Consumer Behavior and Business Ethics

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Questions and Answers

What is the primary purpose of a persuasive message, according to the text?

To inform consumers about the features of a product.

To alter consumer's evaluation of a product, using biased information. (correct)

To establish a baseline assessment of a product's value.

To solely focus on selling intent without altering consumer perception.

What distinguishes first-order beliefs from second-order beliefs in the context of persuasion understanding?

First-order beliefs focus on one's own mental state, while second-order beliefs focus on another's understanding of someone else's mental state. (correct)

First-order beliefs relate to understanding a message's information, while second-order beliefs concern understanding message bias.

First-order beliefs involve understanding persuasive intent, while second-order beliefs involve understanding selling intent.

First-order beliefs are more complex and developed later in children than second-order beliefs.

Based on the text, what is the connection between a child's Theory of Mind (ToM) development and their ability to understand commercial messages?

Better ToM development is linked to understanding the persuasive intent of commercial messages more strongly than understanding of selling intent.

Stronger ToM development directly hinders children's ability to understand that commercial messages are designed to encourage people to buy products.

Improved ToM development corresponds with an enhanced capacity to recognize that the intention of these messages is to promote purchase of a product. (correct)

ToM development has no impact on the comprehension of whether commercial messages are created to sell products.

Why might children demonstrate an understanding of selling intent before they grasp persuasive intent?

Selling intent involves direct monetary exchange, making it easier to understand than the manipulation associated with persuasive intent. (C) Signup and view all the answers

What is suggested regarding the developmental timeline of understanding persuasive intent compared to understanding selling intent?

The development of an understanding of persuasive intent often occurs much later than the development of an understanding of selling intent. (D) Signup and view all the answers

Which of the following best defines business ethics?

Rules of conduct that guide actions in the marketplace, judged against cultural standards. (D) Signup and view all the answers

What is the primary focus of social marketing?

To encourage positive behaviors and discourage negative ones by leveraging marketing techniques. (A) Signup and view all the answers

Which of the following best characterizes compulsive consumption?

An enduring behavior centered on the act of shopping and not the purchase itself, often as a response to negative emotions. (A) Signup and view all the answers

An advertisement is considered deceptive when:

It leads consumers to adopt false beliefs, if the speaker is responsible for the distortion, and it impacts consumer behavior. (C) Signup and view all the answers

What is the distinction between addictive consumption and compulsive consumption?

Addictive consumption involves physiological or psychological dependency while compulsive consumption centers on the act of buying itself. (A) Signup and view all the answers

What is not a requirement for an advertisement to be considered deceptive?

That it must negatively impact the sales of a competitor. (B) Signup and view all the answers

Which of the following is an example of green marketing?

A company develops a product with recyclable packaging and highlights this in its marketing efforts. (D) Signup and view all the answers

What is a key factor in determining whether an act is considered a lie or deception?

The intention behind the act to cause either a false belief or a misunderstanding. (C) Signup and view all the answers

Which of these is an example of the 'decoy effect' in advertising?

A company creating a product that is priced similarly to an expensive option, but has fewer features. (A) Signup and view all the answers

What is the 'bait and switch' technique in advertising?

Offering an item at a low price then claiming it's out of stock and directing the customer to a more expensive option. (D) Signup and view all the answers

According to the provided content, how might 'anthropomorphism' be used in advertising?

By giving human traits or emotions to non-human things. (B) Signup and view all the answers

How does 'fear of loss' contribute to the effectiveness of advertising?

It uses the potential of missing out on something to motivate purchases. (B) Signup and view all the answers

What is 'defensive processing' in the context of advertising?

When people who feel deceived have a negative bias towards other advertisements. (C) Signup and view all the answers

According to Aghakhani & Main (2018), how does social exclusion influence the carryover effects of deceptive advertising?

It diminishes the negative impact of a deceptive advertisement on subsequent advertisements. (A) Signup and view all the answers

What effect does 'meaninglessness' have on a person's perception of advertising following a deceptive ad?

It may lead individuals to be less impacted by negative perceptions of deceptive ads. (C) Signup and view all the answers

What is meant by 'depressive realism' in the context of evaluating advertisements?

Depressed individuals make more accurate judgments than non-depressed individuals. (D) Signup and view all the answers

According to Lapierre’s findings, what is the primary determinant for understanding the purpose of advertising in children?

The child's cognitive development and Theory of Mind. (D) Signup and view all the answers

What is the first step of the process of consumer understanding according to the provided text?

Understanding the selling intent behind an advertisement. (B) Signup and view all the answers

Which of the following is an example of 'manipulation in packaging'?

Using persuasive language, such as a doctor's signature on a label. (D) Signup and view all the answers

Which of the following best describes the 'carryover effect' of deceptive advertising?

The initial deception leads to distrust toward the source and other ads. (C) Signup and view all the answers

How might advertisers use elements like 'antioxidants' in packaging?

To appeal to health-conscious consumers through perceived health benefits. (B) Signup and view all the answers

What is a potential consequence of 'unintended warranties' created by advertisers?

That customers trust the claims that come with the product without checking. (B) Signup and view all the answers

Which of the following is an example of a 'false objective claim'?

Stating that a product is "100% safe" (A) Signup and view all the answers

Study Notes

Consumer Well-being and Business Ethics

Business ethics are rules guiding actions in the marketplace, judged by societal standards of right/wrong, good/bad. These standards include honesty, trustworthiness, fairness, respect, justice, integrity, concern for others, accountability, and loyalty. "Ethical business is good business."

Positive Influences of Consumer Behavior

Green marketing promotes environmentally friendly products, highlighting this attribute in communication.
Social marketing uses techniques to encourage positive behaviors (e.g., increased literacy) and discourage negative ones (e.g., drunk driving).

Negative Influences of Consumer Behavior

Addictive consumption is a physiological or psychological dependency on products/services (e.g., cigarettes).
Compulsive consumption is repetitive (often excessive) shopping to relieve tension, anxiety, depression, or boredom. This is distinct from impulsive shopping, which is temporary.

Deception in Advertising

Deceptive advertising occurs when consumers are likely to form false beliefs from an ad. This is the advertiser's responsibility.
Deception in advertising has to be intentional not just misunderstandings.
A deceptive ad doesn't need to affect competitor sales. It needs to affect consumer behavior or decisions.

Deception Tactics

Misleading sizes: Sizes are presented deceptively.
Fake food: Food photoshoots that are not representative of the actual product.
Decoy effect: Introducing a similar but less desirable option to make the target product seem more appealing.
Bottled vs. tap water, Decaf coffee, Juice from concentrate, Organic food, Antioxidants and Anthropomorphism (giving human traits to non-human things, such as animals in advertisement).
False objective claim: A statement that's not factual.
Bait and Switch: Advertised product is unavailable, replaced with a more expensive alternative.
Incorrect statement or promise: Exaggerated efficacy or creating a false warranty.
Manipulation in packaging: Using packaging to mislead consumers (e.g., suggesting more, health benefits that are not supported).

Social exclusion can prevent the negative impact of deceptive advertising.
Defensive Processing: When consumers feel deceived, they develop negative biases toward other ads in self-protection.
Social Exclusion: Felt threat triggers defensive mechanisms.
Excluded consumers focus on positive ads more and trust them.

Consumer Understanding

Theory of Mind: The ability to understand others' mental states (intentions, desires, knowledge).
Selling intent: Awareness that a message aims to sell a product.
Persuasive intent: Understanding that a persuasive message intends to change perception of a product.
Children's ability to understand these intents is linked to their Theory of Mind development, regardless of age or linguistic competence.
Children’s knowledge of selling intent is stronger than that of persuasive intent, potentially due to developmental differences in the two concepts.

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Description

This quiz explores the intricacies of consumer well-being and the ethical considerations in business practices. It covers both the positive and negative influences of consumer behavior, including green and social marketing, as well as addictive and compulsive consumption. Test your knowledge on how these factors shape the marketplace.