Chapter 7 Consumerism Consumerism is an economic theory that links prosperity wealth to consumer demand for goods and services and that makes consumer behavior central to economic decision making ID: 626882
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Slide1
What Role Should Consumerism Play in our Economy?
Chapter 7Slide2
Consumerism
Consumerism is an
economic theory
that links prosperity (wealth) to consumer demand for goods and services, and that makes consumer behavior central to economic decision making.
HUH?!Slide3
Consumerism
Basically the more people buy, the better it is for the economy
.
OR IS IT?
When you buy good and services you become a consumer
.
Can you tell how much money someone has from what they buy/their lifestyle?Slide4
Have you ever thought about what influences you as a consumer?
Quality, price, brand name, laws, health and safety.
Is consumerism a good thing or a bad thing?Slide5
Consumer Choices
Why would you choose a Aquafina bottle over a refillable bottle?
Why would you buy Nalgene bottle and not a “no name” brand?
What impact does your choice have on the environment?Slide6
Consumerism…Slide7
More Powerful…
Than any cause.
Than any religion.
Has created unsustainable inequalities.Slide8
Lets Think….
What challenges and opportunities can consumerism create?
To what extent does consumer behavior affect jobs and products available to people?
Why might understanding the role of marketing be important to you as the consumer?
How can consumers act together to bring about change?Slide9
How does Consumer Behavior Affect Quality of Life for Individual and Groups in Canada and in the U.S.?
Why do we buy the things we do?
What
is the connection between the consumer and the economy?
What techniques do marketers use to influence the consumer?
How does the government influence consumers?Slide10
What Guides Your Behavior as a Consumer?
Its Saturday afternoon and your going to WEM. By some miracle, you have money to
spend!
Why will you spend the money on the products you buy? What will influence you?
How will your identity (who you are, what you believe in, the groups you belong to) come into play?
How much will you consider your health?
How does choosing a product affect the jobs people have?
How does choosing a product affect the environment?
How will marketing affect what you buy?
Do you really NEED to buy anything at all?Slide11
How does milk affect our quality of life?Slide12
Factor 1, IdentitySlide13Slide14Slide15Slide16
Factor 2- Health and Safety
How much will you consider your health, safety, and security when buying products?Slide17
Health & Safety: Labeling
Best before
Refrigeration
Ingredients
PasteurizationSlide18
Good for you…
16 essential nutrients
CalciumSlide19Slide20
Hormones? Antibiotics?Slide21Slide22
Should HUMANS drink the milk of other animals?Slide23
Is milk racist?
Milk’s “privileged” dietary position reflects cultural privilege- a “white” imperialism.
Majority of Asian, African, Mexican and Aboriginal people are lactose
intolerant
.Slide24
Is milk racist?
2005 study 61% of people lactose intolerant.
2015 study, 2% in Denmark, 100% in Africa.Slide25Slide26
Lactase
An enzyme required to digest lactose that many humans stop producing after being weaned.Slide27
Calcium Paradox
Recognized by the World Health Organization that nations with the highest dairy consumption have the highest rates of bone fractures
.
Scientific Fact: More calcium in vegetables than milk.Slide28
Negatives?
International correlational studies have linked higher milk consumption with cancers, including breast and prostate cancers.Slide29Slide30Slide31
How does legislation affect consumer behavior?
Many consumers make bad decisions that can negatively impact the quality of life of society. In such cases, it is necessary to have consumer safety legislation in place to protect citizens.
Governments in CAN and USA support consumers by: (examples
?)
Encouraging a healthy economy – so consumers can afford quality-made goods.
Assist consumers in making informed decisions – product labeling and safety standards laws
Ensure consumer protection – environmental standards, fraud and counterfeit lawsSlide32
Factor 3- Jobs
How does choosing a product affect the jobs people have?Slide33
What if people stopped drinking cow milk?
Dairy farmers would lose their jobs.
Factories which process and package the milk
w
ould close.
Milk lobby?Slide34
What if people stopped drinking cow milk?
Possible increase in soy milk/almond milk, etc. production jobs.Slide35
Consumer choices affect the job market
Consumer spending dictates which sectors of the economy and types of industries will experience growth.
Industries in which many jobs are available (labor shortage) will usually be producing a good or service in high demand.
Consumer spending accounts for 70% of economic activity in the USA and 60% in Canada. Both governments watch consumer spending closely to judge economic growth (degree to which a country’s wealth increases over time). Slide36
Government Subsidies
Dairy is a supply -managed commodity in Canada, excluded from NAFTASlide37
Government Subsidies
Imports are limited and domestic marked is fiercely protected by Canadian dairy conglomerates.Slide38
Factor 4-The Environment
How important to you are the environmental impacts of products and services?Slide39
1 gallon of milk
1000 gallons of water.
Feeding
cows- more resources than feeding humans?
The poop (polluting water supply) and farts (methane)
Transport?Slide40
The environmental impact of consumerism
The production, packaging and sale of all products you buy have an impact on the environment
Legislation in both Canada and the USA has been passed to help consumers make environmentally friendly choices
Ex)
Energuide
labels on appliances
Many companies have shifted toward environmentally friendly products due to consumer demand
Ex) organic foodSlide41
Factor 5-Marketing
How will marketing affect what you buy? Do you really need to buy anything at all?Slide42Slide43Slide44Slide45Slide46
Why is milk its own food group?
High in calcium, but
pumkin
seeds are high in magnesium, and they’re not their own food group.
Should milk just be part of protein group?Slide47
Is milk essential?
Contains “16 essential” nutrients
Leafy greens, nuts, dried basil- higher in the nutrients, healthier & more easily absorbed.Slide48
What happens when sales drop?
Sales of milk have been declining.
Rebrand!!Slide49
The new Gatorade?Slide50Slide51
Premium “super-milk”
Selling a life-style
50% more protein
30% more calcium
50% less sugar
100% the priceSlide52
School milk programs- “Dairy Goodness”Slide53
Who is really making our consumer decisions?
Marketing
– the way in which companies convey knowledge about their product to the masses (with the goal of influencing consumer choices).
Marketing (also known as advertising) has become a huge industry in itself – employing millions of people working to attract your $$$. These people work to
manipulate consumer behavior.Slide54
Cartoons about Consumerism
Examine the cartoons presented on p. 256 of your textbook.
What issues about consumer behavior do they raise?
Consumerism and Identity computer assignmentSlide55
Boycott Milk?
to refuse to buy, use, or participate in (something) as a way of protesting : to stop using the goods or services of (a company, country, etc.) until changes are
made.Slide56Slide57
GDPSlide58Slide59
Is it time to change our buying habits?
Think back to a recent purchase. Lets Create a chart that shows:
The materials used from start to finish
Where these materials come from
How they are used to create the finished product
Effects these materials have on environment after disposal Slide60
Marketing Analysis
Identify which advertising techniques you see in each of the following ads:
Quaker Oats
Sprite
McCain
Slap ChopSlide61
Ad Analysis Assignment
Find TWO ads in a magazine or newspaper
Outline what each ad is selling and what specifically is being highlighted about the product or service.
Identify the marketing techniques used in each advertisement
Who is the ad aimed at?
Why might this ad help sell the product?Slide62
Factor 1- Identity
The choices we make as consumers affect our identity. Think about the clothing you are wearing today.
What do the clothes you are wearing say about beliefs and values, and what you consider to be important to your quality of life?
Read the comments made by the grade 9 students on pg 244-245. they each have a different view on how clothing represents their identity
What do these view say about their behavior as consumers?
How do these ideas compare to your own?Slide63
How do advertisers target teens?
Warning : Some Graphic Language and Scenes
Merchants of Cool 1/6
Merchants of Cool 2/6
Merchants of Cool 3/6
Merchants of Cool 4/6
Merchants of Cool 5/6
Merchants of Cool 6/6Slide64
Consumerism and Identity Assignment
Research a specific brand/product that
you
purchase regularly. Find a print ad or use the Internet to obtain an ad for the brand/product that you can include with your product.
Use the attached planner to record your ideas and guide your research
.
Due
tomorrow
Not used 2016Slide65
Consumerism and Income
Lets the cartoon on p. 258-260 of your textbook.
What influences John’s
behaviour
as a consumer?
How does his income affect his decisions?Slide66
What is GDP??
Gross Domestic Product (GDP) is a per capita (per person) measure of the wealth a country’s economy produces.
For example, GDP in 2007:
Canada: $33 000
USA: $46 000
Mexico: $12 500Slide67
The higher the GDP, the more consumption!Slide68
Income Disparity
Disparity – difference, inequality
Not everyone living within the same region experiences the same prosperity.
For example: inner-city Edmonton vs. the suburbs
Factors increasing the likelihood of poverty include:
Low education
Single-parent families
Member of at-risk group: elderly, refugeesSlide69
How can consumerism empower groups?
Consumers in Canada and the USA have the right to:
safe products
Ex) regulation of food
information about the products
Ex) laws against false advertising
choice between multiple products
Ex) anti-trust laws to prevent monopolies
be heard; to voice their concerns
Ex) creations of government agencies to voice consumer concernsSlide70
Protecting the Consumer
Consumer advocates
fight for more government controls and regulations to ensure consumer safety.
Example - Ralph
Nadar
Ralph Nader took on
General Motors
, criticizing automakers’ resistance to update safety features in his book
Unsafe at Any SpeedSlide71
Governments respond to consumer pressure because if they do not give them what they want, they face consequences come election time!Slide72
Therefore, there must be balance!
The task of balancing the
rights of consumers
, the
rights of businesses
and the
involvement of government
in an economy is a difficult one!
In a market economy, the rights of business and the rights of consumers should naturally come to
equilibrium
with
limited government intervention
.Slide73
Boycotting
A
boycott
is a form of consumer activism involving the act of voluntarily abstaining from using, buying, or dealing with a person, organization, or country.
Ex) PETA encourages people to avoid buying fur
Olympic BoycottSlide74
Other Examples…
Read through the case studies on p. 263.
To what extent do the boycotts described reflect collective identity?Slide75
The Story of Stuff
Watch the video and make notes about each concept.