- businesses have traditionally responded to questions like these on the basis of the principle of "let the buyer beware"

- yet progress on both the public policy and consumer advocacy fronts is reversing this axiom, putting that responsibility with the marketer - "let the seller beware"

- not only must marketers make sure to abide by sate and government regulations, they must also act in socially responsible ways to protect consumers

1. the right to be informed
2.  the right to safety
3. the right to redress (to be heard)
4. the right to choose (no monopolies)
5. the right to a healthful environment
6. the right to privacy

- the FTC has ruled that companies that make claims about a product's safety, performance, efficacy, quality, or comparative price must provide tests, studies, or other data to support their claims

- marketers are obligated to make proof of their claims accessible to the public

- the FTC has the power to compel marketers to correct wrongful beliefs that consumers form about a product as a result of deceptive advertising

- sometimes we don't accept the new information and hold on to earlier beliefs

- at its best, ___________ advertising is based on consumer behavior research

- the FTC mandates the use of warning labels on several products and their supporting advertising

- of all consumer complains relating to this, truth in advertising is most frequently criticized

- the purpose of this is not directly to discourage consumers from using products that have potentially harmful consequences, but to provide them with the means to make an informed decision on the use of those products

- the FTC has ruled that retailers must provide consumers with two prices for every packaged goods item: the price per package andthe price per unit of measure

- allow consumers to make value comparisons among products and package sizes

- the requires that lenders do this in a way that informs consumers in a way that informs consumers of the actual rate of interest

- both awareness of disclosure and knowledge of interest rates increased after the Truth-in-Lending Act was passed; consumer credit knowledge is, however, still inadequate

- public policy and consumer advocacy groups should encourage consumers to shop around for a lender

1. work to improve the decision-making skills of consumers
2. are on the alert for cases of deceptive advertising
3. work to identify and address consumer information problems
4. design product information programs that make specific and objective information avaialble to consumers so that they can make better informed choices
5. exert pressure on marketers to provide accurate and complete information about the costs and benefits of their goods and services

- the Consumer Product Safety Commission (CPSC) protects the consumer's ____ __ _____

- the FTC regualtes advertsiing claism realted to product safety

- the Traffic Safety Administration (TSA) ensures that automobile manufacturers adhere to safety stanards and remedy safety defects

- the FDA oversees safety issues in food and drug-related products

- this right - to be heard - is the right to complain and express grievances about product failues

- marketers can ensure that warranty policies are honored and listen carefully to consume rcomplaints and grievances

• there are opportunities for consumer advocacy groups to take action on a broad range of environmental issues

• waste control and recycling
• concern for wildlife and the biosphere
• environmental labeling
• concern for health
• energy awareness

- the Fair Credit Reporting Act requires credit reporting agencies to notify consumers and supply information on adverse decisions made about them

- the Privacy Act applies broader record-keeping restrictions to U.S. government agencies

- external facilitating factors: technical and economic

- external socioenvironmental factors: physical environment and changes in societal values

- internal motivation factors: possessions, status, affiliation, perceptions of abundance

- not only do marketers supply products, but marketers also encourage the demand for products by making them culturally desirable

- marketers acheive this largely through the use of cultural symbolism

- understanding how their actions potentially contribute to social malaise may help marketers make decisons that result in the selling of their products in a socially responsible manner

- consumers' infatuation with certain goods and services affects self-identity

- the goods and services we consumer express and mediate our relationships with other people

- consumers who are very conscientious aabout proecting the environment

- males tend to have higher and better knowledge about green issues than females

- however, females tend to exhibit both higher concern and participate more frequently in various types of green activities

materialism

(the dark side of the consumer society)

the extent to which we measure our self-worth by our external assets and possessions

1. these possessions reflect self-worth
2. these possessions reward societal contributions
3. these possessions lead to control
4. these possessions help us achieve secular immortality
5. acquiring these possessions is encouraged within certain religions
6. these possessions are a route to happiness

1. envious people are materialistic because envy drives them to acquire possessions, especially from others
2. "nongenerous" people areunwilling to give or share possessions
3. materialistic people are possessive

- consumption behavior that is beyond the control of the consumer

- cross addiction is a common phenomenon

- takes its toll on all consumers

- these people are often middle- or high-income people who steal either for the thrill of it or because of deep-rooted psycholigical problems

-  doing this by acquisition (taking merchandise from a store without paying, switching price tags)

- doing this by disposition (returning products to the store after they have been used or damaged by the consumer)

- the consumer and environmental movements have shifted the burden onto the producer

- consumers have to have actual information and choice among brands in the marketplace

• test that marketers use to recognize whether an action is ethical and doesn't violate the law
  • By becoming familiar with all laws, rules, and regulations governing their industry and its marketing practices, marketers respect the legal rights of consumers

an ethics concept regarding the promise to remain faithful to contracts, to keep promises, and to tell the truth

- honor it

the ethics concept that states that the marketer owes and should express gratitude to consumers for their transactions

- appreciate

the ethics concept that states that the marketer is obligated to do no harm to consumers

- no selling of hazardous products

warning labels

 the ethics concept that states that marketers should examine the intentions of their actions to ensure that they keep the good of the consumer in mind

- consumer 1st, no manipulating

the ethics concept that states that the responsible marketer avoids marketing actions that damage the well-being of targeted consumers

- can't target people who can't use product

owe five duties to consumers (i only need to know 3)

- duty of fidelity

- duty of gratitude

- duty of nonmaleficence

- the best new products are developed around important consumer benefits and within markets that are large enough to support them

- the benefits consumers seek are constantly changing as values shift, lifestyles change, and new technologies emerge

- continuous

-dynmically continuous

-discontinuous

when products that are already accepted and used by consumers are modified, and the changes require little or no effort on the part of consumers to modify their behavior to use the products

innovations that disrupt the consumer's use patterns but still do not radically alter them

innovations that necessitate real change in consumption and behavior  patterns

the extent to which consumers in the target market perceive an innovation to be superior in some important way to existing products

 the degree to which an innovation fits with the needs, values, and past experiences of the consumer

 the innovation's level of difficulty to understand and use

the degree to which an innovation may be sampled or tried out.

the frequency with which an innovation is seen in the target market or the ease with which a marketer can show or describe the innovation

an innovation's benefits compared to the money paid for it

- does it offer this for money?

 the extent to which consumer feel they are likely to use the innovation sufficiently to justify its purchase

consumers' perception of the risks associated with the purchase and use of the innovation

- if the level of economic, psychological, social, physical, or performance risk is perceived to be too high, an innovation will not be readily accepted

- The price of the innovation affects its adoption, especially the timing of the adoption

- Price affects the adoption of technological innovations

dislike change, are suspicious of new products and ideas, and will accept innovations only when forced to do so

- usually older

1. the first step is to specify information needs

- to make product development (pricing, distribution, and promotion) decisions, what ifnormation does the marketing manager need?

2.the next step is to convert the need information into research questions

- a good defintion of the research problem or opportunity directs the reserach process to collect and analyze consumer data for marketing decision making

1. specify information needs
2. convert the needed information into research questions
3. select a shopper/buyer/consumer behavioral model to guide the research
4. select the research design
5. use reliable and valid measures of consumer behavior constructs

involves collecting data from a small sample using data collection methods that don't produce quantitative data

- not produce quantitative data

-focus groups

- once consumer researchers identify the appropriate consumer behavior model to use to guide their reserach, they select reliable and valid measures of the constructs inherent in the selected models

- researchers typically do this by conducting a review of the literature to identify reliable and valid measures that have been published in scientific journals related to consumer behavior

- quantitative - can't sample 2 people, sample a group

top - top-of-mind awareness

brand recall

brand recognition

brand awareness

 bottom - consumers who are unaware of the brand

another way to capture brand awareness.  It involves exposing subjects to certain stimuli (e.g., an ad slogan) and then a series of brand names.  Subjects are then asked if they can recognize the correct brand name

a way to capture brand awareness.  It involves asking subjects about what they remember in relation to a brand in question

- refers to a state of mind in which consumers can easily recall the brand

- The brand name is on the "top of their minds"

- When asked about a certain product, the brand in question is evoked quickly and with relative ease compared with other brands

1. recognition measure
2. aided recall measure
3. associative strength measure

• free-association
• picture interpretation
• brand-as-person test
• brand-as-an-animal-or-thing test
• use-experience test
• decision process test
• brand-user test
• how-brand-is-different test

 involves word associations.  Subjects are presented with a list of objects including the brand in question and asked to provide the first set of words that comes to mind

involves presenting subjects with a pictures of a scene in which the brand is somewhat embedded in the picture

this test instructs subjects to select from a set of 50 personality-related words to describe the brand in question

this is a test asking subjects to think of animals or animal characteristics that come to mind when thinking about a certain brand

this test is an in-depth interview with consumers who have a history of using the brand in question

 this test involves tracking a consumer's decision process.  This is traditionally done through an in-depth personal interview.  The interviewer starts from the decision to purchase and probes backward to understand the dynamics and the reasons why the consumer has made that decision

this test is a simple procedure in which subjects are asked to describe the typical brand user

this test asks subjects to distinguish between various brands in a particular product category