01 - Intro to MCWB

Question 1

The central proposition

Answer 1

Marketers who take the well-being of consumers at heart can improve their own financial well-being as well as the wellbeing of customers

Question 2

4 critical concepts that relate to MCWB

Answer 2

1) Marketing
2) Consumer well-being
3) Consumer behavior
4) Corporate social responsibility

Question 3

Marketing -> definition

Answer 3

the activity, set of instructions and proccesses for creating, communicating delivering and exchanging offers that have value for customers, clients, partners and society et large.

Question 4

Consumer well-being -> the broad perspectives

Answer 4

takes two broad perspectives:

• hedonic perspective
• eudaimonic perspective

Question 5

Consumer behavior

Answer 5

1) buying
2) using
3) disposal

Question 6

Corporate social responsibility

Answer 6

A firm’s commitment to ensure societal and stakeholder well-being through discretionary business practices and contributions of corporate resources

Question 7

Consumer well-being -> hedonic perspective

Answer 7

Focuses on happiness and defines consumer well-being in terms of pleasure attainment and pain avoidance

Question 8

Consumer well-being -> eudaimonic perspective

Answer 8

Focuses on the actualization of human potential and defines consumer well-being in terms of the degree to which people realize their true nature

Question 9

Well-being measured as health a good measure?

Answer 9

No, others propose to emphasize:

“the ability to adapt and self manage in the face of social, physical and emotional challenges”

Question 10

How to figure out the needs & wants of consumers?

Answer 10

Via -> means end chain theory / laddering

Question 11

The means-end chain theory -> stepps

Answer 11

• concrete attributes (product knowledge)
• abstract attributes (product knowledge)
• functional consequences (product knowledge)
• pshychological consequences (customer knowledge)
• instrumental values (customer knowledge)
• terminal values (customer knowledge)

Question 12

Means-end chain -> a example

Answer 12

Yoghurt:

• concrete attributes -> 2%
• abstract attributes -> few calories
• functional consequences -> slimming
• pshychological consequences -> social acceptance
• instrumental values -> confidence
• terminal values -> self-esteem

Question 13

The welfare economics principle

Answer 13

People will maximize their own well-being and in doing so, the total social welfare will be optimized. With the Pareto optimum as an assumption

Question 14

Pareto optimum

Answer 14

The total social welfare is optimal when no further redistribution of resources can produce an increase in benefit to one individual without a larger offsetting loss to someone else.

Question 15

Problem with the Pareto optimum (scenario)

Answer 15

The assumption gets satisfied while e.g.: some people are rolling in luxury and others near starvation, as long as the starvers cannot be made batter off without cutting into the pleasures of the rich.

Question 16

Flawed assumptions of the Pareto optimum

Answer 16

1) Assumes that all individuals have the freedom of choice
2) Assumes that all individuals are fully capable of making informed choices.

Therefore it assumes that consumers vote with their wallet