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HSC Business Studies > Marketing Influences > Flashcards

Marketing Influences Flashcards

1
Q

What are the factors affecting customer choice?

A
  • Psychological
  • Sociocultural
  • Economic
  • Government
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2
Q

What are psychological factors affecting customer choice?

A

The person’s preferences and opinions, such as:
- motive for buying the product
- self-image (the type of person they want to be)
- perception of the product

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3
Q

What are sociocultural factors affecting customer choice?

A

The influence of others, such as:
- Trying to fit in with their social class
- The influence of peers
- The influence of their culture
- Buying things on behalf of family members

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4
Q

What are economic factors affecting customer choice?

A

If the economy is in an upswing or boom, they will have high consumer confidence, so they will:

  • buy more non-essential products
  • be willing to pay more
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5
Q

What are government factors affecting customer choice?

A
  • Regulations on packaging or advertising (e.g. cigarettes, gambling)
  • Subsidies to make products cheaper and more appealing
  • Advertisements to change behaviour (e.g. ‘Quit smoking’, ‘go on holiday to Tasmania’)
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6
Q

What is the case study for economic factors affecting customer choice?

A

Quest Apartments - promoting ‘staycations’ in the pandemic recession

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7
Q

What is the case study for government factors affecting customer choice?

A

Philip Morris - loss leader in response to new vaping regulations and advertising

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8
Q

What are the group of laws in marketing called?

A

The Australian Consumer Laws

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9
Q

Which legislation sets out the Australian Consumer Laws?

A

Competition and Consumer Act (2010)

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10
Q

Which body enforces the Australian Consumer Laws?

A

Australian Competition and Consumer Commission (ACCC)

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11
Q

What are the consequences of breaking the Australian Consumer Laws?

A
  • Fines up to $50m for companies and $2.5m for individuals
  • A public warning notice by the ACCC
  • Potentially, could be sued by customers
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12
Q

What are the 4 consumer laws?

A
  • Misleading and deceptive advertising
  • Price discrimination
  • Implied conditions
  • Warranties
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13
Q

What are some examples of misleading and deceptive advertising?

A
  • False statements
  • Bait and switch
  • Contradictory fine print
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14
Q

What is price discrimination?

A

Charging different people different prices

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15
Q

When is price discrimination illegal?

A

When it is ‘predatory pricing’ - charging very low prices in a particular location to cause rivals to exit the market (with the intention of then raising prices again)

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16
Q

What are implied conditions?

A

The unstated expectations about a product, including that it is:
- Fit for purpose
- Safe
- Free from defects
- Will be completed in reasonable time (for a service)

17
Q

What happens if a product does not meet its implied conditions?

A

The business must give a refund, replacement or repair - regardless of their warranty policy

18
Q

What is a warranty?

A

A promise made to provide refunds or replacements if the product is faulty

19
Q

What are the legal requirements of warranties?

A
  • The business must keep their promise
  • Cannot make customers pay for the implied conditions
  • Must be written in plain English
20
Q

What is the case study for misleading and deceptive advertising?

A

Nurofen - ‘targeted painkillers’ that all had the same ingredients

21
Q

What is the case study for price discrimination?

A

Uber - surge pricing and higher prices in wealthier suburbs

22
Q

What is the case study for implied conditions?

A

Lululemon - claimed ‘no refunds on sale items’ even if defective

23
Q

What is the case study for warranties?

A

Apple - denied warranty claims if phones had been repaired by a 3rd party

24
Q

What are the ethical considerations in marketing?

A
  • Good taste
  • Truth and accuracy
  • Products that damage health
  • Sugging
  • Fair competition
25
Q

What does good taste in marketing involve?

A

Avoiding offensive marketing, such as violence or sexual themes

26
Q

Why might a business choose to advertise in good taste?

A

To prevent criticism and a negative reputation from customers

27
Q

Why might a business choose to advertise in bad taste?

A

To gain attention and publicity

28
Q

What does truth and accuracy in marketing involve?

A

Avoiding ‘puffery’ and exaggerated or vague statements (e.g. ‘this moisturiser will give you younger, smoother skin’)

29
Q

Why might a business choose to reduce its advertising of products that damage health?

A
  • Avoid criticism and a bad reputation
  • Avoid the government creating new regulations
30
Q

What are some examples of products that damage health?

A
  • Junk food
  • Cigarettes and vapes
  • Alcohol
31
Q

What is sugging?

A

Selling under the guise of a survey

(pretending that you’re doing market research, but then actually trying to sell something)

32
Q

Is sugging illegal?

A

No

33
Q

What does engaging in fair competition involve?

A

Not abusing your market power (being bigger than your competitors). This means not doing:
- collusion (agreeing prices with competitors)
- exclusive dealing (only dealing with another business if they refuse to deal with your rivals)

34
Q

What is the case study for good taste?

A

H&M - Coolest Monkey in the Jungle

35
Q

What is the case study for truth and accuracy?

A

McDonalds - Heart Foundation Healthy Tick

36
Q

What is the case study for products that damage health?

A

Philip Morris - tobacco and vapes

37
Q

What is the case study for engaging in fair competition?

A

Amazon - using data from third party sellers on their website

38
Q

Why is ethical behaviour important in marketing?

A
  • Maintain reputation and customer loyalty
  • Avoid government introducing new regulations
39
Q

Why is government regulation important in marketing?

A

Need to comply with government regulations to:
- avoid fines
- maintain customer trust

HSC Business Studies (22 decks)

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