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Consumerism Issues and Responses:Environmental Concerns, Consumer Privacy

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Consumer Psychology (PSY - 514)
VU
Lecture 44
Consumerism ­ Issues and Responses
Understanding:
Environmental Concerns
Consumer Privacy
Responses to Consumerism
 Legislative Responses
 Business Responses
Marketers Responses
5. Environmental Concerns
Environmentalism in the Middle East
In the Middle East, the earliest known writings concerned with environmental pollution were Arabic medical
treatises written during the "Arab Agricultural Revolution", by writers such as Alkindus, Costa ben Luca, Rhazes,
Ibn Al-Jazzar, al-Tamimi, al-Masihi, Avicenna, Ali ibn Ridwan, Isaac Israeli ben Solomon, Abd-el-latif, Ibn al-
Nafis.
They were concerned with air contamination, water contamination, soil contamination, solid waste mishandling,
and environmental assessments of certain localities.
Europe and USA
In Europe, it was the Industrial Revolution that gave rise to modern environmental pollution as it is generally
understood today. The emergence of great factories and consumption of immense quantities of coal and other
fossil fuels gave rise to unprecedented air pollution and the large volume of industrial chemical discharges added to
the growing load of untreated human waste. Environmentalism grew out of the movements, which were a reaction
to industrialization, the growth of cities, and worsening air and water pollution.
In the United States, the beginnings of an environmental movement can be traced as far back as 1739, when
Benjamin Franklin and other Philadelphia residents, citing "public rights," petitioned the Pennsylvania Assembly to
stop waste dumping and remove tanneries from Philadelphia's commercial district
Popular Environment Movement
The 1990's was the decade of the environment. The "Green Movement" is a term borrowed from the name given
to Germany's radical environmentalists. Green movement is growing significantly and marketers are seeking to
cash in on an environmental awakening
Environmentalists ­ A New Culture
Environmentalist action has recently led to the development of a new subculture. It is mainly composed of the
educated middle and upper-class. These environmentally conscious types take special pride in their sustainable
consumption patterns, shopping at grocery stores that trumpet earth-friendliness (such as Whole foods) and
buying organic products.
Some environmentalists complain that this group of elites is shopping under the banner of environmentalism
without espousing any of its true ideals. Because organic and sustainable products are often more expensive,
purchasing them has become a mark of wealth... is another form of pretension,
6. Consumer Privacy
Consumer information collected, merged and exchanged through computer and communication technologies has
become the main resource that businesses and governments use to facilitate millions off transactions that engaged
in by the consumers. Timely accurate and complete information is needed by a variety of organizations such as
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Consumer Psychology (PSY - 514)
VU
banks, retailers, commercial lenders, mortgage lenders, financial services institutions, direct response marketers,
advertising agencies, insurance companies and public utilities.
The purposes of consumer information may include such things as approving or denying credit , issuing credit
cards, writing insurance policies, selecting people for direct mail solicitation, preventing fraud, determining
eligibility for government aid, investigating and law enforcement purposes, and many other activities
Information given for one purpose ­ credit, insurance, employment, organizational memberships, publication
subscriptions, charitable donations.etc is being widely used for other commercial purposes without the individuals'
knowledge or consent
Responses to Consumerism
Responses to consumerism may be understood in the following two main areas:
1) Legislative Responses
2) Business Responses
3) Marketers Responses
1) Legislative Responses
Historically legislation was oriented towards protecting competition and competitors rather than consumers. These
days a large number of legislative attempts are being made by governments supported by the civil society
organizations to support consumer rights.
2) Business Responses
The social and ethical responsibility of businesses has become a topic of much public debate. Many corporations
have responded to their critics. These responses have three characteristics:
Changes in Board of Directors
More emphasis upon Ethics
Use of social performance disclosures
Changes in Board of Directors Many board of directors now include outside directors such as influential
academics, minority and religious leaders, who give society's views during decision making. Social responsibility
and profits often complement each other. Some of the most profitable companies are often named as being the
most socially responsible
More emphasis upon Ethics Corporate Ethics are difficult to define because they relate to individual
philosophies and values. There however, needs to be an ethical base for making marketing decisions. There are a
variety of theories that are relevant to marketing and consumer behavior. Two approaches are, however, most
common:
Relative Standards
Absolute Standards
Relative Standards or Situation Ethics
1.
This also known as situation ethics or speculative philosophy. According to this view Ethics are subjective,
situational, culturally determined and autonomous they are developed by the people on the basis of human
experience. According to relative standards, correctness of a specific action depends upon specific circumstances
involved.
Two forms of situational ethics have been important:
Utilitarianism: Looks at the consequences of an act to decide whether it is morally right. This approach
strives to achieve the most good for the greatest number of people
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Consumer Psychology (PSY - 514)
VU
Institutionalism: Institutionism uses and individual's conscience to decide whether an act is ethical. This
approach strives to satisfy individual's own feelings about right and wrong
Objections to Situation Ethics
There may be little agreement among the people as to what is morally correct thing to do. Decisions may appear to
be arbitrary due to different situations. There may be uncertainty about the moral correctness of the decisions
because of changing values over time.
2.
Absolute Standards
Absolute Standards is known as moral idealism or moral revelation. The correctness of action depends upon
permanent, rigid, universal rules or moral ideas which are to be applied whatever the circumstances. Such an
approach is recommended by many philosophers today. It is upon such universals that businesses, marketers, and
consumers ethical philosophy must be built.
Sometimes consumers take extremely novel responses to resolve their perceived injustices include e.g. one fellow
burned his car on the front doorstep of a manufacturer because he was disappointed in it. A citizen smashed a
vending machine with a fire axe when failed to function properly
3) Marketers' Responses
The number and seriousness of consumer problems suffered by general population is not significant. Only a small
vocal minority of consumers complain about the problems they experience with products and services. Great
majority of those complaints are registered about products and services are resolved to the satisfaction of
consumers.
Business people must educate the public about the operation of the marketing system, the benefits of free
enterprise, etc... They need to assess and modify their policies and practices to improve products and services
offered to consumers. This highlights the need for an effective Consumer Response System that draws from the
following features
Understanding what consumers experience
Establishing a Consumer Advisory Board
Listening to consumers and responding effectively
Establishing corporate consumer affairs units
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Table of Contents:
  1. INTRODUCTION TO CONSUMER PSYCHOLOGY:Consumer Behavior
  2. INTRODUCTION TO CONSUMER PSYCHOLOGY:Consumer research
  3. INTRODUCTION TO CONSUMER PSYCHOLOGY:Marketing Mix, Product, Price
  4. INTRODUCTION TO CONSUMER PSYCHOLOGY:Customer Value, Perceived Value
  5. VALUE AND RETENTION FOCUSED MARKETING AND CONSUMER DECISION MAKING PROCESS
  6. CONSUMER RESEARCH:Quantitative Research, Qualitative Research
  7. MAJOR STEPS IN CONSUMER RESEARCH PROCESS:Design of Primary research
  8. QUANTITATIVE RESEARCH DESIGNS & DATA COLLECTION METHODS
  9. QUANTITATIVE RESEARCH DATA COLLECTION TECHNIQUES:ATTITUDE SCALES
  10. QUALITATIVE RESEARCH DESIGNS & DATA COLLECTION METHODS
  11. CUSTOMER SATISFACTION MEASUREMENT, SAMPLING, AND DATA ANALYSIS AND REPORTING
  12. MARKET SEGMENTATION AND ITS BASES:Geographical Segmentation
  13. BASES FOR SEGMENTATION: DEMOGRAPHIC SEGMENTATION PSYCHOGRAPHIC SEGMENTATION
  14. BASES FOR SEGMENTATION: SOCIOCULTURAL SEGMENTATION USE RELATED SEGMENTATION USAGE SITUATION SEGMENTATION
  15. BASES FOR SEGMENTATION: BENEFIT SEGMENTATION:Intrinsic Cues
  16. BASES FOR SEGMENTATION: HYBRID SEGMENTATION STRATEGIES
  17. MARKET SEGMENTATION IMPLEMENTING SEGMENTATION STRATEGIES ENVIRONMENTAL INFLUENCES CULTURE
  18. HOW CULTURE IS LEARNT ENVIRONMENTAL INFLUENCES:Formal Learning
  19. CULTURE AND ITS MEASUREMENT ENVIRONMENTAL INFLUENCES
  20. MEASUREMENT OF CULTURE ENVIRONMENTAL INFLUENCES:Consumer Fieldwork
  21. SUBCULTURE CHAPTER 4: ENVIRONMENTAL INFLUENCES
  22. AGE AND GENDER SUBCULTURE CHAPTER 4: ENVIRONMENTAL INFLUENCES
  23. BASES FOR SEGMENTATION: BENEFIT SEGMENTATION:Market Segmentation
  24. SOCIAL CLASS CHAPTER 4: ENVIRONMENTAL INFLUENCES:Occupation
  25. CONSUMER SOCIAL CLASSES CHAPTER 4: ENVIRONMENTAL INFLUENCES:Affluent Consumer
  26. CONSUMER SOCIAL CLASSES CHAPTER 4: ENVIRONMENTAL INFLUENCES:Membership Group
  27. CONSUMER SOCIAL CLASSES CHAPTER 4: ENVIRONMENTAL INFLUENCES:Shopping Groups
  28. UNDERSTANDING PERSONALITY CHAPTER 5: INDIVIDUAL DETERMINANTS OF CONSUMER BEHAVIOR
  29. CONSUMER PERSONALITY, TRAIT THEORY AND SELF IMAGES
  30. CONSUMER MOTIVATION:Needs, Goals, Generic Goals
  31. UNDERSTANDING LEARNING:Intentional and Incidental Learning, Implications for Marketers
  32. INSTRUMENTAL CONDITIONING, INFORMATION PROCESSING AND MEMORY
  33. ATTITUDES:Characteristics of Attitudes, Attitudes have consistency
  34. ATTITUDE FORMATION AND CHANGE:How attitudes are learned?
  35. ATTITUDE CHANGE STRATEGIES:Resolving two conflicting attitudes
  36. INTRODUCTION TO CONSUMER DECISION MAKING:Decision Complexity
  37. Problem Recognition, Search and Evaluation and Decision and Purchase
  38. Decision and Purchase:Consumer Decision Rules, Output, Relationship Marketing
  39. Decisions Related to Post Purchase:Product Set up and Use
  40. Marketing Implications of Decisions Related to Post Purchase:Understanding
  41. Post Purchase Evaluation:Determinants of Satisfaction, Consumer Complaint Behavior
  42. Post Purchase Dissonance:Dissonance Reduction, Marketing Implications
  43. Consumerism:Roots of Consumerism, The Nature of Consumerism
  44. Consumerism Issues and Responses:Environmental Concerns, Consumer Privacy
  45. Review Consumer Psychology Course:Consumer Research, Consumerism