Chapter17: Ethics, Social Responsibility and the Dark Side of Consumer Behavior and Marketing
1
CHAPTER 17
Marketing, Ethics, Social Responsibility in
Today’s Consumer Society
CHAPTER SUMMARY
Deviant consumer behavior covers both illegal and psychologically/physically abnormal
behavior. Deviant acquisition behaviors include compulsive buying, consumer theft, and black
markets; deviant consumption behaviors include addictive and compulsive consumption and
underage drinking and smoking. These behaviors are fairly pervasive, and although some
(such as black markets) can have certain consumer benefits, most have fairly negative effects
on consumers and the social groups in which they operate.
Critics have questioned whether and/or how much marketing practices influence these
behaviors. Advertising has been accused of promoting obesity, perpetuating idealized body
images, creating materialistic values, and invading consumer privacy. In response, many
companies are adopting strategies to reduce public criticism and put marketing practices in a
more favorable light. Marketers are also interested in the social responsibility issues of
conservation and environmentally friendly behavior. Consumers are showing their disapproval
of practices regarded as unwanted, disreputable, objectionable, and/or unethical through
individual resistance, support of advocacy groups, and participation in boycotts. The chapter
also deals with greenwashing and ethical sourcing.
CHAPTER LEARNING OBJECTIVES
At the end of this chapter, students will be able to:
1. Distinguish between social and temporal dilemmas, and explain the search for balance in
decisions that can involve such dilemmas.
2. Define marketing ethics and consumer ethics, and identify some of the issues that arise
from unethical or deviant acquisition, consumption, and disposition behaviors.
3. Discuss some of the ways in which consumers and organizations use marketing for
socially responsible purposes.
4. Describe what consumers can do to resist unwanted marketing practices.
CHAPTER OUTLINE
I. In Search of Balance
A. Self Interest vs. the Interests of Others
1. Me vs. We is a way to frame this- relates with Consumer ethics, or rules of
acceptable conduct (such as honesty, fairness, and respect) that apply to the
range of consumer behaviors
2. Focusing on “me” is not intrinsically bad.
a) Helpful-other focus is sharing of ideas, for instance via social media
b) A social dilemma is when me vs. we conflicts
c) Harmful self-focus is for instance, shoplifting. They diminish the loss to
others.
3. Immediate vs. Long-Term Interests
Chapter 17: Marketing, Ethics, and Social Responsibility in Today’s Consumer Society
2
a) Temporal Dilemma-how will the decision impact interests immediately
compared with in the future
b) Positive WOM is often a long-term goal for companies
c) Decisions that push short-term interests may have positive or negative
long-term effects
4. Dark Side vs. Bright Side Outcomes
a) Conflicts that arise from dilemmas in marketing can lead to outcomes that
can harm consumers or marketers.
b) Financial results cam entail a social and temporal dilemma, which could
entice some to inflate financial results (e.g., Enron).
c) These extreme examples of Enron, World-Com, etc. are rare, but problematic
to many when they happen.
II. Marketing Ethics, Consumer Ethics, and Deviant Consumer Behavior
A. Acquisition Controversies
1. Materialistic Behavior
a) Materialism is a value in many cultures.
b) It is on the rise in China and Asia, due to more media and branding.
c) It is a neutral value.
d) Family influences on materialism are strong. Parents who are materialistic
tend to pass that down and have materialistic children more than others.
e) Consumers who perceive they are less well off than others may be not as
satisfied in their life. Although materialism does not buy happiness.
2. Addictive and Compulsive Behavior
a) Addictive behavior reflects excessive behaviors typically brought on by
chemical dependence.
b) Consumers may become addicted to many goods and services including
cigarettes, drugs, alcohol, Internet use, TV, video games, etc.
c) Addicted individuals feel that stopping is beyond their control.
d) Addictive behaviors can be harmful to addicts and those around them.
e) Compulsive consumption is an irresistible urge to perform an irrational
consumption act.
f) Examples of compulsive consumption include compulsive gambling,
eating and shopping.
g) Characteristics of compulsive buying
(1) Strong emotional component
(2) Compulsive buyers feel anxious when not buying.
(3) Emotional arousal from store’s atmosphere
(4) Emotional high followed by remorse, guilt, shame, and depression
h) Why do people buy compulsively?
(1) Compulsive buyers have low self-esteem and buying results in
attention and social approval.
(2) Fantasy orientation is a personality trait linked with compulsive
buying.
(3) Compulsive buyers often come from families whose member show
compulsive or addictive behaviors.
i) Compulsive gambling is another type of compulsive consumption.
Chapter 17: Marketing, Ethics, and Social Responsibility in Today’s Consumer Society
4
increased usage of theft-reducing devices. Because retailers have to find
a way to pay for lost merchandise and pay for the cost of high-priced
security systems, theft increases the price of products. Security systems
may interfere with retailers’ ability to serve customers.
d) How Can Marketers Deal with Black Markets?
Marketers attempt to thwart online and offline black markets.
Many products are fake, and the real versions can fight this due to stolen
brand equity.
Fake merchandise may be hazardous, so marketers should communicate
these dangers.
B. Consumption Controversies
1. Underage Drinking and Smoking
a) Overuse of alcohol has been implicated in campus violence, campus
property damage, academic failures, teen highway fatalities, youth
suicides, and campus hazing deaths.
b) Alcohol has resulted in raised tuitions as universities are liable for campus
drinking incidents.
c) Health consequences of cigarette smoking include lung cancer and heart
disease.
d) Nonsmokers can be harmed by secondhand smoke.
e) 90% of new users are teens.
2. Idealized Self-Images
a) Advertising may contribute to an idealized self-image based on society’s
b) Thinness is a characteristic of attractive people, and critics question any
links to anorexia.
2. Compulsive Gambling
a) Including online gambling-impacts many more consumers (e.g., online
gambling is a $12 billion industry).
b) There are links with alcohol, drugs, and cigarettes with compulsive
gambling.
c) Industry and marketing practices may perpetuate this, so many casinos
run a gambling addiction hotline and support system.
4. Overeating and Obesity
a) Obesity is an epidemic. It cannot be blamed on advertising and
marketing, although critics claim a link. Marketers can help by
communicating nutritional information.
b) Advertisers and marketers cannot make someone eat a marketed food; it
is up to the consumer what they put in their mouth.
c) Consumers tend to underestimate the calorie content of foods they
consume, and perceive unhealthy foods to be tastier.
5. Privacy Controversies
a) Social media and e-commerce highlight this issue.
b) The point of tracking online consumer behavior is to provide consumers
with more useful ads based on their interests and history.
c) There is concern that businesses take too much personal information.
6. Marketing Implications
a) Does Marketing Encourage Underage or Excessive Drinking and
Smoking?
Chapter 17: Marketing, Ethics, and Social Responsibility in Today’s Consumer Society
6
III. Social Responsibility Issues in Marketing
A. Environmentally Conscious Behavior and Ethical Sourcing
1. Marketers can be directly and indirectly involved in efforts to do ethical
sourcing (obtain supplies and products in accordance with social responsibility
and sustainability values) AND foster environmentally conscious behavior and
address concerns about global warming. *Note, if there are misleading
environmental claims by a company, it is termed greenwashing*
a) While these marketing behaviors may have additional costs, they also
may open up opportunities for additional profits.
b) Increased trash in the environment is another concern, and marketing
activities such as refillable containers and recycling has had an effect.
c) Conservation behavior (actions taken to limit use of scarce natural
resources) is key; When are consumers likely to conserve?
(1) When they accept personal responsibility for the pollution problem.
(2) When there are no barriers to prevent them from conserving.
(3) When there is social pressure to conserve.
d) Can consumers be motivated to be environmentally friendly?
(1) Many organizations are attempting to increase environmentally
friendly behavior.
(a) Ads encouraging conservation behaviors
(b) Providing consumers with information on how to be
environmentally friendly.
(c) Most effective is to give consumers incentives to conserve.
B. Charitable Behavior
1. The influence of marketing on charitable behavior is researched.
(d) A consumer’s cognitive resources can deplete upon a foot in
the door charity tactic that reduces self-control and has an
enhanced outcome of donation.
(e) Charitable behavior varies by culture.
C. Community Involvement
1. Marketing can be a catalyst for community-based social responsibility.
2. Marketers often have policies to encourage employees to get involved in the
communities where they do business.
3. This can generate goodwill and WOM.
III. How Can Consumers Resist Marketing Practices?
1. Any marketing, even to encourage healthy behavior is resisted by some.
Consumers may engage in individual resistant tactics such as choosing not to
patronized, complaining to the marketer, and spreading negative WOM when
they are dissatisfied with a firm’s marketing practices.
2. Formal advocacy groups may engage in resistance by informing the public
about socially inappropriate business behaviors.
3. Groups may organize boycotts in which consumers avoid purchasing the
products or services from a company whose practices are seen as unfair or
unjust.
a) Consumers susceptible to normative influence will more likely participate
in boycotts (an organized activity in which consumers avoid purchasing
products or services from a company whose policies or practices are
seen as unfair or unjust)
Chapter17: Ethics, Social Responsibility and the Dark Side of Consumer Behavior and Marketing
7
b) Consumers may attempt to limit guilt or boost self-esteem by participating
in boycotts.
c) Boycotts may gain publicity and have more impact than individuals acting
on their own.
d) A boycott may be aimed at either a company’s products or its activities.
QUESTIONS FOR REVIEW AND DISCUSSION
1. Why is balance needed in decisions that involve social dilemmas and temporal
dilemmas?
Decisions come with potentially conflicting outcomes and consequences. A social dilemma
2. What is deviant consumer behavior, and is it always unethical?
Deviant consumer behavior is when consumer behavior is unexpected or not sanctioned
3. How does addictive behavior differ from compulsive behavior?
Addictive behavior is often physical (e.g., to alcohol, drugs) and needs medical treatment
(e.g., to detox the body of the chemicals). Addiction can also be to caffeine, and one may
4. How do temptation and rationalization affect consumer theft?
Temptation to steal arises when consumers want products that they cannot obtain
5. What is social comparison theory, and how does it apply to advertising?
Chapter 17: Marketing, Ethics, and Social Responsibility in Today’s Consumer Society
8
6. What influences conservation behavior and charitable behavior?
Conservation behavior is limiting the use of scarce natural resources for the purposes of
7. What are greenwashing and ethical sourcing, and what do they mean for consumers and
marketers?
Consumers generally do not like greenwashing by companies; that means the company
ADDITIONAL QUESTIONS
1. Discuss the factors that influence compulsive buying. Focus on those marketing
practices that might be particularly problematic for compulsive buyers. Explain what
marketers might do to target and help compulsive buyers. Discuss the ethical and legal
questions that arise regarding these issues.
2. Describe the structure of a black market. Explain why such markets exist and the factors
that perpetuate them.
3. In recent years, compulsive gambling has been on the rise. Discuss the factors that may
be causing this rise. Discuss what role, if any, gambling organizations should have in
helping compulsive gamblers.
4. Discuss whether advertising creates idealized images of appearance and body type.
Discuss the extent to which advertising might influence consumers’ satisfaction with their
own appearance.
5. Create a list of examples in which you believe advertisements might have influenced
consumers’ materialistic values and/or satisfaction with their own material possessions.
6. Argue both sides of the following statement using logic and evidence to support your
views: Advertising encourages sexual, violent, and materialistic values in children.
7. Discuss how advertisers have historically represented women, ethnic minorities, and the
mature market. Discuss whether these representations are changing. Use examples to
support your discussion.
8. Discuss whether advertising saves or costs the consumer. Develop logical arguments
and support for both positions.
Chapter17: Ethics, Social Responsibility and the Dark Side of Consumer Behavior and Marketing
9
EXPERIENTIAL EXERCISES AND CLASSROOM EXAMPLES
Students who learn more readily through visual and tactile stimuli will benefit from the
introduction of physical examples into the classroom.
1. “The Bad and the Ugly” Exercise
Ask students to bring in to class examples of ads (print, radio, or TV) they find offensive
and to explain their reactions. This exercise generally produces a fascinating array of
“ugly” advertising. It is great for demonstrating that ugliness is in the eye of the beholder,
because what acutely offends one student might not bother others at all. Some students
2. End-of-the-Semester Taste Tests
Taste tests are always an interesting way to illustrate consumer behavior principles. One
obvious example is holding a blind taste test to differentiate between Coke and Pepsi. It
is interesting to see how brand loyal consumers (i.e., Coke/Pepsi drinkers) fare under
these conditions. An offshoot of the Coke-Pepsi taste test is to prepare two-liter bottles
CLASSROOM GROUP ACTIVITY: MARKETING ADDICTIVE
SUBSTANCES: 40 MINUTES
I. Start Up
A. Purpose of the activity
1. This activity will give students an opportunity to consider marketers’ social
responsibility when bringing offerings into the marketplace.
B. What the instructor will do
This experiential exercise was contributed by Professor Sheri Bridges of Wake Forest University.
Chapter17: Ethics, Social Responsibility and the Dark Side of Consumer Behavior and Marketing
11
a) Write down their ideas as they are presented.
b) Concentrate on the principles being discussed rather than the examples
being used.
c) Help them to see the interrelationships among their responses.
IV. Execute
A. Apply what has been learned.
1. Lead a discussion on how the concepts can be applied in organizations.
a) What barriers may be faced in applying the concepts from the exercise?
b) What can be done to help others understand the concepts when you use
them at work?
B. Transfer and use the knowledge.
1. Encourage students to make a record in their notes about how they will use the
ideas in the workplace.
2. Even if they do not have a specific job, how will they remember to use what
they have learned?