Consumer Well-Being

PERILAKU
KONSUMEN
WEEK 2
SEM GENAP 20/21
Copyright © 2018 Pearson Education Ltd. 2-1
 Chapter Objectives
1. Ethical business is good business.
2. Marketers have an obligation to provide
safe and functional products as part of
their business activities.
3. Consumer behavior impacts directly on
major public policy issues that
confront
our society.
4. Consumer behavior can be harmful to
individuals and to society.
Copyright © 2018 Pearson Education Ltd. 2-2
 1. Ethical business is good business.

• Is it possible for
marketers to “do
good” and still “do
well”?
• Can they provide
profits and still do
what’s right for
customers and the
environment?
Copyright © 2018 Pearson Education Ltd. 2-3
 Business Ethics and Consumer Rights
• Business ethics are rules of conduct that
guide actions in the marketplace
• There are cultural differences in what is
considered ethical.

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 Needs and Wants:
Do Marketers Manipulate Consumers?

Do Marketers Create Artificial Needs?

Objective of marketing: create awareness that
needs exist, not to create needs
• Need: a basic versus • Want: one way that
biological motive society has taught us
that the need can be
satisfied

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 Is Marketing Necessary?

Products meet existing needs,

and marketing activities only
help to communicate their
availability
Do Marketers Promise Miracles?
Advertisers simply do not know
enough about people to manipulate
them
2. Marketers have an obligation to provide safe and
functional products as part of their business activities.

Consumers’ Rights
and Product
Satisfaction

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 Courses of Action
• Voice: appeal directly to the retailer for
redress (e.g.,a refund).
• Private: Express your dissatisfaction to
friends and boycott the product or the store
where you bought it.
• Third-Party Response: take legal
action against the merchant, register a
complaint, or write a letter to the
newspaper.
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Consumers get creative when they want to vent
their feelings about companies they don’t like.
Source: Michael Matthews/Alamy Stock Photo.
Consumers’ Rights and Product
Satisfaction

• Market Regulation
o Corrective advertising
• Consumerism
o Culture jamming

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 Sample of Federal Legislation Intended to
Enhance Consumers’ Welfare

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 U.S. Regulatory Agencies and Responsibilities

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 Corporate Social Responsibility
(CSR)
• CSR is the process of encourage
organizations to make a positive impact on
stakeholders
• For example, the shoe company TOMS
is well-known for its promise to give a
needy child a pair of shoes for every pair
it sells.

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 Transformative Consumer Research
• TCR promotes research projects that
include the goal of helping people or
bringing about social change

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Social Marketing

• Social Marketing encourages positive

behavior and discourages negative
activities. For example: increased
literacy and to discourage negative
activities such as drunk driving
• Cause marketing is a strategy that
aligns businesses with a cause.
3. Consumer behavior impacts directly on major
public policy issues that confront our society.

A Ford ad in Brazil promotes

conservation.
Source: Courtesy of J. Walter Thompson
Publicidade LTDA.

Copyright © 2018 Pearson Education Ltd. 2-17

 Data Privacy and Identity Theft
• Identity theft occurs when someone steals
your personal information and uses it
without your permission.
• The Personal Data Notification &
Protection Act of 2015
• The Student Digital Privacy and Parental
Rights Act of 2015

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Tag Suggestions on facebook
 Data Privacy and Identity Theft
• Real time bidding: an electronic trading system that
sells ad space on the webpages people click on at the
moment they visit them.
• Phishing: people receive fraudulent emails that ask them
to supply account information
• Botnets: a set of computers that are penetrated by
malicious software known as malware that allows an
external agent to control their actions
• Locational Privacy: If someone wants to know where
we are or where we’ve been, the data are there for the
asking

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 Market Access
• Disabilities
• Food deserts
• Media literacy
• Functionally illiterate

Some designers are jumping into the

growing market for adaptive clothing.
Source: ITAR-TASS News Agency/Alamy
Stock Photo.

Copyright © 2018 Pearson Education Ltd. 2-21

 Sustainability and
Environmental Stewardship
A triple bottom-line orientation refers to
business strategies that strive to maximize
return in three ways:
• Financial: Provide profits to stakeholders.
• Social: Return benefits to the
communities where the organization
operates.
• Environmental: Minimize damage to the
environment or even improve natural
conditions.
Copyright © 2018 Pearson Education Ltd. 2-22
 Sustainability and Environmental
Stewardship
• Sustainability
Sustainability creates and maintains the conditions under
which humans and nature can exist in productive harmony,
that permit fulfilling the social, economic and other
requirements of present and future generations

• Conscientious consumerism
The consumer’s focus on personal health
is merging with a growing interest in global
health

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“We consume, but at what price?
Let’s become human again. Please
donate.”
Ad for a Belgian NGO (non-
governmental organization) condemning
food industry practices such as the
feeding of Thai prawns with poison.
Source: Christophe Gilbert/Marine
Vincent & Pierre Jadot.
 Green Marketing and Greenwashing
• Green Marketing describes a strategy
that involves the development and
promotion of environmentally friendly
products and stressing this attribute
when the manufacturer communicates
with customers.
• Greenwashing occurs when companies
make false or exaggerated claims about
how environmentally friendly their
products are.
Copyright © 2018 Pearson Education Ltd. 2-25
This ad from The Slovak Republic underscores
the growing priority consumers place upon
organic foods. Source: JANDL marketing a
reklama, S.R.O.
4. Consumer behavior can be harmful to
individuals and to society.
Consumer Terrorism:
• Bioterrorism: susceptibility of the nation’s
food supply as a potential target
• Cyberterrorism: high-profile attacks on the
computer systems of large financial
institutions

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 Addictive Consumption
• Consumer addiction
• Social media addiction
• Cyberbullying
• Phantom Vibration Syndrome
• Compulsive consumption

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Dark Side of CB
• Consumed consumers: people who are used
or exploited, willingly or not, for commercial
gain in the marketplace
• Illegal acquisition and product use
o Consumer theft and fraud
-Shrinkage
-Serial wardrobers
-Counterfeiting
o Anticonsumption
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Identity fraud is part of the dark side of consumer behavior.
Source: Image courtesy Havas Paris
REVIEW

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THANK YOU
SEE YOU NEXT WEEK

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