Consumers Flashcards

1
Q

Can we shop for s better world?

A

Consumer power
How many created wants can we satisfy
32 million acres a year of rainforest being cut down - follow the frog- rainforesg alliance certified product

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2
Q

Critiques of consumption: the good and the bad

A
  • consumption sustains people and produces aggregate happiness and prosperity
  • consumers are sovereign (poweful change agents in classified economies)
  • paint a positive ethical picture of markets and consumption
    Distribution of wealth creates a problem
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3
Q

Politics of purchasing

A

Consumer sovereignty. They’re important they listen to changing tastes of consumers.
Are consumers this powerful? Consumerism can be used to provide a far reaching critique of free markets: - we should put moral restrains on consumption (borgmann)
- shrink markets, lower production

Can we use purchase to vote for socially/ environmentally better products
Can resist or even decide to ‘opt out’ of the consumerist lifestyle, and the various problems it creates

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4
Q

Three principle examples of consumer

A

Ethical consumer
Sustainable consumer
Anti consumers

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5
Q

Ethical consumer

A

Can determine what is right and wrong.
Is the conscious and deliberate choice to make certain consumption choices due to personal moral beliefs and values
Example: vegetarians, vegans, environmentalists, religious people, people concerned with labour standards

Ethical consumers can also boycott ‘bad’ companies and or support ‘good’ companies.

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6
Q

Sustainable consumers

A

Consumption here is the use of goods and services that respond to basic needs and bring a better quality of life, while minimising the use of natural resources, toxic materials and emissions of waste and pollutants over the life cycle, so as not to jeapardise the needs of future generations

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7
Q

Anti consumers

A

Try to reduce their total consumption
They commonly do so because they do not believe in the consumerist thesis: ie that more goods makes you happy
They think that less consumerism is much better than sustainable consumerism

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8
Q

Limitations of consumer responsibility

A

Anti consumption, sustainable and ethical can be merged and change day to day.
Even with segments there is a lot of variety between people.
And the same person can act differently and contradictory.

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9
Q

Responsible tourism

A

Consumers want holidays that minimise environmental impacts and bring positive benefits to communities.

Consumers want all the perks of normal holiday but be ethical/responsible when they travel

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10
Q

Consumer participation in responsibilities experience benefits

A

Community benefit: give something back
Group benefit: educational experience
Personal benefit: higher quality experience

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11
Q

Goals driving PARTICIPATION in responsible tourism

A

Inner directed (self interested) - ‘tailor made for individual needs’ responsible = higher quality for themselves.

Outer directed (concerned for others) - ‘interact with local people, what impact I have’. Concerned with the impact they’ve having

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12
Q

Goals driving INVOLVEMENT in responsible tourism

A

High - ‘working with people; learning and sharing skills’. Want to interject, get involved.

Low - ‘eco friendly warriors’. Arms length responsible consumer.

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13
Q

Consumer responsibility varies in extent (quadrant)

A

Involvement high, participation inner directed - mindful minimising.

Involvement low, inner directed participation - instrumental opportunism

Involvement high, outer directed participation - conscious advocating

Involvement low, outer directed participation - education empathy.

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14
Q

Instrumental opportunism

A

These weren’t expected to even be on list but 30% were.

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15
Q

Conscious advocating

A

Working with local community

Though would have been the majority, however only 25%-30% of people were.

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16
Q

Some of the same people could shift between the 4 types

A

Yes it’s really important to pick up litter…cause makes sea nicer for us —

17
Q

Ethical issues in marketing management (Crane and Matten)

A

Most ethical issues concerning business - consumer relations refer to the main tools of marketing management - product policies, market comms, pricing approaches and distribution practices. Also marketing strategy and market research

18
Q

Product policy (Crane and Matten)

A

Some common ethical problems - product safety, fitness for purpose

Main rights involved- right to safe and efficacious products

19
Q

Marketing comms (Crane and Matten)

A

Some common ethical problems - deception, misleading claims, intrusiveness, promotion of materialism, creation of artificial wants, perpetuating dissatisfaction, reinforcing stereotypes.

Main rights involved - right to honest and fair communication, right to policy

20
Q

Pricing approaches (Crane and Matten)

A

Some common ethical problems - excessive price, price fixing, predating pricing, deceptive pricing

Main rights involved - right to fair price

21
Q

Distribution (Crane and Matten)

A

Some common ethical problems - buyer seller relationships, gifts and bribes, slotting fees

Man rights involved - right to engage in markets, right to free choice

22
Q

Marketing strategy (Crane and Matten)

A

Some ethical problems - targeting vulnerable, consumer exclusion

Main rights involved - right to be free from discrimination, right to basic freedoms and amenities

23
Q

Market research (Crane and Matten)

A

Some ethical problems - privacy issues

Main right involved - right to privacy

24
Q

Ethical challenges of global market place (Crane and Matten)

A

3 main considerations: 1 different standards of consumer protection
2 exporting consumerism and culture homogenisation
3 the role of markets in addressing poverty

25
Q

Different standsrds of consumer protection (Crane and Matten)

A

Good example - tobacco industry.
Markets in decline in most developed country- they are now looking for developing countries as less strict - China now biggest global market in industry

26
Q

Exporting consumerism and culture homogenisation (Crane and Matten)

A

Exporting brand, means exporting whole set of cultural values.
By promoting products and brands that are beyond the purchasing responsibilities of the majority of consumers in developing countries are multi nationals simply reproducing dissatisfaction in an even greater scale?
Should emerging markets be protected? Or do they have right to same opportunities?

27
Q

The role of markets in addressing poverty and development (Crane and Matten, Prahalad and Hammond)

A

MNCs could radically improve bottom of pyramid and bring in more stable less dangerous world. They only need act in the own self interest, for there are enormous business benefits to be gained by entering developing markets.

However Karnani says bottom of pyramid profit opps are limited and forms looking to tackled poverty should focus on poor as producers not consumers.

28
Q

According to Smith (Crane and Matten) consumer sovereignty is composed of 3 factors

A

1 consumer capability - freedoms from limitations in rational decision making ( vulnerability factors age, gender, health)
2 information - availability and quality of relevant data (quality, comparitity and complexity of info, degree of bias)
3 choice - opportunity for switching (number of competitions and levels of competition switching costs)

29
Q

Welson market research (Crane and Matten)

A

Over 66% if consumers around the world say they prefer to buy product from companies that have implemented programmes to give back to society and support environmental sustainability’s

30
Q

Producing environmentally responsible products (Crane and matten)

A
  • activity for 25 years lead to green detergents, energy effiecent appliances - electric cars -doubled sales from 2014-2016
31
Q

Product recapture (Crane and Matten)

A

Circular use of resources - not only minimises waste, but means less ‘virgin’ material is needed at sources.
Can help bring prices down etc as well

32
Q

Device replacements for products

A
  • by replacing the sale of the product within an agreement to provide an ongoing service, firms can substantially reduce the amount of material goods bring produced, as well as managing emissions and energy inputs more efficiently - product leasing
33
Q

Product sharing (Crane and matter

A

Sharing economy- a system built around the sharing of human and physical resources.

34
Q

Evidence suggest that tour operators are almost 5 times as likely to use ….

A

‘Responsible tourism’ as any other alternative label (Caruana et al)

35
Q

Responsible tourism accounts for more than..

A

$180 million of business in the UK (Caruana et al)

36
Q

Caruana et al

A

Consumers don’t demonstrate consistent behaviour, they are unpredictable and unmanageable. Consumers may well express desire to be responsbile when questioned but when it comes to acting upon this these motivations are readily traded off with other attritbutes such as price, quality and convenience

37
Q

Hertz

A

More power with vote of consumption than with vote in ballot box