Influences on Marketing

Question 1

Recall the template for:
“factors influencing customer choice – psychological, sociocultural, economic, government”

Answer 1

Psychological:
- Perception
- Motives
- Attitude
- Personality
- Self-image
- Learning
- Brand Loyalty

Sociocultural:
- Social Class
- (Sub)culture

Economic:
- Boom
- High Levels of Employment
- Rising income
- Optimism
- Increase in consumer spending

• Recession
  
  • High Levels of Unemployment
  • Falling Income
  • Pessimism
  • Decrease in consumer spending

Government:
- Competition & Consumer Act 2010 (Cth)
- Sales of Goods Act 1923 (NSW)
- Fair Trading Act 1987 (NSW)

Relate to Dawn
Perception, Attitude, and Personality influence consumer choice
high quality vegan products

Question 2

Recall the template for:
“consumer laws”

Answer 2

Australian Consumer Law

Competition and Consumer Act 2010 (Cth)

Relate to Dawn
Only applicable to Australia

Question 3

Recall the template for:
“deceptive and misleading advertising”

Answer 3

The Competition and Consumer Act 2010 prohibits:
- Bait advertising
- Fine print and qualifications
- Comparative advertising
- Environmental (‘green’) claims
- Country of origin
- Premium (or credence) claim
- Prize giveaways and competitions
- Dishonest advertising.

Question 4

Recall the template for:
“ethical – truth, accuracy and good taste in advertising, products that may damage health, engaging in fair competition, sugging”

Answer 4

Unethical behaviour in advertising includes:
- Creation of needs – Materialism
- Use of Stereotyping
- Use of sex to sell products
- Product Placement
- Invasion of privacy
- Untruths due to concealed facts.
- Exaggerated claims / Puffery
- Vague statements

Actions that violate fair competition and are unethical/illegal:
- Cartel conduct
- Rigging bids
- Price fixing
- Anti-competitive agreements
- Misuse of market power
- Resale price maintenance
- Mergers and acquisitions
- Cartel
- Exclusive Dealing
- Anti-competitive Agreements

• Ad Standards regulates ethical behaviour

Relate to Dawn
Avoid unethical behaviour - bad for business

Question 5

Recall the template for:
“price discrimination”

Answer 5

The Competition and Consumer Act prohibits:
in section 46, the misuse of market power
price discrimination if the discrimination could substantially reduce competition

Relate to Dawn
The Competition and Consumer Act does not apply in foreign nations

Question 6

Recall the template for:
“implied conditions”

Answer 6

Under the Australian Consumer Law, it is implied that products are:
- safe, lasting, with no faults
- look acceptable
- do all the things someone would normally expect them to do

Relate to Dawn
The candle products sold by Dawn has to meet the legal standard in order to achieve a positive reputation

Question 7

Recall the template for:
“warranties”

Answer 7

Obligation

Relate to Dawn
Unknown