MRKTNG 3000 1nd Edition Lecture 8Outline of Last LectureI. C.B. IssuesII. Correlational inferencesa. Associationsb. Country of origin effectsIII. Heuristics and biases a. Representativenessb. Availability biasc. Anchor and adjustment Outline of Current Lecture IV. Materialism, sustainability, and corporate social responsibility V. Sustainable development a. ChallengesVI. Corporate Social Responsibility Current LectureMaterialism, sustainability, and corporate social responsibilityMaterialism- devotion to material needs and desires, to the neglect of spiritual matters; a way of life, opinion, or tendency based entirely on material interests -Value that guides conduct especially consumption behavior=Often has a negative connotation These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.Money does not buy happiness:-Materialism negatively associated with self-esteem and well being, quality of life, satisfaction with life in general-Actually attaining one’s materialistic aspirations does not increase well being extrinsic naturemay be explanation Marketing and materialism:-Marketing does not create needs-Marketing research is conducted to find unserved needs before product is developed and promoted-Marketing promotes materialism-Macro effects of promotion leads to focus on possessions=happiness view-TV ad study showed ad viewing led to higher degrees of materialism among childrenSustainable development: What is it?About:-Balancing economic growth and social needs with the natural environment-Ensuring that growth in the present does not adversely sacrifice future opportunities-Sustainability within a local area and at a global level -Now a very popular topic, with the majority of the focus around climate change due to carbon emissions-In response to this popularity, large orgs such as governments and corporations aim to be “sustainable”Challenges in sustainable development:1. Inherit complexity of the problem- balancing short-term private benefits with long-term interests-Over-focus on one area may have significant negative -Solutions require long-running, transformational changes-Common definition, e.g. whether development through industrialization itself should bereferred to as “sustainable”2. Conflicting interestsBalancing short term private benefits with a long term interestBalancing self interest with the interests of others-Corporate interests-National interest-Personal interests-Interest groups with varying perspectives and agendas3. Post-modernization emerging factorsThere have been changes in the past 50 years that have profoundly impacted Sustainability-The global impacts of large-scale industrialization and materialism-Population growth and increased life expectancy, especially in the developing world-Globalization of trade and transport-Impacts of science and technology exponentiation-Increased corporate influence in relation to government and private citizensWithin current pro-growth economic paradigm:-Target and grow “green” segments-Those sensitive to environmental effects of company/brand actions -Challenges of increasing “green” segments-Attempts perceived to be “greenwashing” -What criteria is used to judge what are sustainable practicesCorporate Social Responsibility (CSR):-The way firms integrate social, environment, and economic concerns into their values, culture, decision-making, strategy and operations in a transparent and accountable manner and therebyestablish better practices within the firm, create wealth and improve society External markets for virtue:-Some customer segments may reward CSR initiatives while others don’t -Benefit segmentation- CSR most important vs. price most important -Favorable response to CSR (profitability)-Dependent on fit between consumer values, firm values and specific issue initiative-Must be seen as authentic Characteristics of socially responsible consumers:-Purchasing based on firms’ corporate social responsibility (CSR) performance-Recycling-Avoidance and use reduction of products based on their environmental impact Marketing and CSR:-How does marketing respond to socially responsible consumers?-Directly by appealing to segment’s desire for more “simple and plain” products-Simplifiers: -Eco efficient simplifiers (consume more, buy eco-status products to reflect socialconcern)-Better world simplifiers (CSR consumes who simply to help the world)-Quality of life simplifiers (simplifying seen as improving quality of life, less needs= less worry, less work, etc.)-Involuntary simplifiers (use simplicity desire to justify forced due to financial reasons)What role can and should marketing play in the future welfare of humanity?-Promoting socially responsible products-Promoting socially responsible firm practices-Marketing and sustainability may be irreconcilable -Macro effects of promotion foster consumption and materialismFuture of marketing:-Solutions may lie in product development -Offering alternatives that foster sustainability -Better value vs. convenience-Via new technologies-Nanotechnology-New development of engineering