Influences on Marketing Flashcards
(20 cards)
Influences on marketing
Factors influencing customer choice
- Psychological, sociocultural, economic,
government
Consumer laws
- Deceptive and misleading advertising
- Price discrimination
- Implied conditions
- Warranties
Ethical
- Truth
- Accuracy and good taste in advertising
- Products that may damage health
- Engaging in fair competition
- Sugging
Factors influencing Customers choice
Psychological, sociocultural, economic, government
Psychological Influences
Perceptions
Motives
Attitudes
Personality & Self Image
Sociocultural Influences
Social Class
Cultural & Subculture
Family and Roles
Reference / Peer Group
Economic Influences
Boom & Recession
- Employment and Incomes
- Low Income = Low Spending
Government Influences
Use a number of economic policy measures to influence the level of economic activity
Depending on the prevailing economic conditions, the government will put in place policies that expand or contract the level of economic activity
Economic Influence (Consumer confidence)
Economic forces have an enormous impact on both businesses and customers. They influence a business’s capacity to compete and a customer’s willingness and ability to spend
Consumer Laws
Competition and Consumer act has two purposes
1. Protect consumers against fraud, unfair practice
2. Regulate trade prices that restrict competition
Consumer Laws Points
Deceptive and misleading advertising
Price discrimination
Implied Conditions
Warranties
Price discrimination
- Setting of different prices for a product in separate markets
- Different prices are legal in some circumstances. For examples, differences in cost of getting the product to different markets and slight differences in the product itself
- C&CA prohibits price discrimination if the discrimination could reduce competition (No favoured treatment to some customers while denying it to others)
Example Uber: Price discrimination
- Uber uses route based pricing, using customer based data. Depends on variables like location, time of day, traffic patterns and user history (algorithm to see how much a user would pay)
- Uses battery to manage price (app goes into battery saver mode)
Implied Conditions
- Unspoken and written terms of a contract.
- These conditions are assumed to exist regardless if they are mentioned or written into contact.
- Relating to customer purchases to product’s acceptable quality
- Product is of acceptable quality if it is fit for the purpose for which it is being sold,
Warranties
A promise by the business to repair or replace faulty products
Businesses are required to offer a refund if products are:
- Faulty, Do not match description, or fail to do their purpose
Ethical Issues
Truth + accuracy and good taste in advertising + products that may damage health + engaging in fair competition + Sugging
Creation of needs - materialism
- Individual’s desire to constantly acquire possessions.
- Use of sexual themes and connotations to sell products
- Stereotypical images of males and females
- Product placement
Truth and Accuracy
Consumers may feel cheated, stop buying the product, and could complain to the government - Causing ethical dilemmas due to: vague statements, exaggeration
Good Taste In Advertising
Consumers may regard an ad as offensive, which can cause controversy and complaints = Which may hurt reputation
Products that may damage health
Marketers have been criticised for promoting products that can damage health
E.g Marketing of junk food
Engaging in Fair Competition
Competition and Consumer Act 2010 requires fair competition, E.g
- No cartel behaviour
Sugging
Selling under the guise of a survey for market research = Invasion of privacy and deception
