Social 9 - Unit 7: Consumerism

How does individual consumer behaviour impact quality of life?

Whether or not consumers purchase products or services can affect not only individuals but society as a whole. It impacts our country's economy, the environment, jobs, health and safety. The choices we make when we purchase products/services reflect our identity.

How does marketing impact consumerism?

- Creates demand

- Encourages you to buy something even if you don't need it

How does consumerism provide opportunities for impacting quality of life?

- Access to goods and services

- Innovation and choice

- Job creation and economic growth

- Identity

How does consumerism provide limitations for impacting quality of life?

- Financial stress

- Environmental impact

- Materialistic values

- Social comparison

How is consumerism used as a power of a collective?

Through boycotts - as a way to bring about change/get a response to issues that concern consumers

What are the common values of consumerism that is reflected in the economies of Canada and the US?

- Materialism

- Environmental worry

- Convenience

- Consumer rights and protection

List Marketing techniques

- Bandwagon Effect

- Emotional Appeal

- Glittering Generalities

- Plain Folks Appeal

- Testimonials

- Scientific Appeal

Relation between advertising and consumer behaviour. How it affects the quality of life and others?

Advertising creates demand. Encouraging consumers to buy, benefits the economy of the country which improves the lives of others because it creates jobs. However, it negatively impacts the environment, so it will lower our quality of life. Whenever we purchase products, it is important to consider the consequences and our values.

Connections between economic growth and consumer behaviour

Whenever consumers purchase products, it benefits the economy. If people stop buying products, it would put many citizens out of jobs and reduce our quality of life significantly, because we would have low supplies of products/services people need.

Government decisions influence consumers by ___________.

limiting or supporting certain consumer behaviours

Consumerism

An economic theory that links prosperity to consumer demand for goods and services, that makes consumer behaviour central to economic decision-making

The factors of consumerism

-Identity

-Health and Safety

-Jobs

-Environment

-Marketing

Identity

The choices we make as consumers can reflect our identity. Products/services we buy define how we live, reflect our beliefs and values and what we consider important to our quality of life. These factors may have influenced us when we buy these products.

Health and Safety

Requires warnings on harmful products to discourage consumers from buying. Some governments has banned some products. Legislation (Canada and U.S.) focuses on consumer health and safety, having product-labelling laws. No legislation to limit trans fats = companies voluntarily reduce

Jobs

When you buy a product, you connect to a chain of people and their jobs. Your choice is part of what keeps them employed. Profit falls/less people with jobs = economy shrinking

Why is there a link between consumer spending and jobs?

More you buy = More jobs . Economy is good if there are lots of jobs which is linked to providing goods/services. Choosing to buy keeps people employed because you are part of a chain.

Economic growth

The degree to which a country's wealth increases over time

Consumer Spending and Economic Growth

Consumer spending affects economic growth in Canada and the U.S. Governments watch consumer spending closely. Through tax breaks and other measures: they sometimes encourage consumer spending to keep their economies growing.

Environment

Your choices as a consumer also affect the air, water and land shared with everybody.

Packaging

Makes up ⅓ of the waste North American consumers generate. Many resources end up as packaging.

Plastic

Plastic manufacturing emits toxins. In the U.S. and Canada, governments regulate the amount of toxins industries can release into the atmosphere.

Ink

Made from organic compounds. Manufacturing organic compounds emit pollutants which make acid rain - damaging lake ecosystems and crops. To limit damage Canadian and U.S. governments regulate and monitor acid-forming emissions from industry.

Metals

Metals come from mines, which can have many environmental impacts.

Legislation about Consumerism and the Environment

Canada and the U.S. have laws and programs related to consumer behaviour and the environment. Government programs label new appliances so consumers can identify energy-efficient options. Producers and consumers have taken environmental actions themselves. The green products on the market come from consumer demand - not legislation.

Marketing

Things like selling things, advertising, and showing how good the product is. It helps consumers decide on what they like.

Competition Act

Rules about advertising come under the Competition Act, which aims to uphold competition among producers by ensuring fair business practices.

Legislation and Marketing

Canada and the U.S. have legislation that affects what advertising can and can't say. For example:

Advertising can't make false/misleading claims about products or services.

Bandwagon Effect

Encourages you to buy a product or service because everyone else is

Emotional Appeal

Uses strong emotional language that connects with your fears and desires

Glittering Generalities

Relates a product or service to words or images that promise everything, but deliver little or nothing

Plain Folks Appeal

Relates a product or service to the experience of ordinary folks

Testimonials

Celebrities or experts speak for a product

Scientific Appeal

Uses statistics or scientific data to persuade consumers to buy a product or service.

How does consumerism affect the quality of life?

It depends on what you value and what you can afford. For example, if you are rich consumerism can consume your life affecting your quality of life greatly, but if you are less fortunate consumerism is less important and your focus is more on fulfilling your basic needs instead therefore, consumerism not affecting your quality of life as much.

How does prosperity affect consumerism?

Depending on how well-off consumers are, it can affect how much they spend, which impacts our economy.

How does prosperity differ regionally? (GDP)

It varies among countries. Different countries can be put into different categories, "developed countries" (Canada and the U.S.) and "Developing countries" (Mexico)

Developed Countries

- High GDP per capita

- Advanced technology

- Good infrastructure

- Steady government.

Developing countries

- GDP per capita < developed countries

- Low levels of supply

- High unemployment rate

- Suffering from diseases, natural disasters and war.

Gross Domestic Product (GDP)

Gross domestic product measures the amount of wealth a country's economy generates. Per capita = average per person. GDP per capita = a way to estimate how well-off people are in a country.

Boycott

A decision by consumers to stop buying a product or service as a way to bring about change.

How can consumerism empower groups?

Through boycotts - a decision by a group of consumers not to buy certain products, as a way to respond to issues/bring about change. Affects producers because consumers don't buy the product and, therefore, will lose money/go out of business

Environmental organizations

Uses boycotts as one way to take action on issues that concern them. Some companies + consumers consider these impacts necessary to fuel the economies of the world. e.g. Greenpeace

Pros of Boycotting

The company/business may stop unwanted practices or choices

Market Economy

At the end of the spectrum, the choices of individuals solve scarcity. Private businesses own and manage resources. They sell their products to consumers, who make their own decisions about what to buy. Businesses succeed if they produce what consumers want. Otherwise, they fail. The government does not get involved.

Cons of Boycotting

If you do not support the boycott, a product or service may not be available due to the company's change in practice or choices to offer the product or service

Mixed economy

A mixed economy combines private ownership and government control.