MARKETING: Influences Flashcards
what are the influences
F- factors influencing customer choice
E- ethical
C- consumer laws
what are the factors influencing customer choice
PEGS
Psychological
Sociocultural
Government
Economic
Sociocultural Influences
OTHER’S OPINIONS - EXTERNAL
- Socioeconomic status - high status, buy more expensive products
- Culture/Subculture: values, beliefs, behaviours, traditions
- Family/roles - expectations: gender stereotypes
- PEER GROUPS
Psychological influences
PERSONAL OPINION
- Percepion
- Motive
- Attitudes
- Lifestyle
- Self Image: how you want others to see you - “status conscious” “brand conscious” “price conscious”
-Learning: behaviour caused by info or past experiences
Economic Influences
- changes in spending and income patterns based on economic cycle
- recession- more expensive - focus more on needs then wants
- boom- cheaper
Government Influences
- policy measure: interest rates, budgets
- regulation/laws : tax
- ACCC/ ASIC monior/respond o concerns in regards to behaviours
What are the consumer laws
- protects consumers from exploitation - gives them confidence to buy
- Australian Consumer Law (2011) - ensures implied conditions met, no misleading/disceptive ads - enforced by Australian Competition and Consumer Commission (ACCC)
- Compeition and Consumer Act (2010) - protecs conumers against undesirable practices, regulate certain trade practices that RESTRICT competition - consumers don’t want monopolies to exist - want choice
Breaches of these laws
- fines up to 50 million or 30% of turnover
- customer disatisfaction and decreased sales
discpetive + misleading advertising
- ads must not use words that are deceptive or convey false impression
examples:
- fine print
- country or origin claims
- before and after
most common
- bait and switch
- dishonest advertising
price discrimination
setting different prices for a product in seperate markets/businesses
e.g petrol
Implied conditions
terms expected/assumed from consumer
examples:
- acceptable quality
- fit for purpose
- warrantly
- safe/durable
what are warranties
- promise tto repair or replace fauly producs
- measure of product success/ finance - see if process is successful
dis:expensive, can become loss
Ethical influences
- what you shouldn’t do - NOT ENFORCEABLE THROUGH LAW
examples of what to avoid:
- materialism - concept of having the ‘need’ for something - fast fashion
- gender stereotypes
- sexism
- product placement
- invasion of privacy - more legal issue now
ethical : Truth/accuracy in advertising
- not specific claim - MAY help…
- being hones and not ‘stretching’ the truth to increase sales
examples:
- puffery - exaggeration - claim that cusomers know is not true
- vague statements
- misleading info
good taste in advertising
- marketing that is current with social concerns e.g smoking
