Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 18–1 Chapter 18Consumers 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  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 18–2 Consumer Movement in Australia, New Zealand and Internationally Australian Consumers Association (ACA) Ministerial Council on Consumer Affairs Consumers’ Institute of New Zealand Consumers International

Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 18–3 Consumerism: Definition The evolving activities of governments, businesses, independent organisations and concerned consumers aimed at protecting and enhancing the rights of consumers

Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 18–4 Consumerism Can be viewed from 3 levels: Relationship between consumer and manufacturer Consumer’s relationship within the broader societal context Consumerism at a political level

Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 18–5 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

18–6 The Rights and Responsibilities of Consumers

Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 18–7 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  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 18–8 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

Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 18–9 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  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 18–10 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  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 18–11 Ethics in Business Marketing ethics A societal marketing concept A framework for marketing ethics (see next slide)

18–12 Marketing Ethics Framework

Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 18–13 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

Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 18–14 Marketing Mix Decisions (cont.) Product issues – Product design and safety – Packaging and labelling – Nutritional labelling – Product recalls and bans Pricing issues Promotion issues

Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 18–15 Negative Consumer Behaviour Potential detrimental effects on consumers – compulsive buying – compulsive consumption (e.g. compulsive eating, drinking or gambling)

Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 18–16 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