they
don’t have a certain “look” for its sales staff that it
believes will attract customers or entice them to buy.
In late 2004, a class action suit under the EEO laws
was settled by Abercrombie & Fitch for $40 million
after a group of black, Asian, and Latino employees
alleged that the retailer was hiring a disproportion-
ately white sales force, favoring white employees
for the best positions, and discouraging minorities
from applying for jobs.21 More recently, the com-
pany faced additional lawsuits over its dress code for
employees, as you’ll read in Case in Point 16.3.
The Americans with Disabilities Act (ADA),
which is enforced by the Department of Justice,
further protects the rights of people with disabili-
ties not only in equal employment opportunities
but in equal access to public transportation, public
buildings, and other places and activities. To com-
ply with the requirements of this law, retailers and
FIGURE 16.9 Real Louis Vuitton—or fake? Shipment of
other companies must ensure that their places of
counterfeit labels, even when not yet attached to a product,
is illegal under the Stop Counterfeiting in Manufactured business have doorways, hallways, and aisles wide
Goods Act. enough to accommodate a wheelchair, and that
9781609018986.indb 409 8/18/14 3:02 PM

CASE IN POINT 16.3
Courts Dress Down Abercrombie & Fitch

for Its Discriminatory Dress Code
There are lots of perks to landing a job in a to speak out or even push back. For example,
retail store. The hours can be flexible, there are on her first day of work at an Olympia, Wash-
usually employee discounts, and you’re always ington, Hollister store, 17-year-old Anna
up to the minute on the latest styles to hit the Zakhlyebayeva—clad in a Hollister tank top,
racks. But for employees of Abercrombie & Hollister jeans, and Hollister flip-flops—was
Fitch—as well as its offshoot brands, Hollister stunned when the manager told her she had
and Abercrombie Kids—there can also be a remove her tiny silver cross pendant because it
downside: The retailer has become infamous didn’t fit the company’s “Look Policy.”
for its über-strict dress code, to the point where And it was not just Zakhlyebayeva’s cross.
some workers have actually taken the company Three other cases, within just a three-year
to court. span, were taken to federal court by Muslim
While many retailers, particularly in the teen women over the wearing of hijabs, or heads-
arena, understandably want their sales associ- carves. The plaintiff in one of those lawsuits
ates to wear styles that are in keeping with what was Hani Khan, who was fired from her job at an
the store sells, Abercrombie goes far beyond Abercrombie store in San Mateo, California, for
that simple policy approach. The company pro- refusing to take off her hijab. According to court
duces actual style guides that spell out what is documents, Abercrombie argued that its Look
acceptable and what is not acceptable, down to Policy goes to the “very heart of [its] business
the tiniest of details—such as women’s jeans model,” and claimed that any deviation from the
being cuffed at precisely seven-eighths of an dress code would threaten the company’s suc-
inch, and the top three buttons of a denim shirt cess. The judge disagreed—and ruled that Aber-
being left undone. Jewelry, hair styles, makeup, crombie had violated federal anti-employment
manicures, and other personal grooming details discrimination guidelines.
come under equal scrutiny, and violations of After paying a combined settlement of
the dress code, from a single fingernail decal $71,000 to two of the Muslim women who had
to a five o’clock shadow, can get workers repri- filed lawsuits through the Equal Employment
manded, sent home, or fired. Opportunity Commission (EEOC), Abercrombie
It was when store employees were taken agreed to alter its Look Policy, permitting hijabs
to task for wearing items connected to their as an exception to the employee dress code. The
religious faith, however, that some decided retailer also agreed to submit biannual reports
(continued)
9781609018986.indb 410 8/18/14 3:02 PM

to the EEOC for the following three years and oddly buff male teenagers. But to show
regarding the new policies. arrogance in disrespecting the religious rights
Said one industry analyst: “It’s one thing to of U.S. citizens is by far the worst thing that has
say your brand only hires super-skinny females surfaced on the company.”
Sources: Kim Bhasin and Caroline Fairchild, “Abercrombie Dress Code Enables Discrimination, Insiders Say,” Huffington Post, September
18, 2013, http://www.huffingtonpost.com/2013/09/18/abercrombie-dress-code_n_3943131.html?view=screen; and Michael Thrasher,
“Abercrombie & Fitch Just Changed Its Infamous Employee Dress Code,” Business Insider, September 23, 2013, http://www.businessinsider
.com/abercrombie-and-fitch-changes-look-policy-2013-9.
wheelchair-accessible ramps or elevators are avail-

able in addition to stairs (Figure 16.10). There are
also provisions of the ADA that go beyond disabili-
ties per se. In 2012, department store chain Dil-
lard’s settled a class action lawsuit for $2 million
as a result of its policy and practice of requiring all
employees to disclose personal and confidential
medical information in order to be approved for sick
leave. The settlement also resolved claims that Dil-
lard’s terminated a class of employees nationwide
for taking sick leave beyond the maximum amount
of time allowed, in violation of the ADA.22
Many states, counties, and local governments
also have their own laws that supplement the fed-
eral laws, and state or local agencies that enforce
them. All states have a consumer protection or con-
sumer affairs department or agency; sometimes
safety rules on the state level are even more strict
than the equivalent federal regulations. California, FIGURE 16.10 Automatic door openers are one way
for example, has a flammability requirement for retailers comply with the Americans with Disabilities Act.
upholstery, even though there is not a federal rule.
9781609018986.indb 411 8/18/14 3:02 PM

Generally, states also have their own laws regarding consumers on numerous topics, two of which are
advertising, which can impose restrictions above identity theft and online shopping. It also promotes
and beyond those of the federal government. truth in advertising, encouraging self-regulation of
Both federal and state governments provide a advertising claims by its business members.
wealth of resources for consumers and businesses Another important organization is the National
seeking more information about a particular law, or Consumers League. Founded in 1899, the league
who want to file a complaint about a safety issue or is a nonprofit membership organization working for
deceptive business practice. websites for the individual health, safety, and fairness in the marketplace and
agencies offer extensive information, much of which is workplace. Among the areas the league monitors
also available in print format, often at no charge. are consumer fraud, food and drug safety, fair labor
standards, child labor, health care, e-
commerce,
financial services, and telecommunications. The
Independent Agencies league promotes consumer education through out-
and Services reach to high school students and provides infor-

mation to consumers through publications, media
Outside of government, there are a number of inde- outreach, and multiple websites.
pendent agencies and business groups that work to To give the public easy access to the variety of
educate consumers and promote ethical business consumer information available, the Federal Citi-
practices. One of the most widely recognized is the zen Information Center of the U.S. General Services
Better Business Bureau (BBB), a private, not-for- Administration offers a broad listing of national
profit organization. There are local or regional Better consumer organizations in its free Consumer Action
Business Bureaus and branches in over 150 locations Handbook; the information is also available online
across the country, all of which fall under the umbrella at the Consumer Action website at http://www.usa
of the Council of Better Business Bureaus, which was .gov/topics/consumer.shtml.
founded in 1912. The umbrella organization is sup-
ported by more than 300,000 local business members
nationwide, and is “dedicated to fostering fair and
Summary
honest relationships between businesses and con- The federal government plays an important role in
sumers, instilling consumer confidence, and contrib- creating and enforcing laws that protect the public
uting to an ethical business environment.” and help consumers make informed purchase deci-
The BBB is best known for its Reliability Reports sions. There are also laws and government agencies
on local businesses. These reports, which are acces- on the state and local level that supplement federal
sible to anyone making an inquiry, include informa- regulations, and independent groups that promote
tion such as whether there are unresolved disputes consumer education and fair business practices.
or consumer complaints against the business. The Consumer Product Safety Commission
The BBB also offers dispute resolution services, as protects the public against unreasonable risk of
well as materials and resources for businesses and injury from a wide variety of products. The CPSC
9781609018986.indb 412 8/18/14 3:02 PM

administers the Flammable Fabrics Act, which estab- initiative. The Stop Counterfeiting in Manufactured
lishes mandatory standards of flammability for tex- Goods Act recently strengthened the law even further.
tiles used in clothing and many home furnishings. Other government regulations affecting fashion
Even more stringent standards apply to the flam- commerce and consumer behavior include the Equal
mability of children’s sleepwear. Other safety issues Employment Opportunity laws and Americans with
monitored by the CPSC include strangulation and Disabilities Act. Outside of government, there are
choking hazards and lead content. When unsafe many additional resources for business and con-
products on the market are identified, the agency sumer information, including the nationwide Better
works with the company responsible to issue a recall. Business Bureau system.
The Food and Drug Administration is responsi-
ble for protecting the public’s health and the safety
of products in categories that include food, drugs,
KEY TERMS
and cosmetics. It enforces the Federal Food, Drug, Americans with Disabilities Act (ADA)
and Cosmetic Act, which prohibits the marketing Better Business Bureau (BBB)
and sale of adulterated or misbranded cosmetics, as Care Labeling Rule
well as the Fair Packaging and Labeling Act, which Consumer Product Safety Commission (CPSC)
requires that specific information about ingredients Equal Employment Opportunity (EEO) laws
be given on the product labels of cosmetics. Express claims
The Federal Trade Commission works to pro- Fair Packaging and Labeling Act
tect consumers from unfair or deceptive practices Federal Food, Drug, and Cosmetic Act (FD&C Act)
and to prevent businesses from engaging in anti- Federal Trade Commission (FTC)
competitive practices. The FTC enforces laws regard- Flammable Fabrics Act
ing labeling of textile products, including the Textile Food and Drug Administration (FDA)
Fiber Products Identification Act, which requires Fur Products Labeling Act
clothing and many textile household products to Implied claims
be labeled with their fiber content, country of ori- Mandatory standards
gin, manufacturer identification, and directions National Consumers League
for proper care. It also upholds the nation’s truth- Price fixing
in-advertising laws, as well as regulating mail-order Recall
and Internet retailing, consumer credit and finan- Standard for the Flammability of Children’s
cial privacy, and other issues. Sleepwear
Federal agencies involved in the government’s Strategy Targeting Organized Piracy (STOP!)
anti-
counterfeiting efforts include the U.S. Patent Textile Fiber Products Identification Act
and Trademark Office, Customs and Border Protec- Trust
tion, and the Federal Bureau of Investigation. Help- Truth-in-advertising laws
ing to coordinate the work of the various agencies Wool Products Labeling Act
is the Strategy Targeting Organized Piracy (STOP!)
9781609018986.indb 413 8/18/14 3:02 PM

QUESTIONS FOR REVIEW of a similar item, such as lipstick or toothpaste.
Compare the list of ingredients for the two
brands. Are there some of the same ingredients
1. Explain the purpose of the Consumer Product
in both? Are they in the same relative position
Safety Commission, and give three examples of
in the list of ingredients, indicating their
the types of hazards the agency monitors that
predominance in the formula? Write down the
relate to fashion products.
names of two or three ingredients that you are
2. How does the Food and Drug Administration
unfamiliar with, and research them to find out
regulate cosmetics, and how does that
what they are and what they do. Share your
regulation differ from other products under its
results with the class.
jurisdiction, such as drugs?
3. Browse through the apparel in your closet, and
3. What information must be included on the
find the labels identifying the fiber content.
label of clothing or fabric home furnishings,
Select five items that have different fiber
according to the Textile Fiber Products
content from each other, and compare the look
Identification Act? What does the Care Labeling
and feel of the fabric. Would you have known
Rule require?
what the fabric was without looking at the
4. What criteria does the Federal Trade
label? Now find the care labels for each and
Commission use to judge whether an
compare how they differ based on the fiber
advertisement is truthful?
content. Make a chart showing the fabrics and
5. Name two laws that are designed to protect
their care, and describe what you think might
people from discrimination in either the
happen to each garment if you did not follow
workplace or in access to public places.
the care instructions given.
4. Look through a magazine or watch TV to find
ACTIVITIES four or five examples of advertisements for
fashion-related products. Write down what the
1. Go to the website for the Consumer Product product is and what claim (or claims) the ad is
Safety Commission (www.cpsc.gov), and review making about the product. Indicate whether
the product recall announcements for three the claims are express claims or implied claims.
different months. How many recalls were there
in total? How many were related to apparel or
fashion? For the fashion-related recalls, make MINI-P ROJECT
a list of the hazards the products posed, and
indicate how many recalls there were for each. Alone or with a group, choose a current fashion item
What were the remedies for consumers who (apparel, accessories, footwear, or personal care/
had bought the products? cosmetics), and imagine you are in charge of mar-
2. Go to a drugstore or other retailer that sells keting that item to consumers. Determine the prod-
cosmetics and toiletries, and choose two brands uct’s key selling points, and create two versions of
9781609018986.indb 414 8/18/14 3:02 PM

copy for an advertisement—one version that makes Children’s Outerwear Drawstrings at Neck and
express claims about the product and one that Waist Present Strangulation Hazard and Other
makes implied claims. Describe the kind of proof Dangers,” News release, July 1, 2011.
you think you would need to support each claim. 9. “FDA Overview,” Medicine Net, http://www
.medterms.com/script/main/art.asp?article
key=8468.
REFERENCES 10. Peter Waldman, “From an Ingredient in
1. U.S. Consumer Product Safety Commission, Cosmetics, Toys, A Safety Concern.” Wall Street
“CPSC Overview,” http://cpsc.gov/about/about Journal, October 4, 2005, http://online.wsj
.html. .com/public/article/SB112838975847059205
2. U.S. Consumer Product Safety Commission, .html.
“New Labels on Children’s Sleepwear Alert 11. Natash Baker, “Worried about Chemicals in
Parents to Fire Dangers,” News release, June Cosmetics? Apps May Help,” Reuters, October
26, 2000. 21, 2013, http://www.reuters.com/article
3. U.S. Consumer Product Safety Commission, /2013/10/21/us-apps-cosmetics-idUSBRE99
“Columbia Sportswear Recalls Seven Models of K0OV20131021.
Heated Jackets Due To Burn Hazard,” January 12. U.S. Food and Drug Administration, “Labeling
29, 2013, http://www.cpsc.gov/en/Recalls for Topically Applied Cosmetic Products
/2013/Columbia-Sportswear-Recalls-Seven- Containing Alpha Hydroxy Acids as Ingredients,”
Models-of-Heated-Jackets/. January 10, 2005, www.cfsan.fda.gov/~dms
4. U.S. Consumer Product Safety Commission, /ahaguid2.html.
“CPSC, Victoria’s Secret Direct Announce Recall 13. “Neiman Marcus Settles with U.S. FTC for
of Silk Kimono Tops,” News release, February Selling Real Fur as Fake,” FashionMag.com,
23, 2006. March 20, 2013, http://us.fashionmag.com
5. U.S. Consumer Product Safety Commission, /news/Neiman-Marcus-settles-with-U-S -FTC-
“CPSC, Pottery Barn Kids Announce Recall of for-selling-real-fur-as-fake,317517.html.
Chamois Blankets,” News release, January 24, 14. International Down and Feather Testing
2005. Laboratory, “USA Labeling Standards—Down
6. Rummana Hussain, “Lead Fears Force Recall and Feather Products,” January 2005, www.idfl
of American Girl Jewelry,” Chicago Sun-Times, .com/articles/IDFL%20USA%20Labeling%20
March 31, 2006, 20. Standards%20(Jan%202005).pdf.
7. U.S. Consumer Product Safety Commission, 15. Kristi Wolff, “FTC to Host Roundtable on
“Reebok Recalls Bracelet Linked to Child’s Lead Changes to Care Labeling Rule,” Ad Law Access,
Poisoning Death,” News release, March 23, July 26, 2013, http://www.adlawaccess.com
2006. /2013/07/articles/federal-trade-commission
8. U.S. Consumer Product Safety Commission, /ftc-to-host-roundtable-on-changes-to-care-
“CPSC Issues New Drawstring Safety Rule for labeling-rule/.
9781609018986.indb 415 8/18/14 3:02 PM

16. Federal Trade Commission, “Tommy Hilfiger 20. Kate Kaye, “FTC Aims to Bring Child Privacy
U.S.A., Inc., Agrees to Pay $300,000 Civil Law Into 21st Century,” Ad Age, December 19,
Penalty to Settle FTC Charges of Violating Care 2012, http://adage.com/article/digital/ftc-
Labeling Rule,” News release, March 17, 1999. aims-bring-child-privacy-law-21st-century
17. Federal Trade Commission, “Jones Apparel /238842/.
Group Agrees to Pay $300,000 Civil Penalty 21. Leung, Rebecca. “The Look of Abercrombie &
to Settle FTC Charges of Violating the Care Fitch. ” 60 Minutes, November 24, 2004, www
Labeling Rule,” News release, April 2, 2002. .cbsnews.com/stories/2003/12/05/60minutes
18. Nicole Rose Dion, “Social Media and the /main587099.shtml.
Government,” MarketingProfs, July 31, 2013, 22. U.S. Equal Employment Opportunity
http://www.marketingprofs.com/articles/2013 Commission, “Dillard’s to Pay $2 Million to
/11311/social-media-and-the-government. Settle Class Action Disability Discrimination
19. Federal Trade Commission, “Nine West Settles Lawsuit by EEOC,” News release, December
State and Federal Price Fixing Charges,” News 18, 2012.
release, March 6, 2000.
9781609018986.indb 416 8/18/14 3:02 PM

GLOSSARY
absolute threshold The lowest level at which present culture and are sometimes personified by
our senses can recognize a stimulus (Ch. 3). characters (Ch. 6).
acculturation The process of adapting to the aspirational groups Groups to which we do not
primary or mainstream culture (Ch.14). actually belong but wish we did (Ch. 8).
activation The process by which information can associative groups Groups to which we
be retrieved in our memory networks (Ch. 3). belong and identify, such as a volleyball team or
actual self In self-concept theory, who we think professional association (Ch. 8).
we are (Ch. 6). attention The focusing of our thoughts on a
affective element The portion of our attitudes certain stimulus (Ch. 3).
that is made up of our emotions toward an attitude attitude Our settled opinion—either positive or
object (Ch. 5). negative—about people, ideas, places, or objects
ambush marketing Strategy of identifying (Ch. 5).
venues where the placement of unique marketing attitude objects In consumer behavior, those
materials is sure to attract consumer and media things about which we form attitudes and opinions
attention (Ch. 1). (Ch. 5).
Americans with Disabilities Act (ADA) Law attitude scales Research questionnaire tool
that protects the rights of people with disabilities in through which respondents can indicate their level
equal employment opportunities, as well as in equal of favorable or unfavorable opinion across a range
access to public transportation, public buildings, of answers (Ch. 10).
and other places and activities (Ch. 16). avoidance–avoidance A motivational conflict
anthropology The study of human cultural in whiich a choice must be made between two
characteristics that include habits, customs, undesirable options (Ch. 4).
relationships, and so on (Ch. 14). balance of trade The relationship between a
approach–approach A motivational conflict in country’s imports and exports (Ch. 14).
which a choice must be made between two desirable balance theory Theory stating that people want
options (Ch. 4). to maintain harmony or balance in their attitudes
approach–avoidance A simultaneous desire to (Ch. 5).
engage in a certain behavior and to avoid it (Ch. 4). behavioral element The portion of our
archetypes According to Carl Jung, shared attitudes that determines how we intend to act
memories of the past that become the basis for toward an attitude object (Ch. 5).
GLOSSARY 417
9781609018986.indb 417 8/18/14 3:02 PM

behavioral learning Theory that states learning brand personification The characteristics,
takes place after exposure to external stimuli. related to human personality traits, that advertisers
Two types of behavioral learning are classical give to certain brands (Ch. 6).
conditioning and instrumental conditioning (Ch. 3). buyer’s market Situation in which there are
behavioral perspective The use of actions more sellers than buyers; a consequent excess of
that consumers have learned in response to specific supply over demand results in lower prices for
stimuli as a basis for decision making (Ch. 12). consumers (Ch. 2).
Better Business Bureau (BBB) Umbrella buyer’s remorse See post-purchase dissonance.
organization for more than 300,000 local business buzz The tongue-wagging and word-of-mouth
members nationwide that are dedicated to fostering chatter about a product set in motion by marketers,
fair and honest relationships between businesses particularly public relations and advertising
and consumers, instilling consumer confidence, and experts. See also ambush marketing; guerilla
contributing to an ethical business environment marketing; viral marketing (Ch. 1).
(Ch. 16). Care Labeling Rule Law that requires
birthrate The number of babies born in a year manufacturers and importers to attach care
(Ch. 9). instructions to their garments (Ch. 16).
blog An online journal in which an individual, cause-based marketing or cause-related
group, or corporation presents a record of marketing The public association of a for-profit
observations, opinions, experiences, and other company with a nonprofit organization, often
thoughts for readers (Ch. 11). involving the donation of a specified portion of
boycott Action in which consumers make the profits to the nonprofit charity or cause (Ch. 2).
conscious decision not to purchase a product as a chunking The capacity of our memories to amass
protest and moral statement (Ch. 15). large amounts of encoded information on a topic
brand The total of all that is known and felt by adding on and linking to what we already know
about a product, service, or organization, from its (Ch. 3).
recognizable name, logo, slogan, and packaging to classic style A style or fashion that is
the power it holds in people’s minds (Ch. 1). characterized by a simplicity of design that keeps it
brand equity The accumulation of brand from becoming easily dated (Ch. 13).
image and brand loyalty that results in consumer classical conditioning Creating change in
satisfaction, retention, and demand (Ch. 1). behavior by teaming an artificial stimulus with a
brand image The deliberate, consistent way a natural one, with the goal of gaining a response
product’s qualities and essence are communicated from the artificial stimulus alone (Ch. 3).
to the public (Ch. 1). cognitive element The portion of our attitudes
brand loyalty Repeat purchase behavior exhibited that comes from what we have seen, read, or
by customers who have strong connections to a experienced concerning an attitude object; it forms
favorite brand (Ch. 1). the basis of our beliefs about that object (Ch. 5).
418 GLOSSARY
9781609018986.indb 418 8/18/14 3:02 PM

cognitive learning A problem-solving process consumer confidence How consumers feel
where individuals seek out information in order to about the state of the economy (Ch. 9).
make an informed decision (Ch. 3). consumer decision-making
collective selection A process by which a process Purchase process that includes: need
mass of people formulate certain collective tastes recognition, information search, evaluation of
reflected by the goods and services they choose, and alternatives, purchase, post-purchase evaluation
their selections illustrate the beliefs and values of (Ch. 4).
the group’s social system (Ch. 1). Consumer Product Safety Commission
comparison shopping A process whereby a (CPSC) An independent government agency
consumer gathers as much information as possible whose directive is to protect the public against
about similar products and services in order to unreasonable risks of injuries associated with
compare features, pricing, and other details before consumer products (Ch. 16).
deciding which to purchase (Ch. 12). consumer socialization The process by which
competitive advantage The delivery of benefits children acquire knowledge about products and
that exceed those supplied by the competition, services, along with various consumption-related
making it the best choice for the customer and the skills needed to function as consumers in the
most profitable for an organization (Ch. 1). marketplace (Ch. 7).
compliance Response to social influence that consumerism (1) The movement protecting
occurs when we choose to do something because consumers by requiring honest packaging and
someone else asked us to do it (Ch. 8). product guarantees. (2) The theory that the greater
compulsive buying behavior Indiscriminate consumption of economic goods is beneficial.
purchasing of goods; a form of neurosis (Ch. 6). (3) The attachment to materialistic values and
conflict Situation requiring a choice between two possessions (Ch. 9).
actions or behaviors that might result in equally consumption The using up of a resource by
desirable or equally undesirable outcomes (Ch. 4). the person who has selected, adopted, used, and
conformity A response to social influence that discarded or recycled it (Ch. 1).
occurs when we behave like others in order to be consumption roles The expected or prescribed
accepted or feel like “one of the group” (Ch. 8). behaviors of consumers within a household;
conscious motive Reason for an action that we includes information gatherers/influencers,
know and understand; we are aware of what we are gatekeepers, decision makers, purchasers, and users
doing and why (Ch. 4). (Ch. 7).
consumer behavior The actions and decision- count Observational research method whereby an
making processes of buyers as they recognize their observer or team of observers keeps a written tally
desire for a product or service, and engage in the of the category being studied (Ch. 10).
search, evaluation, purchase, use, and disposal of counterfeit goods Unauthorized, illegal copies
that particular commodity (Ch. 1). of designer or branded products (Ch. 15).
GLOSSARY 419
9781609018986.indb 419 8/18/14 3:02 PM

crowdsourcing Gathering information or desire A yearning or longing for something
feedback from a variety of people to help understand (Ch. 4).
and resolve issues, make purchase decisions, or get direct (primary) influencers Groups or
answers to specific questions (Ch. 11). people with whom we have the most contact, such
cultural anthropology The study of the as family or close friends, and whose opinions are
common symbols, values, and beliefs of social very powerful (Ch. 8).
groups and institutions (Ch. 14). direction In evaluating the motivation behind a
cultural borrowing The use of symbols that are consumer purchase, what the customer wants from
meaningful to other cultures (Ch. 14). a product in terms of features or benefits (Ch. 4).
culture All the shared beliefs, values, and disassociative groups Groups that do not
traditions learned and practiced by a group of interest us and of which we may disapprove (Ch. 8).
people, who may live close to each other, all of discretionary income The amount of money
whom are focused on a common quest (Ch. 1). consumers have after meeting all expenditures for
customization The integration of individual necessities (Ch. 9).
requirements into a product (Ch. 2). disposable income The amount of money, after
decision maker The person who ultimately taxes, that people have left for necessities such as
determines, with or without input from members food, shelter, utilities, and transportation (Ch. 9).
of a consumption group, which items will be disposer One who gets rid of a product or
considered and purchased, and how they will be discontinues use of a service (Ch. 7).
used and discarded (Ch. 7). diversity Variety or variation that which makes
decline phase Stage in a fashion’s life cycle us dissimilar or different from one another (Ch. 14).
when it is experiencing decreasing sales and downward flow (trickle-down
availability only in the lower price ranges (Ch. 13). theory) Movement of fashion in which styles
demand The level of desire among consumers for adopted by upper classes trickle down the social
a particular product and the price that people are ladder and are later adopted by the mainstream
willing to pay to obtain it (Ch. 4). (Ch. 8).
demographics The measurable statistics duties Additional monies and taxes on imports
concerning a population, particularly its size, imposed by the country receiving those goods
composition, and distribution (Ch. 9). (Ch. 14).
depth interview A qualitative research method e-commerce Shopping done on the Internet by
that involves one participant offering thoughts and means of a computer, tablet, smartphone, or any
opinions to a researcher (Ch. 10). other electronic device (Ch. 13).
design A creative process, driven by a need, that ego The conscious component of personality, our
leads to an invention of some sort, be it practical or sense of ourselves; it reacts to reality in a socially
artistic, functional or simply attractive, devised to acceptable way, serving as a mediator between the
enhance life in some way (Ch. 1). desires of the id and the restraint of the superego
(Ch. 6).
420 GLOSSARY
9781609018986.indb 420 8/18/14 3:02 PM

emotional needs Purchase motivation based on extended family Family group that includes
nonrational behavior and reasoning (Ch. 4). grandparents, aunts, uncles, and other relatives
encoding The way we select visual images or beyond the nuclear family (Ch. 7).
words in short-term memory to represent what we extended self Self-identification that represents
want to store in long-term memory (Ch. 3). the relationship between ourselves and our
enculturation The process through which humans possessions (Ch. 6).
learn about and act according to the expectations of extensive decision making Decision-making
their own culture from birth on (Ch. 14). process in which the consumer weighs the pros and
Equal Employment Opportunity (EEO) laws cons, along with the perceived risks and benefits
Federal laws that prohibit discrimination in hiring (Ch. 12).
based on race, color, religion, sex, national origin, external recognition Awareness of a need or
or disability, and which protect men and women “problem” that is stimulated by others, such as
who perform substantially equal work in the same marketers (Ch. 12).
establishment from sex-based wage discrimination, external (social) factors Elements of
among other things (Ch. 16). motivation derived from outside influences (Ch. 4).
ethics A system of moral values, or a set of extroverts People who are outgoing and mainly
principles that define right and wrong (Ch. 15). concerned with external matters (Ch. 6).
ethnocentrism Situation in which individuals fad A short-lived fashion that bursts onto the
make consumption choices that relate specifically scene, is wildly popular among a target group of
to their own culture (Ch. 12). consumers, and then disappears (Ch. 13).
experiential hierarchy An attitude formation Fair Packaging and Labeling Act Law
during the purchase process by which consumers that states all cosmetics products must list their
are interested in enjoying a product, its symbols, ingredients in descending order of predominance
and emotional meanings before learning about its and the packaging must give the net quantity of
features and benefits; the basis for consumption contents (Ch. 16).
that is hedonic (Ch. 5). fair-trade practices Standards for working
experiential perspective Use of the overall conditions, environmental responsibility, and
experience as opposed to a particular decision fair pricing that are based not only on ethical
criterion in decision making (Ch. 12). labor practices but also on the intent to provide
exports Goods or commodities transported from opportunity to disadvantaged workers and help
one country to another country in a legitimate alleviate poverty (Ch. 15).
fashion, typically for use in trade (Ch. 14). false need The desire for something to which
exposure Situation that occurs when we we attribute more value than it is actually worth
encounter a stimulus through our senses: seeing, (Ch. 4).
hearing, smelling, touching, or tasting (Ch. 3). family A group of individuals who live together
express claims Advertising assertions about a and are related either by blood, adoption, or
product’s benefits that are made literally (Ch. 16).
GLOSSARY 421
9781609018986.indb 421 8/18/14 3:02 PM

marriage; the unit that teaches each member the focus group Qualitative research method
skills needed to function in society (Ch. 7). that gathers a small group of consumers with a
fashion Whatever is of the moment and subject moderator to discuss and offer opinions about a
to change; anything that members of a population product, service, or other marketing-related topic
deem desirable and appropriate at a given time (Ch. 10).
(Ch. 1). Food and Drug Administration (FDA)
fashion diffusion The spread of a fashion Federal agency that is responsible for protecting the
throughout different societal groups (Ch. 8). public health by assuring the safety, efficacy, and
fashion followers People who adopt a look only security of human and veterinary drugs, biological
after they are sure of a fashion trend (Ch. 13). products, medical devices, the nation’s food supply,
fashion influentials People who recognize and cosmetics, and products that emit radiation (Ch. 16).
endorse what fashion innovators are wearing and forecasting A creative process used by industry
doing (Ch. 6). professionals to predict future trends (Ch. 1).
fashion innovators (fashion leaders) People functions of attitudes Daniel Katz’ theory
who buy the earliest and are the first visual of the four classifications of attitudes that serve
communicators of the season’s styles (Ch. 6). to help us achieve balance in life: (1) utilitarian,
fashion life cycle The length of time a given (2) value-expressive, (3) ego-defensive, and (4)
look or style is popular (Ch. 13). knowledge (Ch. 5).
fast fashion Term for offering consumers the Fur Products Labeling Act Law stating that
latest fashions as quickly as possible (Ch. 13). garments made either entirely or partly with fur
Federal Food, Drug and Cosmetic Act must have a label disclosing the animal name; if
Law that prohibits the marketing of adulterated the fur is used or damaged; and if the fur product
(contaminated) or misbranded cosmetics in is composed in whole or substantial part of pieces,
interstate commerce (Ch. 16). among other information (Ch. 16).
Federal Trade Commission (FTC) Independent gatekeeper A knowledgeable individual who
agency of the U.S. government created by the controls access and information flow to followers,
Federal Trade Commission Act of 1914 to prevent and influences them to act in specific ways (Ch. 7).
unfair methods of competition in commerce geodemographic system A consumer-
(Ch. 16). measuring technique combining geography and
Flammable Fabrics Act Law that regulates demographics, first devised by Claritas Corp
the flammability of clothing and home furnishings, (Ch. 9).
as well as paper, plastic, foam, and other materials gestalt psychology The phenomenon of coming
used both in apparel and interior furnishings to a conclusion after seeing the total picture or
(Ch. 16). pattern; the “aha” experience (Ch. 3).
flash sale An online, limited-time discount globalization The ability to market a product
on branded, sometimes high-end merchandise anywhere in the world that a demand for it exists
(Ch. 13). (Ch. 14).
422 GLOSSARY
9781609018986.indb 422 8/18/14 3:02 PM

goal A particular outcome or end desired by an hype A set of activities set in motion prior to the
individual or organization (Ch. 4). actual introduction of a new product or service that
group Two or more people who share similar values helps create a supportive marketing environment
and beliefs and communicate interdependently and a spontaneously infectious kind of person-to-
(Ch. 8). person image spinning (Ch. 1).
guerilla marketing A term coined by Jay id (libido) Unconscious personality component
Conrad Levinson to describe unconventional that controls our biological drives of hunger, sex,
marketing tactics designed to get maximum results and self-preservation; it is with us from birth, and
from minimal resources (Ch. 1). its impulses require immediate gratification (Ch. 6).
habitual or routine decision making ideal self In self-concept theory, who we would
Situation in which not much thought is needed to like to be (Ch. 6).
reach a decision (Ch. 12). ideal social self-image In self-concept theory,
hashtag A word or phrase preceded by the symbol how we would like others to see us (Ch. 6).
“#” that enables users to easily retrieve a grouping immigration The influx of people into a country
of all messages that contain that word or phrase from another country (Ch. 9).
(Ch. 11). implied claims Advertising assertions that are
hedonic consumption A part of the emotional made indirectly or by inference (Ch. 16).
aspect of our relationships to products that comes imports Goods and services provided by foreign
from the ways we respond to stimuli (Ch. 3). producers that are purchased and brought into a
heuristics Simple mental rules of thumb that country (Ch. 14).
help us make decisions more quickly (Ch. 12). incentive To move the consumer from an actual
hierarchy of effects The series of steps— state to a desired state; a reason to buy (Ch. 4).
feelings, beliefs, actions—that we go through in income The money and other assets that people
forming our attitudes (Ch. 5). typically receive in a year from their work, property,
high-involvement hierarchy An attitude and other investments (Ch. 9).
formation problem-solving process consumers use indirect (secondary) influencers Groups
to reach a buying decision about a product that is that are not in our immediate circle of friends and
usually an important purchase (Ch. 5). family and therefore do not have a strong influence
horizontal flow (trickle-across theory) on our decision making (Ch. 8).
Movement of fashion in which influences inertia habit Act of completing a consumption
among peer groups with similar demographic or activity or buying the same brand because it takes
psychographic profiles are what determine a style’s little or no energy (Ch. 12).
adoption (Ch. 8). information collection The search for
household Any single person or a group of and selection of data that provide an adequate
persons who live together in a residential setting, foundation for making good decisions (Ch. 12).
regardless of whether they are related (Ch. 7). information filtering The process of sorting
through collected data, then prioritizing and
GLOSSARY 423
9781609018986.indb 423 8/18/14 3:02 PM

selecting that which best meets our information introduction phase Stage of the fashion life
objectives (Ch. 12). cycle when a new style first appears (Ch. 13).
information gatherer/influencer A person introverts People who choose to turn inward,
who provides information/guidance to other rather than concern themselves with external
members of a group about products and services matters (Ch. 6).
(Ch. 7). inventory shrinkage Retail term for losses that
information overload The condition of being includes employee theft, shoplifting, vendor fraud,
bombarded with more information than we can and administrative error (Ch. 15).
process or store in our memories (Ch. 3). just noticeable difference (j.n.d) The ability
informational influences Facts, figures, data, of our senses to distinguish between two closely
and so on from professionals who are familiar with similar stimuli, such as popular music and jazz
a specific subject or brand that have an effect on our (Ch. 3).
decision making (Ch. 3). knockoffs Fashion industry term for copies of
informational social influences Factors that the original styles (Ch. 13).
cause us to copy the behavior of others because learning The process of changing behavior
they directly or indirectly offer information to through experience (Ch. 3).
assist in our decision making (Ch. 8). life expectancy The length of time people will
innovation Something that is new to the person live, and how long they can be productive in an
seeing or experiencing it (Ch. 1). economy and in society (Ch. 9).
instinct An innate drive that we are born with lifestyle An individual’s distinctive way of living;
and that is largely physiological (Ch. 4). a pattern that influences a person’s choices in all
instrumental conditioning Creating change in areas of life, from how to spend time to how to
behavior by making choices that result in rewards spend money (Ch. 9).
and avoid punishment (Ch. 3). Likert scale Quantitative research tool that
integrated marketing system (IMS) The presents a statement and asks consumers to select
continuous, efficient sharing of information and a degree of agreement or disagreement with the
ideas among all participants in an organization, statement (Ch. 10).
with a goal of organized, effective communication limited decision making Process of decision
with the desired audience (Ch. 1). making that involves some thought, but frequently
intensity In evaluating the motivation for a involves general rules of thumb we’ve learned or
consumer purchase, the level of a customer’s borrowed from others (Ch. 12).
interest in a product (Ch. 4). long-term memory The part of memory that
internal (nonsocial) factors Elements of stores information we want to keep for permanent
motivation that come from within a person (Ch. 4). use and recall at will (Ch. 3).
internal recognition Awareness of a need or low-involvement hierarchy An attitude
“problem” that originates within an individual formation purchase process in which the purchase
(Ch. 12). is insignificant, the consumer does not prefer one
424 GLOSSARY
9781609018986.indb 424 8/18/14 3:02 PM

brand over another, and does not form a firm like or marketing research The process of analyzing
dislike until after using the product (Ch. 5). a given marketing opportunity or problem, and
loyalty programs Retail marketing programs often finding solutions through understanding
that offer customers a reward or an incentive to the behaviors and preferences of the market’s
keep them returning to the store (Ch. 15). consumers (Ch. 10).
m-commerce Shopping using a mobile device mass marketing The distribution and promotion
(Ch. 13). of the same product to a broad base of all potential
magalogs Shopping magazines, such as Lucky, customers (Ch. 1).
featuring fashion, and Domino, showcasing home materialism The importance that we attach to
décor (Ch. 10). the things we own (Ch. 9).
mandatory standards Government rules means-end chain (MEC) A structure that
requiring all manufacturers, retailers, importers, links a consumer’s knowledge about a product’s
and distributors to ensure that the products they attributes (benefits or risks) with the desired
are selling meet specific criteria, usually for safety cultural value state the person wants to achieve;
(Ch. 16). the means = the product, and the end = the desired
market research The collecting of information value/outcome (Ch. 14).
about the marketplace that results in planned memory The process of storing and retrieving the
marketing activities and that helps generate knowledge we have learned (Ch. 3).
revenues (Ch. 2). microblog A social platform for sharing thoughts,
market segment A homogeneous group of ideas, or opinions with entries that are condensed
buyers displaying like needs, wants, values, and to a much shorter format than a standard blog
buying behaviors (Ch. 1). (Ch. 11).
market segmentation A method for dividing motivate To impel, incite, or move a person into
markets into smaller homogeneous units in order action (Ch. 4).
to more effectively reach potential customers who motivation The result of forces acting either on
reflect similar characteristics, wants, and needs or within a person to initiate or activate certain
(Ch. 2). behavior (Ch. 4).
marketing A process that includes the motivational research Field of research
communication of all information sellers want to that studies the effect of the unconscious id and
share with consumers, from the time a product the superego on motives in purchasing behavior
or service is an idea, through its purchase, use, (Ch. 6).
evaluation, and disposal by the customer (Ch. 1). multi-attribute model Fishbein’s model
marketing concept A design that focuses on stating that a combination of consumers’ beliefs,
a company’s knowing its clients, satisfying their derived from their knowledge of the attributes of
needs, and doing so more effectively than its a product, reveals their overall attitude toward the
competitors at a profit (Ch. 2). product (Ch. 5).
GLOSSARY 425
9781609018986.indb 425 8/18/14 3:02 PM

multi-channel retailing The use of catalogs, nontraditional family Family group that may
stores, and the Internet in a coordinated marketing include single parents, step-relatives, unmarried
plan (Ch. 13). partners, and so on (Ch. 7).
multicultural Term used to describe a group of normative beliefs The opinions of other people
people belonging to a dominant culture but who who matter to us (Ch. 5).
have diverse cultural backgrounds (Ch. 14). normative social influence Form of
multiple selves The many roles we each take on pressure that requires a person to conform to the
in our self-concept (Ch. 6). expectations of others (Ch. 8).
National Consumers League A nonprofit nuclear family Family group that includes
membership organization working for health, parent(s) and children living together (Ch. 7).
safety, and fairness in the marketplace and obedience Response to social influence that
workplace (Ch. 16). occurs when one strictly obeys an order from an
need An internal state of discomfort that calls authoritative person or group (Ch. 8).
for a solution. Types include acquired, primary vs. objectives (for research) The specific
secondary, stability vs. variety (Ch. 4). information marketers want to learn through a
need for achievement A personality trait research study (Ch. 10).
shown by people who want to stand out from the obsolescence or rejection phase Stage
crowd or do better than others (Ch. 6). that marks the end of a style’s fashion life cycle,
need for affiliation A personality trait indicating that the look is out-of-date and no longer
demonstrated by people who place an emphasis on being sold (Ch. 13).
gaining friends, maintaining close relationships, omnichannel retailing A retailing structure
and belonging to groups (Ch. 6). in which merchants focus on engaging and serving
need for cognition (NC) A personality trait their customers in a seamless manner regardless of
indicating the desire for knowledge (Ch. 6). the method, online or offline, those customers are
need for power A personality trait shown by using to shop (Ch. 13).
people who want to influence or control others opinion leader Individual who is highly regarded
(Ch. 6). by his peers and serves as a credible source or a
need satisfaction The experiencing of pleasure liaison, who transmits and translates information
when a need has been addressed (Ch. 4). from mass media to those seeking advice (Ch. 8).
negative motivation Impetus for an action optimal stimulation level (OSL) Concept
that is based more on dissatisfaction with a current that people have different needs for stimulation,
situation than on the benefits the action would most preferring moderate stimulation over high
bring (Ch. 4). stimulation (Ch. 6).
neurosis A mental disorder with emotionally organized retail theft Multiple shoplifters
painful symptoms that can surface as anxiety, working together to steal larger quantities of
compulsion, and depression (Ch. 6). products, which are stolen not for personal use, but
to resell (Ch. 15).
426 GLOSSARY
9781609018986.indb 426 8/18/14 3:02 PM

peak phase Stage of the fashion life cycle primary (basic) needs Basic physiological
when a style is at the height of its acceptance and requirements for all humans, including food,
popularity (Ch. 13). clothing, shelter, sleep, etc. (Ch. 4).
per capita personal income Total income of primary data Original information that is
a prescribed area divided by the total population collected firsthand via personal interviews, focus
(Ch. 9). groups, and surveys (Ch. 2).
perceived cost The balance between the bundle primary research An original study designed to
of benefits received and a competitor’s comparable address a company’s specific objectives (Ch. 10).
cost (Ch. 2). PRIZM A geodemographic method of segmenting
perceived risk The risk a customer believes markets by ZIP codes, and then combining
exists in the purchase of goods or services whether demographics (such as income and education)
or not a risk actually exists (Ch. 12). with lifestyles, thus identifying areas of similar
perception The process of interpreting our consumer behavior throughout the United States
surroundings through our senses (Ch. 3). (Ch. 9).
perceptual mapping A graphics technique problem awareness State in which a consumer
enabling marketers to visualize consumers’ perceives an imbalance between his or her current
attitudes toward their products and those of their (“as is”) situation and an ideal (“should be”)
competitors (Ch. 5). situation (Ch. 12).
personality The individual psychological product differentiation Strategy by which
characteristics that routinely influence the way companies attempt to make their product seem
people react to their surroundings (Ch. 5). unique when compared to similar products by
positioning Creating a certain perception or competitors (Ch. 1).
image about a product in the minds of consumers psychoanalytic theory Sigmund Freud theory
that differentiates it from the competition (Ch. 1). stating that many of our behaviors and dreams
positive motivation Impetus for an action that come from our unconscious, where thoughts, of
is based on recognition of the action’s benefits which we are largely unaware, are stored (Ch. 6).
(Ch. 4). psychographics The study of consumer
post-purchase dissonance (“buyer’s personality and lifestyle (Ch. 9).
remorse”) Situation in which doubt about psychology The study of individual behavior
making a purchase decision follows the actual (Ch. 4).
purchase and creates tension or a state of purchaser One who secures/buys product(s)
dissonance; also known as “cognitive dissonance” (Ch. 7).
(Ch. 4). purchasing power The amount of goods and
price fixing Situation in which business services the dollar will buy (Ch. 9).
competitors make an agreement to set the price for qualitative research Research that is subjective,
which their products will be sold in a given market focusing on people’s opinions and attitudes toward a
(Ch. 16). product or service (Ch. 10).
GLOSSARY 427
9781609018986.indb 427 8/18/14 3:02 PM

quantifying Measuring and expressing a result as secondary research Locating data from
a number equivalent (Ch. 2). existing sources that meets a study’s research
quantitative research Research that is objectives (Ch. 10).
objective, focusing on collecting numbers and facts selective perception Paying attention to the
that can be analyzed statistically (Ch. 10). stimuli that connect to our needs (Ch. 3).
quota A limit on the quantity of goods that can be self-concept An individual’s perception of his or
imported into a country (Ch. 14). her own characteristics and attributes (Ch. 6).
rational needs Purchase motivation based on self-concept theory Theory stating that in
reasoning and logic (Ch. 4). addition to the personality having multiple selves,
rational perspective The use of logically based, we envision ourselves both privately and in relation
left-brain thinking to process information and to others (Ch. 6).
carefully review the pros and cons of a decision self-esteem Our positive and negative opinions
(Ch. 12). of ourselves and our estimate of our self-worth
recall The removal of an unsafe product from (Ch. 6).
the marketplace, involving public announcements seller’s market Situation in which there are
about the danger and providing information on more buyers than sellers; increased demand and
what to do with the product or how to contact its low supply result in higher prices (Ch. 2).
manufacturer (Ch. 16). selling concept Business approach that focuses
reference group Any person or group serving as on trying to sell what a company has already made,
a point of comparison or frame of reference for an not what the customer wants (Ch. 2).
individual when that individual is forming his own semiotics The study of symbols and their
beliefs and behaviors (Ch. 7). meanings (Ch. 6).
retrieval The process we go through to use showrooming Visiting a physical store to
information stored in our memories (Ch. 3). examine goods first-hand but then looking for a
rise phase The period in the fashion life cycle lower price and purchasing online (Ch. 13).
when a look is growing in popularity (Ch. 13). social class Groups of individuals belonging
role The behavior expected of a person in a given to different levels of society; social classes are
setting (Ch. 7). hierarchical and, for the most part, depend on
secondary (acquired) needs Needs that are levels of prosperity and opportunity, and at times
learned in accordance with the values of a person’s on inheritance (Ch. 8).
specific culture and which are met only after social impact theory Theory stating the
primary needs are fulfilled (Ch. 4). probability of influence increases depending on the
secondary data Information that has been number of people involved and the importance and
collected from other studies or sources such as proximity of the influencers (Ch. 8).
textbooks, magazines, the Internet, and other social influence The information or pressure
published materials (Ch. 2). that an individual, group, or type of media presents
or exerts on consumers (Ch. 8).
428 GLOSSARY
9781609018986.indb 428 8/18/14 3:02 PM

social media The collection of online spaces and garments self-extinguish after exposure to a small
tools that allow individuals and groups to generate open flame (Ch. 16).
content and engage in interactive, peer-to-peer stealth advertising Devising advertisements in
conversations and content exchange (Ch. 11). which marketers attempt to conceal the fact that an
social media marketing (SMM) The process ad is actually an ad (Ch. 1).
of garnering consumer attention and sales through stimulus An energizing force that causes a state
use of social media platforms (Ch. 11). of tension or arousal (Ch. 4).
social networking Websites and services strategic marketing plan A business road
that allow users to share ideas, activities, events, map that identifies a specific target market, the
interests, photos, and so on with other people in preferences of that market’s members, and specific
the network, and may include mechanisms for ways to connect with and keep them (Ch. 2).
e-mail and instant messaging among users (Ch. 11). strategy A plan that addresses how to respond
social responsibility The principle that to consumers and competitors in the marketplace
everyone is responsible for making the world a (Ch. 2).
better place for all its inhabitants (Ch. 15). Strategy Targeting Organized Piracy (STOP!)
social self-image In self-concept theory, how Government initiative that brings together key
others see us (Ch. 6). agencies in a comprehensive initiative to fight
social shopping A method of commerce that global piracy and counterfeiting (Ch. 16).
uses technology to mimic the social interactions subculture A smaller group within a large
found in physical malls and stores (Ch. 11). society/culture (such as persons of the same age,
socialization Process of preparing children for political ideology, ethnicity, social class, sexual
the future by teaching them the skills, attitudes, orientation) who possesses distinct beliefs, goals,
and general knowledge necessary to effectively interests, and values that differentiate them from
integrate into society (Ch. 7). the dominant culture (Ch. 8).
societal marketing concept The idea that subjective norms Influences on our decision
companies should balance profits with customer making that include our normative beliefs, plus the
wants, competitors’ actions, and society’s long- extent to which we are motivated to go along with
term interests (Ch. 2). others’ opinions (Ch. 5).
sociology The study of group behavior (Ch. 4). subliminal perception The perception of
stability Constancy; a need that can motivate stimuli by our senses below our level of conscious
people not to take a new action (Ch. 4). awareness or absolute threshold (Ch. 3).
stakeholder A person or persons with an superego Component of personality that acts
interest in seeing a company succeed (Ch. 2). as a conscience, promoting acceptable standards
Standard for the Flammability of of behavior and restraining the impulsive id by
Children’s Sleepwear Federal regulations that creating feelings of guilt to punish misconduct, real
prescribe a test requiring that specimens of the or imagined (Ch. 6).
fabric, seams, and trim from children’s sleepwear
GLOSSARY 429
9781609018986.indb 429 8/18/14 3:02 PM

supply chain The organizations and related trade surplus Situation in which a country
activities associated with the manufacture and exports more than it imports (Ch. 14).
delivery of a service or product. It represents traditional family life cycle The historically
the work flow from supplier to manufacturer to typical stages in relationships through which people
wholesaler to retailer to the end user, the consumer pass as they age. Phases include bachelorhood,
(Ch. 2). honeymoon, full nest, empty nest, dissolution
sweatshops Factories where workers are obliged (Ch. 7).
to work long hours, under poor conditions, for very traits Distinct characteristics that differentiate us
little pay (Ch. 15). from others and contribute to our behavior (Ch. 6).
target market Group of potential customers trend The direction in which something (such as
that share similar lifestyles and preferences, on fashion) is moving (Ch. 1).
which a company intends to focus its marketing trend forecasting services Services that offer
efforts (Ch. 1). advisories formulated by professional observers of
target marketing Defining a specific segment cultural shifts that contain calculated predictions
of the market and making it the strategic focus for about the likely direction in which design
the business or marketing plan (Ch. 2). preferences are moving (Ch. 14).
tariffs Taxes on imports imposed by the country trunk show Fashion event in which a designer or
receiving those goods (Ch. 14). representative of a manufacturer brings an entire
Textile Fiber Products Identification Act line to a local store for customers to see and buy
(Textile Act) Federal law stating that any (Ch. 10).
company that advertises or sells clothing or trust Large business entities that succeed in
fabric household items must label its products to controlling a market, in essence becoming a
accurately reflect their fiber content (Ch. 16). monopoly (Ch. 16).
theory of cognitive dissonance Theory truth-in-advertising laws Regulations
explaining consumers’ discomfort due to conflicting enforced by the Federal Trade Commission that
attitudes concerning an attitude object, often a require marketers to create advertising that is
recent significant purchase (Ch. 5). truthful and to be able to support any claims about
Theory of Reasoned Action (TORA) Theory a product with reliable, objective evidence (Ch. 16).
stating that in addition to the affective, cognitive, 21st-century family life cycle An updated
and behavioral components of attitude, subjective equivalent of the traditional family life cycle,
norms including our normative beliefs (others’ the phases of which include child/teen, single/
opinions) plus the extent to which we’re motivated independent, new couple/partnership, mid-
to go along with those opinions play a part in adulthood, empty nest, dissolution (Ch. 7).
reaching a buying decision (Ch. 5). unconscious motive Reason for an action in
trade deficit Situation in which a country which we are not aware of why we are acting in that
imports more than it exports (Ch. 14). particular way (Ch. 4).
430 GLOSSARY
9781609018986.indb 430 8/18/14 3:02 PM

unsought goods Products or services that alternatives, resolve conflicts, and make decisions
consumers do not actually seek or plan to buy, (Ch. 14).
such as items that are purchased without advance values The ideas one considers important in life;
need recognition (e.g., an umbrella for a sudden an individual’s set of principles for behavior (Ch. 9).
downpour) (Ch. 4). variety Changeability; a need that can motivate
upward flow (trickle-up theory) Movement people to make a change or do something different
of fashion in which a new fashion idea starts among (Ch. 4).
the lower echelons of society or on the “street” and viral marketing The passing on of a marketing
works its way up (Ch. 8). message to others, much like passing a virus from
user One who consumes/uses a product or service one person to another (Ch. 1).
(Ch. 7). wants Desires that are not necessities nor
utilitarian influences Factors that cause an required for survival (Ch. 4).
individual to yield to another person’s or group’s Weber’s Law Theory that states the more
influence to gain recognition and reward or avoid intense a first stimulus, the stronger the next
punishment (Ch. 8). stimulus must be in order for people to distinguish
VALS A psychographic system developed by SRI it as different (Ch. 3).
International that many marketers employ to find Wool Products Labeling Act (Wool Act)
out why customers make certain buying decisions Federal rules requiring that, even if wool accounts
based on psychological traits, motivation, and for less than 5 percent of the weight of a product, it
resources (Ch. 9). must be listed on the label (Ch. 16).
value Tangible or intangible attributes that word-of-mouth marketing (WOM) The
improve the desirability of a product or service passing along from person to person of a marketing
(Ch. 2). message or opinions about a product, which can
value expressive influences Motivational happen either spontaneously or as a result of a
factors that address core values or the values people marketer’s strategy (Ch. 1).
believe they should possess, which would enhance zeitgeist The spirit of the times, experienced by
their image in the eyes of others (Ch. 8). many people simultaneously (Ch. 1).
value system A learned organization of
principles and rules to help one choose between
GLOSSARY 431
9781609018986.indb 431 8/18/14 3:02 PM

9781609018986.indb 432 8/18/14 3:02 PM
FIGURE CREDITS
Chapter 1 Chapter 6
Figure 1.1: Per-Anders Pettersson/Corbis Figure 6.2: Shutterstock
Figure 1.2: Dara Ref.: infusny-05/42|sp| Figure 6.3: The Advertising Archive
Figure 1.4: Associated Press Figure 6.4: Courtesy Celestial Seasoning
Figure 1.5: Matthew Chattle/Alamy; RICHARD B. LEVINE/ Figure 6.5: Anthony Jenkins for Fairchild Publications, Inc.
Newscom Adapted from Atomic Dog
Figure 6.7: The Advertising Archive
Chapter 2 Figure 6.8: Eichner/WWD; © Condé Nast
Figure 2.1a and b: Courtesy MY TWINN; ZUMA Press, Inc./ Figure 6.9: The Ford Motor Company
Alamy Figure 6.10: Adapted from Schiffman and Kanuk, Fig. 5–7.
Figure 2.2a–f: Andrew Buckin/Shutterstock; Steve Collender/ p. 139. Original source: Jennifer L. Aaker, “Dimensions
Shutterstock; dekede/Shutterstock; Shell114/ of Brand Personality,” Journal of Marketing Research 35,
Shutterstock; Elena Schweitzer/Shutterstock; Courtesy August 1997, p. 352. Permission American Marketing
Apple Inc. Association
Figure 2.4 Courtesy: Fairchild Books
Figure 2.7 Source: Anthony Jenkins for Fairchild Books Chapter 7
Figure 7.1a–c: Diego Cervo/Shutterstock (b); Aleph Studio/
Chapter 3 Shutterstock (c)
Figures 3.1a, b, and c: Patti McConville/Alamy; VIEW Pictures Figure 7.2a–b: BIG CHEESE PHOTO LLC/ALAMY; Jenkins/
Ltd/Alamy; VIEW Pictures Ltd/Alamy WWD; © Condé Nast
Figure 3.2a and b: Joe Schildhorn /BFAnyc/Sipa USA/Newscom
Figure 3.3: The Advertising Archive Chapter 8
Figure 3.4: Yutilova Elena/Shutterstock Figures 8.1 and 8.2: Yanes /WWD; © Condé Nast
Figure 3.5: Courtesy WWW / © Condé Nast Figure 8.4a–d: Jenkins /WWD; © Condé Nast (a, b, c); Yanes /
Figure 3.7: Peter Horree/Alamy WWD; © Condé Nast (d)
Figure 3.8: The Advertising Archive Figure 8.5: iQoncept/Shutterstock
Figure 8.6: Pressmaster/Shutterstock 70152043
Chapter 4 Figure 8.7: Andresr/Shutterstock
Figure 4.1: www.pateo.com/images/maslowmaster4ts.gif. Figures 8.8a–c: Jason Horowitz/zefa/Corbis (a); Tim Pannell/
February 6, 2006 Corbis (b); Image Source/Corbis (c)
Figure 4.2: The Advertising Archive Figure 8.9a–b: Jstone/Shutterstock16415765 (a); s_bukley/
Figure 4.3: BRAD BARKET/ GETTY IMAGES FOR JC PENNEY Shutterstock 92668216 (b)
Chapter 5 Chapter 9
Figure 5.2: The Advertising Archive Figure 9.1: (a) Rathbone/Teen Vogue, © Condé Nast; (b) Hout /
Figure 5.3: BUSINESS WIRE Lucky, © Condé Nast; (c) Palmer /WWD, © Condé Nast
Figure 5.4: The Advertising Archive Figure 9.2: iStock
Figures 5.6a, b, and c: The Advertising Archive Figure 9.3: Chinsee /WWD, © Condé Nast
Figure 5.7: The Advertising Archive; Courtesy Cotton Inc. Figure 9.4: Bill Bachmann/ALAMY
Figure 5.8: Courtesy of L.e.i. Jeans; The Advertising Archive Figure 9.5: Xavier Collin/Celebrity Monitor/Newscom
Figure 5.10: Patti McConville/Alamy spnphotosfour737024
Figure 5.13: The Advertising Archive Figure 9.7: The Advertising Archive
Figure 9.8: Bloomberg/Getty 94829368
Figure 9.9: Andresr/Shutterstock 96816079
Figure 9.10: kali9/iStock
FIGURE CREDITS 433
9781609018986.indb 433 8/18/14 3:02 PM

Chapter 10 Chapter 14
Figure 10.1: Presselect/Alamy C4FF5A Figure 14.1 c Courtesy Apple Inc.
Figure 10.2: BIG CHEESE LLC/Alamy Figure 14.2 Mazur /WWD, © Condé Nast
Figure 10.4: SPENCER GRANT/PHOTOEDIT INC.COM Figure 14.3 a and b Courtesy Uniqlo
Figure 10.5: Ericksen/WWD; © Condé Nast Figure 14.4 Chris Warde-Jones/Redux
Chapter 11 Chapter 15
Figure 11.1 a–c: Blend Images/Shutterstock 146342387 Figure 15.1 Dennis McDonald/Photoedit Inc.
(a); spirit of america/Shutterstock 132476669 (b); Sylvie Figure 15.2 Library of Congress
Bouchard / Alamy DJ2D5K Figure 15.3 © Royalty-Free/Corbis
Figure 11.4: Telnov Oleksii/Shutterstock Figure 15.4 Advertising Archive
Figure 15.5 Patrick /WWD; © Condé Nast
Chapter 12 Figure 15.6 Aquino /WWD; © Condé Nast
Figure 12.3 a BonnieBC/Shutterstock Figure 15.7 Cone Communications/Echo, 2013 Global CSR Study
Figure 12.3 b Bartosz Niedzwiecki/Shutterstock Figure 15.8 zstock/Shutterstock
Figure 12.4 Tommaso Colia/Getty
Chapter 16
Chapter 13 Figure 16.1 a John Phillips/PA Wire /Associated Press
Figure 13.2 Survivor, PacificCoastNews/Newscom Figure 16.1 b PRNEWSFOTO/Carters
Figure 13.3 a Horst P. Horst, 1937 Figure 16.3 a Jens /WWD; © Condé Nast
Figure 13.3 b Iannaccone /WWD; © Condé Nast Figure 16.3 b Aquino /WWD; © Condé Nast
Figure 13.4 a Martin Good/Shutterstock Figure 16.3 c Mitra /WWD; © Condé Nast
Figure 13.4 b Vytautas Kielaitis Figure 16.3 d Crawford /WWD; © Condé Nast
Figure 13.5 Justin Sullivan/Getty Images Figure 16.4 © Fairchild Books
Figure 13.6 Tim Boyle/Getty Images Figure 16.5 © Fairchild Books
Figure 16.7 Courtesy of the FEDERAL TRADE COMMISSION
Figure 16.8 Advertising Archive
Figure 16.9 Angelo /WWD; © Condé Nast
Figure 16.10 www.jupiterimages.com
434 FIGURE CREDITS
9781609018986.indb 434 8/18/14 3:02 PM

INDEX
Abercrombie & Fitch, 42, 122, 132, 321 alternative shopping, 294
dress code, 409, 410–11 alternative solutions, 290–92, 295–96
Abercrombie Kids, 410 Amazon, 39, 294, 316
absolute threshold, 65 ambush marketing, 13
Academy Awards, 92 American Apparel, 372
Accenture, 20 American Dream, 222
Acclaim Entertainment, 18 American Eagle Outfitters, 42, 273, 315
acculturation, 337. See also culture American Express, 52, 275, 324
achievement, need for, 139 American Express Business Insights, 215
ACNielsen company, 236 American Girl, 91, 253, 391
acquired needs, 85 American Idol (television), 252
actual self, 133 American Marketing Association, 49, 51
Acxiom Corporation, 221 Americans with Disabilities Act (ADA), 409, 411–12, 413
Ad Age (magazine), 240t, 273 ancillary tools, marketing mix, 47–48
Adelphia, 367 Andersen windows, 72
Adidas, 13, 255 Andrews, Kenneth, 42
Adler, Alfred, 130 animal testing, fur and, 372–74
adolescents. See teenagers Anne Klein, 122
advanced social intelligence, 248 Ann Taylor, 42, 326, 373
advertising Ann Taylor Loft, 315
ethical, 371–72 Ann Taylor Stores, 315
marketing, 10f, 11 anthropology, 342
truth-in-, 405–7 anti-counterfeiting programs, federal, 408–9
Aeropostale, 324 A.P.C. label, 35
affective element, attitudes, 104–5 Apple, 91, 102, 145, 158, 294
affiliation, need for, 139 approach-approach, 86
African Americans, buying power, 335 approach-avoidance, 86
African American youth, 183 archetypes, 130
The Age Curve (Gronbach), 214 Architectural Digest (magazine), 76, 138
age groups Arizona Blue, 101
baby boomers, 23, 161, 211–12 Armani, Giorgio, 107, 109
buy words, 162t aromatherapy, 62
generation X, 161, 211 Arora, Rohit, 22
generation Y, 159, 211, 214, 215 Asch, Solomon, 179
influencing purchasing behavior, 156–62 Ashwell, Rachel, 108
Millennials, 15, 45f, 159, 160, 190, 211, 215, 320 Asia, cheap chic, 350–51
online shopping, 20–21 Asian Americans, buying power, 336
projected population of United States, 205t, 206t Asos.com, 345
segmentation by, 45f aspirational groups, 191
seniors, 161, 164, 204, 207, 212, 215 Association for the Advancement of Psychoanalysis, 130
AIO (activities/interests/opinions) elements, 225t Association of National Advertisers, 40
Almax SpA, 244 associative groups, 191
alternative lifestyles, marketing to, 215–16 attention, 67–69, 132
INDEX 435
9781609018986.indb 435 8/18/14 3:02 PM

attitude, 102–3 Bergdorf Goodman, 317
attitude objects, 103 Bergeron, Samantha, 190
attitudes, 103–6 Berkus, Nate, 108
affective element, 104–5 Best Buy, 298, 312
behavioral element, 105–6 Better Business Bureau (BBB), 412
buying behavior, 116–24 Better Homes and Gardens (magazine), 111
cognitive element, 103–4 Bing, 293
ego-defensive function, 111 biogenic needs, 85
experience and information, 112–13 bipolar purchasing, 326
factors influencing formation of, 111–15 birthrate
family, 113–14 demographics, 203, 204, 207
friends and peers, 114–15 The Blair Witch Project (film), 18–19
knowledge function, 111 blog, 265
marketers changing fashion consumers’, 121, 123–24 blogs, 181, 182, 193, 254f
marketers swaying consumers’, 122 Bloomberg Business Week (magazine), 218
marketers using, 115–16 Bloomingdale’s, 68, 213, 276, 314, 363, 364
personality, 112 Bluefly, 316, 324
relationship to beliefs, 116–21 blue jeans. See jeans
utilitarian function, 111 Bono, 375
value-expressive function, 111 Boorstin, Daniel, 80
attitude scale, 241 boosting, 362
audience, finding, 13, 15–17 Boots, 108
avoidance-avoidance, 86 Borders, 294
Avon Products, 319 Boston Consulting Group, 92, 213, 350
Awearness, Kenneth Cole, 24 Boston Globe, 36
Bottega Veneta, 365
baby boomers, 23, 161, 211–12. See also age groups boycott, 373
Baby’s Room, 204 BPN (global media agency), 170
Baccarat, 144 Brain Reserve, 135
Back to School Survey, 156 brand, 27
Bad Boy World Entertainment, 114 brand ambassadors, 255
Bag Snob, 265 brand equity, 28
balance of trade, 346 brand image, 28
balance theory, 116–18, 124 branding, 10f, 11, 27–28
Banana Republic, 190, 326 Brand Keys (marketing firm), 122
Bangladesh, 200t, 375 brand loyalty, 28, 301t
Barneys New York, 322 brand personality, 144f
basic needs, 83 color and, 145, 147
Bates Pan Gulf (BPG Group), 22 colors and, 146t
Bath & Body Works, 318, 363 marketers creating, 144–45
Bed Bath & Beyond, 202, 315, 325 brand personification, 141, 144
Beecher, Henry Ward, 49 Brannon, Ellen, 178
behavior, forces influencing, 178 brick-and-mortar retail, 313
behavioral element, attitudes, 105–6 British Advertising Standards Authority, 372
behavioral learning, 70–73 British view, American consumers, 338–39
behavioral perspective, 299 Brooks Brothers, 42, 318
Bejeweled, fragrance, 63 Browne, Thom, 43
beliefs b-tags, Bloomingdale’s, 364
relationship to attitudes, 116–21 Build-a-Bear Workshop, 91
Bellaiche, Jean-Marc, 92 Burberry, 35, 118, 314, 322f, 374
Ben & Jerry’s, 381 Bureau of Economic Analysis, 240t
Be Real (film), 216 Bureau of Labor Statistics, 239, 240t
436 INDEX
9781609018986.indb 436 8/18/14 3:02 PM

Burger King, 194 Census Bureau, 239, 240t
Bur Juman shopping mall, Dubai, 348f CFDA (Council of Fashion Designers of America), 43
business ethics, 367–82. See also ethics Champion, 122
causes and charitable giving, 379, 381–82 Chanel, 22, 63, 118, 122, 144, 145, 183, 210f, 319
consumer privacy, 368–69, 371 Chanel, Coco, 307
environment, 376–77, 379 charitable giving, causes and, 379, 381–82
ethical advertising, 371–72 cheap chic, 309, 315, 350–51
fur and animal testing, 372–74 Chen, Eva, 251
labor practices, 374–75 Chernikoff, Leah, 251
loyalty programs, 368–69 children, 44, 52. See also age groups
social issues, 375–76 K.I.D.S., 382
social responsibility, 360, 380 marketers targeting, 158–59
sun energy, 378 safety for, 390–91
buyer’s market, 35 sleepwear, 390, 391, 413
buyer’s remorse, 88 Children’s Advertising Review Unit, Council for Better Business
buying behavior Bureaus, 158
age influencing, 156–62 Children’s Online Privacy Protection Act, 407–8
attitudes, 116–24 China
compulsive, 137 cheap chic, 350
culture, 19, 21, 333–42 cultural anthropology, 341
family, 162 fashionistas, 343–44
buzz, 12, 14–15 population, 199, 200t
Buzzmarketing (Hughes), 14 Chirp, 275
By Design (Caplan), 7 Chow, Dao-Yi, 65f
Christian Dior, 122
Campaign for Safe Cosmetics, 396–97 Christian Louboutin, 363
Canada, 51, 115, 116, 135, 200t, 374, 404 chunking, 75
Cannes Film Festival, 92 Citizen Couture, 265
Caplan, Ralph, 7 Citizens against Government Waste, 392
Care Labeling Rule, 404–5 Claire’s, 315
cars Claritas, PRIZM, 226, 227f, 240f
Infiniti Q50 sedan, 42, 43–44 classical conditioning, 70–71, 71f
new car smell, 62 classic style, 308, 309f
Carter, Travis J., 96 click-and-mortar, 316
catalogs, 317–18 Clinique, 106, 106f, 145
Cause Marketing Forum, 52 Coach, 71, 316, 366
cause-related marketing, 51 Coalition for Consumer Information on Cosmetics, 374
celebrities Coca-Cola, 144, 145, 252
anti-fur message, 373 cognition, need for, 137
charities, 379, 381–82 cognitive dissonance, 88
dogs as accessories, 8 cognitive element, attitudes, 103–4
endorsements by, 118 cognitive learning, 73
fragrance marketing, 63 Cohen, Joel, 131
hype and, 12 Cohen, Marshal, 40, 144
nonprofit organizations, 380, 381 Coldwater Creek, 318
observation of, 242, 249 Cole, Kenneth, 23, 24–25, 266
opinion leaders, 138 Cole Hahn, 374
cell phones Colgate toothpaste, 111, 112f
design of, 40, 41f collective selection, 16
shopping by, 40, 286, 295 color
teens and, 94, 113 brand personality, 145, 146t, 147
texting, 93, 94–95 vision, 60
INDEX 437
9781609018986.indb 437 8/18/14 3:02 PM

Color Association of the United States (CAUS), 60, 145 customization, 36–38
Color Marketing Group, 145 decision-making process, 87
Columbia Sportswear Company, 391 defining, 96
Combs, Sean John, 114, 403 demographics satisfying, 221
commercials, 6, 18 digital purchasing steps, 276t
communication fashion designers swaying, 43–44
fashion, 249–55 fast fashion, 311–12
marketing, 10f, 11 guerilla marketing, 18–19
marketing mix, 50 inconsistency of, 15–16
social media, 260–67, 261f influence of emotions, 89
community involvement, marketing, 10f, 11 interaction with brands, 275–76
comparison shopping, 293 marketers swaying attitudes of, 122
competitive advantage, 10 marketers using emotion to motivate, 88, 90
compliance, 179 modern hunter-gatherers, 80–81
compulsive buying behavior, 137 online alternatives, 294
The Concept of Corporate Strategy (Andrews), 42 personality, 127–28
conflict, 85, 86–87 privacy, 368–69, 370–71
conformity, 179 retail therapy, 172
Congolese Sapeurs, 6, 7f seeking product/brand information, 270
conscious motives, 83 seeking recommendations, 270–71
Consumer Action Handbook (U.S. General Services social shopping, 266, 267f
Administration), 412 socialization, 165, 193–94
Consumer Behavior and Marketing Strategy (Peter and Olson), 179 using social media, 268, 270–72
consumerism, rise of, 220, 222 theft, 361–63
Consumer Product Safety Act of 1972, 388 trends predicting future spending, 214–15
Consumer Product Safety Commission (CPSC), 388–98, 412–13. Consuming Kids (film), 158
See also federal agencies consumption, 7
cosmetics industry, 396–97 emerging trends, 213, 215
Fair Packaging and Labeling Act, 395, 397–98 hedonic, 64
Federal Food, Drug and Cosmetic Act (FD&C Act), 393, 395 values driving, 219–223
fire safety standard for upholstery, 392 consumption roles, household decision makers, 168t, 169
flammability hazards, 390–91 The Container Store, 325
Flammable Fabrics Act, 389–90 continuum of customization, 37
product hazards, 390–91, 393 convenience, marketing mix, 50
strangulation hazards, 391 “cookies,” in online shopping, 243, 369, 370
U.S. Food and Drug Administration (FDA), 393, 394f Copy-Cat King, Costa, 307
Consumer Product Safety Improvement Act of 2008, 389 Corlett, Candace, 320
consumers. See also customers; decision making, consumer; corporate social responsibility, 377f
fashion consumers cosmetic industry, consumer advocates, 396–97
advanced social intelligence, 248 cost, value vs., 35–36
advocates, 396–97 Costa, Victor, 307
age influencing purchasing behavior, 156–62 Costco, 322, 326
attention, 67–69 cost to the user, 50
attitude, 108–9, 110f, 122 Council for Better Business Bureaus, 158
behavior, 7, 19, 21, 188 Council of Fashion Designers of America (CFDA), 43
brands, 27–28 count, 242
British view of American, 338–39 counterfeit goods, 363, 365f, 366
collective selection, 16–17 country of origin, label, 403
confidence, 209 coupons, social media, 272
conflict motivating, 86–87 Crate & Barrel, 119
creating needs, 93, 95 CRM (customer relationship management), 183
culture, 19, 21 Crocs, 236, 237f
438 INDEX
9781609018986.indb 438 8/18/14 3:02 PM

crowdsourcing, 271 demand, stimulating, 93, 95
cultural anthropology, 341, 342 demographics, 199, 201
cultural borrowing, 339 birthrate, 203, 204, 207
culture, 180 education and occupation, 216–19
consumption mirroring values, 337, 339–40, 342 gender, 212–13, 215–16
influencing buying habits, 19, 21 geodemographic system, 226–28
Curtis, Jamie Lee, 135 immigration, 204, 208
The Curvy Fashionista, 265 income, 208–9, 211–12
customers. See also consumers income distribution, 209, 211
data collection, 273, 275 life expectancy, 204, 207
feedback in social media, 271–72 per capita personal income, 209, 210f
forecasting, 21, 23 population growth and distribution, 202–3
needs and wants, 50 population size factors, 203–4, 207–8
preferences, 178f satisfying consumers, 221
relationship building and management, 10f, 11 spending patterns, 211–12
reviews, 298 values driving consumption, 219–23
satisfying, 48–49, 51–52 world’s 50 most populated countries, 200t
service, 324, 325f Deneuve, Catherine, 130
customization depth interviews, 246
market, 36–38 design, 7
online shopping, 39 consumer attitude through, 108–9, 110f
Customs and Border Protection, 408, 413 fashion and semiotics, 142–43
Cyrus, Miley, 193 influences on, 180–81
motivation and, 95–97
DailyCandy (e-zine), 253 as unifying force, 342–47
Dallas Morning News, 25 designed goods, marketing and purchasing, 8, 10–11
D’Angelo, Dante, 92 destinations, 90–91
data collection Destiny USA, 377
decision making, 290–92 Details (magazine), 24–25
social media, 273, 275 Diesel jeans, 27
Davison, Andrew, 236 differentiation, 25, 137
decision making, consumer, 287–97 digerati, 41
alternative solutions, 290–92, 295–96 Digg, 260
buyer’s remorse, 88 digital shopping, 314
consumption roles of household, 168t, 169 digital world, 37, 171, 182
customer reviews, 298 Dillard’s, 315
effort level in, 299–301 direct influencers, 189
evaluating alternatives, 292–93, 295 direction, 90
extensive, 300 direct marketing, 10f, 11
habitual, 299 Direct Marketing Association, 317
household roles, 168t, 169, 171 disassociative groups, 191
limited, 300 discounts, social media, 272
market habits, 300–301 discount stores, 307, 313, 315, 318, 321, 326
online alternatives, 294 discretionary income, 209, 210f
post-purchase evaluation, 296–97 disposable chic, 309
problem awareness, 287, 289–90 disposable income, 208
types, 297, 299 disposers, 168t, 169
decline phase, fashion life cycle, 307–8 diversity, 135, 333, 337
Def Jam, 183 Dog and Cat Protection Act of 2000, 401
DeGeneres, Ellen, 216, 272 do-it-yourself concept, 142
Delicious, 260 Domino (magazine), 250, 251–52
Delivery Agent, Inc., 318 Donna Karan, 13, 132, 186
INDEX 439
9781609018986.indb 439 8/18/14 3:02 PM

Do Not Call Registry, 408 exposure, 59
dot-coms, 316 express claims, 406
Dove, 51, 135 extended families, 162
down guidelines, 401 extended self, 134
downward flow theory, 181, 183 extensive decision making, 300
Drawbridge, 370 external recognition, 290
dress code, Abercrombie & Fitch, 409, 410–11 external/social factors, 85
Drucker, Peter, 35, 49 extroversion, 136
duties, 344 extroverts, 136
EyeSee technology, 244
e-commerce, 298, 316–17, 323 e-zines, 253
Edison Research, 268
education, demographics, 216–19 Facebook, 102, 160, 181, 182, 254, 259, 260
effects, hierarchy of, 106–9 fashionistas, 269
e-gatekeepers, 192 privacy, 278
ego, 128 social networking, 264–65
ego-defensive function, attitude, 111 fad, 308, 309f
Eileen Fisher Inc., 326, 381 Fair Credit Reporting Act, 408
Elizabeth Arden, 145 Fair Factories Clearinghouse (FFC), 374
Elle (magazine), 250 Fair Packaging and Labeling Act, 395, 397–98
emotion fair-trade practices, 375
attitude change, 121, 123 false need, 93
marketers motivating consumers, 88, 90 family, 162–69
emotional needs, 88 attitudes, 113–14
encoding, 75 changing face of American, 164
enculturation, 337. See also culture consumer behavior, 162
Endangered Species Act of 1973, 401 extended, 162
environment, 376–77, 378, 379. See also green movement household roles in decision-making, 168–69
Environmental Guides, 406 life cycle defined and redefined, 165–66
Environmental Working Group (EWG), 395 nontraditional, 163
Equal Employment Opportunity Commission (EEOC), 409, nuclear, 162
410–11, 413 primary functions of, 165
An Essay on Liberation (Marcuse), 93 rise of “mansumer,” 170
Estée Lauder, 114, 346, 406f today’s definition, 163f
ethics, 360. See also business ethics traditional, 164
consumer theft, 361–63 fashion, 8
counterfeiting, 363, 365–67 influences on, 180–81
defining, 360–61 Millennials influencing, 190
fraudulent returns, 362–63 relationship to marketing, 41f
shoplifting, 361–62 retail marketing of, 310, 312–13
social media, 277, 279 and semiotics, 142–43
spotting fakes, 366 as unifying force, 342–47
wardrobing, 364 vision, 60, 62
Ethics Resource Center (ERC), 277 Fashion Bill, 307
ethnocentrism, 300, 301t fashion consumers
Evrard, Jean-Philippe, 343, 344 alternative retailing, 318–19, 321
experience, attitudes, 112–13 catalogs, 317–18
experiential hierarchy, 107, 107f, 109 e-commerce, 316–17
experiential marketing, 90 fashion life cycle, 306–8
experiential perspective, 299 fast fashion, 308–10, 311–12
experiential retailers, 90 leaders and followers, 305–6
exports, 344 retail marketing of fashion, 310, 312–13
440 INDEX
9781609018986.indb 440 8/18/14 3:02 PM

shopping environments, 321–26 fire safety standard, upholstery, 392
store retailing, 313–16 Fisher, Eileen, 326, 381
television shopping, 318 fitness clothing, 269
fashion designers, swaying consumers, 43–44 fitness club, 82, 161, 227, 325
fashion diffusion, social influences and, 181, 183–93 flammability standards, 390–91
fashion followers, 305 Flammable Fabrics Act, 389–90
Fashion Forecasting (Brannon), 178 flash sale, 321
fashion influentials, 138 focus group, 243, 245f
fashion innovators, 137 Food and Drug Administration (FDA), 393, 394f, 413
Fashionista.com, 251 Foot Locker, 315
fashionistas, 268–69, 343–44 Forbes (magazine), 349
fashion life cycle, 306f, 306–8 Ford truck advertisement, 140f
decline phase, 307–8 forecasting, 21
introduction phase, 306 Forever 21, 13, 42, 190, 202, 309, 325f
length of, 308 Forever 21 Plus, 132
obsolescence or rejection phase, 308 Forrester Research, 37, 240t, 316
peak phase, 307 Forrest Gump (film), 223
rise phase, 306–7 Forth & Towne, 23
Fashion Police (television), 318 Fortune (magazine), 218
fashion preferences, 184f Fossil, 91
fashion sizing, 132 fragrance, choosing, 288–89
fast fashion, 308–10, 311–12, 327 France, 200t, 343–44
Fast Retailing, 311 Franklin, Benjamin, 80
federal agencies. See also Consumer Product Safety Commission fraudulent returns, 362–63
(CPSC); Federal Trade Commission (FTC) Freud, Sigmund, 130
Americans with Disabilities Act (ADA), 409, 411–12 Friedman, Milton, 346
anti-counterfeiting programs, 408–9 friends
Consumer Product Safety Commission (CPSC), 388–98 attitudes, 114–15
Equal Employment Opportunity (EEO) laws, 409 consumer behavior, 188
Equal Employment Opportunity Commission (EEOC), 410–11 functional foods, 79, 81
Federal Trade Commission (FTC), 398–408 functions of attitudes, 111
Federal Bureau of Investigation (FBI), 408, 413 fur and animal testing, 372–74
Federal Food, Drug, and Cosmetic Act (FD&C Act), 393, 395, 413 Fur Products Labeling Act, 401, 402–3
federal government, 240t. See also federal agencies Futures Company, 240t
Federal Trade Commission (FTC), 278, 371, 398–408, 413
Care Labeling Rule, 404–5 Gallup, 226
Children’s Online Privacy Protection Act, 407–8 Gap, 23, 122, 160, 199, 202, 272, 273, 318
country of origin and manufacturer identification, 403 Garcia, Guy, 342
Do Not Call Registry, 408 gatekeepers, 168t, 169, 192–93
down, leather and jewelry products guidelines, 401, 403 Gaultier, Jean Paul, 63, 337, 339
Fair Credit Reporting Act, 408 Gay Games, 216
Fur Products Labeling Act, 401, 402–3 GEICO, 18, 139
Mail or Telephone Order Merchandise Rule, 408 gender
price fixing, 407 demographics, 212–13, 215–16
Textile Fiber Products Identification Act, 399–400 emerging trends in consuming, 213, 215
textile products labeling, 398–405 equality, 213
truth in advertising, 405–7 gap, 213
Truth in Lending Act, 408 marketing to alternative lifestyles, 215–16
Wool Products Labeling Act, 400 projected population of United States, 205t, 206t
Fendi, 365 segmentation by, 45f
fiber content labels, 399f gender equality, 213
figure-and-ground, 69–70 gender gap, 213
INDEX 441
9781609018986.indb 441 8/18/14 3:02 PM

General Electric, 72 HBO campaign, 18
Generation X, 161, 170, 211 hearing, sense of, 63–64, 66
Generation Y, 159, 211, 214, 215 hedonic consumption, 64
geodemographic measurements, 226–28 Henri Bendel, 320
Gernreich, Rudi, 15 heuristics, 295, 300, 301t
gestalt psychology, 69 Hewlett-Packard, 144
Getches, Catherine, 36 hierarchy of effects, 106–9
Gifford, Kathie Lee, 374 high-involvement hierarchy, 106, 107f
Gilligan & O’Malley, 108 Hilfiger, Tommy, 193
Gilovich, Thomas, 96 Hirsch, Alan, 141
Gilt.com, 44 Hispanic population, 6, 335–36
Gilt Groupe, 321 Hitler, Adolf, 140
Girl Scouts, 135 Hointer, 323
Girls Off Fifth, 265 Hollister, 321, 410
glamour, renting, 319f, 320 holograms, 365
Glamour (magazine), 223 Holt Renfrew, 115, 116
Glimcher, Paul, 80 Home Depot, 199, 202, 322
global consumers. See also consumers Home Textiles Today (magazine), 239
Asos.com, 345 horizontal flow theory, 183
going “glocal,” 349 Horney, Karen, 130
understanding and accommodating, 348, 351–52 Horsting, Viktor, 142, 215
Global Fund to Fight AIDS, 381 household, 163
globalization, 342, 352 roles in family decision-making, 168–69
global marketing, 10f, 11 Hudson’s Bay Company (HBC), 115, 116, 117f
glocalization, 349 Huff, Lois, 326
goal, 82 Hughes, Mark, 14
golden rule, 360 human behavior
golf, 217, 223 complexity of motivation, 85–90
Google, 293 motivation, 82–85
Google+, 264, 265, 278 Murray’s psychogenic needs, 84t
government. See federal agencies; United States needs vs. wants, 82–83
Great Recession, 214 need theories, 83, 85
Green Guides, 406 understanding, 82
green movement, 38, 377. See also environment Humane Society, 402
Gronbach, Ken, 214 Hurricane Katrina, 361, 381
Groupon, 321 hype, 12
groups, social influence of, 188–89, 191
Gucci, 13, 92, 122, 226, 365 ice cream flavors, personality, 143t
guerilla marketing, 13, 16f, 18–19 id, 128
Guess, 122 ideal self, 133
Gunn, Tim, 252 ideal social self-image, 133
Gutman, Jonathan, 340 IKEA, 64, 91, 119
immigration, demographics, 204, 208
H&M, 51, 118, 215, 309, 310f, 311, 327, 350 implied claims, 406
Habitat for Humanity, 361 imports, 344
habitual decision making, 299 impulse buying, 299
“Happy Hour” alert, 94 incentive, 90
Harley-Davidson, 216 income, 208–9, 211–12
Harley Owners’ Group, 216 discretionary, 209, 210f
Harris Interactive, 240t distribution, 209, 211
Harvard Business Review, 42 per capita personal income, 209, 210f
hashtag, 266 spending patterns, 211–12
442 INDEX
9781609018986.indb 442 8/18/14 3:02 PM

independent agencies, 412 Jessops, 294
India, population, 199, 200t jewelry
indirect influencers, 189 guidelines, 401, 403
Inditex SA, 311 Moen transforming faucets, 9
individualism, 339 Jimmy Choo, 363
industry organizations, 240t Jiwa, Bernadette, 50–51
inertia habit, 300, 301t John Deere, 72
Infiniti Q50 sedan, 42, 43–44 Johnson, Ron, 102
information, attitudes, 112–13 Jones Apparel, 405
informational influences, 189 Journal of Consumer Research, 187, 240t
informational social influences, 185, 186f Julian, Alexander, 145
information collection, decision making, 290–92 Jung, Carl, 130
information filtering, 291 just noticeable difference (j.n.d.), 65
information gatherers/influencers, 168t, 169 Juvenile Products Manufacturers Association, 391
information overload, 75
innovation, 28–29, 137–38 Karan, Donna, 13, 132, 186
newism, 26–27 Kasper, Jennifer, 274
Innovative Design Protection Act of 2012, 307 Kate Spade & Co., 252
Instagram, 160, 251, 254, 269 Katz, Daniel, 111
instinct, 83 Kellogg Company, 70
instrumental conditioning, 71f, 72 Khan, Genghis, 140
InStyle (magazine), 60 Kids in Distressed Situations (K.I.D.S.), 382
integrated marketing system (IMS), 12 Kleenex Expressions, 43
intensity, 90 Klein, Calvin, 132, 186, 202
internal/nonsocial factors, 85 Klum, Heidi, 252
internal recognition, 289 Kmart, 52
International AntiCounterfeiting Coalition, 366 knock-offs, 306–7
International Color Authority (ICA), 145 knowledge, desire for, 137
International Down and Feather Testing Laboratory and knowledge function, attitude, 111
Institute (IDFL), 401 Kohler, 72, 118
Internet, 168, 243 Kohl’s, 118, 202, 315
buzz, 14–15 Kohl’s Cares, 381
customization, 37 Korea, cheap chic, 350
data, 38 Kors, Michael, 132, 201, 252
online shopping, 20–21 Krugman, Paul, 346–47
introduction phase, fashion life cycle, 306
introversion, 136 labels, country of origin, 403
introverts, 136 labor practices, 374–75
inventory shrinkage, 361 Lacoste, 316
iPad, 158, 188, 250, 253, 314, 324 Lagerfeld, Karl, 75, 215, 307
iPhone, 158, 253 Lampel, Joseph, 37
Lands’ End, 117, 118f
Japan, 200t Lane Bryant, 132
cheap chic, 350 Lanham Act of 1946, 408
cultural anthropology, 341 Lanvin, 92
culture, 339–40 Last Call Studio, 315
Jay, Ed, 215 Latinas, buying power, 335–36
JCPenney, 69, 91f, 101, 102, 103, 122, 216, 260, 272, 315 Lauren, Ralph, 62, 122, 133, 186, 316, 340, 373
J. Crew, 60, 260, 318, 373 Lawrence, Jennifer, 192f
JD Power, 226 Leadership in Energy and Environmental Design (LEED),
jeans, 27, 112f, 113f 377
Jermyn, Leslie, 222–23 Leaping Bunny program, 374
INDEX 443
9781609018986.indb 443 8/18/14 3:02 PM

learning, 70–73 McDonald’s, 194
behavioral, 70–73 McDonough, Tim, 9
cognitive, 73 Macy’s, 68, 273, 274, 306, 314, 315, 322
marketers selling homes, 72 Mad Men (television), 224
theories, 71f magalogs, 250
leather guidelines, 401 Mail or Telephone Order Merchandise Rule, 408
Leegin Creative Leather Products, Inc. v. PSKS, Inc. (2007), mandatory standards, 390
407 mannequin, EyeSee, 244
L.E.I. jeans, 113f manufacturer identification, label, 403
lesbian, gay, bisexual and transgender (LGBT), marketing to, Marc by Marc Jacobs, 402
215–16, 228 Marcuse, Herbert, 93
Le Tote, 319 market
Levinson, Jay Conrad, 13 buyer’s, vs. seller’s, 35
Levi Strauss, 27, 112f, 129, 145, 374. See also jeans customization, 36–38
life cycle habits, 300–301
21st-century family, 167t marketers
family, 165–66 advanced social intelligence, 248
fashion, 306–8 birthrate, 204, 207
traditional, 166t changing fashion consumers’ attitudes, 121, 123–24
life expectancy, demographics, 204, 208 communicating product/brand information, 275
Lifestage Group of Young Achievers, 227 conflict motivating consumers, 86–87
lifestyles, 223, 225–26 consumer needs and demand, 83, 85
Likert scale, 241, 242f creating brand personality, 144–45
Lim, Phillip, 315 customer reviews, 298
limbic system, 62 driving sales, 276–77
limited decision making, 300 emotion motivating consumers, 88, 90
LinkedIn, 264, 265 senior consumers, 207f
live chat, 324 swaying consumers’ attitudes, 122
L.L. Bean, 212, 374 targeting children, 158–59
L’Occitane, 347 using attitudes, 115–16
LOFT, 315 using learning process, 72
Logo TV, 216 using social media, 272–73, 275–77
long-term memory, 75 marketing, 10. See also marketing research
Lopez, Jennifer, 118 alternative lifestyles, 215–16
Lord & Taylor, 116, 117f ambush, 13
Louis, Tristan, 193 areas of, 10f, 11
Louis Vuitton, 22, 122, 366 buy words by age group, 162t
bags, 360 cause-related, 51
real or fake, 409f concept, 48
low-involvement hierarchy, 106–7, 107f coordinating efforts, 11–12
loyalty programs, 368–69 cultural anthropology, 341
Lucky (magazine), 250, 251 customization, 38
Lululemon, 132, 249 designed goods, 8, 10–11
luxury, 17, 22, 130, 211, 215, 363 diversity, 333, 337
Bur Juman shopping mall (Dubai), 348f guerilla, 13, 16f
experience, 92 Internet/social media, 14–15
LVMH Moet Hennessy Louis Vuitton, 366 mass, 15
personality and color associations, 146t
MacBook, 18 PRIZM, 227f
McCarthy, E. Jerome, 47, 50 putting the “buzz” into, 14–15
McCartney, Stella, 215, 373 recent approaches to, 12–13
McClelland, David, 83 relationship to fashion, 41f
444 INDEX
9781609018986.indb 444 8/18/14 3:02 PM

STP (segment-target-position) process, 42, 44–46, 54 memory, 73, 75–76
strategic, plan, 40 long-term, 75
texting, 94–95 retrieval, 75–76
viral, 13 sensory, 73
word-of-mouth (WOM), 13 short-term, 73, 75
marketing mix, 46–48, 47f men, rise of mansumer, 170
ancillary tools, 47–48 Menards, 202
modernizing, 50–51 Metropolitan Museum of Art, 142
marketing research, 236–47 Mexico, 404
advanced social intelligence, 248 microblog, 266
analyzing and reporting data, 246–47 Microsoft Xbox, 255
depth interviews, 246 Mikasa, 144
elements of fashion communication, 249–55 Millennials, 15, 159, 160, 211, 320. See also age groups
EyeSee technology, 244 fashion influence, 190
focus group, 243, 245f online shopping, 20–21
methodologies, 240–43, 245–46 spending, 215
“new” media, 253–55 Mintzberg, Henry, 37
objectives, 238 Mischka, Badgley, 104
primary research, 239, 240 Missoni, 60, 315
qualitative research, 240, 243, 245–46, 255 Mizrahi, Isaac, 43, 108, 122, 123, 183, 315
quantitative research, 240, 241–43, 255 mobile shopping, 171
research process, 238–47 ModCloth, 132
secondary research, 239–40 Modern Family (television), 216
shopping magazines, 251–52 Moen, 9
traditional media, 250, 252–53 Monif C., 51
using, 247, 249–50, 252–55 Montana, Claude, 15
marketplace, 34 Mossimo, 108, 123
personalizing online shopping, 39 motivate, 82
segmentation categories, 46t motivation, 82
market research, 49 complexity of, 85–90
market research firms, 240t and design, 95–97
market segment, 13 desire to acquire, 90–91, 93
market segmentation, 42 marketers creating needs and demands, 83, 85
Mars, Bruno, 192f marketers using conflict, 86–87
Martin + Osa, 315 marketers using emotion, 88, 90
Martin Agency, 9 Maslow’s hierarchy of needs, 83f
Martine Leherpeur Conseil (MLC), 343 needs vs. wants, 82–83
Maslow, Abraham, 83, 85 power of, 90–95
Maslow’s hierarchy of needs, 83f, 185 rational vs. emotional motives, 87–88
mass marketing, 15 motivational research, 129
materialism, 98, 222 Mrs. Fields, 62
The Matrix (film), 66 Mullin, Tracy, 381
m-commerce, 316 multi-attribute model, 118–19
Meadows, Donella, 199 changing the, 123–24
media multi-attribute theory, 119t
fashion communication, 250, 252–53 multichannel retailing, 310
new, 253–55 multicultural, 337
planning, 10f, 11 multiple selves, 133
traditional, 250, 252–53 Murray, Henry A., 83, 84t
Mellor, Richard, 364 Mustang, Ford galloping, 75
membership influences, 191–92 Myrick, Daniel, 18
MySpace, social networking, 264, 265
INDEX 445
9781609018986.indb 445 8/18/14 3:02 PM

Naked Consumption: Retail Trends Uncovered (Stokan), 324 obsolence phase, fashion life cycle, 308
National Association of State Fire Marshals, 392 occupation, demographics, 216–19
National Business Ethics Survey (NBES), 279 O’Guinn, Thomas, 90
National Consumers League, 412 Oldham, Todd, 108
National Retail Federation, 6, 240t, 305, 324, 362, 364, 374, 381 Old Navy, 51, 122
National Security Administration, 369 olfactory cortex, 62
natural disasters, donations for, 381–82 Olson, Jerry C., 179
need, 82 omnichannel retailing, 305, 312
for achievement, 139 online shopping, 171, 323, 316–17
for affiliation, 139 Asos.com, 345
for cognition, 137 Millennials, 20–21
families, 166 personalizing, 39
Maslow’s hierarchy of, 83f privacy issues, 369
for power, 139–41 On the Racks, 265
satisfaction, 82 opinion leader, 193
for stimulation, 138–39 opinion leadership, 137–38
theories, 83, 85 optimal stimulation level (OSL), 138–39
vs. wants, 82-83 organic fiber sales, 379
negative motivation, 85 Organic Trade Association, 379
negativism, 136–37 organized retail theft, 362
Neiman Marcus, 64, 211, 306, 314 Organized Retail Theft Task Force, 362
Net-a-porter.com, 317 Orlandi, Laetitia, 343
NetBase, 268 Osborne, Maxwell, 65f
neurosis, 136
New Girl (television), 318 Palmer, Arnold, 72
newism, 26–27 Pantone, 60
New Mainstream: How the Buying Habits of Ethnic Groups Are Patagonia, social responsibility, 380
Creating a New American Identity (Garcia), 342 paucity, luxury, 22
New Yorker (magazine), 223 Pavlov, Ivan, 71
New York Fashion Week, 252 peak phase, fashion life cycle, 307
New York Times, 166, 240t, 253, 346, 380 pedigree, luxury, 22
Nickelodeon/Youth Intelligence Tween Report, 246 peers attitudes, 114–15
Nielsen, Arthur C., Sr., 236 people, marketing, 50
Nielsen Company, 226, 240t, 335 People for the Ethical Treatment of Animals (PETA), 124, 372–73
Nielsen Media Research, 226 per capita personal income, 209, 210f
Nielsen Television Ratings, 236 perceived cost, 36
Nike, 68, 122, 145, 160, 199, 219f, 255, 273, 279, 374 perceived risk, decision making, 291–92
NIKEiD, 38 perception, 64
Nine West Group, 407 marketing, 51
Noble, Peter, 89 selective, 68–69, 69t
nontraditional families, 163 subliminal, 67
Nordstrom, 62, 68, 80, 211, 314, 317, 324, 402 perceptual mapping, 115
Nordstrom Rack, 213, 315 perfume, 22, 63, 288–89
normative beliefs, 120 Perner, Lars, 287
normative social influence, 185 Pernod Ricard USA organization, 216
Norm Thompson, 318 personal, marketing, 50
The NPD Group, 40, 132, 144, 145, 226, 240t, 241 personal care products, 394f
nuclear families, 162 personality, 127–28
attitudes, 112
obedience, 179 brand, 141, 144
objectives, research, 238 celebrating diversity, 135
O’Brien, Thomas, 108, 213 extended self, 134
446 INDEX
9781609018986.indb 446 8/18/14 3:02 PM

fashion sizing, 132 problem awareness, 287, 289–90, 290f
ice cream flavors and, 143t problem solving, 23
marketers creating brand, 144–45 product, 47
psychoanalytic theory, 128–30 product development, marketing, 10f, 11
self-concept theory, 131–34 product differentiation, 25
self-esteem, 134 professional selling, marketing, 10f, 11
social-cultural theories, 130–31 Project Copy Cat, 367
trait theories, 136–41 Project Runway (television), 252
personalization period, 263 promotion, 47
personal sensory environment, 66 psychoanalytic theory, 128–30
Peter, J. Paul, 179 psychogenic needs, 84t, 85
Pew Research Center, 204 psychographics, 223–26
Phat Farm, 183 social media, 224
pilferage, 361 psychological research, 96
Pilotto, Peter, 315 psychology, 10f, 11, 82
Pinterest, 254, 259, 260, 266, 269, 277 publications, 240t
Pirates of the Caribbean (film), 130 public figures, luxury, 22
place, 47 public relations, 10f, 11, 22
placement, luxury, 22 Puma, 255
PlayStation, 66 punk, 142
Pol Pot, 140 purchase behavior, 296
Popcorn, Faith, 135 purchase evaluation, 296–97
population. See also demographics purchasers, 168t, 169
birthrate, 203, 204, 207 purchasing power, 211
growth and distribution, 202–3 purpose, marketing, 50
immigration, 204, 208 P/V (price/value), 36
life expectancy, 204, 207
projected, for United States, 205t, 206t qualitative research, 240, 243, 245–46, 255
world’s 50 most populated countries, 200t quantifying, 40
pop-up shops, 13, 17f quantitative research, 240, 241–43, 255
Porter, Michael, 42 quotas, 344
Posen, Zac, 43–44, 252, 319
positioning, 25 raccoon dogs, 402, 403
Positioning: The Battle for Your Mind (Ries and Trout), 46 radio-frequency identification (RFID) tags, 369, 371
positive motivation, 85 Ralph Lauren Polo, 373. See also Lauren, Ralph
post-purchase dissonance, 88 rational needs, 87
post-purchase evaluation, 296–97 rational perspective, 297
Pottery Barn, 391 reality principle, 129
power, need for, 139–41 Real Simple (magazine), 67
Prada, 118 recall, 389
price, 47 Red Cross, 382
Price Chopper, 213 Red Envelope, 145
price fixing, 407 reference group influences, 189, 191
pricing, luxury, 22 reference groups, 162
pricing strategies, marketing, 10f, 11 Registered Identification Number (RN), 403
primary data, 38 rejection phase, fashion life cycle, 308
primary influencers, 189 renewable energy, 378
primary needs, 83 Rent the Runway, 319, 319f, 320, 364
primary research, marketing, 239, 240 repetition, attitude change, 121, 123
Pring, Cara, 224 Resch, Rhone, 378
privacy, social media, 277, 278 research, market, 49. See also marketing research
PRIZM, 226–28, 230 response, stimulus leading to, 290f
INDEX 447
9781609018986.indb 447 8/18/14 3:02 PM

Responsible Economy project, Patagonia, 380 self-esteem, 134
Retail Council of Canada, 374 Selinger, David, 39
Retail Forward, 326 seller’s market, 35
retail marketing, fashion, 310, 312–13 selling
retail therapy, 172 concept, 49
retrieval, 75 homes using learning process, 72
RichRelevance, 39 luxury experience, 92
Ries, Al, 27, 46, 50 semiotics, 141, 142–43, 147
Right Mix Marketing, 160 seniors. See also age groups
rise phase, fashion life cycle, 306–7 life expectancy, 204, 207
Road to Perdition (film), 223 retirement, 161, 164, 166, 167t, 173
Robertson, Nick, 345 spending, 212, 215
ROI Research, 266 sensory memory, 73
role, 168 Shah, Anup, 220
Rolex, 130, 366 Shoebuy.com, 317
Ross, Robert, 374 Shop for a Cause, Macy’s, 381
routine, 299, 300t shoplifting, 361–62
RueLaLa, 321 Shop.org Think Tank, 313
Runk, Jennie, 51 shoppers, as modern hunter-gatherers, 80–81
Russe, Charlotte, 94–95, 309 shopping, retail therapy, 172
shopping environments
Saatchi & Saatchi (advertising firm), 50 fashion consumers, 321–26
Safe Cosmetics Act of 2005, 397 Hointer, 323
Safe Cosmetics and Personal Care Products Act of 2013, 397 physical surroundings, 321–22, 324
St. John’s Bay, 101, 103 product mix, 326
St. Jude Children’s Research Hospital, 44, 52 service and amenities, 324–25
Saks Fifth Avenue, 116, 117f, 211, 275, 306, 314 shopping up and shopping down, 326
Saks Off Fifth, 315 shopping magazines, 250, 251–52
sales, social media driving, 276–77 short-term memory, 73, 75
sales promotion, marketing, 10f, 11 Shouraboura, Nadia, 323
same-sex couples, 164 showrooming, 312
Sam’s Club, 213, 366 Silverstein, Michael, 213, 326
Samsung, 260 Simmons, Russell, 183
Sanchez, Eduardo, 19 Simonson, Itamar, 297
Santiccioli, Beatrice, 145 Simply Shabby Chic, 108
Sapeurs, Congo, 6, 7f Skechers, 122
Scholl’s ad, 137f Skinner, B. F., 72
Schor, Juliet B., 183 Skype, 171
Schweitzer, Albert, 49 Slaves to Fashion (Ross), 374
Scoop NYC, 254 Small Business Administration, 240t
search engines, 293 smell, 63
Sears, 117, 118f, 204, 315 choosing the right fragrance, 288–89
secondary data, 38 sense of, 62
secondary influencers, 189 Smith, Adam, 35
secondary needs, 85 Snapchat, 160, 266
secondary research, marketing, 239–40 Snoeren, Rolf, 142, 215
segmentation social class, 180
market, 42, 44–45 social-cultural theories, 130–31
market categories, 46t social impact theory, 187
selective perception, 68–69, 69t social influences, 177, 178–80
self-concept, 132 control, 192–93
self-concept theory, 131–34 degree of, 187
448 INDEX
9781609018986.indb 448 8/18/14 3:02 PM

digital world, 182 Standard for the Flammability of Children’s Sleepwear, 390
and fashion diffusion, 181, 183–93 Starck, Philippe, 108
impact of groups, 188–89, 191 StarKist Seafood Company, 51
membership, 191–92 stealth advertising, 13
types of, 185–87 Stefani B., 136f
social issues, 375–76 stimulus, 82
socialization, 165 characteristics, 68, 69t
social media, 254f, 260–67, 261f fashions businesses, 61f
blog, 265 hearing, 63–64
challenges of, 277, 279 need for stimulation, 138–39
consumers following brands on, 271t response, 290f
consumers using, 268, 270–72 smell, 62
coupons/discounts, 272 taste, 64
customer interaction, 275–76 touch, 62
customer reviews, 298 vision, 60, 62
customization, 37 Stokan, Anthony, 324
data collection, 273, 275 store retailing, fashion consumers, 313–16
ethics, 277, 279 STP (segment-target-position) formula, 42, 44–46, 54
evolution of the Web, 263–64 strangulation hazards, 391
hashtag, 266 strategic marketing plan, 40
marketers using, 272–73, 275–77 strategy, 42
marketing, 14–15 Strategy for Targeting Organized Piracy (STOP!), 409, 413
microblog, 266 street vendors, 365f
privacy and security, 277, 278 StyleHaul, 274
product/brand information, 270 subcultural groups. See also culture
providing customer feedback, 271–72 African Americans, 335
psychographic data, 224 Asian Americans, 336
quantitative research, 243 Hispanic population, 335–36
seeking recommendations, 270–71 subcultures, 180
social shopping, 266, 267f subjective norms, 120
types of, 264–67 subliminal perception, 67
uses, 262f superego, 128
word of mouth, 10f, 11 supply chain, 47–48, 48t
social media marketing (SMM), 273 supply chain management/distribution, marketing, 10f, 11
social networking, 264 Swatch, 69
marketing, 50 sweatshops, 374
questionable behaviors, 279f symbolism, 142
teens and parents, 160 symbolize, 27
social proofing, 185
social responsibility, 360, 377f, 380 Taco Bell, 26
social self-image, 133 Tadashi Shoji, 132
social shopping, 266, 267f Tagged, social networking, 264, 265
societal marketing concept, 49 Talbots, 42, 315
sociology, 10f, 11, 82 Target Corporation, 64, 109, 123, 160, 204, 208f, 253,
Solar Energy Industries Association, 378 315, 326
solar power, 378 consumer attitude through design, 108–9
Solomon, Michael, 295 target market, 13, 45–46, 47f
Sony Corporation, 66 target marketing, 45
Spade, Kate, 252, 316 tariffs, 344
specialty stores, 306, 311, 313, 315, 318, 326 taste, sense of, 64, 66
stability, 85 t-commerce, 318
stakeholder, 45 Technorati Media, 182
INDEX 449
9781609018986.indb 449 8/18/14 3:02 PM

teenagers, 169 Trout, Jack, 27, 46, 50
buying behavior, 157, 159 True Religion jeans, 27
friends and peers, 114–15 Trump, Donald, 122, 138
social network, 160 trunk show, 249
spending patterns, 211 trust, 398
texting, 94–95 truth-in-advertising laws, 405–7
television shopping, 318 Truth in Lending Act, 408
Textile Fiber Products Identification Act, 399–400 Tumblr, 160, 266
textile products labeling. See Federal Trade Commission (FTC) twenty-first-century family life cycle, 165, 167t
texting, 94–95 Twitter, 102, 160, 182, 193, 251, 254, 259, 260, 266
thalamus, 62 Kenneth Cole, 24–25
theft Tyco, 367
consumer, 361–63
fraudulent returns, 362–63 Ullman, Myron, 101, 102
shoplifting, 361–62 unconscious motives, 83
theory of cognitive dissonance, 121 Uncover (market research agency), 190
theory of reasoned action (TORA), 119–21, 120f, 124 uniform, 27, 218f
thermal facial imaging, 66 Uniqlo, 309, 311, 347f, 350, 373
Thomas, Pauline Weston, 142 uniqueness, 137
Tiffany, 13, 17f, 62, 145, 213, 226 United Kingdom, 135, 200t
Timberlake, Justin, 265 United States, 404. See also federal agencies
Timberland, 91, 253, 376 British view of consumers in, 338–39
TIME (magazine), 16 fashionistas, 343–44
Tommy Bahama, 64 population, 199, 200t
Tommy Hilfiger, 122, 144, 373, 402, 405 projected population, 205t, 206t
Topshop, 275, 309 ten largest cities, 202t
Toshiba tablet, 73, 74f U.S. Census, 201
touch, sense of, 62 United States Green Building Council, 377
Tower Records, 294 unmarried couple households, 164
Toys “R” Us, 204 unsought goods, 88
trade associations, 240t Upholstered Furniture Action Council, 392
trade deficit, 344 upholstery, fire safety standard, 392
Trademark Counterfeiting Act of 1984, 408 Upton, Kate, 132
trade surplus, 344 upward flow theory, 183
traditional family life cycle, 165, 166t Urban Uptown, PRIZM, 227
traditional nuclear family, 162, 164 URLs (uniform resource locators), 263
traits, 136 users, 168t, 169
trait theories, 136–41 U.S. Food and Drug Administration (FDA), 393, 394f, 413
desire for knowledge, 137 U.S. Patent and Trademark Office, 408, 413
extroversion and introversion, 136 utilitarian function, attitude, 111
innovation and opinion leadership, 137–38 utilitarian influences, 189
need for affiliation, achievement, and power, 139–41
need for stimulation, 138–39 Valentino, 92
negativism, 136–37 VALS (values and lifestyles), 225–26
Treasure Hunt: Inside the Mind of the New Consumer (Silverstein), value-expressive function, attitude, 111
213, 326 value-expressive influences, 189, 191
trend, 16 values
trend forecasting services, 342 consumption mirroring cultural, 337, 339–40, 342
trickle-across theory, 183 driving consumption, 219–23
trickle-down theory, 181, 183 origin of lifestyles, 225–26
trickle-up theory, 183 vs. cost, 35–36
Troop Clothing, 193 value system, 337
450 INDEX
9781609018986.indb 450 8/18/14 3:02 PM

Vanity Fair (magazine), 186 website creation and implementation, marketing, 10f, 11
variety, 85 West, Kanye, 35, 193
Veblen, Thorstein, 181 Westinghouse W, 75
verbalizers, 137 What Flavor Is Your Personality? (Hirsch), 141
Versace, 110f, 128, 366 Wheeler–Lea Amendment, 398
Viacom, 216 White House Black Market, 325
Vicary, James, 67 Why Customers Do What They Do (Cohen), 144
Victoria’s Secret, 62, 122, 273, 315, 318, 363, 391 Wilcox, W. Bradford, 214
video games, 255 Williams–Sonoma, 69, 202
viral marketing, 13 The Wizard of Oz (film), 134
vision, 60, 62, 66 Women’s Wear Daily (magazine), 121, 142, 239, 240t
visualizers, 137 Woods, Tiger, 118
Vogue (magazine), 60, 76, 111, 132, 250 Wool Products Labeling Act, 400
Voluntary Cosmetic Registration Program (VCRP), 395 word-of-mouth (WOM) marketing, 13
Vorhauser-Smith, Sylvia, 349 World Monitors, Inc., 374
Vote Solar Initiative, 378 Worthington, 101, 103
WSL Strategic Retail, 320
Walkman, 66
Wall Street Journal (newspaper), 144 Yoox.com, 317
Walmart, 108, 123, 326, 374 Young, Antony, 273
Wanelo, 260, 267 Young Digerati, PRIZM, 227
Wang, Vera, 63, 104, 252, 319 YouTube, 181, 193, 249, 259, 260, 268, 274
wants, needs vs., 82–83 Yves Saint Laurent, 365
wardrobing, tactics to combat, 364
A Wealth of Nations (Smith), 35 Zappos.com, 316, 317
Web 1.0, 263 Zara, 42, 190, 309, 310f, 311, 327, 347, 350
Web 2.0, 263, 298 zeitgeist, 8
Weber’s Law, 65, 67 ZIP codes, 228, 230
Webkinz, 194
INDEX 451
9781609018986.indb 451 8/18/14 3:02 PM

9781609018986.indb 452 8/18/14 3:02 PM
9781609018986.indb 453 8/18/14 3:02 PM
9781609018986.indb 454 8/18/14 3:02 PM
9781609018986.indb 455 8/18/14 3:02 PM
9781609018986.indb 456 8/18/14 3:02 PM
9781609018986.indb 457 8/18/14 3:02 PM
9781609018986.indb 458 8/18/14 3:02 PM
9781609018986.indb 459 8/18/14 3:02 PM
9781609018986.indb 460 8/18/14 3:02 PM

The Why of The Buy 301 481

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

The Why of The Buy 301 481

Uploaded by

Copyright:

Available Formats

Summary for marketers includes the need to present a consis-

tent brand message across all media, whether tradi-

9781609018986.indb 280 8/18/14 3:00 PM

CHAPTER 11: Social Media and the Fashion Consumer 281

9781609018986.indb 281 8/18/14 3:00 PM

9781609018986.indb 282 8/18/14 3:00 PM

CHAPTER 11: Social Media and the Fashion Consumer 283

9781609018986.indb 283 8/18/14 3:00 PM

9781609018986.indb 284 8/18/14 3:00 PM

CHAPTER 11: Social Media and the Fashion Consumer 285

9781609018986.indb 285 8/18/14 3:00 PM

WHAT DO I NEED TO KNOW ABOUT CONSUMER DECISION MAKING?

9781609018986.indb 286 8/18/14 3:00 PM

CHAPTER 12: Consumer Decision Making 287

9781609018986.indb 287 8/18/14 3:00 PM

288 Part IV: How Fashion Marketers Communicate and Consumers Decide

9781609018986.indb 288 8/18/14 3:00 PM

CHAPTER 12: Consumer Decision Making 289

9781609018986.indb 289 8/18/14 3:00 PM

B. Small Gap: Person does not see value in making a change.

Should Be (ideal situation)

As Is (current status) Small Gap = little discomfort and probably no change

FIGURE 12.2 Problem-awareness model.

FIGURE 12.3 A stimulus leads to a response.

290 Part IV: How Fashion Marketers Communicate and Consumers Decide

9781609018986.indb 290 8/18/14 3:00 PM

CHAPTER 12: Consumer Decision Making 291

9781609018986.indb 291 8/18/14 3:00 PM

FIGURE 12.4 Perceived risk: “Should I really experiment

292 Part IV: How Fashion Marketers Communicate and Consumers Decide

9781609018986.indb 292 8/18/14 3:00 PM

CHAPTER 12: Consumer Decision Making 293

9781609018986.indb 293 8/18/14 3:00 PM

When Consumers Choose Online Alternatives to Stores,

294 Part IV: How Fashion Marketers Communicate and Consumers Decide

9781609018986.indb 294 8/18/14 3:00 PM

CHAPTER 12: Consumer Decision Making 295

9781609018986.indb 295 8/18/14 3:00 PM

Marketer creates a large gap (stretches this distance)

“As Is”— What the consumer currently uses or owns

“Could Be/Ideal”— Potential benefits/ value for the consumer

“As Is”— What the consumer currently uses or owns

296 Part IV: How Fashion Marketers Communicate and Consumers Decide

9781609018986.indb 296 8/18/14 3:00 PM

Met = May Buy Again Expectations

returns. Repeat purchases signal that the custom-

CHAPTER 12: Consumer Decision Making 297

9781609018986.indb 297 8/18/14 3:00 PM

Customer Reviews Gain Clout

298 Part IV: How Fashion Marketers Communicate and Consumers Decide

9781609018986.indb 298 8/18/14 3:00 PM

CHAPTER 12: Consumer Decision Making 299

9781609018986.indb 299 8/18/14 3:00 PM

Routine Frequent Low Minimal Fast food

Limited Periodic Moderate Moderate Prescription sunglasses

Extensive Not very often High High Graduate school

300 Part IV: How Fashion Marketers Communicate and Consumers Decide

9781609018986.indb 300 8/18/14 3:00 PM

Consumer Pattern Description Example of customer response

Ethnocentric Choice that specifically relates to “I buy American-made products

Heuristics Choice based on rules of thumb, “I didn’t know Company X made

Inertia Choice made out of habit or “This is the toothpaste my mom

before, during, and after a purchase is made. That