Business Studies Marketing Influences

Influences - w d c t m d, u f t a c d a p

What drives customers to make decisions, underlying factors that affect customers decisions and preferences

Psychological - p c i b b a a t c p

Personal characteristics influencing buying behaviour and attitudes to certain products

Psychological factors

Perception (positive image), motive (reason for buying), attitudes and beliefs, (experiences) personality and self concept (way customer views themselves), learning (consumer needs to learn about the business)

Sociocultural - f e b o p a g t a a i b b

Forces exerted by other people and groups that affect an individual's buying behaviour

Sociocultural factors

Social class (income), culture (values/beliefs), family role (women make healthcare and food decisions), peer group (may match friends)

Economic - f r t t f s o b t a t d m p

factors related to the financial situation of business that affect their decision making process

Economic factors

Income levels, economic conditions, affordability (peak and trough in AD)

Government - i o c s t t p, s a l i r t w c a a t p

Influence on consumer spending through taxation policies, subsidies and laws in relation to what consumers are allowed to purchase

Government factors

Policies - tax, subsidy, regulations, public campaigns

Consumer law

Introduced in 2011 (Jan 1), covered by CCA 2010 and enforced by ACCC - previously covered by trade practices act 1974

Deceptive and misleading advertising - t u o m i a p f, c, o p o m - o b, o d t a f, b a s

The use of misleading information about products feature, content, or place of manufacture - overstating benefits, offering discounts that are fake, bait and switch

Price discrimination - p o s t s p t d b a d p

Practice of selling the same product to different buyers at different prices

CCA aims to stop discrimination against smaller retailers who are forced to pay higher prices for stock compared to their larger competitors who receive it discounted

Implied conditions - u a u t o a c

Unspoken and unwritten terms of a contract

Under CCA - goods purhcased must be acceptable quality (up to standard for it sprice and free of defects), fit for purpose and match discription or sample

Warranties - p m b b t r o r f p w a c t p

Promise made by businesses to repair or replace faulty products within a certain time period

All products have implied warranty - if it was faulty when it left the store then it can be returned and exchanged

Ethical behaviour - r t t p o c p a a a i a m t i h t a m r

Ethical behaviour in marketing refers to the practice of conducting promotional and advertising activities in a manner that is honest transparent, and morally responsible

Truth accuracy and good taste in advertising - f a h b w d m c

Fair and honest behaviour when developing marketing campaigns - failure to do so is a breach of CCA -

Truth accuracy and good taste in advertising

includes untruths due to concealed facts, exaggerated claims, vague statements and invasion of privacy

Products that may damage health

Health warnings must be displayed on cigarette packets, warnings for gamblers and alcohol

Engaging in fair competition

ACCC ensures businesses engage in fair, legally acceptable competition and enforces CCA 2010

Unfair behaviour includes - price fixing, long term loss leader (undercutting smaller competitors and forcing them to engage in price war) and misleading advertising

Sugging

Selling under the guise of research