consumers psychology

8/22/2019 consumers psychology

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Irwin/McGraw-Hill

The McGraw-Hill Companies, Inc., 2000MARKETING, 6/e BERKOWITZ KERIN HARTLEY RUDELIUSIrwin/McGraw-Hill

C H A P T E R F O U R

ETHICS AND SOCIALRESPONSIBILITY IN MARKETING


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Irwin/McGraw-Hill

The McGraw-Hill Companies, Inc., 2000MARKETING, 6/e BERKOWITZ KERIN HARTLEY RUDELIUS

AFTER READING CHAPTER 6

YOU SHOULD BE ABLE TO:

Appreciate the nature and significance of ethics in

marketing.

Understand the differences between legal and ethical

behavior in marketing. Identify factors that influence ethical and unethical

marketing decisions.

Distinguish among the different concepts of ethics

and social responsibility.

Recognize the importance of ethical and socially

responsible consumer behavior.


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PP4-AA Anheuser Buschs campaign for responsible drinking

and environment-conscious disposition of packaging

Know When to Say When campaign for

responsible drinking appeared first via posters in

1983 and two years later with TV commercials. Such

efforts have contributed to a sizeable decline in fatal

drunk-driving accidents and a 64% drop in teen

drunk-driving deaths since 1982.

Anheuser Busch is an advocate and sponsor or

numerous efforts to preserve the environment and is

the worlds largest recycler of aluminum cans.


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PP4-C Trends in alcoholic consumption by high school seniors

5 0

5 5

6 0

6 5

7 0

7 5

8 0

'7 9 '8 0 '8 1 ' 82 '8 3 '8 4 '8 5 '8 6 '8 7 ' 88 '8 9 '9 0 '9 1 '9 2 ' 93 '9 4 '9 5

Percen

tage

Year


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PP4-A Definition of Ethics

Ethics are . . . .

the moral principals and values thatgovern the actions and decisions of

an individual or group. They serve

as guidelines on how to act rightly

and justly when faced with moral

dilemmas.


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PP4-1 Classifying marketing decisions according to ethical andlegal relationships

Ethical

Ethical

ity

Illegal Legal

Legality

Ethical

but

illegal

Unethical

and illegal

Unethical

butlegal

Ethical

and

legal

Unethical


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PP4-BB Concept Check

1. What are ethics?

2. What are 4 possible reasons for

the present state of ethical

conduct in the United States?


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PP4-CC Understanding Ethical Marketing Behavior

Consider the use of anothers ideas:

In the US copyrights, trademarks and patents are

considered intellectual property, and unauthorized

use is illegal and unethical. Outside the US, sometimes due to the culture of a

country, unauthorized use of copyrights, patents and

trademarks is not considered unethical or illegal.

Such is the case in countries like China, Mexico andKorea.


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PP4-D International comparison of the percent of U.S.software package sales that are illegal copies

0

20

40

60

80

100

Percentage

China

Ta

iwan

Iber

ia

Sw

itzer

lan

d

Korea

Japan

Ita

ly

Bene

lux

Germany

Bene

lux


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PP4-2 A framework for understanding ethical behavior

Societal culture and

norms

Business culture and

industry practices

Organizational culture

and expectations

Personal moral

philosophy and ethical

behavior


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PP4-Ea Consumer Bill of Rights

In 1962 President John F. Kennedy

outlined the Consumer Bill ofRights that codified the ethics of

exchange between buyers andsellers.


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PP4-Eb Consumer bill of rights - continued

Safety

Be informed

Choose

Be heard

Right to


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PP4-DDa Two kinds of unethical behavior

1. Industrial Espionage is the clandestine collectionof trade secrets or proprietary information about

a companys competitors.

Industrial espionage is most prevalent inhigh-

technology industries, such as electronics,

specialty chemicals, industrial equipment,

aerospace, and pharmaceuticals, where technical

know-how and trade secrets separate industry

leaders from followers.


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PP4-DDb Two kinds of unethical behavior

2. The giving and receiving of bribes and kickbacks

is the second form of unethical competitive

behavior.

Bribes and kickbacks are often disguised as gifts,

consultant fees and favors. They are more

common in business-to-business and governmentmarketing than in consumer marketing.


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PP4-EE Foreign Corrupt Practices Act

This act makes it a crime for U.S. corporations

to bribe an official of a foreign government or

political party to obtain or retain business in a

foreign country.

Generally, ethical standards are more likely to

be compromised in industries experiencing

intense competition and in countries in earlier

stages of economic development.


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PP4-3 American Marketing Association Code of Ethics

Members of the American Marketing Association have

joined together in subscribing to its code of ethics

embracing the following topics:

1. Responsibilities of the Marketer

2. Rights and Duties of Parties in the Marketing

Exchange Process

3. Organizational Relationships


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PP4-F Personal moral philosophies

MORAL IDEALISM

Considers certain individual rights or duties universal

regardless of the outcome

UTILITARIANISM

Considers the greatest good for the greatest number

by assessing the costs and benefits of the consequences


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PP4-FF Concept Check

1. What rights are included in the

Consumer Bill of Rights?

2. What ethical practice is addressed in

the Foreign Corrupt Practices Act?

3. What is meant by moral idealism?


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PP4-4 Three concepts of social responsibility

Profit responsibility

Owners/

Stockholders

Stakeholder

responsibility

Societal

responsibility

General

public

Ecological

environmentC

ustomers

Employees

Suppliers/Distributors

Public interest groups


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PP4-G Elements of a social audit

Of social expectations and rationale forengaging in social responsibility endeavors

Of causes or programs consistent with thecompanys mission

Of objectives and priorities for programsand activities to be undertaken

Of the type and amount of resources

necessary to achieve objectives

Recognition

Identification

Determination

Specification

EvaluationOf programs and activities and assessment offuture involvement


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PP4-GGa Valdez Principles

The Valdez Principles encourage companies to:

1. eliminate pollutants, minimize hazardous wastes,

and conserve nonrenewable resources;

2. market environmentally safe products andservices;

3. prepare for accidents and restore damaged

environments;4. provide protection for employees who report

environmental hazards;


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PP4-GGb Valdez Principles

5. appoint an environmentalist to their

boards of directors, name an

executive for environmental affairs,

and develop an environmental audit

of their global operations to be made

available for public inspection.


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Irwin/McGraw-HillMARKETING 6/e BERKOWITZ KERIN HARTLEY RUDELIUS

PP4-HH Concept Check

1. What is meant by social

responsibility?

2. Marketing efforts to produce,promote, and reclaim

environmentally sensitive products

are called ________________ .

3. What is a social audit?

consumers psychology

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