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Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter
19
Disposal, Recycling, and
ReUse
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Learning Objectives
After completing this chapter, you should be able to:
Understand that disposition is a growth industry that
provides many marketing opportunities
 Recognize that product disposition is an increasingly
important area for public policy
 Discuss some of the practical implications that disposition
has for managers
 Explain the differences between voluntary and involuntary
disposition

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Learning Objectives (continued)
Describe the social, individual and situational factors that
affect disposition choices
 Realize how understanding disposition provides key
insights into consumption behavior.

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Overview
 Disposition

Disposal encompasses all those behaviors that consuming units
undertake to divest themselves of undesired goods and services.
 Why




and the Wheel of Consumption:
consumer disposition?
Disposition is a growth industry providing many marketing
opportunities.
Disposition is an important area for policy activity.
Disposition has practical implications for managers.
Disposition provides insight into consumption behaviors.
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Disposition
 Disposition
tactics:
storing or keeping the product
 disposing of it temporarily
 disposing of it permanently
 green approach; minimizing the need for disposition


deconsumption: consuming less.
 Backward

channel of distribution:
move goods in the opposite direction from traditional
channels that move goods from producers to consumers
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Historical and Cross-Cultural
Perspectives on Disposition
Garbage was often left where it lay in human dwellings
with layers of new flooring occasionally laid over the
waste.
 In ancient times, pottery was equivalent of modern
containers made of glass or plastic; it was extensively
recycled.
 In the late Middle Ages in Europe, failure to deal with
urban solid-waste disposal led to the Black Plague.

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
The Disposition Process
 Disposition


Physical or spatial detachment from a possession object
Detachment from the meanings and emotions associated with
objects.
 A Model


consists of two interrelated components:
of Disposition:
The physical disposition cycle starts when raw materials enter
the manufacture process and then are distributed to households
or firms that acquire, use, and dispose of them.
Exhibit 19.1
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Disposition Chains

Simple Reuse


Secondhand Reuse (lateral recycling)


Occurs when a product is given away as a gift or through
inheritance to friends, family or strangers or sold to another
household or traded for another product
Secondhand Trade


Occurs when a product is reused by the consumer for its original
purpose or for a different purpose
Takes place when ownership for the used products is first
transferred to an intermediary before distribution to new users.
Resource Recovery (recycling)

Takes place when the product or its parts are used as a secondary
resource in the production of new products.
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Other Disposition Issues

Special treatment of waste products


Voluntary disposition



Exhibit 19.1
People make considered decisions about disposition,
including selling, trading, giving away, recycling, throwing
away, abandoning, using up, and destroying
Exhibit 19.2
Involuntary disposition


Loss of products through legal and illegal transfer, loss,
destruction, etc.
Exhibit 19.3
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Profiles of Disposition Behaviors

Discard it: simply throwing something away


waste-making society: one in which people’s first thought is
to discard rather than reuse or recycle unwanted possessions
Sell it:


swap meets: consumers get together in informal markets to
buy or trade their used goods
Electronic flea markets: Internet auction sites
Donate it: giving things away
 Gift it: form of consumer acquisition


preinheritance: living bequests of household resources.
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Profiles of Disposition Behaviors
Store it: storage is a basic consumer necessity
 time-marked goods remind people who they once were,
invite comparison with who they are now, and highlight
how they have changed
 Recycle it:
 close-loop manufacturing, where simplified recycling is
built into products from the design phase on

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Situational and Individual Factors
Affecting Disposal Choices
Factors intrinsic to the product: materials, purchase price,
replacement cost
 Competitive pressures
 Situational factors extrinsic to the product: finances,
storage space, fashion change, use context, method of
acquisition, legal considerations, downstream externalities.
 Life status changes: occurs when consumers experience a
shift in their social roles.
 Psychological reactance: a response to a threat to
behavioral freedom

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Segmentation and Psychographic
Factors Affecting Disposition
Marketing plans:
 attempt to satisfy customer needs
 attempt to achieve organizational goals
 sustainable marketing (Donald Fuller)
 marketing plans should be constructed so that they
are compatible with ecosystems.
 Segmentation:
 green segments - consumers whose acquisition behavior
is affected by proenvironmental attitudes and behaviors.

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Segmentation and Psychographic
Factors (continued)

Four types of segments for environmentally responsible
buying (ERB)



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What the product is made of
Where the product comes from
Who the product comes from
Demographic and psychographic factors:


motivation, knowledge, affect, experience, involvement, , age,
education, income.
Personal values such as altruism, biospheric orientation or earthfirst orientation relate to positive beliefs and attitudes toward
recycling and waste reduction behaviors.
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Disposition as a Product Choice
Criterion
In many product choice situations, need for a clean, habitable
ecosystem is not particularly associated with the exchange
process.
 Environmental benefits remain an underlying or latent factor.
 Challenge for marketing managers to make ecological needs
and concerns more salient.


Prisoner’s dilemma: Everyone benefits if all comply; but if one person
doesn’t comply, his or her immediate benefits may outweigh the
general good.
Private economic incentives are necessary to encourage
cooperation.
 Recycled and green products

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Key Terms
backward channel members
 backward channel of
distribution
 biospheric orientation
 close-loop manufacturing
 deconsumption
 donation
 electronic flea markets
 garage sales

Prisoner’s dilemma
 product biography
 psychological reactance
 recycling
 resource recovery
 secondhand reuse
 secondhand trade
 selling

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Key Terms (continued)
green products
 green segments
 inheritance
 ISO 14000
 lateral recycling
 model of disposition
 preinheritance

selling
 simple reuse
 storage
 sustainable marketing
 swap meets
 time-marked goods
 waste-making society

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.