We are in an era of massive disruptions in markets, media, management approaches and business models. These disruptions are being caused by rapid technological changes on the one hand and tectonic shifts in customer preferences and societal behaviour on the other. Marketing knowledge and practices have to advance at a significantly higher pace to address the changing context of market behaviour. Handbook of Advances in Marketing in an Era of Disruptions is meant to share ideas and new knowledge that are relevant to this world of disruptions. Leading scholars from around the world, who have keenly observed the changing market environment, business policies, parameters, theories, methods and practices, have put forth their theses on how marketing thinking needs to evolve to keep pace with the market reality.
Chapter 5: Should Government Regulate Questionable Goods and Services?
It is widely accepted that governments need to intervene in markets in the case of certain kinds of products. These include addictive products harmful to health (such as cigarettes, alcohol and hard drugs), products that can lead to obesity and other health problems (such as sugar, salt and fat), products that could cause physical harm (such as automobiles, motorcycles and guns) and services offensive to morality (such as gambling, prostitution and pornography). We explore how successful various government regulatory efforts have been at achieving the desired public welfare objectives and address three questions regarding policy options: (a) Should government engage in discouraging the consumption of certain ...