Marketing and Consumer Behavior

Marketing and Consumerism

• A customer who buys a product based solely on marketing is likely to be dissatisfied with the product.
• Standard of Living measures the quality of life for a country's citizens.

Business Practices

• Continually evaluating consumers' likes, dislikes, and unmet needs leads to improvements in products and services, development of new products, and increased choices.
• Social responsibility in businesses is increasing due to consumerism, government regulations, and improved business practices.

Consumer Protection

• Concern about the consequences of actions on others is called Social Responsibility.
• A code of ethics is a set of standards or rules that guide ethical businesses.
• The Better Business Bureau (BBB) is a consumer protection organization sponsored by businesses.

Marketing and Ethics

• A boycott is an organized effort to influence a company by refusing to purchase its products.
• The average cost of marketing is about 50% of the price of the product.
• Businesses that use the marketing concept identify and understand their customers, care about customer needs, and benefit from marketing.
• Senior citizens are especially vulnerable to unethical business practices.
• Agreeing to a code of ethics encourages responsible behavior in business.

Government Regulations

• The Federal Trade Commission (FTC) protects small businesses from unfair pricing practices through the Robinson-Patman Act.
• Federal laws to improve business practices and protect consumers have been in existence since 1960.

Ethics and Responsibility

• Ethics is based on moral principles or values of honesty and fairness.
• Individuals acting alone can usually be effective in influencing the activities of businesses.
• Business practices environmentally friendly production processes use Green marketing.