Influences on Marketing

Question 1

Factors affecting consumer choice

Answer 1

psychological, sociocultural, economic & government influences

Question 2

Psychological Influences

Answer 2

influences within an individual that affect his or her buying behaviour

Question 3

Examples of Psychological Influences

Answer 3

perception, motives, attitudes, personality and self-image, learning

Question 4

Perception

Answer 4

The process through which people select, organise, and interpret information to create meaning

Question 5

Why are marketers sure that they must create a positive perception of their product

Answer 5

Customers create a certain image either positive or negative, of a product which can impact their choice to purchase their product/service

Question 6

Motives

Answer 6

the reason that makes an individual do something

Question 7

Attitude

Answer 7

A person’s overall feeling about an object/activity

Question 8

If the attitude of a customer is negative towards a business, what should the business aim to do?

Answer 8

It forces the business to change its marketing strategy, retaining their customer base

Question 9

Personality and self image

Answer 9

Personality: factors which will influence the types of brands of a product a person buys
Self-image: how a person views themselves

Question 10

Learning

Answer 10

refers to changes in an individuals behaviour caused by information and experiences

Question 11

Examples of Sociocultural Influences

Answer 11

Social Class, Culture, Family & Roles and Reference/Peer Groups

Question 12

Social Class

Answer 12

Are forces exerted by other people and groups that affect an individuals buying behaviour

Question 13

What social class influences affect the type, quality and quantity of products a customer buys?

Answer 13

Their rank in society, education, income and occupation

Question 14

Culture

Answer 14

All learned values, beliefs, behaviour and traditions showed in a society

Question 15

Family & Roles

Answer 15

Purchases made that are family-orientated, according to the buying habits of the differing roles within the family

Question 16

Peer group

Answer 16

A group whom a person closely identifies with, adopting their attitudes, values and beliefs

Question 17

Economic Influences

Answer 17

influence a business’s capacity to compete and a customer’s willingness and ability to spend

Question 18

Economic Boom

Answer 18

a period of low unemployment and rising income

Question 19

Economic Recession

Answer 19

a period of high unemployment and lowering of income

Question 20

Government Influences

Answer 20

Governments use a number of economic policy measures to influence the level of economic activity.

Question 21

Examples of Regulatory Bodies & What they do

Answer 21

Influence marketing activities by prohibiting certain actions

Examples:
- Competition and Consumer Act 2010 (Cwlth)
- Sales of Good Act 1923 (NSW)
- Fair Trading Act 1987 (NSW)

Question 22

Examples of Consumer Law

Answer 22

Deceptive and Misleading Advertising, Price Discrimination, Implied Conditions, Warranties

Question 23

Examples of deceptive and misleading advertising

Answer 23

• Fine Print
• Before and After ads
• Tests and Surveys
• country of origin
• packaging
• special offer
• bait and switch advertising
• dishonest advertising

Question 24

Fine Print

Answer 24

Conditions written in a small-sized font and hard to read

Question 25

Before and after advertisements

Answer 25

consumers may be misled by 'before' and 'after' advertisements, where the comparison is distorted so that 'before' images are worsened and 'after' images enhanced

Question 26

Tests and Surveys

Answer 26

advertisements make unsubstantiated claims; e.g: 9/10 people prefer... when no actual survey was conducted

Question 27

Country of Origin

Answer 27

Accuracy in labelling of the origins of the product

Question 28

Packaging

Answer 28

shape and size may create a misleading impression of the contents

Question 29

Special Offer

Answer 29

implied offers that are available for a limited of time

Question 30

Bait and Switch Advertising

Answer 30

Promoting a low-priced item to attract customers to whom the business then tries to sell a higher priced item

Question 31

Dishonest advertising

Answer 31

When an advertisement uses words that are deceptive or claims that a product has some specific quality when it does not.

Question 32

Price Discrimination

Answer 32

the setting of different prices for a product in separate markets

Question 33

Implied Conditions

Answer 33

are the unspoken and unwritten terms of a contract.

Question 34

Warranty

Answer 34

a promise by the business to repair or replace faulty products

Question 35

Ethical Influences on Marketing

Answer 35

truth, accuracy and good taste in advertising, products that may damage health, engaging in fair competition, sugging

Question 36

Truths/Untruths

Answer 36

concealed facts, vague and exaggerated claims

Question 37

Concealed Facts

Answer 37

pieces of information purposely omitted from advertisement

Question 38

Exaggerated Claims

Answer 38

hyperbolic language to generate excitement about a product, making it sound better than it is

Question 39

Vague Statements

Answer 39

use of ambiguous statements so consumers assume advertisers intended message

Question 40

Good Taste in Advertising

Answer 40

What is considered to be in 'good taste' is highly subjective. Some consumers may regard an advertisement as offensive, while others might view it as inoffensive.

Question 41

Products which damage health

Answer 41

Marketing of potentially harmful products; example: junk food

Question 42

Engaging in Fair Competition

Answer 42

Illegal or ethically unfair behaviour toward competitors to increase market share and sales

Question 43

Sugging

Answer 43

contacting people under the guise of a survey, when in reality its a sales technique in disguise of market research