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Consumerism:Roots of Consumerism, The Nature of Consumerism

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Consumer Psychology (PSY - 514)
VU
Lecture 43
Consumerism
Understanding:
Consumerism
 Roots of Consumerism
Nature of Consumerism
Consumerism
Consumerism encompasses the evolving set of activities of government, business and independent organizations
that are designed to protect the rights of the consumers.
Consumerism is concerned with protecting consumers from all organizations with which there is exchange
relationship. There are consumer problems associated with hospitals, libraries, schools, police forces, and various
government agencies, as well as with business firms
Roots of Consumerism
Roots of consumerism may be traced through the following:
1.
Disillusionment with the system
2.
The performance gap
3.
The consumer information gap
4.
Antagonism toward advertising
5.
Impersonal and unresponsive marketing institutions
6.
Intrusions of privacy
7.
Declining living standards
8.
Special problems of the disadvantaged
9.
Different views of the marketplace
Institutions have been subjected to increasing public scrutiny, skepticism and loss of esteem
Many consumers think that they get worst deals in the marketplace than they used to.
Many consumers express broad dissatisfaction with the goods they buy. Their expectations of product
performance and reliability have risen (largely because of advertising touting the new improvements). Increased
product complexity brings about new possibilities for malfunction and a perception by the consumers that the
promise ­ performance gap is increasing.
Amateur buyers lacking time, interest or capacity to process information adequately in order to make optimal
marketplace decisions face literally thousands of complex products requiring evaluations along many dimensions
relating to performance, convenience or even societal concerns.
Large segments of population are very skeptical of the usefulness and truthfulness of the advertising information.
It is criticized for its intrusiveness and clutter, irritation factor, stereotyped role portrayals, and promotion of
unrealistic and unsupportable expectations. Telemarketing calls are a related annoyance. Where there is human or
computerized voice on the other end, about 70% people ranked it as a major irritation
There have been impersonal and unresponding marketing institutions that have been causing such marketing
factors as:
The rise of self service retailing
Reduced knowledge of sales employees
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Consumer Psychology (PSY - 514)
VU
Bureaucratic structures contribute to feeling that no marketer is listening
Development of many consumer-information databases made possible under our increasingly computerized
society has caused concern over the access to and use of such data and has led to the attempts to protect the
consumer's privacy
Reductions in consumers real discretionary income has led to pessimism and disenchantment with the economic
system and attempts to deal with the situation
The young, the old and the poor are even more vulnerable than most other groups in the society and face great
difficulties coping in the marketplace. Poor people face great difficulties that restrict their ability to function as
consumer in the marketplace. Poverty restricts people's ability to function as ordinary consumers, but the face
hygienic, dress and interpersonal problems.
Business people and their critics have radically different perceptions of the nature of marketplace
2. The Nature of Consumerism
The Nature of Consumerism may be summarized in the following points:
Consumer Safety
Consumer Information
Consumer Choice
Environmental Concerns
Consumer Privacy
Business Response to Social and Ethical Concerns
Consumer's Responsibilities
Market Responses to Consumers
1. Consumer Safety
The oldest and most controversial of the consumer's rights, the one which both business people and consumerists
agree upon and support. Consumers regularly complain about shoddy or defective merchandise and poor services.
It is one thing to be cheated or deceived. It is quite another to be physically injured by unsafe product. Safety
always is an issue for consumers, business and government.
2. Consumer Information
Consumers' rights with regard to information relate to the marketer's provision of adequate information which
neither deceives nor misleads. Two areas are important here:
a. Deception of Consumers:
The deception of consumers is accomplished by deceptive advertisement. While dealing with deception then it
needs not to prove that deception actually occurred in advertisement but merely that the ad had the capacity to
deceive. It is also important for the advertisers to learn that they can't escape the liability simply because they
didn't know that the ad's claim was false.
Puffery in Advertisements
Advertisements have long been designed on the basis of accepted approach of puffery ­ the use of exaggerated
praise for an advertised item. The most difficult point here, however, is that at which point the puffery becomes
deception.
On the basis of definition three types of deceptive advertising may exist:
The outright lie: The outright lie occurs where a claim is made that is completely false, even from an
objective point of view. That is it is impossible for consumers to achieve claimed benefit.
Claim fact discrepancy: The claimed benefit of the advertised product must be qualified in some way
for it to be correctly understood and evaluated but this I not done in the ad). An advertisement may claim
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Consumer Psychology (PSY - 514)
VU
that 60% doctors recommend "X" if consumers knew what types of doctors, how many were surveyed,
what questions were asked.
Claim ­ fact interaction: The advertisement claim (while being neither explicitly or implicitly deceptive)
interacts with the accumulated belief and attitudes held by consumers in such a way that they are misled or
deceived by it. An actor who played the role of a doctor in a popular play/movie recommends in an
advertisement a certain product, people may think of him as an expert, if consumers are not told that he is
in fact an actor
b. Misleading the consumers:
Misleading statements about the rivals' products are also grounds for a suit
3. Consumer Choice
Some consumer activists argue that consumers have less choice than might be desirable and possible. Other
consumer activists support reduced choice by arguing that consumers should be given not simply what they want,
but what is the best for them. They support that buyers are not able to adequately determine for themselves that
what is best in their interest and must be provided with right products.
4. Environmental Concerns
The right to clean environment assures that the environment in which the consumers live is free from pollution.
Large scale pollution seems to be a by-product of an economically developed society, but it is also an area of great
concern for many consumers
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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