PART ONE Introduction Chapter One Consumer Behavior and Marketing Strategy PART TWO External Influences Chapter Two Cross-Cultural Variations in Consumer Behavior Chapter Three The Changing American Society: Values Chapter Four The Changing American Society: Demographics and Social Stratification Chapter Five The Changing American Society: Subcultures Chapter Six The American Society: Families and Households Chapter Seven Group Influences on Consumer Behavior PART TWO Cases Cases 2–1 through 2–9 PART THREE Internal Influences Chapter Eight Perception Chapter Nine Learning, Memory, and Product Positioning Chapter Ten Motivation, Personality, and Emotion Chapter Eleven Attitudes and Influencing Attitudes Chapter Twelve Self-Concept and Lifestyle PART THREE Cases Cases 3–1 through 3–9 PART FOUR Consumer Decision Process Chapter Thirteen Situational Influences Chapter Fourteen Consumer Decision Process and Problem Recognition Chapter Fifteen Information Search Chapter Sixteen Alternative Evaluation and Selection Chapter Seventeen Outlet Selection and Purchase Chapter Eighteen Postpurchase Processes, Customer Satisfaction, and Customer Commitment PART FOUR Cases Cases 4–1 through 4–7 PART FIVE Organizations as Consumers Chapter Nineteen Organizational Buyer Behavior PART FIVE Cases Cases 5–1 and 5–2 PART SIX Consumer Behavior and Marketing Regulation Chapter Twenty Marketing Regulation and Consumer Behavior PART SIX Cases Cases 6–1 and 6–2 Appendix A Consumer Research Methods Appendix B Consumer Behavior Audit
CHAPTER 20 Marketing Regulation and Consumer Behavior McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc All rights reserved PART VI: CONSUMER BEHAVIOR AND MARKETING REGULATION 20-2 Learning Objectives Explain the two major concerns in marketing to children that CARU deals with L01 L01 Describe the various marketing activities aimed at children that are controversial L02 L02 Discuss new guidelines by the FTC regarding online privacy protection for adults L03 L03 Explain marketing communication issues related to adults including deceptive advertising L04 L04 Discuss regulation concerns when marketing to adults as they relate to product and price L05 L05 20-3 Consumer Behavior In The News… Legal or Not? – You Be the Judge McDonald’s sponsored report cards in an elementary school Here’s how it worked… McDonald’s paid for the printing and in return Put their logo on the report card and offered a free Happy Meal for good grades or attendance Source: E B York, “McDonald’s Discontinues Report-Card Sponsorship,” Advertising Age, January 21, 2008, p 37 20-4 Consumer Behavior In The News… Legal or Not? – You Be the Judge If you said it is LEGAL you are correct! However, legality is only one factor The school received complaints and bad PR after a parent contacted the Campaign for a Commercial Free Childhood McDonald’s retracted the sponsorship and paid for reprinting The Irony? The school approached McDonald’s about the sponsorship! Source: E B York, “McDonald’s Discontinues Report-Card Sponsorship,” Advertising Age, January 21, 2008, p 37 20-5 Regulation and Marketing to Children CARU – Industry Self-Regulation Concerns about the Ability of Children to Comprehend Commercial Messages Concerns about the Effects of the Content of Commercial Messages on Children Controversial Marketing Activities Aimed at Children Children’s Online Privacy Issues 20-6 Regulation and Marketing to Children Self-Regulatory Body The National Advertising Division of the Council of Better Business Bureaus is the primary self-regulatory body of the American advertising industry The Children’s Advertising Review Unit (CARU) is a special unit created by this body to review advertising aimed at children McDonald’s Happy Meal Commercial YouTube Spotlight 20-7 Regulation and Marketing to Children Comprehension Concerns Two Major Issues Relating to Comprehension: Do Children Understand the Selling Intent of Commercials? Can Children Understand the Words and Phrases in Commercials? 20-8 Regulation and Marketing to Children 20-9 Regulation and Marketing to Children Concerns about the Effects of the Content of Commercial Messages on Children Health and Safety Values CARU Guidelines 20-10 Regulation and Marketing to Children 20-11 Regulation and Marketing to Children Controversial Marketing Activities Aimed at Children Mobile Marketing and Children Commercialization of Schools Internet Marketing and Children 20-12 Regulation and Marketing to Children Mobile Marketing and Children Sometimes referred to as the “Third Screen,” cell phones are an increasingly integral part of our lives Marketers see younger children as the next big growth market Mobile Marketing Efforts • • • • ringtones mobile games text-in contests mobile advertising 20-13 Regulation and Marketing to Children Commercialization of Schools There has been ongoing concern and controversy around the commercialization of elementary and high schools The following are commercialization activities as classified by the Consumers Union: In-school Ads Ads in Classroom Corporate-sponsored Educational Materials and Programs Corporate-sponsored Contests and Incentives Programs 20-14 Regulation and Marketing to Children Internet Marketing and Children Children are major users of the Internet, and marketers use the Internet to communicate with kids Two major concerns have emerged: Invading children’s privacy Exploitation of children through manipulative sales techniques, e.g., adver-games 20-15 Regulation and Marketing to Children Children’s Online Privacy Issues Children’s Online Privacy Protection Act (COPPA) Online privacy relates to collection and use of information from websites COPPA passed by Congress in 1998 FTC issued Children’s Online Privacy Protection Rule (a.k.a The Rule) in 1999 20-16 Regulation and Marketing to Children 20-17 Applications in Consumer Behavior Education is a key aspect of the FTC’s fight against online privacy invasion among children Source: http://www.ftc.gov 20-18 Regulation and Marketing to Adults Consumer Privacy Marketing Communications Product Issues Pricing Issues 20-19 Video Application The following Video Clip demonstrates the importance of regulatory and ethical element considerations within the context of the marketing environment 20-20 20-21 20-21 Regulation and Marketing to Adults 20-22 Regulation and Marketing to Adults Marketing Communications Advertising and Values Consumer Information Accuracy Adequacy of Consumer Information 20-23 Regulation and Marketing to Adults Information Accuracy and Deception Deception can occur even though a direct false claim has not been made Direct claim Logical implication Pragmatic implication Firms can be held liable for false logical and pragmatic implications they create Example: Weedex fights weeds – many would understand “fight” to mean “kill” If Weedex does not kill weeds, then the pragmatic implication (fight = kill) would be false 20-24 Applications in Consumer Behavior Adequacy of Consumer Information FDA label rule deals with trans fats Provide opportunities for some food marketers and challenges for others Weetabix can use trans fats as a point of differentiation 20-25 [...]... http://www.ftc.gov 20- 18 Regulation and Marketing to Adults Consumer Privacy Marketing Communications Product Issues Pricing Issues 20- 19 Video Application The following Video Clip demonstrates the importance of regulatory and ethical element considerations within the context of the marketing environment 20- 20 20- 21 20- 21 Regulation and Marketing to Adults 20- 22 Regulation and Marketing to Adults Marketing. ..Regulation and Marketing to Children 20- 11 Regulation and Marketing to Children Controversial Marketing Activities Aimed at Children Mobile Marketing and Children Commercialization of Schools Internet Marketing and Children 20- 12 Regulation and Marketing to Children Mobile Marketing and Children Sometimes referred to as the “Third Screen,” cell... 20- 15 Regulation and Marketing to Children Children’s Online Privacy Issues Children’s Online Privacy Protection Act (COPPA) Online privacy relates to collection and use of information from websites COPPA passed by Congress in 1998 FTC issued Children’s Online Privacy Protection Rule (a.k.a The Rule) in 1999 20- 16 Regulation and Marketing to Children 20- 17 Applications in Consumer Behavior Education... Materials and Programs Corporate-sponsored Contests and Incentives Programs 20- 14 Regulation and Marketing to Children Internet Marketing and Children Children are major users of the Internet, and marketers use the Internet to communicate with kids Two major concerns have emerged: 1 Invading children’s privacy 2 Exploitation of children through manipulative sales techniques, e.g., adver-games 20- 15 Regulation... Marketing Communications Advertising and Values Consumer Information Accuracy Adequacy of Consumer Information 20- 23 Regulation and Marketing to Adults Information Accuracy and Deception Deception can occur even though a direct false claim has not been made Direct claim Logical implication Pragmatic implication Firms can be held liable for false logical and pragmatic implications they create... the next big growth market Mobile Marketing Efforts • • • • ringtones mobile games text-in contests mobile advertising 20- 13 Regulation and Marketing to Children Commercialization of Schools There has been ongoing concern and controversy around the commercialization of elementary and high schools The following are commercialization activities as classified by the Consumers Union: In-school Ads ... – many would understand “fight” to mean “kill” If Weedex does not kill weeds, then the pragmatic implication (fight = kill) would be false 20- 24 Applications in Consumer Behavior Adequacy of Consumer Information FDA label rule deals with trans fats Provide opportunities for some food marketers and challenges for others Weetabix can use trans fats as a point of differentiation 20- 25 ... regulatory and ethical element considerations within the context of the marketing environment 20- 20 20- 21 20- 21 Regulation and Marketing to Adults 20- 22 Regulation and Marketing to Adults Marketing. .. Health and Safety Values CARU Guidelines 20- 10 Regulation and Marketing to Children 20- 11 Regulation and Marketing to Children Controversial Marketing Activities Aimed at Children Mobile Marketing. .. Children Mobile Marketing and Children Commercialization of Schools Internet Marketing and Children 20- 12 Regulation and Marketing to Children Mobile Marketing and Children Sometimes referred