Questions and Answers
Which of the following are main factors that influence customer choice? (Select all that apply)
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?
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What does 'attitude' refer to in marketing?
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What is the role of personality and self-image in consumer choices?
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What does learning refer to in consumer behavior?
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What are sociocultural influences?
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What is meant by social class in marketing terms?
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How does culture affect consumer behavior?
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What impact do family roles have on buying behavior?
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Define reference groups in marketing.
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What comprises economic influences in marketing?
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What is a boom in economic terms?
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What characterizes a recession?
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How do government influences impact marketing?
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What is the Australian Consumer Law?
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What is the purpose of the Competition and Consumer Act 2010?
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What are deceptive and misleading advertising practices?
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What does price discrimination mean?
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What are implied conditions in consumer guarantees?
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What is a warranty?
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What are common ethical criticisms of marketing?
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What is the significance of truth and accuracy in advertising?
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What are exaggerated claims in marketing?
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What role does invasion of privacy play in advertising?
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What constitutes good taste in advertising?
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What is the role of the Advertising Standards Bureau (ASB) in Australia?
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What criticisms are directed at marketing junk food?
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What is meant by engaging in fair competition?
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What challenges do marketers face in maintaining ethical practices?
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What does sugging stand for?
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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.
Social Class
- 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.