Factors Influencing Customer Decisions

Factors Influencing Customer Decisions

• Good presales and after-sales service enhances customer value and encourages repeat purchases
• Consumers seek the best quality at the lowest possible price
• Consumers value time, so convenient store access, proximity, and suitable hours are crucial
• As people age, their needs and wants shift, impacting purchasing decisions
• Marketing plays a significant and daily role through various advertising forms
• Some products are gender-specific, like makeup for women and tools for men
• Higher disposable income enables individuals to afford luxury items and finance larger purchases
• Consumers show a rising preference for environmentally friendly and minimally packaged goods

Marketing Impact on Decisions

• Marketing significantly influences consumer decisions
• Consumers are exposed to around 500 marketing instances, mainly advertising, each day

Disposable Income Impact on Decisions

• Individuals with good finances likely have disposable income for wants
• Choosing to finance an expensive item like a car may depend on disposable income

Age Impact on Decisions

• Needs and wants evolve with age, changing purchasing habits
• Purchasing preferences change from toys in youth to cars or homes later in life

Culture Impact on Decisions

• Cultural and religious backgrounds influence consumers' product choices
• Certain stores may cater to specific cultural preferences

Convenience Impact on Decisions

• People prefer hassle-free shopping due to time constraints
• Convenience factors include travel time, store density, and suitable shopping hours

Service Impact on Decisions

• Good service makes customers feel valued, encouraging repeat purchases from specific stores

Environmental Considerations Impact on Decisions

• Many oppose throwaway packaging and favor sustainability
• Environmentally friendly, minimally packaged products see increased preference

Impulse Buying

• Impulse buying is spontaneous and emotionally driven

Comparison Shopping

• Comparison Shopping involves researching products and prices before deciding

Benefits of Comparison Shopping

• Saves money by finding better value
• Avoids impulsive purchases

Impulse Buying Avoidance Strategies

• Shop with a list to stay focused
• Evaluate quality by comparing brands
• Research to compare prices
• Question necessity to avoid emotional buys

Cash Payment Method

• Cash is widely accepted but unsuitable for large sums
• It avoids third-party involvement and authorization needs
• Cash has no transaction fees, is quick, and may offer discounts
• However, it's insecure, easily lost or stolen, and irreversible

Credit Payment Method

• Credit offers purchase power and instant access to funds
• It provides purchase protection and builds credit history
• Credit cards can be used for emergencies and offer benefits
• However, it can lead to overspending, high interest, debt, and fraud

Direct Debit Payment Method

• Direct debit is convenient and cost-saving
• It facilitates easy tracking and reduces bill payment time
• Direct debit is environmentally friendly
• Risks include loss of control, potential for missed payments and penalties, and information changes

Cheque Payment Method

• Cheques offer increased security and safety compared to cash
• It is suitable for larger payments
• Cashing requires a bank visit and clearance time
• Errors can occur

Cashless Future

• Cashless is growing through convenience, faster transfers, and enhanced fraud prevention
• However, cybercrime risks like fraud and hacking are increasing

PayPal

• PayPal enables secure online transactions without sharing financial details
• It links to bank accounts or credit cards and offers buyer protection

Key Points

• Consumer decisions are influenced by price, service, and convenience, among other things
• Impulse buying is unplanned, while comparison shopping requires research
• Payment methods vary in their advantages and disadvantages
• Legal contracts need a valid offer, acceptance, and consideration

Essential Contract Elements

• Offer: One party provides something of value
• Acceptance: The other party consents to the offer
• Consideration: Both parties exchange something of value

Consumers Legal Rights

• Products must be safe, with proper usage directions and safety testing
• Products must have accurate, clearly labeled information, especially for food
• All sale terms, including fees, must be disclosed, particularly for credit contracts
• Consumers are entitled to a refund, repair, or exchange for faulty products

Caveat Emptor

• Means "Let the buyer beware."
• Buyers are responsible for assessing the quality and suitability of purchases
• Consumer protection laws set minimum standards for businesses despite caveat emptor

Consumer Protection Bodies - ACCC

• The ACCC enforces consumer protection laws and ensures fair trading
• An example of the ACCC's role is taking action against false advertising by a company

Consumer Protection Bodies - Ombudsman

• The Ombudsman investigates and resolves complaints within specific industries
• An example of the Ombudsman's role is resolving disputes between consumers and energy providers

Consumer Protection Bodies - NSW Fair Trading

• NSW Fair Trading offers advice, handles complaints, and enforces consumer laws in NSW
• An example of NSW Fair Trading's role is assisting a customer with a refund on a faulty product

Consumer Protection Bodies - Media

• The media exposes unethical business practices and raises public awareness
• An example of the media's role is investigating and reporting on scams or unsafe products

Consumer Protection Bodies - Choice

• Choice provides independent product reviews and advocates for consumer rights
• An example of Choice's role is publishing reports on the safety of household appliances

Consumer Redress

• Offers the right to seek settlement for direct losses and damages
• It ensures wrong doings regarding goods or services are addressed

Consumer Redress Process

• Initially, raise concerns with the store
• If unresolved, complain to an Ombudsman or NSW Fair Trading
• If still unresolved, take the issue to the NSW Civil and Administrative Tribunal (NCAT)

Legally Binding Contract

• Definition: Is enforceable and binding after a decision is made

Repossession

• Repossession is the legal process for creditors to reclaim property or assets

Wage Garnishment

• Is a court order requiring an employer to withhold wages for debt payment

Legal Action

• It may lead to bankruptcy

Debt Spiral

• A situation where a person is unable to manage increasing debt

Bankruptcy

• Bankruptcy means the inability to pay debts, leading to legal action, and prevents borrowing for seven years

Poor Credit Rating

• It affects future borrowing ability

Social Consequences of Debt

• Stress, illness, and family breakdown can result from financial strain

Short-Term Financial Problem Solutions

• Use debit instead of credit
• Pause making large purchases to avoid impulse spending
• Plan purchases and ensure affordability
• Seek expert counsel from a financial counselor
• Negotiate repayment plans with lenders
• If with multiple loans, pay off the smallest loan first and use the saved money to pay off others

Long Term Financial Problem Solutions

• Consolidate debt into a low-interest loan
• Apply for a hardship variation to loan terms
• Negotiate postponement of repossession or refinance the loan
• Sell assets to repay debts
• File for bankruptcy in court as a last resort

Superannuation

• Superannuation is a long-term retirement savings plan

How Superannuation Works

• Money is invested by a fund manager to grow over time

Importance of Superannuation

• Savings largely determine your long-term lifestyle

Key takeaway of Superannuation

• Start saving early for maximum growth