1. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 18-1 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

2. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 18-2 Consumerism: Definition The evolving activities of governments, businesses, independent organisations and concerned consumers aimed at protecting and enhancing the rights of consumers

3. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 18-3 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

4. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 18-4 Consumer movement in Australia, New Zealand and Internationally Australian Consumers Association (ACA) http://www.choice.com.au http://www.choice.com.au Ministerial Council on Consumer Affairs http://www.consumer.gov.au http://www.consumer.gov.au Consumers’ Institute of New Zealand http://www.consumer.co.nz http://www.consumer.co.nz Consumers International http://www.consumersinternational.org

5. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 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

6. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 18-6 The rights and responsibilities of consumers

7. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 18-7 The consumer movement in Australia Australian Consumers Association (ACA) – 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

8. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 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

9. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 18-9 The Government regulatory environment Australia – Trade Practices Act 1974 – Australian Competition and Consumer Commission (ACCC) – Australasian- Ministerial Council on Consumer affairs (MCCA) New Zealand – Fair Trading Act 1986 – Consumer Guarantees Act 1993 – Hire Purchase Act 1971

10. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 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)

11. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 18-11 Ethics in business Marketing ethics A societal marketing concept A framework for marketing ethics (see next slide)

12. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 18-12 Marketing ethics framework

13. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 18-13 Societal marketing concept An extension of the marketing concept to include the pursuit of the satisfaction of society’s needs as a whole Companies demonstrate this when they ‘give back’ to the community eg. McDonalds, and firms involved with the National Breast Cancer Foundation (see next slide)

14. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 18-14 Societal marketing: firms becoming associated with causes

15. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 18-15 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

16. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 18-16 Marketing mix decisions (cont.) Product issues – Product design and safety – Packaging and labelling – Nutritional labelling – Product recalls and bans Recent recalls in Australia Pricing issues Promotion issues

17. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 18-17 Several products claim they are environmentally friendly - packaging

18. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 18-18 Negative consumer behaviour Potential detrimental effects on consumers – Compulsive buying – Compulsive consumption (e.g. compulsive eating, drinking or gambling)

19. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 18-19 Compulsive consumption

20. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 18-20 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

21. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 18-21 The end