CONSUMER WELL BEING

CHAPTER 2

2-1 What are business ethics, and why is this an important topic?
Business ethics are rules of conduct that guide actions in the marketplace; these are the
standards against which most people in a culture judge what is right and what is wrong,
good or bad. These universal values include honesty, trustworthiness, fairness, respect,
justice, integrity, concern for others, accountability, and loyalty.
It is important because these are the standards against which most people in a culture
judge what is right and what is wrong, good or bad.
Of course, notions of right and wrong differ among people, organizations, and cultures.
Some businesses believe it is okay for salespeople to pull out all the stops to persuade
customers to buy, even if this means they mislead them; other firms feel that anything
less than total honesty with customers is terribly wrong. Because each culture has its
own set of values, beliefs, and customs, companies around the world define ethical
business behaviors quite differently
Corporations establish business ethics to promote integrity among their
employees and gain trust from key stakeholders, such as investors and
consumers. While corporate ethics programs have become common, the quality
varies.

2-2 The economics of information perspective argues that advertising is important.

Why?
Economics of information is a perspective that regards advertising as an important
source of consumer learning
Advertising reduces the amount of search time the consumer has to give up in order to
acquire a product or service. Advertising offers important information for the customer,
acting as a service. Advertising is communication intended to inform, educate,
persuade, and remind individuals of your product or businesses. Advertising must work
with other marketing tools and business elements to be successful. 
The economics of information perspective argues that advertising is important because
this view emphasizes the economic cost of the time we spend to search for products.
Accordingly, advertising is a service for which consumers are willing to pay because the
information it provides reduces their search time.
The economics of information perspective regards advertising as an important source of
consumer learning. This view emphasizes the economic cost of the time we spend to
search for products. Accordingly, advertising is a service for which consumers are willing
to pay because the information it provides reduces their search time.
Advertising plays a strong role in the economy: It provides useful information to
consumers that tells them about product and service choices, as well as comparing
features, benefits, and prices. With more complete information, consumers and
businesses often choose to purchase additional products and services.
Modern consumer economies are driven by the demand stirred by advertising for
products. The demand contributes to economic growth and prosperity.

2-3 what are the main features of consumer space? Does it really work as a
methodology?
The consumer uses his subjective processes to transform the spaces of
consumption into his personal space. In the new environment, individuals dictate
to companies the types of product they want and how, when and where they
want to learn about those products.
The main feature of consumer space is that individuals dictate to companies the types
of products they want and how, when, and where they want to learn about those
products. This works as a methodology because it provides much greater potential to
shape our market.

2-4 why should companies encourage consumers to complain via their preferred
channels? How can this benefit the business?
When companies encourage consumers to complain they could benefit from it by
getting a chance to right the wrong and it could help their firm better at handling and
resolving them and also provide better and more useful feedback for their
improvements.
Organizations should encourage people to complain for these reasons:
1. They get the chance to correct the situation.
2. They will avoid an escalating problem that results when consumers take to social
media to let others know they’ve been treated badly. People are more likely to
spread the word about unresolved negative experiences to their friends than
they are to boast about positive occurrences.
3. They collect valuable insights about customers’ experiences that will (hopefully)
help them to improve for future customers.
4. If consumers do not believe that the store will respond to their complaint, they
will be more likely to simply switch than fight as they just take their business
elsewhere.
Encouraging complaints from customers will not only help firms get better at
handling and resolving them it will also help them encourage their customers
to provide better and more useful feedback.

2-5 what is green washing, and is it ethical? Do you think consumers will be convinced
by green washing?
Green washing is the process of misleading consumers, glossing over the
facts in order to present products as sustainable, eco-friendly and ethical.
It’s false marketing and unfortunately, it's standing in the way of achieving real
progress where brand accountability and customer knowledge is concerned.
Green washing has inflated claims about a product’s environmental benefits. Consumers
simply don’t believe most of the green claims companies make about their brands.
Almost one-fourth of U.S. consumers say they have “no way of knowing” if a product is
green or does what it claims.
Marketers point to a segment of consumers they call LOHAS—an acronym for “lifestyles
of health and sustainability.” This label refers to people who worry about the
environment, want products to be produced in a sustainable way, and spend money to
advance what they see as their personal development and potential. These so-called
“Lohasians” (others refer to this segment as cultural creatives) represent a great market
for products such as organic foods, energy-efficient appliances, and hybrid cars, as well
as alternative medicine, yoga tapes, and ecotourism.
2-6 in what ways is corporate social responsibility different from social marketing?
Corporate social responsibility describes processes that encourage the organization to
make a positive impact on the various stakeholders in its community including
consumers, employees, and the environment while Social marketing strategies use the
techniques that marketers normally employ to sell beer or detergent to encourage
positive behaviors such as increased literacy and to discourage negative activities.
Social marketing strategies use the techniques that marketers normally employ to sell
beer or detergent to encourage positive behaviors such as increased literacy and to
discourage negative activities such as drunk driving.
Unlike societal marketing, CSR has existed for many years. Another difference is
that CSR "focuses more in a corporate level and stakeholders", while
societal marketing is more concerned about the consumer and their long
term benefits. CSR social and environmental concerns are integrated into all
business operations.

2-7 Why is market access an important aspect of consumer well-being? What are
some important reasons why consumers can experience limited market access?
Market access is the consumer's ability to find and purchase goods and services.
Consumers can experience limited market access because their ability to find and
purchase goods and services is limited because of physical, mental, economic, or social
barriers.
Many of us take for granted that we are free to shop anywhere we want or that we can
easily learn about our purchase options—everything we need is just a click of a mouse
away, right? In reality, however, large numbers of people can’t make this claim. For
one reason or another their market access (i.e., their ability to find and purchase
goods and services) is limited because of physical, mental, economic, or social
barriers. There are 11 million U.S. adults that have conditions that may make it
difficult for them to leave home to shop. This can be minimized through the use
of technology and other resources.
  The touch screen is a breakthrough for people who have problems with motor
skills. They no longer need to manipulate a mouse, keyboard, or pen to use
programs. A device like the iPad makes touch-to-speak technology affordable and
easy to use. For example, a person who is unable to speak can communicate his
or her preferences for meals, activities, and so on just by touching the screen
 Dating websites for singles with health problems allow people with an array of
disabilities, including paralysis and multiple sclerosis, to find partners.
 As the number of people using wheelchairs grows by over two million per year in
the United States alone, the market for adaptive clothing that provides a broader
range of apparel options grows as well.

2-8 what is LOHAS, and how is it significant to marketers?

LOHAS stands for “lifestyles of health and sustainability.” This label refers to people
who worry about the environment, want products to be produced sustainably, and
spend money to advance what they see as their personal development and potential.
Marketers point to a segment of consumers they call LOHAS—an acronym for “lifestyles
of health and sustainability.” These so-called “Lohasians” (others refer to this segment
as cultural creatives) represent a great market for products such as organic foods,
energy-efficient appliances, and hybrid cars, as well as alternative medicine, yoga tapes,
and ecotourism.