Beruflich Dokumente
Kultur Dokumente
7
Influences on marketing
ISBN: 978 1 1074 2220 9 © Marianne Hickey, Tony Nader, Tim Williams 2011 Cambridge University Press
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Factors influencing •
•
motivation
perception
Psychological factors
The personal
customer choice • learning characteristics of
• beliefs and attitudes individuals that influence
Factors outside the business environment their behaviour. These
• lifestyle
will often play an important role in the factors relate to the way
• personality and self-concept. people think and develop
success of an organisation’s marketing plan.
attitudes to certain
While the business has no direct control
over these factors, it is essential that the Motivation products.
Social and
Basic needs
Emotional emotional needs,
health love and self-esteem
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Figure 7.2 Maslow’s hierarchy of needs.
ISBN: 978 1 1074 2220 9 © Marianne Hickey, Tony Nader, Tim Williams 2011 Cambridge University Press
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Learning They include our ethnic or religious
beliefs and our political persuasions or
Learning describes the changes in an
attitudes towards social issues, such as the
individual’s behaviour as a result of an
environment, animal cruelty or child labour.
experience. This experience could be the
A consumer’s attitude towards a particular
consumer’s use of a product, increased
product is clearly influenced by his or her
awareness of its features or learning about
broader beliefs and attitudes. Businesses
a friend’s perception of the product.
cannot always influence a consumer’s
Consumers learn from each purchase
beliefs and attitudes. Factors such as culture
they make. They determine the level of
or religion may prevent certain consumers
satisfaction they gain from using a product.
from buying particular products.
Consumers also decide whether they will
purchase that product again or make a
further purchase from the business where Lifestyle
the product was bought. Lifestyle is a significant influence on buyer
behaviour. People of similar age and
Beliefs and attitudes income will not always buy the same goods
and services. Leisure preferences, interests,
Our beliefs and attitudes are shaped by
attitudes and gender all influence a person’s
our environment and life experiences.
Figure 7.3 High prices will discourage some consumers but will not be a concern for others.
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ISBN: 978 1 1074 2220 9 © Marianne Hickey, Tony Nader, Tim Williams 2011 Cambridge University Press
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essential forms of expenditure. Essential
expenses could include costs related
Activity 7.1 Comprehension
to rearing children, paying a mortgage 1 describe how an improvement in
loan and saving for future needs, such as economic conditions could influence
retirement. As such, high-income earners customers’ buying behaviour.
will not always be able to purchase
2 examine the importance of
products aimed at their particular income
sociocultural factors in influencing
group. However, in comparison with a
customer choice.
low-income earner, a person with a high
income is more likely to be able to borrow
from financial institutions. Banks, credit implementation of the government’s
unions and finance companies hold the fiscal and monetary polices and through
view that the ability of a person to repay microeconomic reform. Fiscal policy refers to
debt is significantly influenced by the the actions taken by the federal government
person’s income. to influence economic activity through
the use of its Budget. This can impact, for
Government factors example, on the level of taxation consumers
pay in the form of income tax and the goods
While it mayBUSINESS
not appear to directly do so,
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the government is an important influence
and services tax (GST) on the purchase of
goods and services.
on the goods and services that consumers
Monetary policy is used by the Reserve
purchase. One of the key government factors
Bank of Australia to influence the level
influencing customer choice is the federal
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government’s regulation of the economy.
interest rates. Interest rates are significant
This regulation takes place through the
in determining the level of expenditure
in the economy and the level of credit
that consumers and business will access.
Microeconomic reform has proven to
in 2009, the federal government be successful in encouraging greater
initiated an economic Stimulus competition in the telecommunications,
program to encourage consumer finance and airline industries. It has offered
spending during a strong phase of consumers greater product choice and
economic downturn. many australian lower prices.
taxpayers were sent one-off cheques Governments also play an important
of up to $900 to spend as they pleased. social role in influencing customers’
retailers such as Woolworths, coles purchasing behaviour. Age restrictions on
and harvey norman all benefited the purchase of alcohol and tobacco and
from the stimulus as consumers censorship warnings on television programs
and films reflect the government’s role
were responding to the payment by
in promoting social responsibility in the
increasing their spending.
community.
ISBN: 978 1 1074 2220 9 © Marianne Hickey, Tony Nader, Tim Williams 2011 Cambridge University Press
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unfair, deceptive and misleading behaviour, electrical products and home appliances. Price discrimination
consumers are responsible for reporting Warranties can be a very powerful marketing A business giving
such cases. tool for a business to attract customers. preference to some
When purchasing a product, the consumer retailers by providing
Activity 7.2 Comprehension expects that the business will fulfil its legal
them with stock at lower
prices than is offered to
obligation to provide a good or service the retailers’ competitors.
1 explain why deceptive and misleading that is consistent with the description given
advertising is considered to be Implied warranty
and is in full working order. Regardless of
unethical. Regardless of whether
whether the product is carrying a warranty,
2 deduce whether it should be the role a product is carrying
a business must, by law, either refund a
of the consumer to be more careful a warranty, a business
client’s money or offer an exchange of the
when making commercial decisions. must, by law, either
good should the good be recognised to have refund a client’s money
been faulty at the time of leaving the store. or offer an exchange of
This is why all products are said to have an the good should the good
Price discrimination implied warranty. By administering this be recognised to have
legislation, the state government seeks to been faulty at the time of
Price discrimination refers to the process
leaving the store.
of a business giving preference to some retail ensure consumers’ rights are protected.
stores by providing them with stock at lower
prices than is offered to the competitors of Resale price maintenance
those retailers. The competitors are being Businesses will often seek to balance the
discriminated against by being forced to pay competing goals of profit maximisation
a higher price for a product that is identical with a competitive pricing strategy. Under
to one the other retailers are receiving at the Competition and Consumer Act, a
a discounted rate. The Competition and manufacturer cannot refuse to sell goods
Consumer Act aims to discourage price to a retailer who decides not to sell the
discrimination in the business environment. good at the price that is suggested by the
It is uncompetitive and can often manufacturer. Businesses may be offered
disadvantage smaller businesses that have suggested prices at which to sell a good.
less influence in the marketplace. The Act As consumers we see this in stores as the
does, however, allow businesses to provide recommended retail price. Some businesses
different prices to different stores for choose to go below this recommended
identical goods should one business order price. A manufacturer cannot discriminate
a bulk quantity. This is a method by which against stores for selling at a price that is
business can engage in price discrimination lower than it has recommended.
and are legally able to do so.
Activity 7.3 Comprehension
Implied conditions
1 define what is meant by resale price
and warranties
maintenance.
A good way for a business to show its
2 identify two examples of how a
faith in the products it sells is to offer a
business may engage in deceptive and
warranty to consumers. Most businesses
misleading advertising.
offer a warranty of at least 12 months for
ISBN: 978 1 1074 2220 9 © Marianne Hickey, Tony Nader, Tim Williams 2011 Cambridge University Press
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Ethical aspects the market share of a business. Given this,
businesses spend considerable amounts of
of marketing money each year on promotional campaigns.
Marketers are expected in engage in fair
Ethics are a fundamental aspect of a
and honest behaviour when developing
successful business. They represent actions
a marketing campaign. It is expected that
taken by businesses to act as responsible
when promotional material is distributed,
corporate citizens within the community.
this material represents information that
Ethics are the cornerstone on which all
is truthful, accurate and in good taste.
responsible businesses are established.
Failure to do this may result in a breach of
Ethics in marketing refers to a combination
the Competition and Consumer Act. The
of broad principles that establish standards
Competition and Consumer Act prohibits
of behaviour and guidelines for people
a corporation from supplying consumer
working across the marketing industry.
goods that do not comply with prescribed
They are not enforceable through law and
product safety standards.
rely on the goodwill of all stakeholders in
Working alongside the legislative
the business process to work successfully.
framework is also the Advertising
Federation of Australia (AFA). This is the
Truth, accuracy and good
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taste in advertising
peak body representing companies in
advertising and marketing communications.
A marketing campaign is established to AFA seeks to promote best practice in
promote consumer awareness and interest advertising by members of the industry.
in a particular product. It is also designed
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This also includes compliance with the
to increase a product’s sale and increase codes and laws that affect advertising. The
Advertising Federation of Australia is also
referred to as The Communications Council.
2 Honour all agreements. agreements are 7 Look after you colleagues. responsibility
expressions of trust. honour all promises – is a two-way street. Look for the best in one
written or spoken – to clients, colleagues and another, acknowledge it, and reward it. Leave
suppliers. respect confidentiality. room for fun, family and friends.
3 Don’t break the law. don’t bend the 8 Compete fairly. be honest in commenting
law. think beyond legal argument to moral on competitors and our industry. no dirty
argument – the spirit of the law. don’t stretch tricks in new business. no misrepresentation
the truth. don’t look for loopholes. of the capabilities of you business.
4 Respect all people. no stereotypes 9 Think before you act. the best decisions
please. individuals should be understood, not are informed decisions. think before you act.
portrayed in a way that could bring disrespect. Will this action connect with your personal
use humour, but avoid cheap shots. sense of what is right or wrong?
Source: www.communicationscouncil.org.au/public/content/viewCategory.aspx?id=593
ISBN: 978 1 1074 2220 9 © Marianne Hickey, Tony Nader, Tim Williams 2011 Cambridge University Press
Photocopying is restricted under law and this material must not be transferred to another party
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the question of truth and accuracy in advertising does create considerable debate.
in 2007, mcdonald’s australia paid $330 000 per year for the right to use the heart
Foundation logo across a range of its healthy choices. these menus were tested
according to strict guidelines established by the heart Foundation. the heart
Foundation is one of australia’s most trusted health and lifestyle logos. given this, the
decision is place the ‘tick’ on various mcdonalds’ products raised considerable debate.
commentators suggested that this would give the impression that mcdonald’s is
healthy, rather than suggesting specific menu items only fit that criterion. mcdonalds’
use of this logo remains as it attempts to develop a healthier menu, seeking to attract
children, mothers and other weight-conscious individuals. the business now labels the
nutritional content of each of its items.
ISBN: 978 1 1074 2220 9 © Marianne Hickey, Tony Nader, Tim Williams 2011 Cambridge University Press
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Section 2 of the Australian Association
of National Advertisers code of ethics
2.1 advertising or marketing communications 2.5 advertising or marketing communications
shall not portray people or depict material in shall only use language which is appropriate
a way which discriminates against or vilifies in the circumstances and strong or obscene
a person or section of the community on language shall be avoided.
account of race, ethnicity, nationality, sex,
2.6 advertising or marketing communications
age, sexual preference, religion, disability or
shall not depict material contrary to prevailing
political belief.
community Standards on health and safety.
2.2 advertising or marketing communications
2.7 advertising or marketing communications
shall not present or portray violence unless it
for motor vehicles shall comply with the
is justifiable in the context of the product or
Federal chamber of automotive industries
service advertised.
code of practice relating to advertising for
2.3 advertising or marketing communications motor Vehicles and section 2.6 of this code
shall treat sex, sexuality and nudity with shall not apply to advertising or marketing
sensitivity to the relevant audience and, communications to which the Federal
where appropriate, the relevant programme chamber of automotive industries code of
time zone. practice applies.
in august 2010, the Federal court of australia ruled that phone card sellers prepaid
Services Pty Ltd and Boost Tel Pty Ltd had engaged in misleading conduct and made
false representations in regard to the value, price and benefits of their phone cards. this
conduct breached the Trade Practices Act 1974 (cth) [superseded by the Competition and
Consumer Act 2010 (cth) on 1 January 2011].
in recent years the accc has been active in promoting truth in advertising in the
telecommunications industry. Prepaid Services Pty Limited is a member of the Optus
group of companies. boost does not have its own telecommunications services but
buys telecommunication services through ppS. the accc argued that ppS and boost
contravened the act by representing that certain phone cards would provide consumers
with a specified amount of call time, when that was not the case; and that no fees, other
than timed call charges, would apply when in fact other fees were charged.
both phone card businesses also suggested to consumers that a specified rate per
minute would apply to calls regardless of the number and length of calls made, when in
fact the specified call rate was highly unlikely to be ever achieved. For example, boost
represented that its card offered 1896 minutes of talk time to various countries including
the uK and Japan at a flat rate of half a cent per minute, however, the 1896 minutes could
only be used in exceptional circumstances, such as through one continuous call in excess
of 30 hours or through a series of calls of exactly one or five minutes duration. a seven-
minute call to Japan would cost 44 cents and not the 7.5 cents as expected.
the courts declared boost’s conduct was false and misleading and ordered the business
publish notices correcting their actions.
ISBN: 978 1 1074 2220 9 © Marianne Hickey, Tony Nader, Tim Williams 2011 Cambridge University Press
Photocopying is restricted under law and this material must not be transferred to another party
Chapter summary
• There are four key factors that influence consumer choice: psychological, sociocultural, economic
and government.
• Psychological factors are the personal characteristics of individuals that influence their behaviour.
These factors relate to the way people think and develop attitudes to certain products.
Psychological factors include a consumer’s understanding of a product and what motivates the
consumer to purchase particular products.
• Economic factors relate to an individual’s level of income and ability to access credit.
• Sociocultural influences on a customer’s choices are those that come from the customer’s society
and culture, such as where they live and their religious beliefs.
• The government has an important role in influencing the goods and services that consumers
purchases. It does this through its use of fiscal and monetary policies, microeconomic reform and
age restrictions placed on the purchase of specific products.
• Under the Competition and Consumer Act 2010 (Cth), businesses are prohibited from engaging
in deceptive or misleading conduct. This extends to conduct in the area of marketing, such as
advertising, sales promotions and discounts.
• Price discrimination refers to the process of a business giving preference to some retail stores by
providing them with stock at lower prices than is paid by the retailers’ competitors.
• Implied conditions and warranties ensure that a product is sold in full working condition and is
consistent with the description given.
• Resale price maintenance ensures a manufacturer cannot refuse to sell goods to a retailer who
decides not to sell the good at the price that is suggested by the manufacturer.
• Marketers are expected in engage in fair and honest behaviour when developing a marketing
campaign. It is expected that when promotional material is distributed, this material represents
information that is truthful, accurate and in good taste. Failure to do this may result in a breach of
the Competition and Consumer Act.
• The federal and state governments have sought to restrict the provision of various goods and
services that may act as a health detriment to the consumer, without applying a ban on their sale.
• Some businesses do attempt to engage in behaviour that is either legally or ethically unfair to their
competitors.
• From a legal perspective, it is the role of the Australian Competition and Consumer Commission to
regulate business behaviour.
• Sugging is the process that involves selling under the guise of research.
Clues
1 These factors relate to our thoughts and attitudes towards particular products.
2 This is the image a particular product or brand has in the mind of a consumer.
3 A consumer’s __________ may act to discourage the consumer from purchasing a certain good
or service.
4 Our perceptions of and attitudes towards particular products are influenced by this.
5 An individual with a high income may purchase goods and services of this kind.
6 An organisation that influences the types of goods and services consumers purchase.
7 Factors related to an individual’s level of income and financial commitments.
8 An important factor influencing the perception of a product.
ISBN: 978 1 1074 2220 9 © Marianne Hickey, Tony Nader, Tim Williams 2011 Cambridge University Press
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Multiple-choice questions
1 Which of the following scenarios best describes the practice of price discrimination?
(A) Smarta Electrics sells air conditioners to consumers located in different geographic areas at
different prices
(B) Sing Lee and Davie Jones each sell the same digital video camera but at different prices
(C) Vision Central offers discounts to pensioners and to consumers willing to pay cash
(D) The manufacturer of Toko cars sells the cars to different car dealerships at different prices
2 Helen visits a furniture store hoping to purchase an outdoor setting that was advertised as being
priced ‘below cost’. When Helen asks the salesperson to show her the setting, she is told that
there was only a very limited number and they were sold that morning. Helen is then shown a
more expensive style of outdoor setting. This practice is typically known as:
(A) Bait and switch advertising
(B) Sugging
(C) Retail price maintenance
(D) Higher costs
3 Ben’s pies are advertising their food products as ‘97% fat free’. Independent tests reveal the fat
content is actually greater than this. Which of the following processes is the business engaging in?
(A) Deceptive advertising
(B) Price discrimination
(C) Taste in advertising
(D) Sugging
4 Psychological factors are reflected through which part of consumer behaviour?
(A) Their personality
(B) Their culture
(C) Their income
(D) Government policies
5 People of similar age, income and ethnicity will not always buy the same types of goods.
What factor influencing consumer choice is reflective of this?
(A) Culture
(B) Lifestyle
(C) Socioeconomic status
(D) Government
6 What are two economic factors influencing consumer behaviour?
(A) Culture and lifestyle
(B) Income and financial commitments
(C) Culture and socioeconomic status
(D) Perception and culture
Short-answer questions
1 Explain how economic and government factors influence a business’s marketing plan during a
downturn in economic activity.
2 Describe the role of ethics for a business developing a marketing campaign.
Extended-response question
Identify the factors influencing consumer choice and examine the impact of ethical and legal
regulations on the process of marketing of a product.
ISBN: 978 1 1074 2220 9 © Marianne Hickey, Tony Nader, Tim Williams 2011 Cambridge University Press
Photocopying is restricted under law and this material must not be transferred to another party