Lecture Consumer behaviour: Chapter 18 - Cathy Neal, Pascale Quester, Del Hawkins

This lecture covers the concept of consumerism, and the role of organisations that protect consumer’s rights. Ethics in business is important as unethical practices can be easily exposed and firms can suffer the resultant negative publicity. We will also discuss the impact of technological changes, such as the Internet, on consumers and their behaviours.

Chapter 18 Consumers and Society • Role of consumerism and consumer movement • Role of government legislation and regulation • Growing importance of ethics in marketing • Meaning of negative consumer behaviour • Effects of the Internet on marketing and consumer behaviour  Copyright ª 2004 McGraw­Hill Australia Pty Ltd  18–1 Consumer Movement in Australia, New Zealand and Internationally • Australian Consumers Association (ACA) • • • • http://www.choice.com.au Ministerial Council on Consumer Affairs http://www.consumer.gov.au Consumers’ Institute of New Zealand http://www.consumer.co.nz Consumers International http://www.consumersinternational.org  Copyright ª 2004 McGraw­Hill Australia Pty Ltd  18–2 Consumerism: Definition The evolving activities of governments, businesses, independent organisations and concerned consumers aimed at protecting and enhancing the rights of consumers  Copyright ª 2004 McGraw­Hill Australia Pty Ltd  18–3 Consumerism Can be viewed from levels: • Relationship between consumer and manufacturer • Consumer’s relationship within the broader societal context • Consumerism at a political level Copyrightê2004McGrawưHillAustraliaPtyLtd 184 Global Consumer Movement Consumers International 250 consumer organisations in 115 countries • Covers: – – – – – Product safety Consumers’ economic interests (banking, financial services, insurance) Consumer information and education Redress and complaint facility Draft legislation on electronic commerce  Copyright ª 2004 McGraw­Hill Australia Pty Ltd  18–5 The Rights and Responsibilities of Consumers 18–6 The Consumer Movement in Australia • Australian Consumers Association – – – Non-profit, non-party-political organisation Conducts comparative tests Publishes reports and speaks out on issues such as:   Information and advice on goods, services, health and personal finances, and Issues that help to maintain the quality of life of consumers  Copyright ª 2004 McGraw­Hill Australia Pty Ltd  18–7 The Consumer Movement in New Zealand Consumers’ Institute • Non-profit, independent organisation • Conducts comparative tests and surveys on consumer goods • Advises on financial, food, health, safety, welfare and environmental matters • Has representation on parliamentary committees • Plays a role in educating consumers Advises them on how to make complaints Copyrightê2004McGrawưHillAustraliaPtyLtd 18–8 The Government Regulatory Environment • Australia – – Trade Practices Act 1974 Australian Competition and Consumer Commission (ACCC) • New Zealand – – – Fair Trading Act 1986 Consumer Guarantees Act 1993 Hire Purchase Act 1971  Copyright ª 2004 McGraw­Hill Australia Pty Ltd  18–9 Industry Self-Regulation • Australia – Some areas have favoured self-regulation e.g Advertising Standards Bureau • New Zealand – Advertising Standards Authority (administers Advertising Standards Complaints Board)  Copyright ª 2004 McGraw­Hill Australia Pty Ltd  18– 10 Ethics in Business • Marketing ethics • A societal marketing concept • A framework for marketing ethics (see next slide)  Copyright ª 2004 McGraw­Hill Australia Pty Ltd  18– 11 Marketing Ethics Framework 18–12 Marketing Mix Decisions • Product – – – design and safety packaging and labelling product recalls and bans • Pricing – – – resale price maintenance price discrimination two-price advertising • Promotion – – – portrayal of women advertising to children use of sex in ads Market research privacy Internet Copyrightê2004McGrawưHillAustraliaPtyLtd 18 13 Marketing Mix Decisions (cont.) • Product issues – – – – Product design and safety Packaging and labelling Nutritional labelling Product recalls and bans • Pricing issues • Promotion issues Copyrightê2004McGrawưHillAustraliaPtyLtd 18 14 Negative Consumer Behaviour Potential detrimental effects on consumers – – compulsive buying compulsive consumption (e.g compulsive eating, drinking or gambling)  Copyright ª 2004 McGraw­Hill Australia Pty Ltd  18– 15 The Electronic Marketplace • Current consumer protection provisions were developed in the traditional marketplace • Government and consumer groups have new concerns with issues of privacy, security, access and consumer protection  Copyright ª 2004 McGraw­Hill Australia Pty Ltd  18– 16 ...  Copyright ª 2004 McGraw­Hill Australia Pty Ltd  18 5 The Rights and Responsibilities of Consumers 18 6 The Consumer Movement in Australia • Australian Consumers Association – – – Non-profit, non-party-political organisation... http://www .consumer. gov.au Consumers’ Institute of New Zealand http://www .consumer. co.nz Consumers International http://www.consumersinternational.org  Copyright ª 2004 McGraw­Hill Australia Pty Ltd  18 2 Consumerism:... manufacturer • Consumer s relationship within the broader societal context • Consumerism at a political level  Copyright ª 2004 McGraw­Hill Australia Pty Ltd  18 4 Global Consumer Movement • Consumers