Marketing Chapter 16 Consumer And Marketing Misbehavior Learning Objectives After Studying This Students

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Chapter 16

Consumer and Marketing Misbehavior

Learning Objectives

After studying this chapter, students should be able to accomplish the following objectives.

16-2 Distinguish between consumer misbehavior and consumer problem behavior.

16-4 Comprehend the role of corporate social responsibility in the field of marketing.

16-6 Comprehend the major areas of criticism to which marketers are subjected.

Lecture Example

Many legal provisions are instituted to protect consumers from marketing misbehavior.

Such legislation is aimed at maintaining or improving the general welfare of consumers in

a free marketplace while also mutually benefiting marketers. For example, in Connecticut,

consumers as well as farmers are pushing for a legislation that will make the labeling of

genetically modified food compulsory. According to Stephen Singer, “Organic farmers say

they stand to benefit from better informed consumers who may reject genetically modified

products and instead choose organic food.” Preliminary findings in an academic study

Lecture Outline with PowerPoint® Slides

The term misbehavior is used cautiously because opinions regarding what is acceptable or

normal depends on one’s ethical beliefs, ideologies, and even culture. Marketers sometimes

engage in unethical activities as well. They mislead consumers through deceptive

LO 16-1: Understand the consumer misbehavior phenomenon and how it affects the

exchange process.

Q: Ask students to list out examples of what they consider as consumer

misbehavior(s).

I. Consumer Misbehavior and Exchange [Instructor PPT Slide 4]

Consumer misbehavior may be viewed as a subset of the human deviance topic. Sometimes

consumers can deviate from norms with the intention of doing good.

Consumer misbehavior can be defined in numerous ways. It is defined as behaviors that

are in some way unethical and that potentially harm the self or others. Misbehavior violates

norms and also disrupts the flow of consumption activities.

A. The Focus of Misbehavior: Value

A central component for understanding consumer behavior is value. It shouldn’t be

surprising then that the focal motivation for consumer misbehavior is value. However,

how consumers obtain value is the key issue. Consumers seek to maximize the benefits

they receive from an action while minimizing, or eliminating, their own costs.

B. Consumer Misbehavior and Ethics [Instructor PPT Slides 5–7]

Moral beliefs and evaluations influence decisions pertaining to marketplace behaviors.

The effect of moral beliefs on ethical decision making and consumer misbehavior is

shown in Exhibit 16.1.

Moral Beliefs

Moral beliefs, or beliefs about the perceived ethicality or morality of behaviors, play

a very important role in misbehavior. A consumer’s moral beliefs are made up of

three components: moral equity, contractualism, and relativism.

• Moral equity represents beliefs regarding an act’s fairness or justness.

• Contractualism refers to beliefs about the violation of written (or unwritten)

laws.

• Relativism represents beliefs about the social acceptability of an act.

Ethical Evaluations

Consumers bring their moral beliefs into all decision-making settings. Once a

consumer enters into a situation that calls for an ethical decision (Should I download

this movie?), the consumer considers the various alternative courses of action. Here,

two sets of ethical evaluations occur: deontological evaluations and teleological

evaluations.

C. Motivations of Misbehavior [Instructor PPT Slide 8]

Moral beliefs and behavioral evaluations indeed play important roles in consumer

misbehavior. Researchers Ronald Fullerton and Girish Punj offer the following

motivations of consumer misbehavior:

• Unfulfilled aspirations—many consumers have unfulfilled aspirations that

influence their misbehavior. An important concept is anomie. Anomie has been

conceptualized as both a response to rapid cultural change and an explanation for

deviance. To understand anomie as an explanation for deviance, consider the

• Thrill seeking—the thrill of the action may lead consumers to misbehave.

• Lack of moral constraints—some consumers simply don’t have a set of moral

beliefs that are in agreement with society’s expectations and see no problem with

their behavior.

• Differential association—differential association explains why groups of people

replace one set of acceptable norms with another set that others view as

unacceptable. By acting in opposition to acceptable standards, group members

forge their own identities and strengthen group cohesion.

LO 16-2: Distinguish between consumer misbehavior and consumer problem

behavior.

Q: Ask students for their opinions on the relevance of product misuse in the student

population. How many students text while they drive?

II. Distinguish Consumer Misbehavior from Problem Behavior [Instructor PPT Slide

Consumer misbehavior can be distinguished from what one refers to as consumer “problem

behavior.” The misbehavior term is used to describe behavior deliberately harmful to the

self or another party during an exchange. Consumer problem behavior refers to

behaviors that are seemingly outside of a consumer’s control.

A. Consumer Misbehavior

Many of the behaviors that are listed in Exhibit 16.2 are discussed frequently in the

popular press.

Shoplifting

Consumers’ motivations for shoplifting are similar to motivations for other forms of

misbehavior. Specifically, consumers shoplift because the temptation can be very

strong, they believe that retailers can afford the monetary loss, they believe they

probably won’t get caught, they seek acceptance into a group, and the act can be

exciting.

Shoplifting can sometimes be diagnosed as kleptomania. Kleptomania is generally

triggered by a strong compulsion and the inability of the consumer to fight the urge.

Emotions and Shoplifting

Emotions play a large role in shoplifting. Fear of being caught plays a role in

predicting shoplifting intentions, especially among young consumers. Research

also shows that consumers who shoplift are sometimes motivated by repressed

feelings of stress and anger.

Age and Shoplifting

Shoplifting behavior appears to peak during the adolescent years. Adolescents

also tend to consider shoplifting as being more ethical than do adult shoppers.

Computer-Mediated Behaviors: Illegal Sharing of Software and Music

Due to improvements in technology, consumers often have the ability to illicitly

download electronic material from a number of sources.

Computer-Mediated Behaviors: Attacks

Computers present other opportunities for misbehavior. Spam, which clogs up

computers and slows internet connectivity, results in billions of dollars of lost

business productivity annually. Computer viruses are another major problem. By far

the most common form of computer-aided attacks is the spreading of malicious URL

links.

Consumer Fraud

There are many types of consumer fraud. Although it is difficult to estimate exactly

how much consumer fraud ends up costing consumers, the Coalition Against

Insurance Fraud estimates that insurance fraud alone costs Americans at least $80

billion per year.

Abusive Consumer Behavior

Consumers who are aggressive or rude to employees and other consumers are

considered to be abusive. One early study in the area of problem customers suggested

that four categories of customers can be identified: verbally or physically abusive

customers, uncooperative customers, drunken customers, and customers who break

company policy. Needless to say, employees don’t like to deal with customers who

act this way, and abusive behaviors can have negative effects on other consumers as

well.

Illegitimate Complaining

Consumers also complain about products and services even when there really isn’t a

problem. To date, the research on illegitimate complaining remains relatively scarce.

However, one study did find that illegitimate complaining is motivated by a desire

for monetary gain, a desire to evade personal responsibility for product misuse, a

desire to enhance the consumer’s ego and look good to others, or a desire to harm a

service provider or company.

Product Misuse

Consumers also may use products in ways that were clearly not intended. In some

cases, consumers simply misuse products by accident. In others, they knowingly

misuse them. Marketers therefore work hard to ensure that consumers understand the

ways in which products should be used. However, even when warnings and

instructions are provided, consumers still misuse products. Injuries that result can be

very costly.

Why do consumers use products in unsafe ways? A number of explanations have

Aggressive Driving

Aggressive driving may range from mild displays of anger to seriously violent

acts while driving. Although aggressive driving is often thought of as an act by a

solitary consumer, aggressive driving problems often involve multiple drivers, as

Drinking and Driving

Statistics reveal that as many as 13,000 people die from alcohol-related traffic

accidents in the United States each year and that nearly three out of every ten

Americans will be involved in an alcohol-related crash at some point in their lives.

Cell Phone Use and Driving

While not everyone will agree that simply using a cell phone while driving is a

consumer misbehavior, texting and driving is certainly a dangerous issue. And,

this behavior is against the law in many states.

Studies reveal that consumers who use cell phones while driving are four times as

likely to get into serious accidents, and the problem is particularly serious for

Sexting

One growing form of misbehavior is “sexting.” Sexting is taking nude photos of

oneself and sending them to another person via cell phone. It seems to occur most

frequently among teenaged consumers, and the app Snapchat has been criticized by

some as making sexting easy and secure.

Multiple media reports indicate that many teens feel like sexting isn’t harmful.

Parents and school administrators don’t feel the same way. Sexting also raises moral,

ethical, and legal issues. The behavior can result in severe psychological and social

problems. The effects of sexting range from minor psychological distress to intense

emotional trauma.

B. Consumer Problem Behavior

Consumer problem behaviors include other acts that do not necessarily break any

specific laws or societal norms. Psychological problems can cause or influence these

behaviors.

Compulsive Consumption

Compulsive consumption refers to repetitive, excessive, and purposeful consumer

behaviors that are performed as a response to tension, anxiety, or obtrusive thoughts.

The term compulsive consumption is often used broadly and consists of a number of

specific behaviors related to the purchase and use of consumer products and services.

Compulsive consumption should not be confused with addictive consumption.

Compulsive Buying

Compulsive buying may be defined as chronic, repetitive purchasing behaviors

that are a response to negative events or feelings. The behavior has harmful effects

such as the accumulation of debt, domestic problems, and feelings of frustration.

Influencers of the behavior include feelings of low self-esteem, obsessive–

compulsive tendencies, fantasy-seeking motivations, and materialism, as well as a

focus on the short term. The same negative feelings that influence compulsive

buying can also result from the behavior itself.

Compulsive Shopping

Compulsive shopping refers to repetitive shopping behaviors. The word

oniomania is sometimes used to describe this behavior. The key difference

between compulsive shopping and buying is the buying process itself. Compulsive

shoppers tend to focus on the mental highs associated with “the hunt,” whereas

compulsive buyers feel the need to buy.

Eating Disorders [Instructor PPT Slide 10]

Binge eating refers to the consumption of large amounts of food while feeling a

general loss of control over intake. Binge eating may result in medical complications,

including high cholesterol, high blood pressure, and heart disease. Exhibit 16.3

presents a description of the binge eating disorder.

Binge Drinking

Binge drinking is defined as the consumption of five or more drinks in a single

drinking session for men and four or more drinks for women, and the behavior is

particularly prevalent among full-time college students.

Problem Gambling

Problem gambling is another serious issue. This behavior may be described as an

obsession with gambling and the loss of control over gambling behavior and its

consequences. Consumers who are problem gamblers frequently gamble longer than

Drug Abuse

Both illegal and prescription drugs are problem areas for some consumers. The

problem is especially alarming among teens. A 2015 study did reveal, however, that

the percentage of high school seniors who abuse prescription drugs has declined

slightly over the most current ten-year period, down from 17.1% in 2005 to 12.9% in

2015.

Recreational use of marijuana was legalized in the states of Washington and

Colorado during 2012, and later in Oregon, Alaska, and Washington, D.C. in 2014. A

relatively new trend is also the use of “synthetic” marijuana, which many consumers

view as being safer than the actual drug. Other drugs, such as cocaine and

methamphetamine, are also often abused at alarmingly high rates.

LO 16-3: Discuss marketing ethics and how marketing ethics guide the development

of marketing programs.

Q: Ask students if anyone in class has been a victim of “unfair” marketing practices.

Do they think marketers act in unethical ways to maximize profit? How do they

think consumers can combat marketing misbehavior?

III. Marketing Ethics and Misbehavior [Instructor PPT Slide 11]

A fair marketplace depends on each party in an exchange acting fairly and with due respect

for each other. Whenever anyone acts unethically, inefficiencies result and chances are that

somebody will suffer. Marketers, like consumers, can act unethically. When a company

misrepresents a product, consumers are led to expect more than is actually delivered.

Like consumer misbehavior, marketer misbehavior can be viewed as a subset of deviance.

For marketers to misbehave, they must be aware that an action will be considered

unethical and act with deviance to cover intent. Sometimes, marketers don’t intend to

misbehave but mistakes are made in marketing execution.

A. Consumerism [Instructor PPT Slide 12]

The marketing concept proposes that all the functions of the organization should work

together in satisfying its customers’ wants and needs. When businesses begin taking

advantage of consumers, consumers lose, businesses lose, and society as a whole

eventually loses. In fact, it can be said that the ethical treatment of consumers is a

cornerstone of a fair marketplace.

Much of the pressure that has been placed on marketers comes directly from consumer

groups. Consumerism is used to describe the activities of various groups to protect

basic consumer rights.

The Consumer Bill of Rights, which today stands as a foundation of the consumerism

movement, was introduced in 1962, and includes:

B. The Marketing Concept and the Consumer

The marketing concept developed greatly in the 1960s. It was early in this time period

that Theodore Levitt published the article “Marketing Myopia.” Among other things,

Levitt’s work brought about a new perspective that argued that businesses should define

themselves in terms of the consumer needs that they satisfy rather than in terms of the

products they make.

The Marketing Mix and the Consumer [Instructor PPT Slide 13]

Marketers should use the tools found in the marketing mix carefully as they target

consumers. When consumers question the way in which they are treated, they are

likely to spread negative information through word of mouth and seek some form of

remedy.

Consumers question the extent to which products are actually harmful to them or

society in the long run. Many products can lead to short-term satisfaction, but they

can also lead to long-term consumer and/or societal problems. Consider the

following categories of products, as originally discussed by Philip Kotler:

• Deficient products are products that have little to no potential to create value of

any type (for example, faulty appliances).

Marketers clearly want to avoid offering deficient products. The difficult issue comes

with the marketing of pleasing products. Many consumers know that the products

Consumer Vulnerability and Product Harmfulness [Instructor PPT Slide 14]

Two important issues to consider when discussing marketing ethics are product

harmfulness and consumer vulnerability. A classification of product harmfulness

constitutes a “harmful” product is a question of interpretation, as is the definition of a

“vulnerable” consumer.

Employee Behavior

LO 16-4: Comprehend the role of corporate social responsibility in the field of

marketing.

Q: Ask students if they know of firms which practice corporate social responsibility.

How do they do it?

IV. Corporate Social Responsibility [Instructor PPT Slide 15]

Corporate social responsibility (CSR) may be defined as an organization’s activities and

status related to its societal obligations. Due to increased pressure from consumer groups,

companies are finding that they must be socially responsible.

There are many ways in which companies can be responsible. Activities such as making

donations to causes, supporting minority programs, ensuring responsible manufacturing

processes and environmental protectionism, acting quickly when product defects are

detected, focusing on employee safety, and encouraging employees to volunteer for local

Socially responsible marketing is associated with favorable consumer evaluations,

increased customer satisfaction, and the likelihood of increased sales. This is particularly

the case when an individual consumer identifies with the company and the causes to which

it contributes.

A. The Societal Marketing Concept [Instructor PPT Slide 16]

Part of being socially responsible is adopting the societal marketing concept. This

concept considers the needs of society along with the wants and needs of individual

LO 16-5: Understand the various forms of regulation that affect marketing practice.

Q: Ask students to list out legislation that has helped protect consumer rights.

V. Regulation of Marketing Activities [Instructor PPT Slides 17–19]

Many federal, state, and local laws were established in order to protect consumers from

marketer misbehavior. Federal regulatory bodies such as the Federal Trade Commission

(FTC) and the Food and Drug Administration monitor exchanges that take place between

A. Marketing and the Law

Exhibit 16.8 presents a legislation that has been enacted in an effort to regulate

commerce, promote free trade, and ensure consumer safety. Many of these acts are

aimed at maintaining or improving the general welfare of consumers in a free

LO 16-6: Comprehend the major areas of criticism to which marketers are subjected.

Q: Ask students how often they think about essential commodities being subjected

to price gouging.

VI. Public Criticism of Marketing [Instructor PPT Slides 20–23]

Unethical marketers intend to do harm in some way, act negligently, and/or manipulate

consumers. However, marketers can simply make innocent mistakes. Consumer perception

is also important, as bad events can mean disaster for the firm in terms of lost business,

customer boycotts, and bad publicity. Any number of different issues regarding public

criticism of marketing could be discussed; however, the focus here is on only a handful of

issues.

A. Deceptive Advertising

Deceptive advertising (sometimes called false or misleading advertising) is an important

issue for marketers. Deceptive advertising is covered under the Wheeler–Lea Act

(1938). This act amended the Federal Trade Commission Act to include false

An important distinction in practice is the difference between deceptive advertising and

puffery. The term puffery describes making exaggerated claims about a product’s

superiority. Puffery differs from deceptive advertising in that there is no overt attempt to

deceive a targeted consumer. Consumers often complain that advertisers create

unrealistic expectations in their advertisements.

B. Marketing to Children

Children typify a vulnerable group because they often lack the knowledge of how to

behave as responsible consumers. Two important issues arise with marketing to

children. First, there is the question of whether children can understand that some

marketing messages do not offer literal interpretations of the real world. Second, the

quantity of marketing messages to which children are exposed can be called into

question.

Internet marketing is another issue. The Children’s Online Privacy Protection Act

focuses on the online collection of personal information from children who are 13 years

or younger. It specifies what marketers must include in privacy policies, when and how

to seek consent from parents, and the responsibilities that marketers have to protect

children’s privacy and safety online. Yet another issue is how violent advertisements

affect children.

C. Pollution

Marketing a product can lead to pollution. Of course, consumption also leads to

pollution, and both marketers and consumers play roles in environmental stewardship.

Although experts disagree on the effects of pollution, the issue remains important.

D. Planned Obsolescence

Marketers are also criticized for intentionally phasing out products before their

usefulness wears out. The practice of managing and intentionally setting discontinue

E. Price Gouging

Price gouging is the act of charging a higher than reasonable price for a good, following

some kind of natural disaster or event. Following natural disasters, it is common for

F. Manipulative Sales Tactics

High-pressure and manipulative sales pitches are often the cause of consumer

dissatisfaction. Salespeople who adhere to a sales orientation are often guilty of these

types of high-pressure tactics. A more appropriate way to approach a sale is to adhere to

what is referred to as a customer orientation. When using a customer orientation, the

salesperson focuses on customer needs. Several studies have shown that having a

customer orientation leads to favorable results for salespeople.

• With the door-in-the-face technique, a salesperson begins by making a really

large request such as “Can I get you to buy this car today?” Realizing that very

• Using the even-a-penny-will-help technique, cause-related marketers suggest to

potential donors that even the smallest donation will go a long way toward

• Using the “I’m working for you!” technique, salespeople attempt to lead

customers into believing that they are working as hard as possible to give them the

best deal when in reality they are following a script or routine. Here, the consumer

G. Stealth Marketing

One area of marketing that is currently receiving increased attention is the use of stealth

marketing. With stealth marketing, consumers are completely unaware that they are

H. Products Liability

Big business is often criticized for marketing unsafe products. The Consumer Product

Safety Commission is the main body that monitors product safety, and the right to be

safe is a basic consumer right listed in the Consumer Bill of Rights. Product safety is

governed in different ways around the world. The issue of products liability, which is

the extent to which businesses are held responsible for product-related injuries, is

determined through this process.

can be demonstrated in court that an injury occurred and that the product associated

with the injury was faulty in some way. This doctrine has become more prominent

recently than the former guiding doctrine of negligence. With negligence, an injured

consumer would have to show that the firm could foresee a potential injury that might

occur and then decided not to act on that knowledge. The doctrine of strict liability

means that firms face increased exposure to costs associated with product injury

lawsuits.

The issue of products liability is a good way to illustrate the importance of public policy

to consumer behavior. But while tilting the balance of bearing the burden of product

injuries toward firms may, at times, seem reasonable, such tilting actually restricts the

market by driving businesses out of certain industries and restricting the choices of

consumers. The key to effective public policy is finding the proper balance: offering

consumers protection but still providing a high degree of freedom in the marketplace.

End of Chapter Material

Discussion Questions

(*) Indicates material on prep cards.

1. How does misbehavior violate norms and disrupt consumption activities?