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Market researchers and consumer behaviorists agree that consumers must be studied in order for Marketers to more effectively perform their jobs. The more Marketers know about whyconsumers do what they do, when they buy, how they pay for it, how many their buy, etc., are all important pieces of information. But at what point does the "normal" collection of information become an invasion of privacy? A supermarket chain in Indiana has made one of its stores in Indianapaolis a high-tech data-gathering treasure trove. Above the ceiling tiles are 17 radio receivers, scattered throughout the store. Attached to each shopping cart is a small radio transmitter. Is this sophisticated surveillance system designed to thwart would-be cart thieves or shoplifters? Absolutely not. It is designed specifically to monitor the in-store behavior of consumers as they make their way through the store, and then compare their path to what they purchase. Why would this be important? The store claims it allows them to test the effectiveness of price promotions, end caps, etc., and allows them to better understand consumers. In other words, the store feels that it is doing basic consumer research, which will allow it to serve its customers better. But the customers don't even know it's happening. And, of course, for the shoppers who pay with anything other than cash, an electronic file of their shopping activity is recorded. Points to Ponder
Ads Worth Collecting? "Absolut"ely! It's not every day that a company's advertisements stir up such a frenzy that people start collecting the ads and forming international associations for hobbyists. But such is the case for Absolut Vodka, whose unique advertising campaign with eye-catching ads in major magazines has caught the fancy of many a collector world-wide. Many people have published their own homepages that pay tribute to these ads, and offer ads for sale or trade to other collectors. To see some of the many homepages dedicated to this beverage, go to Yahoo, and follow this link sequence: Bus. & Econ.-->Companies-->Drinks-->Alcoholic-->Vodka-->Absolut While this may seem harmless at the surface, there are many people concerned about the mass appeal of this ad campaign, particularly with the growing number of teenagers and younger children who have gotten caught up in this craze. There is fear that these ads will encourage underage drinking. Thus, there is movement afoot to pressure Absolut into changing their campaign. Points to Ponder
Since 1990, Channel One has been available to US junior and senior high schools. Broadcast by Whittle Communications, Channel One provides a daily 10-minute newscast that also contains two minutes of commercials. Schools who sign on with Whittle receive the broadcast signal, as well as a satellite dish, two VCRs, and a TV monitor for each classroom. There are an estimated 12,000 schools and 8 million students exposed to Channel One each day. Critics contend, however, that it is not appropriate, and perhaps even unethical, for educational institutions to allow this form of commercialization into the classroom. The implied endorsement of ads by the schools is seen as further evidence of its inappropriateness. The critics feel that Channel One allows for further penetration of the marketing efforts that already dominate so many aspects of our lives, and to expose children to these messages (during class time, yet!) is an abomination. Supporters, on the other hand, reason that Channel One provides students with timely and informative information that they may not see in their homes, and that the video equipment provided by Whittle is a boon to schools, who may be able to use it as a valuable resource in other applications. Points to Ponder
One of the most popular products Marketers have ever sold is hope. Hope comes in a variety of packages, ranging from beauty aids to weight-loss products, from exercise machines to get-rich-quick schemes. No matter how you slice it, the essential ingredient in each of these products is hope. What is hope? It is the dream of being thin once more, of having "buns of steel" or washboard abs, looking young and beautiful, or being financially independent. For most Americans, these dreams are beyond the realm of possibility, yet many are willing to take a chance on these products anyway. The price of hope runs the gamut, from cheap, portable exercise units ($30-$50), to giant in-home personal weight training stations ($2000). It can be an inexpensive video tape of aerobics routines ($20), to complete meal planning "systems" ($100 or more, plus the price of the meals). Generally speaking, the more hope involved, the greater the price. See Nordic Track and Bowflex for more information. Marketers have been preying upon "hope-less" consumers for many years, going back many decades to the "snake oil" salesmen who sold hope-in-a-bottle (which was nothing more than liquor). The appeals in modern times have become more sophisticated and slick, and perhaps even more subtle, but nonetheless, it is still just hope that is being sold. Points to Ponder
It was the late 1980s, and groups such as Greenpeace, the Sierra Club, and the World Wildlife Fund had seen their membership ranks growing rapidly. A Gallup poll conducted in May 1989 revealed that 75-percent of respondents considered themselves to be environmentalists. Business and industry trade publications alike warned that the restaurant industry could ill afford to ignore the power of these groups. McDonald's, the biggest and most visible restaurant in the US, took a lot of the heat, but no one was immune to the allegations. Greenpeace led the attack, stating that over 12 billions pounds (in 1989) of plastic for packaging were used that were designed to be thrown away as soon as the package was opened. McDonald's responded by showing that of the one billion pounds per year used in plastic foam food packaging in the US, what eventually wound up in the dump as plastic waste from fast food uses was only a fraction of one-percent of total solid waste. (Note: To McDonald's, one-percent was of no significance, but for the major brewers discussed above, one-percent was worthy of their attention.) Furthermore, plastic waste of all kinds constituted only eight-percent by weight of all solid waste. In addition, McDonald's had to contend with negative publicity that focused on cholesterol and fat in hamburgers, as well as criticisms of deceptive advertising claims of the nutritional content of their foods. With nearly all of the menu offerings being served in some kind of polystyrene packaging, McDonald's was faced with the prospect of having to make changes. Thus, McDonald's embarked on a two-tiered program aimed at appeasing critics: launching a restaurant recycling program for polystyrene, and replacing polystyrene packaging for many products with paper wrappers. But the paper wrappers were not all they appeared to be. In reality, they were a "quilted" wrapper, with paper on the two outermost laters, and a thin layer of plastic as the inner layer. This hidden plastic served to keep the juices of the sandwich from oozing out, and also helped keep the sandwich warm. McDonald's, however, played up the "paper" aspect of their wrapper in a grand way, failing to mention that they had really replaced a polystyrene package with one that, while looking like paper on the outside, contained plastic on the inside. Points to Ponder
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