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Consumer Behavior

Presentation Summary
Chapter 20: Consumerism

Submitted To: Maam Sara

Submitted By:
Abdul Razak (01)
Ebad Mirza (13)
Syed Muneeb Alam (70)


The protection or promotion of the interest of consumers. Protects

consumers against useless, inferior or dangerous products, misleading
advertising, unfair pricing and etc.
Consumer Information:
Consumer rights with regards to information relates to marketer provision of
adequate information which neither deceives nor misleads.
1. Deception of Consumers:
Although many agencies have been involved in area of preventing consumer
deception but FTC (Federal Trade Commission) have been the most active in
this area. FTC generally focus preventing of preventing unfair and deceptive
acts in commerce.
Most of them are done through deceptive advertising which is false
advertising, refers to a manufacturer's use of confusing, misleading, or
blatantly untrue statements when promoting a product. Advertising law will
protect consumers from deceptive advertising through the enforcement of
specific legislation. Advertising law and consumer law have basically the
same function: to promote truth in labeling.
2. Corrective Advertising:
The messages that a business is ordered to run in consumer ads by the
Federal Trade Commission in order to right an incorrect impression that its
previous ads have given. An ethically run business that practices honesty in
its advertising campaigns should never have to run corrective advertising,
but less honest companies might have to incur this extra expense.
3. Affirmative Disclosure:
Affirmative disclosure, in advertising, encompasses providing the consumers
information about the negative or harmful effects of the product/ service in
the advertisement. Such a disclosure is done in accordance with government
regulations and is generally not desired by the advertiser. One of the most
common forms of affirmative disclosure is as seen on cigarette ads. The
government has made it mandatory to include a statutory warning against
smoking: Cigarette Smoking is Injurious to Health on packaging as well as
promotional ads. Below is an example of such an advertisement..
4. Unit Pricing:
Unit pricing means that retailer not only display the total price of an item but
also display price per relevant unit of product (such as Dollar per pound, fluid
ounce etc.)

5. Availability of Sufficient Information:

Many legislative bodies think that consumers are not provided with adequate
information on which to base a decision.
There is growing pressure on the business to provide the consumer with
more and more information so that more rational decision are made by the

6. Nutritional Labeling:
Nutrition labelling is information found on the unit labels of prepackaged
foods. The legislated information includes:

The Nutrition Facts table

The ingredient list
Some optional nutrition claims

These give you information about the nutritional value of a food. You can use
this information to make healthier food choices and achieve overall good
The Nutrition Facts table gives you information about:

13 core nutrients
% Daily Value (% DV) of nutrients

All of the information in the Nutrition Facts table is based on an amount of

food. This amount is always found at the top of the Nutrition Facts table.
As the increase in the dietary concerns by the consumers and increasing
demand to know what really goes in the food items they consume marketers
are forced to increase the nutritional labeling of their products.
7. Open Dating:
The marking of packaged food products with a 'sell by' or 'use by' date or the
date on which the product was packaged. Consumer appears to require this
information more than nutritional labeling and unit pricing because it informs
the consumer about the freshness of the product.
Consumer Safety:
Ensure that a consumer is not injured while using the product. Its the right of
every consumer that they feel safe while using a product. And safety of the

consumers is governed by many different agencies in every company. But

companies have their own ethical responsibility that they keep the safety of
the consumer their top most priority.

Environmental Concerns:
It refer to the point that consumers have the right to have clean
environment. To assure that the environment the consumer lives in is free
from pollution.
Widespread and largely population seems to be a by-product of an
economically developed society, but it is also an area of great concern for
many consumer.
Types of Environmental Consumers:
True blue green (11 % of total population) Environmental activist and
Green Black Green (11 % of total population) willing to pay more for
environmental improvement but little time to get involved.
Sprouts (26 % of total population) both pro and anti-environmental attitudes
and behaviour.
Grousers (24 % of total population) not much involved in environmental
Basic browns (28 % of total population) the least involved and the most
apathetic towards the environment.
Consumer Privacy:
Consumer privacy laws and regulations seek to protect any individual from
loss of privacy due to failures or limitations of corporate customer privacy
measures. They recognize that the damage done by privacy loss is typically
not measurable, nor can it be undone, and that commercial organizations
have little or no interest in taking unprofitable measures to drastically
increase privacy of customers - indeed, their motivation is very often quite
the opposite, to share data for commercial advantage, and to fail to officially
recognize it as sensitive, so as to avoid legal liability for lapses of security
that may occur.
Legislative Response to Consumerism:

Fair Packaging and Labelling Act

Consumer Product Safety Act

The National Environment Act

Toxics Substances Control Act

Cigar Labelling Act

Consumer Credit Protection Act

Clean Air Act

Consumer Responsibilities:
Consumers right can only be achieved when accompanied by consumer
Responsibility. Consumers should choose wisely, keep informed, put safety
first and help protect the environment.
Like marketers consumers also have their own responsibilities that

Research and compare products or services before you buy them.

Check the qualifications of service providers.
Read and follow product instructions.
Get what you pay for.

Deviant behaviour of Consumers may include:

1. Negligent Consumer Behaviour (Compulsive Buying).
2. Fraudulent Consumer Behaviour (Shoplifting).

Marketers Responses to Consumer Issues:

Understanding the issues.

Developing a consumer response system.

Designing a consumer response system

Designing A Consumer Response System:

1. Understanding the consumer experience
2. Establishing a consumer advisory board
3. Listening to consumer complaints and responding effectively
4. Establishing a consumer affairs unit
5. Educating consumers