MARKETING: Influences

Question 1

Phycological influences - perception.

Answer 1

How consumers view a business.

Question 2

Phycological influences - personality.

Answer 2

Influences the types of products a person buys.

Question 3

Phycological influences - learning.

Answer 3

A business must help customers learn about them.

Question 4

Sociocultural influences - social class.

Answer 4

Influences the type, quality and quantity of a product that consumers purchase.

Question 5

Sociocultural influences - culture.

Answer 5

Culture infiltrates what people do in their everyday lives and will influence their purchases - e.g what they wear, what they eat etc.

Question 6

How does family and roles influence buying behaviour?

Answer 6

Stereotypes often influence buying behaviour - women’s buy domestic items.

Question 7

What are the features of a boom period?

Answer 7

Low unemployment, increased spending as customers feel secure in their jobs.

Question 8

What are the features of a recession period?

Answer 8

High unemployment, decrease in customer spending as they become more price conscience.

Question 9

Australian Consumer Law.

Answer 9

Sets out consumer rights that are called consumer guarantees.

Question 10

What are the main purposes of the Competition and Consumer Act 2010?

Answer 10

1. Protect consumers against undesirable practises.
2. Regulate certain trade practices that restrict competition.

Question 11

Which organisation enforces the CCA?

Answer 11

Australian Competition and Consumer Commission (ACCC).

Question 12

What does the ACCC have the power to do in response to unconscionable conduct?

Answer 12

Issue infringement notices.

Question 13

Bait advertising.

Answer 13

Promoting items at low prices to attract consumers to a business.

Question 14

Fine print.

Answer 14

Must not contradict the overall message of the advertisement.

Question 15

Premium claims.

Answer 15

Claims that give the impression that a product has an added benefit when compared to similar products, e.g. ‘fat-free’.

Question 16

Price discrimination definition.

Answer 16

Charging customers different prices for the same product/service.

Question 17

Implied conditions definition.

Answer 17

The unspoken and unwritten term of a contract.

Question 18

What are some examples of implied conditions (consumer guarantees)?

Answer 18

Safe, match the descriptions, not carry an hidden debts, be fit for purpose.

Question 19

Warranties definition.

Answer 19

A promise to correct any defects of a product.

Question 20

What is a marketing benefit of warranties for businesses?

Answer 20

If a business offers longer warranties it will give customers the impression that the good is of superior quality.

Question 21

In what circumstance can a consumer not receive a refund or exchange?

Answer 21

Change of mind or if damage occurred after purchase.

Question 22

What are the ethical criticisms in marketing?

Answer 22

Creation of needs, stereotyping, sex to sell products, product placement, invasion of privacy.

Question 23

What is product placement?

Answer 23

Advertising in entertainment and is usually subtle.

Question 24

Untruths due to concealed facts.

Answer 24

Pieces of information purposely omitted from an advertisement.

Question 25

Puffery definition.

Answer 25

The exaggerated claims that no reasonable person would take as factual.

Question 26

What is good taste in advertising?

Answer 26

Ads must not be offensive.

Question 27

Products that damage health.

Answer 27

All consumer products must be safe and meet consumer guarantees under the ACL.

Question 28

What is a common example of products that damage health?

Answer 28

Junk food is becoming more criticised by dieticians due to high levels of childhood obesity.

Question 29

Cartel conduct.

Answer 29

Where two or more businesses that would normally be in competition with each other agree to act together to fix prices etc.

Question 30

Anti competitive agreements.

Answer 30

Contracts containing provisions that substantially lessen competition in a market.

Question 31

Exclusive dealing.

Answer 31

When a business trades with another and then imposes restrictions on them.

Question 32

Resale price maintenance.

Answer 32

When suppliers attempt to force a retailer to sell products at a particular price.

Question 33

Sugging.

Answer 33

Attempting to sell a product under the guise of conducting market research.

Question 34

Why is ethical behaviour important in marketing?

Answer 34

Ethical businesses... 1. enjoy publicity in the media which creates a positive image. 2. attract customers and increase customer loyalty. 3. improve productivity, staff retention and absenteeism rates in employees.

Question 35

What are the benefits of government regulation in marketing?

Answer 35

1. Protect consumers and businesses. 2. Increase consumer trust and confidence which increases spending which is good for the economy. 3. Encourages businesses to do the right thing. 4. Promote competition and create a more equal playing field.