Bs must be aware of influences->predict consumer
trend and how they may react to marketing strategies
Consumer law-CCA2010 protects consumer against
undesirable prac/regulates trade prac restrict comp.
Breaches of act unconscionable conduct result in
penalties. ACCC issue on spot fines/public warning
notices
Deceptive and misleading ad-giving misleading
info about product features, content, country of
origin. Overstating benefits of product, offering
discounts, bait and switch ad, dishonest ad
Price discrimination-diff prices for product in sep markets,
not allowed when used to reduce comp. Bs can provide diff
prices when markets geographically sep, product diff within
one market, or when retailers buy in bulk
Implied conditions-unspoken/unwritten terms of
contract/relation cust purchases in products accep
quality., means fits it purpose, acceptable in apper,
safe, durable.
Warranty-promise made by bs to
repair/replace faulty products. Firms obligated
to offer refunds/exchanges if products are faulty
or not accep quality
Apple fined-2012'4g compatible'm LG fridges.
Ethical issues-standards of behaviour
and guidelines for people working.
Not always adopt ethical prac:creations of
needs,stereotypes images of males/females, use of
sex to sell, product placement->brit spears video
clips, casino royale
Truth, accuracy, good taste in advertising- marketers expected fair
and honest, distributing prom material that is truthful, accur, in good
taste. Untruths due to concealed facts, exaggerated claims, vague
statements, invasion of privacy. Bluekai collected/sold internet
search records 8 million AUS advertising network Adconian
Factors influencing costumer choice
Psychological-personal
characteristics relate way think and
develop attitudes--perception,
motives, attitudes,
personality/self-image,learning,
lifestyles
Socio-cultural-caused by other people and
groups, affect individuals buying
behaviour. Social class/status(type,
quality,quan), culture, reference/peer
group. Halal, Merc Benz
Economic-Impact on both
bs/consumers. BOOM-low
unemployment/income rises.
BUST down.->lack of confidence
in economy->reduced spending.
GFC decline in consumer
confidence,high AUS$ increase
online shopping, consumers
opting adv cheaper.