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  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
Consumerism: Definition
The evolving activities of governments, businesses,
independent organisations and concerned consumers
aimed at protecting and enhancing the rights of
consumers
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
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  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
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  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
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  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
The rights and responsibilities
of consumers
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 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
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
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  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 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
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
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  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
Ethics in business
• Marketing ethics
• A societal marketing concept
• A framework for marketing ethics
(see next slide)
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
Marketing ethics framework
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
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)
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: firms becoming
associated with causes
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
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  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 (cont.)
• Product issues
–
Product design and safety
– Packaging and labelling
– Nutritional labelling
– Product recalls and bans
Recent recalls in Australia
• Pricing issues
• Promotion issues
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
Several products claim they are
environmentally friendly - packaging
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
Negative consumer behaviour
• Potential detrimental effects on consumers
–
–
Compulsive buying
Compulsive consumption
(e.g. compulsive eating, drinking or gambling)
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
Compulsive consumption
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
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  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 end
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