Influences on Marketing Flashcards

Questions and Answers

Which of the following are main factors that influence customer choice? (Select all that apply)

Geographical influences

Economic influences (correct)

Sociocultural influences (correct)

Psychological influences (correct)

What are psychological influences in marketing?

Psychological factors include perception, motives, attitudes, personality, and self-image.

Define perception in the context of marketing.

Perception is the process through which people select, organize, and interpret information to create meaning.

What is a motive in consumer behavior?

A motive is a reason that compels an individual to take action. Signup and view all the answers

What does 'attitude' refer to in marketing?

An attitude is a person's overall feeling about an object or activity. Signup and view all the answers

What is the role of personality and self-image in consumer choices?

Personality influences product types and brands, while self-image is reinforced by purchases. Signup and view all the answers

What does learning refer to in consumer behavior?

Learning is the change in behavior caused by information and experiences. Signup and view all the answers

What are sociocultural influences?

Sociocultural influences are the effects of other people and groups on customer behavior. Signup and view all the answers

What is meant by social class in marketing terms?

Social class influences the type, quality, and quantity of products a customer buys. Signup and view all the answers

How does culture affect consumer behavior?

Culture determines consumer preferences in dressing, eating, and lifestyle. Signup and view all the answers

What impact do family roles have on buying behavior?

Family roles significantly influence individual purchasing decisions. Signup and view all the answers

Define reference groups in marketing.

Reference groups are people with whom a person identifies, adopting their attitudes and beliefs. Signup and view all the answers

What comprises economic influences in marketing?

Economic influences affect a business's ability to compete and the spending capacity of customers. Signup and view all the answers

What is a boom in economic terms?

A boom is a period of low unemployment and rising incomes. Signup and view all the answers

What characterizes a recession?

A recession is marked by high unemployment and low income. Signup and view all the answers

How do government influences impact marketing?

Government policies directly or indirectly affect business activities and consumer spending. Signup and view all the answers

What is the Australian Consumer Law?

The Australian Consumer Law is a national law established in 2011 replacing previous consumer laws. Signup and view all the answers

What is the purpose of the Competition and Consumer Act 2010?

To protect customers from undesirable practices and regulate trade practices that restrict competition. Signup and view all the answers

What are deceptive and misleading advertising practices?

Practices include fine print, misleading before-and-after ads, and dishonest advertising. Signup and view all the answers

What does price discrimination mean?

Price discrimination is setting different prices for a product in separate markets. Signup and view all the answers

What are implied conditions in consumer guarantees?

Implied conditions are unspoken terms assumed to exist in contracts. Signup and view all the answers

What is a warranty?

A warranty is a promise by a business to repair or replace faulty products. Signup and view all the answers

What are common ethical criticisms of marketing?

Criticisms include the creation of needs and the use of stereotypes. Signup and view all the answers

What is the significance of truth and accuracy in advertising?

False or misleading advertising is both unethical and illegal. Signup and view all the answers

What are exaggerated claims in marketing?

Exaggerated claims, referred to as puffery, cannot be substantiated. Signup and view all the answers

What role does invasion of privacy play in advertising?

Invasion of privacy occurs when data collection targets online consumers for advertisements. Signup and view all the answers

What constitutes good taste in advertising?

Good taste is subjective and varies among consumers. Signup and view all the answers

What is the role of the Advertising Standards Bureau (ASB) in Australia?

The ASB administers a national advertising self-regulation system. Signup and view all the answers

What criticisms are directed at marketing junk food?

Marketing of junk food is criticized for contributing to childhood obesity. Signup and view all the answers

What is meant by engaging in fair competition?

Engaging in fair competition involves businesses striving to attract customers. Signup and view all the answers

What challenges do marketers face in maintaining ethical practices?

Maintaining ethical approaches toward competitors presents various challenges. Signup and view all the answers

What does sugging stand for?

Sugging is selling under the guise of a survey. Signup and view all the answers

Study Notes

Influences on Customer Choice

Four main factors: sociocultural, government, psychological, and economic influences impact customer decisions.

Psychological Influences

Includes internal factors like perception, motives, attitudes, personality, and self-image affecting buying behavior.

Perception

Involves selecting, organizing, and interpreting information to shape individual meaning; critical for marketing to foster a positive product image.

Motives

Driving reasons behind purchases: comfort, health, safety, ambition, taste, pleasure, fear, amusement, cleanliness, and social approval.

Attitudes

Overall feelings about a business or product; significantly influence marketing strategy success.

Personality and Self-image

Personality traits impact brand preferences while self-image is enhanced through purchase choices.

Learning

Changes in behavior from experiences and information; effective marketing can facilitate learning that builds brand loyalty.

Sociocultural Influences

External influences from societal groups affecting buying behavior, including social class, culture, family roles, and peer preferences.

Affects the type, quality, and quantity of purchases made by consumers.

Culture and Subculture

Dictates lifestyle aspects such as clothing, food choices, and living conditions.

Family and Roles

Various family roles shape individual buying habits and preferences.

Reference Groups

Groups closely identified with influence consumer attitudes and purchasing behaviors.

Economic Influences

Affect business competitiveness and consumer spending willingness, hinge on economic conditions.

Boom

Characterized by low unemployment and rising incomes, leading to increased consumer spending and business promotion.

Recession

Defined by rising unemployment and low incomes, resulting in decreased spending confidence among consumers and businesses.

Government Influences

Government policies impact business activities and consumer spending; laws affect marketing strategies significantly.

Consumer Laws

Legislation exists to protect consumer rights and ensure business accountability within marketing practices.

The Australian Consumer Law

Introduced in 2011, it consolidated multiple consumer laws into a single national framework.

Competition and Consumer Act 2010

Aims to protect consumers from deceptive practices and regulate competition.

Marketing Compliance

Businesses must adhere to current consumer laws across all marketing practices.

Deceptive and Misleading Advertising

Includes practices like fine print, misleading before-and-after ads, and dishonest promotions.

Price Discrimination

Occurs when different prices are set for the same product in distinct markets due to geographical separation or product differentiation.

Implied Conditions

Unwritten assumptions in contracts regarding product quality and consumer rights.

Warranties

Businesses are obligated to provide warranties ensuring product quality and performance.

Ethical Criticisms of Marketing

Concerns include creating artificial needs, perpetuating stereotypes, and unethical advertising techniques.

Truth and Accuracy in Advertising

Ethical dilemmas arise when advertisements are false or misleading, which is also illegal.

Untruths and Concealed Facts

Customers often view advertising skeptically, suspecting exaggeration or dishonesty.

Exaggerated Claims

Often termed puffery; these claims are unverifiable and can mislead consumers.

Vague Statements

Advertising that uses ambiguous language can confuse intended messages.

Invasion of Privacy

Growth in online ads raises concerns over user data collection and targeted advertising breaches consumer privacy.

Good Taste in Advertising

Subjective standard; what may be offensive to some could be acceptable to others.

Advertising Standards Bureau

Regulates advertising practices in Australia to ensure compliance with established standards through self-regulation.

Health Impact of Marketing

Criticism of junk food marketing, especially concerning childhood obesity as a significant health concern.

Fair Competition

A fundamental aspect of the marketplace where businesses vie for consumer attention, impacting sales and profit.

Ethical Marketing Policy

Maintaining competitive ethics can pose challenges for marketers in the industry.

Sugging

A deceptive technique where sales are disguised as market research, raising ethical concerns.

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Description

Explore the key factors that influence customer choices in marketing. This quiz covers sociocultural, government, psychological, and economic influences, providing a comprehensive understanding of consumer behavior. Perfect for anyone studying marketing principles.