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  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
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  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
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  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
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
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
18–4
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  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
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  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
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
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
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  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
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  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
18–10
Ethics in Business
• Marketing ethics
• A societal marketing concept
• A framework for marketing ethics
(see next slide)
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
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
–
–
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
privacy
Internet
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
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
18–14
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
18–15
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  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
18–16