Ch. 2 - Consumer & Social Well-Being

Question 1

Business ethics

Answer 1

rules of conduct that guide actions in the marketplace; what is right/wrong, good/bad

Question 2

Consumerspace

Answer 2

individuals dictate to companies what types of products they want and how, when, and where to learn about these products

Question 3

Materialism

Answer 3

the importance people attach to worldly possessions

Question 4

Provenance

Answer 4

shoppers are willing to pay more for an item when they know exactly where it comes from

Question 5

What if you’re not happy with a product?

Answer 5

1. voice response - appeal directly to retailer for redress
2. private response - express dissatisfaction to friends/boycott product or store
3. third-party response - legal action

Question 6

Why should organizations encourage complaints?

Answer 6

1. chance to resolve situation
2. avoid escalating problem
3. collect valuable insights about consumers’ experiencces
4. consumer may switch brands if there is no response to complaint

Question 7

Corrective advertising

Answer 7

company must inform consumers that previous messages were wrong/midleading

Question 8

Culture jamming

Answer 8

strategy to disrupt efforts by the corporate world to dominate cultural landscape

Question 9

Transformative consumer research (TCR)

Answer 9

a.k.a. participatory action research (PAR); studying and rectifying what is seen as a pressing social problem in the marketplace

Question 10

Personal Data Notification & Protection Act 2015

Answer 10

strengthen obligations companies have to notify customers when their personal information has been exposed

Question 11

Student Digital Privacy & Parental Rights Act 2015

Answer 11

prevent companies from selling K-12 students’ online data to third parties unless it’s for school-related purposes

Question 12

Market access

Answer 12

ability to find and purchase goods/services

Question 13

Triple bottom line

Answer 13

1. financial bottom line - provide profit to stakeholders
2. social bottom line - return benefits to community where organization operates
3. environmental bottom line - minimize damage to environment

Question 14

Consumer addiction

Answer 14

physiological/psychological dependency on products/services

Question 15

Compulsive consumption

Answer 15

repetitive and excessive shopping used as a remedy for stress, anxiety, depression, and boredom

Question 16

Destructive consumer behaviors

Answer 16

1. behavior not done by choice
2. gratification derived from behavior is short-lived
3. person experiences strong feelings of regret afterward