Consumer Behavior and Ethics
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Consumer Behavior and Ethics

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@IntegralPeace

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Questions and Answers

What percentage of consumers are influenced by positive reviews according to one study?

  • 90% (correct)
  • 70%
  • 100%
  • 80%
  • Less than 15 percent of reviews on a popular travel website may be fake.

    False

    What is greenwashing?

    Claiming that a product is better for the environment than it really is.

    Ninety percent of consumers say they are unlikely to purchase from companies that do not protect their ______.

    <p>data</p> Signup and view all the answers

    Match the following approaches to their descriptions:

    <p>Fake reviews = Paid reviews that mislead customers Greenwashing = False claims about environmental benefits Data selling = Selling customers' private information to advertisers Positive reviews = Influences consumer purchasing decisions</p> Signup and view all the answers

    How do some companies manage to reduce prices below the profit limit?

    <p>By selling customer data to advertisers</p> Signup and view all the answers

    Most consumers prefer to buy products that harm the environment.

    <p>False</p> Signup and view all the answers

    What can happen to companies that engage in greenwashing?

    <p>They may face backlash from customers.</p> Signup and view all the answers

    Study Notes

    Online Reviews

    • 90% of consumers are influenced by online reviews
    • Companies are pressured to have positive reviews
    • Fake reviews can benefit a company in the short term
    • Fake reviews are likely to lead to unhappy customers and damaging the company in the long term
    • Estimates suggest almost 15% of reviews on one popular travel website may be fake

    Price and Data

    • Lower prices mean lower profits for companies
    • Some companies make extra money by selling customer data to advertisers
    • These companies can offer more attractive prices on products and services than competitors
    • 90% of consumers are unlikely to buy from companies that don’t protect customer data

    Companies that Harm the Environment

    • A significant number of consumers want to buy products that are good for the environment
    • Businesses sometimes engage in greenwashing, suggesting a product is more environmentally friendly than it is
    • Greenwashing benefits sales in the short term, but can lead to a customer backlash
    • Significant numbers of consumers are likely to trust companies that support the environment

    Conclusion

    • Consumers should be aware that businesses use dishonest tactics to attract and keep customers such as fake reviews, selling customer data or greenwashing
    • This is often due to pressure on companies to make a profit
    • Companies are increasingly recognising that harming consumers also hurts businesses

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    Description

    Discover how consumer choices are influenced by online reviews, pricing strategies, and environmental ethics. Examine the impact of fake reviews and data protection on shopping habits, as well as the prevalence of greenwashing among companies. This quiz will test your knowledge about these crucial aspects of modern consumerism.

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