We think you have liked this presentation. If you wish to download it, please recommend it to your friends in any social system. Share buttons are a little bit lower. Thank you!
Presentation is loading. Please wait.
Published byMariano Leslie
Modified about 1 year ago
Business & Society Business & Society Ethics, Sustainability, and Stakeholder Management Eighth Edition Archie B. Carroll Ann K. Buchholtz © 2012 South-Western, a part of Cengage Learning 1
Chapter 13 Consumer Stakeholders: Information Issues and Responses © 2012 South-Western, a part of Cengage Learning 2
Learning Outcomes © 2012 South-Western, a part of Cengage Learning 1. Recite the consumer’s Magna Carta and explain its meaning. 2. Chronicle the evolution of the consumer movement, highlighting Ralph Nader’s role. 3. Identify the major abuses of advertising and discuss specific controversial advertising issues. 4. Enumerate and discuss other product information issues that present problems for consumer stakeholders. 5. Describe the role and functions of the FTC. 6. Explain recent consumer-related legislation that has passed. 7. Discuss the strengths and weaknesses of regulation and self- regulation of advertising and proposed consumer financial protection regulations. 3
Chapter Outline The Consumer Movement Product Information Issues The Federal Trade Commission (FTC) Self-Regulation in Advertising Summary Key Terms Discussion Questions 4 © 2012 South-Western, a part of Cengage Learning
Customer Relationship Management The ability of an organization to effectively identify, acquire, foster, and retain loyal profitable customers. Customers remain dissatisfied with how they are treated and are mistrustful of businesses. 5 © 2012 South-Western, a part of Cengage Learning
The Consumer’s Magna Carta © 2012 South-Western, a part of Cengage Learning 6
The Consumer Movement Consumer Expectations “Fair value” for money spent Product that meets “reasonable” expectations Full disclosure of product specifications Truthful advertising Safe products Removal of dangerous products 7 © 2012 South-Western, a part of Cengage Learning
Consumerism A social movement seeking to augment the rights and powers of buyers in relation to sellers. What were Ralph Nader’s contributions to the modern consumer movement? 8 © 2012 South-Western, a part of Cengage Learning
Lessons From the Consumer Movement 1.Achieve a fair and just marketplace for all consumers. 2.Provide public oversight where: Corporations lack the incentives to regulate their own behavior. Issue of health, safety and other special concerns. 3.Provide resources, authority, and support for public watchdogs. 4.Intensify the fight for affordable goods and services, fair financial practices, and a chance at a decent standard of living. 5.Curb wasteful overconsumption that threatens the environment. 9 © 2012 South-Western, a part of Cengage Learning
Advertising Issues What are the arguments for and against advertising? What are advertising’s benefits? What are the four major advertising abuses? 10 © 2012 South-Western, a part of Cengage Learning
The Need for Information 11 © 2012 South-Western, a part of Cengage Learning
Weasel Words Are inherently vague so companies can claim they were not misleading consumers. Help Like Virtually Up to 12 © 2012 South-Western, a part of Cengage Learning
Concealed Facts The practice of not telling the whole truth or deliberately not communicating information the consumer ought to have access to in making an informed choice. Hidden Fees Product placement (“stealth advertising”) Plot placement 13 © 2012 South-Western, a part of Cengage Learning
Exaggerated Product Claims Exaggerated Claims Cannot be substantiated by any kind of evidence. 1.Induce people to buy things that do them no good. 2.Result in loss of advertising efficiency as companies match puffery with puffery. 3.Drive out good advertising. 4.Result in consumer loss of faith in product claims. Puffery A euphemism for hyperbole or exaggeration that usually refers to the use of general superlatives. 14 © 2012 South-Western, a part of Cengage Learning
Psychological Appeals Designed to persuade on the basis of human emotions and emotional needs rather than reason. The products can seldom deliver what the ads promise. Marketers appeal to all our senses, even sound, when making psychological appeals. 15 © 2012 South-Western, a part of Cengage Learning
Controversial Advertising Issues Comparative advertising Use of sex in advertising Advertising to children Marketing to the poor Advertising of alcoholic beverages Cigarette advertising Health and environmental claims Ad creep 16 © 2012 South-Western, a part of Cengage Learning
Controversial Advertising Issues Environmental Claims Companies have been ramping up their advertising claims about the environmental friendliness of their products. The green economy was estimated in 2010 to be worth $1.04 trillion and growing. An industry of “green watchdogs” has been growing. Growing “green fatigue” developing among some consumers who are weary of claims. 17 © 2012 South-Western, a part of Cengage Learning
Warranties Initially used by manufacturers to limit the length of time they were responsible for products. Came to be viewed by consumers as mechanisms to protect the buyer against faulty or defective products. Express Warranty Promise or affirmation of fact that the seller makes at the time of the sale. Implied Warranty Unwritten promise that there is nothing wrong with the product and its intended use. 18 © 2012 South-Western, a part of Cengage Learning
Warranties (continued) Full Warranty Covers the entire product. Limited Warranty Certain parts or types of defects are not covered under the warranty. Extended Warranty Service plans that lengthen the warranty period and are offered at an additional cost. 19 © 2012 South-Western, a part of Cengage Learning
Packaging and Labeling Federal Packaging and Labeling Act of 1967 Prohibits deceptive labeling on consumer products Requires disclosure of certain important information on consumer products The FTC and the Food and Drug Administration (FDA) have responsibilities under the Act. 20 © 2012 South-Western, a part of Cengage Learning
Other Product Information Legislation Equal Credit Opportunity Act Prohibits discrimination in extending consumer credit. Truth-in-Lending Act Requires all suppliers of consumer credit to fully disclose all credit terms. Fair Credit Reporting Act Ensures that consumer-reporting agencies provide information in a manner that is fair and equitable. Fair Debt Collection Practices Act Regulates the practices of third-party debt- collection agencies. 21 © 2012 South-Western, a part of Cengage Learning
The Federal Trade Commission The government’s major instrument for ensuring that business lives up to its responsibilities in the areas of advertising, warranties, and packaging/labeling. Major Activities of the FTC 1.To maintain free and fair competition in the economy. 2.To protect consumers from unfair or misleading practices. 22 © 2012 South-Western, a part of Cengage Learning
The Divisions of the FTC 23 © 2012 South-Western, a part of Cengage Learning
Recent Consumer Legislation Credit Card Act of 2009 Consumer Financial Protection Agency 24 © 2012 South-Western, a part of Cengage Learning
Self-Regulation in Advertising Types of Self-Regulation Self-discipline Pure self-regulation Co-opted self-regulation Negotiated self-regulation Mandated self-regulation 25 © 2012 South-Western, a part of Cengage Learning
The National Advertising Division’s Program NAD was created to help sustain high standards of truth and accuracy in national advertising. Initiates investigations Determines issues Collects and evaluates data Makes initial decision regarding substantiated claims 26 © 2012 South-Western, a part of Cengage Learning
Key Terms Accurate information Ad creep Adequate information Age compression Ambient advertising Ambiguous advertising Clear information Comparative advertising Concealed facts Consumerism Consumer Financial Protections Agency (CFPA) Consumer’s Magna Carta Co-opted self- regulation Credit Card Act of 2009 Customer Relationship Management (CRM) Exaggerated claims Express warranty Extended warranty Full warranty © 2012 South-Western, a part of Cengage Learning 27
Key Terms (continued) Implied warranty Limited warranty Mandated self- regulation Negotiated self- regulation Plot placement Product information Product placement Psychological appeals Puffery Pure self-regulation Right to be heard Right to be informed Right to choose Right to safety Self-discipline Self-regulation Warranties Weasel words © 2012 South-Western, a part of Cengage Learning 28
PowerPoint Presentation by Charlie Cook The University of West Alabama Eighth Edition © 2010 South-Western, a part of Cengage Learning All rights reserved.
2 chapter Business Essentials, 7 th Edition Ebert/Griffin © 2009 Pearson Education, Inc. Business Ethics and Social Responsibility Instructor Lecture PowerPoints.
Advertising Law & Ethics : Codes of Ethics Ethics are systems of moral principles that help us determine right from wrong, good from bad. Guidelines Adv.
MGMT14 marketing U U … mnm institute … makes sense.
Human Resource Policies. Human resource policies are systems of codified decisions, established by an organization, to support administrative personnel.
Business & Society Business & Society Ethics, Sustainability, and Stakeholder Management Eighth Edition Archie B. Carroll Ann K. Buchholtz © 2012 South-Western,
Performance Indicator 3.06 Develop a foundational knowledge of pricing to understand its role in marketing.
THE AMERICAN FREE ENTERPRISE SYSTEM IN THIS SECTION YOU MUST BE… –Able to describe the tradition of the Free enterprise system in the U.S. and the constitutional.
Chapter 1 Management Accounting: Information That Creates Value.
Trieschmann, Hoyt & Sommer Government Regulation of Risk Management and Insurance Chapter 24 ©2005, Thomson/South-Western.
SALES & OTHER CONTRACTUAL SITUATIONS Mr. Valanzano Business Law.
PLANNING THE AUDIT Individual audits must be properly planned to ensure: Appropriate and sufficient evidence is obtained to support the auditors opinion;
How does government encourage or increase competition among businesses?
NAHU Ethics In Business. Good Ethics is Good Business Why? Maybe its because the insurance industry is so highly regulated. Maybe its because NAHU makes.
ME33ES MEDICINE AND ECONOMICS DEMAND AND SUPPLY I Summary Applying economics to health and health care The allocation of scarce resources Markets, demand.
Obj Describe the uses of grades and standards in marketing.
Chapter 15 WORKING WITH EMPLOYEES. Management Talk What makes us stand out is our heritage as a cooperative and commitment to providing a great work environment.
1.Five years after a new product has been introduced, sales begin to level off because customers are purchasing the competitor's brand. What strategy would.
March 2011 Created by: Margie Harvey & Dorraine Teitsch.
Community Empower Preparedness and Interaction Training.
So You Want to Use the Baldrige Criteria? Prepared for TNCPE Customers by Dan Jordan 2009/2010 Criteria.
CHAPTER 14: CONSUMER PROTECTION August 9, 2002BUSINESS LAW (Ms. Hawkins)1 CHAPTER 14: CONSUMER PROTECTION Chapter 14 explains: Why and how the law focuses.
Marketing Concepts Joseph Lewis Aguirre. Internet Nonprofit Center About Slide Non-Profit Organizations.
Competence is the demonstrated ability to apply knowledge and/or skills and, where relevant, personal attributes. A certification scheme contains.
E-Marketing, 3rd edition Judy Strauss, Adel I. El-Ansary, and Raymond Frost Chapter 2: Strategic E-Marketing © Prentice Hall 2003.
3.01 DEVELOP MARKETING STRATEGIES TO GUIDE MARKETING TACTICS.
Regulation and Antitrust Law CHAPTER 14. After studying this chapter you will be able to Explain the economic theory of government and how government.
MANAGING EMPLOYMENT RELATIONSHIPS IN YOUR SCHOOL WELL – LEGAL AND PRACTICAL CONSIDERATIONS CHRISTIAN SCHOOLS CANADA 3 RD LEADERSHIP CONFERENCE SEPTEMBER.
© 2016 SlidePlayer.com Inc. All rights reserved.