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Consumer decisions are based on different rules that make up the formula of decision making. Consumers can often be set in their ways and will return to their selected brand, known as brand loyalty. But what happens when there are new options added to the mix and there are more choices for the consumer?

There are rules that have been formulated to explain consumer decision, in aid of explaining why some people will choose to behave in a certain way. According to Norman, Ahmed, Chou, Dalal, Fortson, Jindal, Kurz, Lee, Payne, Rando, Sheppard, Sublett, Sussman & White, (2004), consumers shop for their items separately to others, and will avoid bundles with unknown brands and product (p. 173). Thus, when they are faced with multiple choices of branded products, it often leads to consumers narrowing down their known brand in a matter of seconds (Norman et al, 2004, p 174). The above shows this dilemma that consumers face. It applies to both compensatory and non-compensatory rules. The brand can be chosen directly quickly due to the ratings and publicity that surround the item. For example, OMO and home-brand laundry powder a consumer may choose to select the brand that has the most reviews and rewards. Brands provide different criteria for the consumer to select from which can encourage or discourage the selection of certain items if there are too many attributes that are trying to convince the consumer to purchase.

Why do brands use the information of consumer decisions to compete with their competitors?

Norman, A, Ahmad, A., Chou, J., Dalal, A., Fortson, K., Jindal, M., Kurz, C., Lee, H., Payne, K., Rando, R., Sheppard, K., Sublett, E., Sussman, J., White, I. (2004). On the computational complexity of consuer decision rules. Conceptual Economics. 23(2),pp. 173-192. Retrieved from https://link-springer-com.ezproxy.csu.edu.au/article/10.1023/B%3ACSEM.0000021676.64701.12

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An example of the types of posts I hope to see you putting up

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2.	Deadly PersuasionJean Kilbourne’s video address the unethical use of persuasion in the advertising industry for tobacco and alcohol in the USA. Despite the recent focus on what tobacco does to your health, tobacco companies still spend a staggering $9 million a year on advertising of their products.Jean raises interesting points when she speaks of the way tobacco brand Marlborough has positioned itself in the market. Attributing a man’s power, masculinity and success to his pack of Marlborough’s. However, this couldn’t be more inaccurate and full of lies. As research has proven that smoking lowers testosterone, can attribute to impotency and how can one be successful when they are dying of lung cancer? This is a view that is backed by the American Medical Association, who joined in the argument that tobacco companies use persuasive advertising to sell lies: “Advertisements should be to promote good health products and not products that kill. Cigarette companies practice false advertising at its worst; deceptively offering freedom while actively inducing bondage."Persuasion will always be a tactic adopted in advertising and marketing due to its ability to appeal to the human psyche and influence our decisions. However, organisations must look at their corporate social responsibility before persuading consumers to use products detrimental to their health.Do you believe some organisations can take persuasion to use their products too far?Bayer, R. (2002). Tobacco, Commercial Speech, and Libertarian Values: The End of the Line for Restrictions on Advertising?. American Journal Of Public Health, 92(3), 356-359.Smith, J. Kenyon, K. (Director). (2003). Deadly Persuasion [Video file]. Media Education Foundation. Retrieved May 23, 2018, from Kanopy.

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2.	Deadly PersuasionJean Kilbourne’s video address the unethical use of persuasion in the advertising industry for tobacco and alcohol in the USA. Despite the recent focus on what tobacco does to your health, tobacco companies still spend a staggering $9 million a year on advertising of their products.Jean raises interesting points when she speaks of the way tobacco brand Marlborough has positioned itself in the market. Attributing a man’s power, masculinity and success to his pack of Marlborough’s. However, this couldn’t be more inaccurate and full of lies. As research has proven that smoking lowers testosterone, can attribute to impotency and how can one be successful when they are dying of lung cancer? This is a view that is backed by the American Medical Association, who joined in the argument that tobacco companies use persuasive advertising to sell lies: “Advertisements should be to promote good health products and not products that kill. Cigarette companies practice false advertising at its worst; deceptively offering freedom while actively inducing bondage."Persuasion will always be a tactic adopted in advertising and marketing due to its ability to appeal to the human psyche and influence our decisions. However, organisations must look at their corporate social responsibility before persuading consumers to use products detrimental to their health.Do you believe some organisations can take persuasion to use their products too far?Bayer, R. (2002). Tobacco, Commercial Speech, and Libertarian Values: The End of the Line for Restrictions on Advertising?. American Journal Of Public Health, 92(3), 356-359.Smith, J. Kenyon, K. (Director). (2003). Deadly Persuasion [Video file]. Media Education Foundation. Retrieved May 23, 2018, from Kanopy.

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Welcome to Charles Sturt University | Kanopy

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Slim Hopes – Advertising to blame for women’s unhealthy obsession with thinness and beauty “There is nothing more persuasive and evasive than advertising”, Jean Kilbourne boldly claims in her video addressing the unhealthy way women are used to advertise in magazines. Jean makes a good point here about lifestyle advertising being a double-edged sword. The video addresses the use of flawless re-touched images of women used to advertise and sell products in magazines aimed at promoting thinness and beauty. These images are highly persuasive as they sell products based upon unattainable beauty and thinness, however, they are also evasive as they mess with consumers perception of what is real and what has been computer generated or re-touched.The video is a perfect illustration of emotional advertising, which is rife today. The use of perfect images to sell products has boomed with the introduction of Instagram, perhaps a more modern-day version of a magazine. Why is this? We all want to look our best and achieve flawless beauty. Advertisers are cleverly appealing to the emotions of women through their use of imaging that has been altered. Previous studies had found that pictures were better at storytelling, evoking emotions and delivering information compared to text (Thomas 2012). It is no surprise to see marketers utilize the advantage of Instagram and seize the opportunities (Zhao et al, 2017).Have you ever found yourself prey to comparing yourself to a person in an advertisement?Pappert, C. Talreja, S. Perry, S. Jhally, S. (Director). (1995). Slim Hopes [Video file]. Media Education Foundation. Retrieved May 23, 2018, from Kanopy.Thomas, Lisa Carlucci. "Think visual." Journal of Web Librarianship 6, no. 4 (2012): 321-324.Zhao, X., Yang, J., Xie, T., & Wang, Z. (2017). EXAMINING ADVERTISING INTRUSIVENESS ON INSTAGRAM: HEDONIC AND UTILITARIAN ATTRIBUTES OF BRAND AND SPONSORED CONTENT. Paper presented at the 243-255. Retrieved from https://search-proquest-com.ezproxy.csu.edu.au/docview/1937671521?accountid=10344

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Slim Hopes – Advertising to blame for women’s unhealthy obsession with thinness and beauty “There is nothing more persuasive and evasive than advertising”, Jean Kilbourne boldly claims in her video addressing the unhealthy way women are used to advertise in magazines. Jean makes a good point here about lifestyle advertising being a double-edged sword. The video addresses the use of flawless re-touched images of women used to advertise and sell products in magazines aimed at promoting thinness and beauty. These images are highly persuasive as they sell products based upon unattainable beauty and thinness, however, they are also evasive as they mess with consumers perception of what is real and what has been computer generated or re-touched.The video is a perfect illustration of emotional advertising, which is rife today. The use of perfect images to sell products has boomed with the introduction of Instagram, perhaps a more modern-day version of a magazine. Why is this? We all want to look our best and achieve flawless beauty. Advertisers are cleverly appealing to the emotions of women through their use of imaging that has been altered. Previous studies had found that pictures were better at storytelling, evoking emotions and delivering information compared to text (Thomas 2012). It is no surprise to see marketers utilize the advantage of Instagram and seize the opportunities (Zhao et al, 2017).Have you ever found yourself prey to comparing yourself to a person in an advertisement?Pappert, C. Talreja, S. Perry, S. Jhally, S. (Director). (1995). Slim Hopes [Video file]. Media Education Foundation. Retrieved May 23, 2018, from Kanopy.Thomas, Lisa Carlucci. "Think visual." Journal of Web Librarianship 6, no. 4 (2012): 321-324.Zhao, X., Yang, J., Xie, T., & Wang, Z. (2017). EXAMINING ADVERTISING INTRUSIVENESS ON INSTAGRAM: HEDONIC AND UTILITARIAN ATTRIBUTES OF BRAND AND SPONSORED CONTENT. Paper presented at the 243-255. Retrieved from https://search-proquest-com.ezproxy.csu.edu.au/docview/1937671521?accountid=10344

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Welcome to Charles Sturt University | Kanopy

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Situational influence for Woolworths supermarket.
A very good example of situational influence is this article that I found about Woolworths supermarkets. As explained in chapter 2 there are five situational influences th

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Westfarmers has recently had to write off more than $1billion in losses on the Bunnings expansion to the UK. The expansion started in 2016 and has been extremely unsuccessful. Given the Australian Bunnings business model has been very lucrative for Westfarmers and given there are only minor differences in the cultures between Australia and the UK it has come as a surprise that things are so dire they may be closing the doors and pulling out of the UK altogether. In a last attempt Bunnings have lowered its prices to make it seem like competitors are charging too much, but this approach is hurting profits and isn’t sustainable long term. The managing director puts it down to trouble changing the consumer’s habitual decision making and the change overall is not being received well by consumers.

Question – Why do you think such a successful business model in Australia is failing in the UK given the similarities in the markets? Why it is the consumers in the UK are not attracted to the lower prices on offer and instead stay loyal to their regular store?

https://www.smartcompany.com.au/business-advice/bunnings-power-consumer-habits-businesses-struggle-expand-overseas/

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McDonalds have successfully used classical Conditioning around the world. When you see the famous golden arches used at every McDonalds you think about food and start to feel hungry. McDonalds use a number of advertising methods including TV, radio, flyers, billboards and even advertising on the side of buses. On top of this you could pretty much drive past a McDonalds in every third or fourth suburb in Sydney so those golden arches are literally everywhere. They also sponsor a lot of sporting events. My son won man of the match last week at soccer which earned him a certificate and a free meal at McDonalds. Somehow Saturdays have become McDonald’s day for almost the whole team, we play then have lunch at the closest McDonalds to the field we have played at, we just automatically associate soccer now with McDonalds for lunch which all started because of the weekly award a player receives. My son sees the big golden arches and automatically asks for food whenever we drive past; even if we had already eaten, he just associates the sign with food. I’m getting hungry just writing about McDonalds!

Question – Do you associate the golden arches automatically with food & do they make you hungry?

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I purchased a new dog bed last week for our new fur baby. We hadn’t needed to buy a dog bed in 10 years and I was shocked at how expensive they were. After finally making our choice and making with the piece we were going to part with $90 for it I took it to the counter. On the counter was an RSPCA card advertising that several brands in the store would be donating a portion of the sales to them. The bed I had picked wasn’t included in the campaign and after seeing the lonely pup in the advertisement sitting in a kennel I asked the girl at the counter which beds were included in the campaign. After checking the other beds out I ended up paying $110 for a bed that would qualify for the donation, my emotions got the better of me. It was the only thing I could do after seeing the image of the sad little puppy. I walked out having spent way more than planned but I felt really good. Our new fur baby is a rescue dog so I guess that also made the advertisement I saw real for me.

Question – Have you made a decision as a consumer based on emotion?

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Coca cola also uses conditioning. Over the years coca cola have marketed the drink so the consumer associates coke with sports, concerts & the heat. It’s worked on me; just a picture of a glass of icy cold coke makes me thirty in the warm weather. I commute to work by train every day and in the afternoon when it’s hot I find myself automatically at the vending machine buying a coke instead of water that will actually quench my thirst. I’ve even found when were at the beach and go to get the kids ice cream I actually opt for a cold coke instead. Another company that use conditioning really well is McDonalds. Similar to the example you used of dominos McDonalds is marketed as a quick and convenient option for breakfast, lunch or dinner. For busy working parents a trip through drive through on the way home from work offers a quick and easy option for dinner with no clean up and with healthier options like wraps and salads now available McDonalds have addressed the main concern a lot of parents have about feeding this type of food to their kids.

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Recently I have noticed many friends/family’s decision to switch to the use of A2 milk. I was curious as to this popular products benefits. I questioned consumers about their reasons for purchase and it seemed many did not fully understand the benefits themselves. They were almost certain it had benefits as the advertisement and logo suggests, ‘Feel the difference with A2 Milk’ however had minimal understanding on the benefits of the A2 Milk and reasoning for their decided change in purchase.

Research has proven that there is no real difference between drinking the A1 or A2 protein in milk, some say in fact that the promotion of A2 milk is simply ‘very clever marketing’ (Hynes, 2014). It costs two and a half times more than other milk on the market (The Checkout, 2015). A2’s website shows minimal supportive evidence, claims such as ‘recent research suggests that the A1 protein in regular cow’s milk might cause tummy discomfort in some of us, if that’s you A2 Milk may help’ (A2 milk n.d.) does not provide hard facts to its customers.

This company demonstrates consumer behaviour theory present, as it shows consumers have been receptive to classical conditioning. Classical conditioning could be believed to be present for this product, as it has elicited a response from its consumers. This response being to purchase for health benefits, regardless of research proving this is not the case. The below advertisement shows this message being suggested, stating that A2 Milk ‘Will change everything’.

Can you think of a product you have been enticed to buy that may have started with classical conditioning? Did you do your research on this product or were you simply enticed?

Claire Corney

References:
C. (2015, April 30). A2 Milk | The Checkout. Retrieved April 25, 2018, from https://www.youtube.com/watch?v=tP1XGmr26Mo

About a2™ Milk Cows | A1 Beta Casein & Permeate Free Milk. (n.d.). Retrieved May 2, 2018, from https://a2milk.com.au/about-us/

Hynes, S. (2014, July 24). INDUSTRY NEWS. Retrieved May 01, 2018, from http://adf.farmonline.com.au/news/magazine/industry-news/general/jumping-on-a2-bandwagon/2706493.aspx

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Identification Influence: “Open Happiness” with a Coca Cola

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Identification Influence: “Open Happiness” with a Coca Cola

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Identification influence is defined as group norms and values that individuals use as a guide for their own attitudes and values. This individual views this group as a point of reference for their own self-image (Quester, Pettigrew, Kopanidis, Rao Hill, and Hawkins, 2014, p. 461). Coca Cola have utilised this concept as a basis for the marketing campaign of their beverage for many decades. A contemporary example of this can be seen in their 2015 Australian advert ‘Share a Coke this summer’.
Summarised shortly, the advert portrays the narrative of the happy group of teenage friends and manages to intertwine some romance into this 1 minute and 36 second long tale. The friends take part in a multitude of different group activities throughout the day all whilst sharing coke’s together that have each other’s names listed on them. At the end of the advert we see a girl and a boy seemingly fall in love as a party breaks out on the streets (CocaCola Australia, 2015, September 7).

Obviously the advert is aiming to influence teenagers and adolescents venturing into teenage hood by portraying facets of life that are considered to be normal for individuals in those age brackets. The brand very intelligently shakes this image up by throwing their beverage in the mix and making it the focal point and pretty much the reason for the positive experiences.

Question: Can you see how this advertisement is tailored to influence young people through its depiction of norms and values and can you think of any other marketers that utilise this strategy?

References

Quester, P., Pettigrew, S., Kopanidis, F., Hill, S. R., & Hawkins, D. (2014). Consumer Behaviour: Implications for Marketing Strategy. North Ryde: Australia: McGraw-Hill Education.

CocaCola Australia. 2015, September 7. Share a Coke This Summer. Retrieved from https://www.youtube.com/watch?v=hDmBe4d1vEc

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Segmenting the market encourages a definition in target market at which the organisations aims its products and services. According to Elliot, Rundle-Thiele & Waller, market segments are subgroups that make up the entirety of the market but contain certain characteristics that develop an opening to expand the total consumer base (p.181).

The above image shows a visual segmentation of people who fall into different categories. Market segments are broken into four subgroups with specific characteristics that contribute to the definition of that segment. Elliot, Rundle-Thiele and Waller (2012) explain the subgroups to include geographic, demographic, psychographic and behavioural segments (p. 188-193). Business’ can implement this theory of segmenting their market to entice a broader consumer base, ultimately increasing their profitability.

Sarti, Darnell & Testa (2018) use the example of the sustainability and health related products. Based on the market segmentation, demographics and behavioural, they address the want for more sustainable practices (p. 170). Thus, looking at the above diagram, the segments of market are needed to ensure that the business can achieve it strategic objectives.

Ultimately, business need to identify their target market by narrowing down the felid and developing an understanding of their customers wants. This includes having specific criteria that the majority of their business will serve to the consumer environment. As a result, the business will be more profitable with the expansion of the consumer base.

As a consumer, can you recognise where businesses are employing market segmentation to lure you in to develop brand awareness?

Sarti, S., Darnall, N. & Testa, F. (2018). Market segmentation of consumers based on their actual sustainability and health-related purchases. Journal of Cleaner Production,192, pp.270-280. Retrieved from https://ac-els-cdn-com.ezproxy.csu.edu.au/S0959652618312241/1-s2.0-S0959652618312241-main.pdf?_tid=a85638c4-1257-45e0-b43b-257893911aa7&acdnat=1531729981_a5eac5a85eeacc63c70e7727eacaa51e

Elliot, G., Rundle-Thiele, S. & Waller, D. (2012). Marketing(2nded.). Milton, Queensland: John Wiley & Sons Australia.

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Android beats iOS in brand loyalty study finds.

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Android beats iOS in brand loyalty study finds.

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According to a report by Consumer Intelligence Research Partners it was found that Android brand loyalty has been remaining steadily high since early 2016, with a 91 percent loyalty rate compared with 86% for iOS since 2017 (Perez, 2018).

Brand Loyalty is a consumer behaviour pattern where consumers have become committed to a brand and hence make repeat purchases over time (Staff, 2018). Companies strive for brand loyalty with their consumers and use creative marketing strategies to make consumer behaviour work for their product or service. The millennium agency discusses the 5 B’s of achieving brand loyalty, the first B is to be trustworthy with your consumer, this could be provided with a 100% satisfaction guarantee. Other suggestions are to be innovative, engaged, valuable, and stay relevant (Mill agency, 2014).

Being both an iPhone user in the past and as of recent years an android user, I myself resonated with this article. As I review my own consumer behaviour, I was quick to try something different on the market, and then due to the products differences and capability I now have brand loyalty to my device and brand. It’s worth noting that Android hasn’t always led in user loyalty as it does now. CIRP has been tracking these metrics for years, and things used to be the other way around.

By understanding consumers behaviour towards products they like or dislike we can better understand how to create the pattern of brand loyalty in our products or services and meet customers’ needs or wants.

Do you have brand loyalty to a particular product or service? Or have you lost brand loyalty to a product or service due to your needs/wants not being met?

References:

Perez, S. (2018, March 09). Android beats iOS in smartphone loyalty, study finds. Retrieved May 03, 2018, from https://techcrunch.com/2018/03/08/android-beats-ios-in-smartphone-loyalty-study-finds/

Staff, I. (2018, March 30). Brand Loyalty. Retrieved May 01, 2018, from https://www.investopedia.com/terms/b/brand-loyalty.asp

The 5 B's of Achieving Brand Loyalty - Millennium. (2014, December 01). Retrieved May 27, 2018, from https://www.mill.agency/creative/5-bs-achieving-brand-loyalty/

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etalurgia International, Consumer Behaviour – Building Marketing Strategy Vol. 18(8), pp.116-120 retrieved from: https://primo.csu.edu.au/discovery/fulldisplay?docid=proquest1549923516&context=PC&vid=61CSU_INST:61CSU&search_scope=MyInst_and_CI&tab=Everything&lang=en
 
Online Shopping Gender Gap. (n.d.). Retrieved from
https://hypesavings.com/author/store-manager-hypesavings-com/

Jose Alejandro Cabrera Angeles




5 comments

Anonymous 5d
I think there have been changes to the way women are portrayed in marketing. An example of this is that women now feature in car commercials which used to be dominated by men (Quester, Pettigrew, Kopanidis, Rao Hill, and Hawkins, 2014, p. 390). I think there have also been changes to the way men are used in marketing as well. Men are now advertising hair and skin-car products that only used to get advertised by women (Quester, Pettigrew, Kopanidis, Rao Hill, and Hawkins, 2014, p. 390). When it comes to describing myself as a consumer, it depends on the situation at hand. At times I would characterise myself has an impulsive consumer especially when I walk through the shopping centres and I see a movie or a T-shirt that I really like. I often purchase these types of items right on the spot without even thinking about it. On the other hand, I am currently looking to purchase a second-hand car in the near the future. When it comes to purchasing a car I find that I am doing a lot of research and listening to other people’s advice. I am currently researching the different types of cars that would be suitable for my current needs and wants. I’m researching their price, the number of kilometres, fuel economy, their service history and tyre usage before I make my final decision. Quester, P., Pettigrew, S., Kopanidis, F., Rao Hill, S. and Hawkins, D (2014). Consumer Behaviour: Implications for Marketing Strategy (7th ed.). Sydney: Irwin-McGraw Hill. Kaytlin.L

Anonymous 4d
Hi

Anonymous 4d
I am a consumer who tries to research products before purchasing them mostly due to prices, being a full time uni student i am very price conscious therefore i usually find i research products to compare quality and prices. This also makes it less likely for me to make an impulse purchase, as I aim to only purchase what I need. But this doesn't mean i've never made an impulse buy. shops are very clever in how they advertise things, for example i fallen victim to clothing sales, with the big colourful signs saying 20-50% off and I end up buying an item I didn't need. So I agree with your earlier statement it depends on the situation and how you feel day I think.

Anonymous 4d
Jess

Anonymous 4d
With that being said I do think women are more likely to research certain products than men especially because women are more interested in shopping and like to know what they are buying. women are also more exposed to marketing in shopping centers which means women are more likely to fall victim to the kind of impulse buys like my example above. Jess


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Coffee, pyjamas and post-purchase activities
Coffee, pyjamas and post-purchase activities
The concept of using products outside of their intended use or “upcycling” products is not new, but it is not very often that a company would use it as part of their advertising campaign.

Recently, coffee company Moccona teamed up with popular pyjama retailer Peter Alexander to give a makeover to their packaging – bringing out a range of four different jar designs that represents different types of Moccona customers (Mitchelhill-Miller, 2018). The most fascinating part of this campaign, though, is the incorporation of the concept of upcycling into their advertising. As well as introducing these new designs to consumers, Moccona also offers different uses for their packaging after use that complements each design(Mitchelhill-Miller, 2018) – such as using the cupcakes jar to store cookies. Moccona also encourages the consumer to come up with other uses for their left over Moccona jar. 

In the consumer decision process, product use and disposal are important factors when making purchase decisions. A product that is has unappealing packaging, is hard to dispose of, or unrecyclable can turn consumers off purchase (Quester, 2015, pp. 188-191). Moccona has utilised the knowledge of  their consumers' post-purchase activities to differentiate themselves in the market.

Do campaigns like Moccona’s make you think about or change the way you look at product disposal? 

References

Mitchelhill-Miller, H. (2018). Sleep AND Wake Up In Style With These Moccona & Peter Alexander Coffee Jars.   Retrieved from https://www.hit.com.au/scoopla/food/sleep-and-wake-up-in-style-with-these-moccona-peter-alexander-coffee-jars?station=2day
Quester, P. G. (2015). Consumer behaviour : implications for marketing strategy (7th edition. ed.). North Ryde, New South Wales: McGraw-Hill Education Australia Pty Ltd. 


Molly Goldrick
2 comments

Anonymous 6d
I think you have a point here, there has been many instances where packaging from the shelve to home remains in good condition, either parts or the whole package: box bottle, etc, finding ways to up-cycling will have a tremendous impact in the environment and hopefully preference from consumers on those products that offer the additional feature, consciously responsible for the environment. Jose Alejandro Cabrera Angles

Anonymous 5d
I Have always only placed product disposal decisions against items of high dollar value, like cars. I have not considered reverse supply chains and the like. But I do remember purchasing a "jar" of Nutella because the jar was a cartoon cup. So I consider this the ultimate disposal. as it wasn't about the Nutella, it was about the cup. Iain Faber Pascale Quester, S. P., Sally Rao Hill, Foula Kopanidis. (2013). Consumer Behaviour: Implications for Marketing Strategy.


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Post Purchase behaviour
Post Purchase behaviour

I work for an Insurance Company and my role is within the Claims Department. I enjoyed reading Topic 2.6 in addition to the prescribed textbook regarding post purchase behaviour, because of the theory’s relevance to my work.

For example, the majority of my customer interactions occur a relatively significant period after they actually bought their insurance policy. When a customer becomes disabled, my role is to honour the policy of the Insurance Company and contractually pay income protection benefits.
It is therefore crucial that our customers receive an experience that meets the expectations that were promised at time of purchase. Supporting this are the following statistics obtained from a US customer research by Salesforce; 

• It is 6-7 times more costly to attract a new customer than it is to retain an existing customer 
• 89% of consumers have stopped doing business with a company after experiencing poor customer service. 
• A 10% increase in customer retention levels results in a 30% increase in the value of the company.

Incidentally, my wife and I had purchased a custom sized kitchen specifically to fit our fridge. In the event that we have to replace the fridge, we would likely give preference to a retailer who is able to dispose of our fridge that we no longer have use for. 

Does disposal of replacement goods play a part of your decision making process when contemplating new purchases ?

 

REFERENCES:
 

Quester, P., Pettigrew, S., Kopanidis, F., Rao Hill, S. and Hawkins, D (2014). Consumer Behaviour: Implications for Marketing Strategy (7th ed.). Sydney: Irwin-McGraw Hill.

https://www.appliancesonline.com.au/academy/environment-energy-and-water-saving/avoid-the-fines-let-us-take-away-your-old-appliance/

https://www.salesforce.com/blog/2013/08/customer-service-stats.html



 

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Consumer Behavior: Purchase Decision and Social Responsibility Chapter 5
Consumer Behavior: Purchase Decision and Social Responsibility Chapter 5
Informed consumers factor in their decision process the social responsibility of the company producing or selling the end product or service. 

Women and younger consumers have been found in making socially responsible purchases than men and older consumers, socially responsible products are those that are environmentally friendly and have minimum negative social impact in communities (e.g. child labor, underpay wages, slavery, etc.)
Coca Cola and Pepsi has been exposed for their marketing tactics in countries and communities with low socioeconomic levels, soft drinks or flavored sugar-water drinks cost practically nothing to produce or buy yet have turned those companies in multi billion industries. The marketing campaigns are known to target children and poor communities where soft drinks are cheaper to buy than water or milk. (African and Latin-American communities). Whilst health issues and impact to health systems started to being address in developed countries (Sugar Tax, soda caps, etc.) while under- developed countries obesity and overweight remains a constant due to economic access to sugary drinks, nearly 70 percent of African and Hispanic Americans regularly drink sugar sweetened sodas, (Nestle 2015 p. 186) and their habits are strongly influenced by television advertising, especially when commercials feature celebrities of their own race or ethnicity.

Do you consider social responsible companies when making your purchase decision?
Reference

Quester, P., Pettigrew, S., Kopanidis, F., Rao Hill, S., and Hawkins, D. (2014). Consumer Behaviour: Implications for Marketing Strategy (7th ed.). Chapter 5 Evaluating and selecting alternatives (pp. 144-146) Sydney: Irwin-McGraw Hill.
 

Nestle, M., & Baer, N. (2015). Soda politics : taking on big soda (and winning). Retrieved from https://ebookcentral-proquest-com.ezproxy.csu.edu.au

Jose Alejandro Cabrera Angeles

 

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Experiencing post purchase dissonance
Experiencing post purchase dissonance

At a restaurant I often order a meal and later regret my choice, when I look at the menu again. I feel post purchase dissonance. Because I love good food and the decision of what to order is important to me and I am an anxious person, I am more likely to experience post-purchase dissonance (Quester et al, 2014, p. 205). When I read the article ‘’The Simple Way To Minimize Buyer’s Remorse” (Carvalho, 2013), I realised that the simple act of closing the menu and handing it back to the waiter minimises buyer’s remorse. It is about removing the choices once a decision has been made, to improve customer satisfaction. I noticed at fine dining restaurants often the waiter congratulates me on making an excellent choice, which makes me feel better.

Discussion question:

When did you feel post purchase dissonance? What tactics do you think companies use to reduce buyer’s remorse? 

 

References

Carvalho, J., (2013). The Simple Way To Minimize Buyer’s Remorse.

Retrieved from: https://www.neurosciencemarketing.com/blog/articles/buyers-remorse.htm#

 

Quester, P., Pettigrew, S., Kopanidis, F., Rao Hill, S. and Hawkins, D (2014). Consumer Behaviour: Implications for Marketing Strategy (7th ed.). Sydney: Irwin-McGraw Hill.

Martina Akouri

2 comments

Anonymous 6d
I think all of us have experienced Buyer's remorse at some point, personally I found this to occur whenever I buy electronics, with technology changing so fast, you always notice somewhere offering similar products for less or to realize that the product will be obsolete within a couple of years. Jose Alejandro Cabrera Angeles

Anonymous 3d
I felt post purchase dissonance when we acquired our first house a few years ago. I believe that this was because of the high value of the purchase, the difficulty in choosing amongst alternatives and my anxiety which are factors of increasing dissonance, discussed in the textbook (Quester, Pettigrew, Kopanidis, Hill and Hawkins, 2014, 185). Although I am happy with the purchase now, it would have helped if the real estate agent made me feel like my decision was the best one at the time. I found an article on ways for organisations to reduce consumer’s post-purchase dissonance. The article talks about how important it is for companies to understand the causes of buyer’s remorse and to be responsive to consumers by ensuring that you can reply to any questions after the purchase (Alton,2017). Some brands create resources such as online chat forums or monitor their social media channels to provide immediate answers (Lee, 2015). The article also talks about educating customers to ensure they are well informed and to remove the fine print and start explaining everything to customers (Alton, 2017). Its also important to under-promise and over-deliver which may result in customers being more satisfied than they anticipated (Alton, 2017). References Alton, G. (2017, February 14). 5 ways to avoid buyer’s remorse in your customers. Huffpost. Retrieved from: https://www.huffingtonpost.com/entry/5-ways-to-avoid-buyers-remorse-in-your-customers_us_58a3b46de4b0e172783aa231 Lee, G. (2015, April 7). Three steps to a first class customer experience. The Guardian. Retrieved from https://www.theguardian.com/small-business-network/trade-mission/2015/apr/07/three-steps-customer-experience-retailers


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Demographics

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While many products are being steered away from what is considered their traditional gender stereotyping children’s toy products are for the most part staying right on course. (Quester, Pettigrew, Kopanidis, Rao Hill, and Hawkins, 2014, p.390). Large toy corporations can attribute their sales success to basing their toys and advertisements on gender roles and making individuals that fit in those perceived roles their direct target market.

An example of this is seen in the marketing of Hasbro’s ‘Rose Petal Cottage’ which is essentially a play house for girls. The advert opens with “now there is a place where her dreams have room to grow” as a little girl is the focus point of the shot. The ad claims the cottage is “a place of her very own where she can decorate” as it shows the young lady playing with the toy kitchen appliances and moving around toy furniture (mwb1973, 2007). The advertisement effectively paints the picture of what is considered a traditional female role in the home and markets it to the children as an area to play and grow in. on the contrast adds for boys tend to be emasculated and voiced over with a harsh male voice.

Do you recall the last toy advertisement that you saw? Can you now see how the ad may have been tailored to appeal to and pushed towards one specific gender?

References

Quester, P., Pettigrew, S., Kopanidis, F., Hill, S. R., & Hawkins, D. (2014). Consumer Behaviour: Implications for Marketing Strategy. North Ryde: Australia: McGraw-Hill Education.

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Hasbro's Rose Petal Cottage Commercial #2 - For Moms

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Topic 3.1 investigated the concept of perception and its influence on the consumer decision making process. Solomon (1999) describes perception as a process in which consumers are affected by sensory stimuli such as sight, tastes, sounds and textures which then influences the consumer’s exposure, attention and interpretation of the product or service (Solomon, 1999, p. 45).

In 2018 Heinz was accused of misleading consumers over a range of children’s snack foods which were marketed as healthy, wholesome and 99% fruit and vegetables despite comprising more than 60% sugar. The consumer watchdog claimed the packaging of the products conveyed a range of false and misleading statements, including that the products were beneficial to toddlers' health (Whitbourn, 2018, para. 3).

Packaging of snack foods which are marketed as healthy using stimulus categorization, or assumed knowledge such as ‘fruit is healthy’, can use perception to influence the consumer decision making process. Research suggests that packaging information is subject to miscomprehension, such as whether the product is ‘fresh’, ‘pure’ or ‘natural’, which is interpreted by the consumer (Quester, Pettigrew, Kopanidis, Hill, & Hawkins, 2014, p. 240). Stimulus categorization is often used in the packaging of children’s snack foods, which incorporate wholesome images such as fruit, vegetable and whole grains. However, consumers can be misled by the perception that products which display healthy foods on the packaging are healthy options.

Question: Do you think it was misleading or deceptive of Heinz to market a product which was obviously not healthy with packaging suggesting that is was? Why/why not?

References:

Whitbourn, M. (2018). Heinz misled consumers over health benefits of children's snack, Sydney Morning Herald. Retrieved from: https://www.smh.com.au/business/consumer-affairs/heinz-misled-consumers-over-health-benefits-of-children-s-snack-20180319-p4z551.html

M. R. Solomon (1999). Consumer behavior: buying, having, and being. New Jersey: Prentice Hall.

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Chapter 10 of the textbook highlights the importance of emotions in marketing and advertising. According to Quester, Pettigrew, Kopanidis, Hill & Hawkins, (2014) “Emotions are considered a primary source of human motivation triggered by exposure to specific stimuli and influencing information search, memory and behaviour”.  Playing on audiences’ emotions can be a highly effective way of advertising, particularly in the not-for-profit industry.

For example, Save The Children’s “Help Save a Child’s Life” advertisement. I remember when this ad came out in 2015, and the immediate effect that it had on me. The ad highlights the contaminated water that children in third world countries are forced to drink in order to stay alive… showing images of sick, malnourished and starving children. The advertisement poses a question to the viewer – “If you could, you’d give a child clean water… wouldn’t you? And that’s the simple thing that we want you to do today”.  I found that the combination of the upsetting images, and putting the responsibility back on to the viewer were highly effective in creating an urgent call for action. Although this purchase doesn’t involve the acquisition of a physical product, the buyer is left with a sense of gratification knowing that they have made a difference to these children’s lives.

Question: Can you think of an instance where an advertisement has had a profound effect on your emotions? What was it and how did it make you feel?

References:

Quester, P., Pettigrew, S., Kopanidis, F., Hill, S., & Hawkins, D. (2014). Consumer Behaviour: Implications for Marketing Strategy(7th ed., p. 501). Sydney: McGraw-Hill Education.

Save The Children. (2015). Help Save A Child's Life[Video]. Retrieved from https://www.youtube.com/watch?v=4yI839-i0n8

- Abbie Sceresini

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If you could, you'd give a thirsty child clean water - wouldn't you? Help save a child from drinking life-threatening contaminated water today. Donate now: https://www.savethechildren.org.au/donate/help-save-lives

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Fast food companies such as Dominos utilise conditioning to sell more product and in their case pizza, "Conditioning refers to learning that is based on the association of a stimulus (information) and a response (behaviour of feeling)." (Quester, Pettigrew, Kopanis, Roa Hill, & Hawkins, 2014, p. 460). The most classic example of this being television advertisements around dinner time showcasing images of glorious looking pizza that can be delivered straight to your door in no time at all and no dish washing required. Dominos marketing campaign is then further strengthened by the use of classical conditioning "classical condition is the process of using an established relationship between a stimulus and a response to bring about the association of that same response to a different stimulus." (    Quester et al., 2014, p. 266) Dominos have cheaper Tuesdays every week where you can purchase pizzas at a discount, this encourages the consumer to try the product and familiarise themselves with the service, taste and convenience associate to Dominos product. This consumer then finds themselves in a similar situation it is dinner time and they are time poor and unmotivated to cook but it is not Tuesday, pizza still sounds like a great option, even at full price and they are familiar with Dominos service and product so that is the purchase they make at full price.

Can you think of other companies who have successfully used conditioning to make sales?
Renee Piddington
References

Quester, P., Pettigrew, S., Kopanis, F., Roa Hill, S., & Hawkins, D. I. (2014) Consumer Behaviour Implications for Marketing Strategy. North Ryde NSW: McGraw-Hill Education (Australia) Pty Ltd.

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Chapter 9 explores the process of classical (respondent) conditioning, where consumers are conditioned by a brand to associate a particular feeling or emotion with a product, so that they ultimately experience that feeling or emotion when consuming that product (Quester, Pettigrew, Kopanidis, Hill & Hawkins, 2014). Coca Cola are a good example of a company adopting conditioning methods. Their advertisements consistently display happiness with summer settings, attractive models, youthfulness, playfulness, adventure and fun. This is reinforced by the tagline “taste the feeling” – suggesting that their product releases a particular feeling when consumed that is exclusive to the Coca Cola brand and taste.

This ad in particular reinforces a certain “persona” that is taken on when consuming their product. The song even states “open up a little happiness today, so I can be someone new… so I can feel something new”. Coca Cola do not only suggest that their product can make you feel something, they also suggest that their product can make you BE a particular someone.

Coca Cola have built their product up to be a metaphoric bottle of “happiness”. However, without all of this advertising, it would be just another soft drink on the supermarket shelf. Without this conditioning, we most likely wouldn’t experience the emotions that we now so widely associate with their product.

Question: When you view a Coca Cola advertisement, what does it make you feel? And does it inspire you to consume their product?

References:

Coca Cola. (2009). Coca Cola Australian Summer Commercial[Video]. Retrieved from https://www.youtube.com/watch?v=nlpZRK2Yfd0

Quester, P., Pettigrew, S., Kopanidis, F., Hill, S., & Hawkins, D. (2014). Consumer Behaviour: Implications for Marketing Strategy(7th ed., p. 501). Sydney: McGraw-Hill Education.

- Abbie Sceresini

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Александр Брусницкий

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Coca-Cola Australian Summer Commercial 2009-2010 [HD 720]

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Online clothing retailers such as The Iconic take direct advantage of reference groups in their social media marketing activities, "a reference group is any person or group of people that significantly influences an individual's behavior" (Blackwell, DSouza, Taghian, Miniard & Engle, 2006, p. 376) The Iconic does this by using it social media platforms such as Instagram to advertise social media influencers, who are part of their target audiences reference group, wearing their product and then encouraging the consumer to shop this influencers entire look through a simple link. This is a popular marketing strategy that relies on the informational influence of the social media influencer, "Informational influence occurs when an individual uses the behaviours and opinions or reference group members as potentially useful pieces of information. (Quester, Pettigrew, Kopanis, Roa Hill, & Hawkins, 2014, p. 460). This is effective marketing strategy for The Iconic as consumer decisions such as clothing purchases are considered to be influenced by those people that the consumers see as part of their peer group.

Can you recognise any reference groups that currently affect your personal buying behaviour?
Renee Piddington
References

Blackwell, R., D'Souza, C., Taghian, M., Miniard, P., & Engle, J. (2006) Consumer Behaviour an Asia Pacific Approach. Melbourne, Victoria: Thompson Learning.

Quester, P., Pettigrew, S., Kopanis, F., Roa Hill, S., & Hawkins, D. I. (2014) Consumer Behaviour Implications for Marketing Strategy. North Ryde NSW: McGraw-Hill Education (Australia) Pty Ltd.

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McDonald’s successfully employs an Attitude-Change Strategy

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McDonald’s successfully employs an Attitude-Change Strategy

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In 2015, worldwide fast food chain McDonalds recognised that it needed to modify its marketing overall due to a drop in performance which was major enough to shake shareholders. The drop in performance of the astronomically large organisation was blamed on a greater focus on nutrition in society and damaging media such as the film supersize me in the early 2000’s. The team behind the marketing realised that they needed to sway public opinion in order to revamp the company’s success. “Marketing strategies can be used in an effort to induce a change in consumer’s attitudes towards a particular product or brand” (Quester, Pettigrew, Kopanidis, Rao Hill, and Hawkins, 2014, p.345). This is what McDonalds Successfully went on to do.

Attitude changes towards the McDonald’s brand can be attributed to the roll out of a few key concepts. Create your taste burgers which were introduced in 2014 in Sydney, allowing consumers to customize their own burgers (The Advertiser, 2017). A concept that had previously been absolutely foreign to Maccas. This was Coupled this with introducing table service and burgers served on “hipster style boards” and baskets(The Advertiser, 2017).

The nail in the coffin for the consumer attitude swing was the “It’s a little bit fancy” campaign which depicted the restaurants new gourmet range of burgers. The burgers were something completely new made from high quality and fresh ingredients and signified a cornerstone for the business. Sales have risen by 9.9% year by year since 2016 (Canning, 2016).

Question: Can you think of any other organisations that may employed similar techniques to save struggling performance?

Hugh Campbell

References

Canning , S. (2016). Revealed: How McDonald’s got just a little bit fancy. Retrieved 17 May, 2018, from https://mumbrella.com.au/revealed-mcdonalds-said-no-noodles-got-just-little-bit-fancy-397460

Brook, B. (2017). Success of posh burgers are leading to a big Maccas growth. Retrieved 17 May, 2018, from http://www.adelaidenow.com.au/thesourcesa/success-of-posh-burgers-are-leading-to-a-big-maccas-growth/news-story/aa421442910f4104de9c59f7801a43cd

Quester, P., Pettigrew, S., Kopanidis, F., Hill, S. R., & Hawkins, D. (2014). Consumer Behaviour: Implications for Marketing Strategy. North Ryde: Australia: McGraw-Hill Education.

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Companies such as Real Life Insurance ignite the first stage in the consumer decision process of problem recognition by bringing a problem directly to the consumers attention, "in order to develop appropriate strategies to promote goods and services, an important initial step is to make consumers aware of a particular problem and of the solution provided by the product on offer" (Quester, Pettigrew, Kopanis, Roa Hill, & Hawkins, 2014, p. 64). They do this by presenting a relatable situation, such as expecting a baby, to a key segment of their market and brings to the target audiences attention that it is not just themselves they need to think about now, they do this by presenting a real life conversation between two every day middle class relatable adults and pose the question what would happen if? Supported by a subtle sense of urgency because the consumer wont have time later. The strategy being, here is the problem you now have and here is our fast, easy and inexpensive solution supported by the by line "It's one simple thing you can do to protect your family" further encouraging the consumer to action now without comparison.

What are some other products where sales can be influenced by bringing the problem to the consumers attention?
Renee Piddington
References
Quester, P., Pettigrew, S., Kopanis, F., Roa Hill, S., & Hawkins, D. I. (2014) Consumer Behaviour Implications for Marketing Strategy. North Ryde NSW: McGraw-Hill Education (Australia) Pty Ltd.

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Market segmentation using product differentiation - Apple 

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Market segmentation using product differentiation - Apple 

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Apple successfully target a primary segment of consumers who value innovation and convenience over cost, and they have leveraged that segment by creating a constantly evolving product offering. However, in order to expand market penetration they have targeted a secondary segment – a more budget conscious consumer segment. Forbes writer Tim Worstall wrote about the 2013 launch of the iPhones 5s and the 5c as part of a multi-segment product launch, stating, ‘how do you get those people who would pay more without losing those who will only pay less? And similarly vice versa as well. The answer is market segmentation through product differentiation’ (Worstall, 2013, para. 5). Consumers who valued innovation and experience could opt for the superior 5s and consumers who were more concerned with value for money could opt for the more basic 5c. The campaign was deemed successful as it engaged a previously untapped segment of consumers, the budget conscious.

Apple expanding its market penetration through the use of a marketing mix consisting of value, innovation and convenience is a compelling example of market segmentation through product differentiation. Quester et al (2014) posit that in order to be successful a new product must solve a customer problem (Quester, Pettigrew, Kopanidis, Hill & Hawkins, 2014, p. 13). Apple helped to solve the issue of consumers for whom value is a driver but who also value quality and brand association, by adding a value driven product and strategy to its existing marketing mix and product range.

Question: Do you think more product and service providers could increase their target segments by using product differentiation such as Apple's two-tiered quality and pricing strategy?

-Eleanor

Worstall, T. (2013) Apple's Market Segmentation Difficulties With The New iPhones, Forbes. Retrieved from: https://www.forbes.com/sites/timworstall/2013/10/20/apples-market-segmentation-difficulties-with-the-new-iphones/#2503c6b11d09

Quester, P., Pettigrew, S., Kopanidis, F., Hill, S. R., & Hawkins, D. (2014). Consumer Behaviour: Implications for Marketing Strategy. North Ryde: Australia: McGraw-Hill Education.

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Using Colour to Influence Purchasing - Vanessa Young

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Using Colour to Influence Purchasing - Vanessa Young

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I read an article recently on how brands use colours to persuade us to purchase their product or service. This article made me revisit the chapter on perception which is how we notice and interpret stimuli (Quester, Pettigrew, Kopanidis, Hill & Hawkins, 2014, p. 224). Colour is a stimulus factor that attracts our attention and can persuade us to purchase a product or service (Quester et al, p.229). Marketers use blue for example as they know that people associate this colour with being calm whist red may be use for danger (Watson, 2015).

I found it interesting in the article to learn how a lot of fast food companies use red and yellow in their branding and how these colours have become associated with bad food (Watson, 2015). When it comes to promoting McDonalds’s healthy food range, they have moved away from the red and yellow and use colours such as green which is associated with nature and represents natural or healthy foods (Watson, 2015).

It was interesting to learn that between 62-90% of decisions are influenced by colour and that it takes 90 seconds for someone to decide whether they like the brand or not. So, it is really important that marketers consider the colours they use in their brand and advertising (Watson, 2015).

Question: How do colours influence your purchasing decisions?

References

Quester, P., Pettigrew, S., Kopanidis, F., Hill, S. R., & Hawkins, D. (2014). Consumer Behaviour: Implications for Marketing Strategy. North Ryde: Australia: McGraw-Hill Education.

Watson, G. (2015, August 24).  Blue for trust, red for passion: how to pick a colour scheme for your brand. The Guardian. Retreievd from https://www.theguardian.com/small-business-network/2015/aug/24/how-pick-colour-scheme-for-brand

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A fear appeal is when marketers “make use of the threat of negative (unpleasant) consequences if attitudes or behaviour are not altered” (Quester, Pettigrew, Kopanidis, Rao Hill, and Hawkins, 2014, p.355). Fear of physical harm, appeals to social fear. For fear appeals to be “successful, the level of fear induced must not be so high as to cause the consumer to distort or reject the message” (Quester, Pettigrew, Kopanidis, Rao Hill, and Hawkins, 2014, p.355).

Recently on TV I have noticed an ad which uses this method of advertising, smoking. Though I don’t smoke and never have, I found this ad quite effective as it is a reminder for those who don’t smoke of why they don’t and not to start the habit. While for those who do smoke it creates a new fear to encourage them to stop.

Most smoking ads show the most negative or worst effects of smoking in a visual display of images, which is disturbing to the viewer and creates fear in the viewers as they do not want to experience the same negative effects. But, people have become more and more tolerant or numb to visual scare tactics with smoking (the images on cigarette boxes). Hence this smoking ad creates a different kind fear, as it isn’t a fear for the negative effects smoking can cause an individual for example lung cancer, it is targeted at parents who smoke and the fear that it may result in their death leaving their kids without a parent. The fear is that smoking will kill or disable parents resulting in their kids having no parent/s. The message targets smokers with kids to encourage them stop not for themselves but for their kids, this kind of ad presents the risks of smoking in a different way, which may encourage or scare people into quitting.

QUESTION

Do these kind of ads scare you enough to change a certain behaviour or habit you have?
Jess Whyte

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Problem recognition is the first stage in the consumer decision process (Quester, Pettigrew, Kopanidis, Hill & Hawkins, 2014, p.70). A problem exists when there is a disparity between a customer’s current state and their desired state (Goodman & Newman, 2003), marketers are able to use a problem to sell their products and services by highlighting that disparity. For example when marketers demonstrate, through a campaign that a customer with a particular lifestyle, financial status or with particular personal motivations may not be fulfilled and that their product would more adequately suit their customer’s needs, the marketer is able to specifically target their campaign to ensure the consumer recognises the problem, and is provided an adequate solution by their product or service.

The Microsoft advertisement highlights to potential consumers that leading a modern lifestyle, in which the consumers are consistently connected to technology is not always fulfilling; this is the problem. The advertisement then claims that Microsoft is able to provide technology which is fast, reliable and fit for purpose whilst ensuring the consumer continues to lead a positive, healthy and fulfilled lifestyle. This demonstrates the use of problem recognition in action by alerting the consumer to their current state, being that which is disconnected, and assuring the consumer that it is able to provide a solution, being technology which allows the consumer to fulfil their technological needs whilst remaining connected to their lifestyle and personal circumstances.

Does technology make you feel disconnected from your surrounds? If so, do you think a technological device would be able to make you feel less disconnected, or would it add to that disconnection?

References

Al Zwad. (2010, October 11). New Microsoft Windows 7 Mobile Phone Ad - "Really"

[Video file]. Retrieved from https://www.youtube.com/watch?v=v-mo_Qpy6eM&feature=youtu.be

Goodman, J & Newman, S. (2003) Understand Customer Behaviour and Complaints. Quality Progress 36,1, 51.

Quester, P., Pettigrew, S., Kopanidis, F., Rao Hill, S. and Hawkins, D. (2014) Consumer behaviour: Implications for Marketing Strategy. 7th ed. Sydney: Australia: McGraw-Hill Education Pty Ltd.

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New Microsoft Windows 7 Mobile Phone Ad - "Really"

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Post 2 Telstra - Brand Image and Product Positioning 

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Post 2 Telstra - Brand Image and Product Positioning 

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Quester, Pettigrew, Kopanidis, Hill & Hawkins (2014, p.283) define product positioning as a purposely designed marketing plan to create a particular brand image or what consumers think and feel about the brand. In the globalising business world of today, competitiveness breeds fast, the market share shrinks and companies must create a point of difference over opposing businesses by positioning products and services directed at consumer behaviours (Karadeniz, 2009).

This year Telstra launched a marketing campaign to promote and reframe the strength of its mobile network. The approach consists of “contextual, topical and pop culture” communications displayed throughout Australian metro areas on billboards, transport services, shopping precincts and all social and digital media platforms (B&T, 2018).

The advertising uses phrases such as “Australia’s fastest mobile network. Thrive on.” (B&T, 2018) which directly compares it to their competitors and creates the image for the consumer that Telstra is able to deliver great network services across all Australian cities. Consumers thrive on being able to connect to others at fast speeds and Telstra have successfully shown their audience they are listening.

What is a brand that resonates strongly with you? And why?

References

Karadeniz, M. (2009). Product Positioning Strategy in Marketing Management. Journal of Naval Science and Engineering, 5, 2, 98-110. Retrieved from https://pdfs.semanticscholar.org/bb29/313e60da4282e48f739a1e2644fb3e93d2b2.pdf

B&T (2018). B&T. Retrieved from http://www.bandt.com.au/advertising/telstra-spruiks-strength-mobile-network-playful-campaign-monkeys-rga-sydney

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Telstra has launched a national network campaign to communicate the strength of its mobile network in a playful way.

A collaboration between Telstra, The Monkeys and R/GA Sydney, the campaign revolves around contextual, topical and pop culture-based messages across digital and out of home.

The campaign is designed to be highly visible where and when customers are out and about using their mobiles most, appearing on large-format billboards, bus shelters, train stations, in shopping centres, and across all forms of digital mainstream and social media.

The campaign is weighted towards the urban metro environments of Sydney, Melbourne, Brisbane, Gold Coast, Perth, Adelaide, and Canberra.

R/GA Sydney created a social campaign and virtual newsroom in which the agency and Telstra representatives work together to devise and place live headlines and reactions to events across major online news sites.

An estimated 80-plus messages will be delivered through sport, entertainment, culture and across news pages over the course of the campaign.

Telstra's group executive of media and chief marketing officer, Joe Pollard, said: "The campaign builds from our brand promise to create better ways to empower everyone to thrive in a connected world.

"It's also anchored in our vision, which is to become a world class technology company that empowers people to connect.

"We're proud to offer the biggest, fastest, most reliable mobile network coverage in Australia. And while the extent of our national coverage is well known, and we want to remind customers that we have great mobile coverage in all Australian cities.

"Our new campaign reframes our network capabilities in a warm, friendly, authentic way that we hope will make people smile."

CREDITS

Client: Telstra

Group executive of media and chief marketing officer: Joe Pollard

Creative agencies: The Monkeys and R/GA Sydney

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Telstra Spruiks Strength Of Its Mobile Network In Playful Ads By The Monkeys & R/GA Sydney - B&T

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Telstra has launched a national network campaign to communicate the strength of its mobile network in a playful way. A collaboration between Telstra, The Monkeys and R/GA Sydney, the campaign revolves around contextual, topical and pop culture-based messages across digital and out of home.

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Post 1 Australian Defence Force - Motivation, Emotions and Marketing Strategy 

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Post 1 Australian Defence Force - Motivation, Emotions and Marketing Strategy 

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Quester, Pettigrew, Kopanidis, Hill & Hawkins (2014, p.298) explain that motivation is the “energising force that activates or triggers behaviour and provides purpose, direction and drive to that behaviour”. Emotions are a main influence on motivation and marketers have used this technique to guide campaigns and encourage emotional arousal.

The TV commercial Do What You Love produced by Defence Jobs Australia is a great example of using motivation and emotional arousal as their marketing strategy. The commercial is directed at women and shows a variety of highly stimulating activities including travel, speed boats, flying, children and action sports with the message of do what you love highlighted throughout. The ad has created emotional arousal the engages consumers towards an awaiting experience which is related to hedonic motivation described by Kaczmarek (2018) as inclination to create actions that result in arousing experiences such as being able to combine what you love with your career.

Does this advertisement create emotional arousal for you? If so what emotion does it trigger?

References

Defence Jobs Australia. (2015, June 9). Do What You Love - TVC - See The World [Video file]. Retrieved from https://www.youtube.com/watch?v=vXXqdYDJ9mU

Kaczmarek, L. D. (2018). Hedonic Motivation. Encyclopedia of Personality and Individual Differences, 1-3. doi: 10.1007/978-3-319-28099-8_524-1

Quester, P., Pettigrew, S., Kopanidis, F., Rao Hill, S. and Hawkins, D. (2014) Consumer behaviour: Implications for Marketing Strategy. 7th ed. Sydney: Australia: McGraw-Hill Education Pty Ltd.

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Cross Cultural Marketing - Vanessa Young 

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Cross Cultural Marketing - Vanessa Young 

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Cross cultural marketing consists of the activities that have regard for the similarities and differences between cultures (Quester, Pettigrew, Kopanidis, Hill and Hawkins, 2014, 548. To ensure global success, companies should adapt their strategy and advertising material so that it is interpreted correctly and respects different cultures (Quester, Pettigrew, Kopanidis, Hill and Hawkins, 2014).

A good example of a brand that acknowledges national differences and ensures their marketing mix is adapted is McDonalds (Quester, Pettigrew, Kopanidis, Hill and Hawkins, 2014, 326-328). I came across an article which highlighted how McDonalds keeps the brand recognisable by maintaining the original meaning and identity whilst changing their products, size preferences and segmentation to adapt to different countries (Gadson, 2014). In Japan for example, McDonalds is targeted to young children and adults whilst in America its primary target market is children. McDonalds also considers translation and the name of the restaurant is adjusted in Japan for the appropriate Japanese script (Gadson, 2014).

Not taking cultural differences into account can result in issues for the organisation working internationally. Brands may get lost in translation and one example is Microsoft Vista which means scenic views in most countries but frumpy women in Latvian (Arno, 2012).

Question – Do you think that Marketing Strategies, particularly advertising should be standardised across cultures?

References

Quester, P., Pettigrew, S., Kopanidis, F., Hill, S. R., & Hawkins, D. (2014). Consumer Behaviour: Implications for Marketing Strategy. North Ryde: Australia: McGraw-Hill Education.

Gadson, G. (2014, November 5). What is the secret to McDonald’s global branding success? Maistro. Retrieved from:  https://www.maistro.com/blogs/secret-mcdonalds-global-branding-success/

Arno, C. (2012, September 14). Seven avoidable mistakes in global marketing. Econsultancy. Retrieved from: https://econsultancy.com/blog/10699-seven-avoidable-mistakes-in-global-marketing

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SITUATIONAL INFLUENCESJohn RitchieSituational influences are an external part of the consumer decision making process, Quester, et al, (2011, p. 41), defining them as (the physical surroundings classification), the sum of all the physical features of a retail environment, also referred to as the store atmospherics. This has been shown to have an effect on consumers judgement of the quality and image of the store. Interestingly, they also found this to extent to online shopping.  Lee and Kim, (2017), address the area of web atmospherics, they define this as the cues manipulated by web designers such as background music, colour and pattern type face, menus and similar features of the mobile apps being used.  As this area is relatively new, while it is an interesting area of research, it is at this stage unclear as to the precise quantifiable aspects of this area for the use of marketing techniques. Lee and Kim, (2017). However, as a study referred to in Quester et al, (2011, p. 233), found that using varying colours in online advertising generated a 50% rise in revenue, it is evident that as research in this area of marketing increases, there will be some useful findings that can be applied by marketers.REFERENCESLee, Y & Kim, H. (2017). Consumer need for mobile app atmospherics and its relationships to shopper responses. Journal of Retailing and Consumer Services.Doi: https://doi.orh/10.1016/j.jretconser.2017.10.016Quester, P, Pettigrew, S & Hawkins, D. (2011). Consumer Behaviour: Implications for Marketing 	Strategy. (6th ed). NSW: Mc-Graw-Hill Australia.

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SITUATIONAL INFLUENCESJohn RitchieSituational influences are an external part of the consumer decision making process, Quester, et al, (2011, p. 41), defining them as (the physical surroundings classification), the sum of all the physical features of a retail environment, also referred to as the store atmospherics. This has been shown to have an effect on consumers judgement of the quality and image of the store. Interestingly, they also found this to extent to online shopping.  Lee and Kim, (2017), address the area of web atmospherics, they define this as the cues manipulated by web designers such as background music, colour and pattern type face, menus and similar features of the mobile apps being used.  As this area is relatively new, while it is an interesting area of research, it is at this stage unclear as to the precise quantifiable aspects of this area for the use of marketing techniques. Lee and Kim, (2017). However, as a study referred to in Quester et al, (2011, p. 233), found that using varying colours in online advertising generated a 50% rise in revenue, it is evident that as research in this area of marketing increases, there will be some useful findings that can be applied by marketers.REFERENCESLee, Y & Kim, H. (2017). Consumer need for mobile app atmospherics and its relationships to shopper responses. Journal of Retailing and Consumer Services.Doi: https://doi.orh/10.1016/j.jretconser.2017.10.016Quester, P, Pettigrew, S & Hawkins, D. (2011). Consumer Behaviour: Implications for Marketing 	Strategy. (6th ed). NSW: Mc-Graw-Hill Australia.

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ONLINE REVIEWS, BRAND IMAGE AND SOCIAL MEDIA USEJohn RitchieBrand image is defined by Quester et al, (2011, p. 286), as the target markets interpretation of the products attributes, benefits, usage situations and manufacturers characteristics. It is in effect, what consumers have learned about the brand. A more detailed use of this in relation to brand image is the theory of perceptual mapping. Quester et al, (2011, p. 286) defines this as ‘consumers perceptions of how similar various brands or products are to each other and relates these perceptions to product attributes. With the increasing relevance of online reviews and social media searches as part of the information gathering process used by consumers today, companies and marketers need to take into account the perceived credibility of online reviews of their products. Chakraborty and Bhat, (2018), found that online reviews of products create distinct places for brands in the consumers mind and ultimately affect images of the brands, thus making this a very important part of the marketing process. They combined the Yale attitude change model and attribution theory to examine the effects of online reviews on brand image Chakraborty and Bhat, (2018, p. 161) and found that source and review quality are a significant factor in the credibility of online reviews.REFERENCESChakraborty, S. (2018). Credibility of online reviews and its impact on brand image. Management 	Research Review, 41(1), 148-164 doi:https://doi.org/10.1108/MRR-06-2017-0173Quester, P, Pettigrew, S & Hawkins, D. (2011). Consumer Behaviour: Implications for Marketing 	Strategy. (6th ed). NSW: Mc-Graw-Hill Australia.

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ONLINE REVIEWS, BRAND IMAGE AND SOCIAL MEDIA USEJohn RitchieBrand image is defined by Quester et al, (2011, p. 286), as the target markets interpretation of the products attributes, benefits, usage situations and manufacturers characteristics. It is in effect, what consumers have learned about the brand. A more detailed use of this in relation to brand image is the theory of perceptual mapping. Quester et al, (2011, p. 286) defines this as ‘consumers perceptions of how similar various brands or products are to each other and relates these perceptions to product attributes. With the increasing relevance of online reviews and social media searches as part of the information gathering process used by consumers today, companies and marketers need to take into account the perceived credibility of online reviews of their products. Chakraborty and Bhat, (2018), found that online reviews of products create distinct places for brands in the consumers mind and ultimately affect images of the brands, thus making this a very important part of the marketing process. They combined the Yale attitude change model and attribution theory to examine the effects of online reviews on brand image Chakraborty and Bhat, (2018, p. 161) and found that source and review quality are a significant factor in the credibility of online reviews.REFERENCESChakraborty, S. (2018). Credibility of online reviews and its impact on brand image. Management 	Research Review, 41(1), 148-164 doi:https://doi.org/10.1108/MRR-06-2017-0173Quester, P, Pettigrew, S & Hawkins, D. (2011). Consumer Behaviour: Implications for Marketing 	Strategy. (6th ed). NSW: Mc-Graw-Hill Australia.

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THE USE OF BRAND AMBASSADORS IN MARKETINGBrand ambassadors are a marketing technique that is part of the internal decision making process, that of drawing attention to the product or service being marketed. Quester, et al, (2011, p.247), includes it in the area of perception, or the attempt to draw attention to the product. The marketing theory behind this technique is that, most of the time, the consumer is not actively interested in the product so you need to draw their attention to it. With the use of brand ambassadors, a celebrity is used to associate the product or company with themselves in the minds of the potential target market. While most used of brand ambassadors involve linking a product of business with a particular celebrity-the two well known recent examples being Jennifer Hawkins in Australia with Myer department stores and Michael Jordan with Nike, Andersson and Eckman, (2009, p, 4), discussed the use of the technique for promoting localities. These are cities, municipalities and regions/counties. The regions were looking for ambassadors who were influential, innovative and strategic thinkers who are recognised as leaders in their field. The role of brand ambassadors in drawing attention to the company/service/region can be seen in the cases of Jennifer Hawkins, who would draw attention to the target market of Myer for fashion, and the sports shoe market by the association of  Michael Jordan, who was also marketing by providing his training tips off Nike’s website.  REFERENCESAndersson, M & Ekman, P. (2009). Ambassador networks and place branding. Journal of 	Place Management and Development, 2(1), 41-51. doi:https://10.org/10.1108/17538330910942799Quester, P, Pettigrew, S & Hawkins, D. (2011). Consumer Behaviour: Implications for Marketing Strategy. (6th ed). NSW: Mc-Graw-Hill Australia.

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THE USE OF BRAND AMBASSADORS IN MARKETINGBrand ambassadors are a marketing technique that is part of the internal decision making process, that of drawing attention to the product or service being marketed. Quester, et al, (2011, p.247), includes it in the area of perception, or the attempt to draw attention to the product. The marketing theory behind this technique is that, most of the time, the consumer is not actively interested in the product so you need to draw their attention to it. With the use of brand ambassadors, a celebrity is used to associate the product or company with themselves in the minds of the potential target market. While most used of brand ambassadors involve linking a product of business with a particular celebrity-the two well known recent examples being Jennifer Hawkins in Australia with Myer department stores and Michael Jordan with Nike, Andersson and Eckman, (2009, p, 4), discussed the use of the technique for promoting localities. These are cities, municipalities and regions/counties. The regions were looking for ambassadors who were influential, innovative and strategic thinkers who are recognised as leaders in their field. The role of brand ambassadors in drawing attention to the company/service/region can be seen in the cases of Jennifer Hawkins, who would draw attention to the target market of Myer for fashion, and the sports shoe market by the association of  Michael Jordan, who was also marketing by providing his training tips off Nike’s website.  REFERENCESAndersson, M & Ekman, P. (2009). Ambassador networks and place branding. Journal of 	Place Management and Development, 2(1), 41-51. doi:https://10.org/10.1108/17538330910942799Quester, P, Pettigrew, S & Hawkins, D. (2011). Consumer Behaviour: Implications for Marketing Strategy. (6th ed). NSW: Mc-Graw-Hill Australia.

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I recently assisted my grandmother in purchasing an air fryer, “because its healthier fried food”, according to my Nan.

She wanted me to hop on the net and find the best one and make sure it’s the best price. Sure.

We travelled to a local home maker centre, which has 3 brick and mortar major retailers. So she could experience the products and use her evaluative criteria (Pascale Quester, 2013). As she is old school and like to touch and feel. But that doesn’t align with her, hop on the net request.

So, phone in hand, wandering a store and thanking the sales people for their time, but we were fine. Nan selected her model and make. So now online to ensure best price. The retailer next door had a special for $100 cheaper, same model etc.

My nan is like the 75% of multi channel shoppers. Search online and buy in a store(Pascale Quester, 2013).

Surprisingly, I was the only person I could see actively comparing prices in the brick an mortar store. Does anyone else do this? Or do you complete pre work?

Pascale Quester, S. P., Sally Rao Hill, Foula Kopanidis. (2013). Consumer Behaviour: Implications for Marketing Strategy.

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Types of information sought. Trip advisor has this locked up. I assume they use software which tracks clicks and behaviour. But it is positioned as a trusted source of information, provides alternative solutions and people can adjust evaluative criteria via a search function (Pascale Quester, 2013).

I want to go on a holiday, input criteria, search trusted and review options. Adjust options if required until a decision can be made and the search terminates.

Additionally, this source of information is perceived to be personal and independent sources (Pascale Quester, 2013).

Until I read this information, I had always trusted trip advisor. Now I question if the suggested results are actually in alignment with my criteria, or a paid for search result by a hotel chain.

Has this subject changed your purchasing processes?

Pascale Quester, S. P., Sally Rao Hill, Foula Kopanidis. (2013). Consumer Behaviour: Implications for Marketing Strategy. Iain Faber

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Disposal of goods is the final stage of a product use, when the consumer returns, trades in or destroys the product or it container. (Pascale Quester, 2013)

Traditionally I have disposed of items via only 2 methods. Economic value and ridding. It is interesting for me to reflect on disposal of goods and consider that it is part of the purchasing process.

For Nespresso capsules, I do not recycle them based on no economic value. But if the marketing campaign/messaging included messaging relating to:

75% of the aluminium, ever produced, is still in circulation. Additionally, recycling aluminium saves around 95% of CO2 emissions associated with primary production. Nespresso.com/sustainability (2018)

Then it is not about recycling for their company profits and no economic gain for me. It is about environmental impact and being apart of a feel-good movement.

Have you ever changed your purchasing decision based on disposal of lower economic value items? Eg not a car resale value.

Nespresso.com/sustainability (2018)

Pascale Quester, S. P., Sally Rao Hill, Foula Kopanidis. (2013). Consumer Behaviour: Implications for Marketing Strategy.
Iain Fab

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Perceptions and the vitamins and supplements industry

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Perceptions and the vitamins and supplements industry

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By Molly Goldrick

The vitamins and supplements industry is a billion dollar industry that is continually seeing growth due to societal lifestyle trends shifting its focus on health and wellness. While there are proven benefits associated with some vitamins and supplements, many companies are constantly peddling unnecessary and ineffective products (Wang, Gamble, Bolland, & Grey, 2014). Despite evidence that many of these products are ineffective, why are consumers still buying them?

Perception is the process in which an individual processes and interprets stimuli (Quester, 2015, p. 224). Companies within the supplements industry have used the positive benefits of complementary medicine to position themselves as the face of health and wellness. This image has also allowed the industry to engage with holistic living demographics, presenting themselves as a safe alternative to “mainstream” medicine.

As previously mentioned, many products introduced by the supplements industry have been proven to be ineffective. Research has indicated that the knowledge of product ineffectiveness had little to no effect on consumers perception on vitamins and supplements, however, when consumers were presented with the idea that use of some products can cause potential harm - a stark contrast to the healthy image that the industry supposedly represents – consumers stopped using those products immediately (Tilburt, Emanuel, & Miller, 2008), highlighting the impact perceptions have on consumption habits.

Have you ever had a perception of a product, service or company that changed? What caused this change in perception?

References

Quester, P. G. (2015). Consumer behaviour : implications for marketing strategy (7th edition. ed.). North Ryde, New South Wales: McGraw-Hill Education Australia Pty Ltd.

Tilburt, J. C., Emanuel, E. J., & Miller, F. G. (2008). Does the Evidence Make a Difference in Consumer Behavior? Sales of Supplements Before and After Publication of Negative Research Results. Journal of General Internal Medicine, 23(9), 1495-1498. doi:10.1007/s11606-008-0704-z

Wang, M. T., Gamble, G., Bolland, M. J., & Grey, A. (2014). Press releases issued by supplements industry organisations and non-industry organisations in response to publication of clinical research findings: a case-control study. PloS one, 9(7), e101533.

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By Abbie Sceresini

In an increasingly competitive retail environment, brand loyalty is considered a critical factor in developing and maintaining a competitive market position and advantage (Zhang & Liu, 2017). What is it about a brand or store that keeps me coming back?

There are at least 5 pharmacies in my local area that I can count from the top of my head. However, I choose to shop at Priceline Pharmacy 90% of the time. It certainly isn’t the closest pharmacy to me, or the easiest to access, but I always prefer Priceline’s Sister Club to other loyalty programs that I am involved in.

The Priceline Sister Club allows you to gain ‘freebies’ and cash-back vouchers that increase in value with the more you spend. There are many different rewards including a quarterly reward (given as a voucher to spend in store), a birthday reward (where you are emailed a $ off voucher), secret sales, exclusive events and competitions ("Sister Club", 2018). As a consumer I prefer to buy into loyalty programs like this, as I know that in doing so I can save money in future.

Question: As a consumer, what do you look for in a loyalty program? Are you drawn to discounts and cash back vouchers or are you motivated by other perks?

References:

Sister Club. (2018). Retrieved from https://www.priceline.com.au/sister-club

Zhang, Y., & Liu, F. (2017). The Formation of Brand Loyalty: A Partial Dual-Factor Explanation. Journal Of International Consumer Marketing, 29(4), 239-249. doi: 10.1080/08961530.2017.1303416

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Brands on social media and its impact on brand loyalty

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Brands on social media and its impact on brand loyalty

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By Molly Goldrick

The increased use of social media over the past few years has ensured that the power of word-of-mouth has increased exponentially, as communication between consumers has transcended to a global level (Quester, 2015, p. 196).

This means that companies must now place strong focus on social media marketing activities, implementing strategy that goes beyond purely advertising and includes direct interaction with their audience – and, most importantly, handling direct feedback from consumers in a satisfactory manner.

Research indicates that companies with a positive social media presence can increase brand loyalty considerably (Erdoğmuş & Cicek, 2012). This can be reflected through companies like Netflix, who gained eight million Facebook followers in one year (Letki, 2016) after successfully implementing a relationship marketing strategy (Quester, 2015, pp. 203-204) that allowed them to break down the consumer-company relationship barrier engage with consumers on a personal level.

In contrast, companies can see a strong negative impact if they fall short of what is deemed satisfactory by consumer. United Airlines, for instance, has a notoriously tumultuous relationship with social media – from their customer service issues being exposed to the scrutinization of the seemingly dismissive response to their transgressions (Ohlheiser, 2017). In their latest scandal, in which a dog died on one of their flights, negative mentions on social media increased to 140% and approval of the airline has dropped to 52% (Sweeney, 2018).

Does the way a brand acts on social media impact your attitude towards them in any way?

References

Erdoğmuş, İ. E., & Cicek, M. (2012). The impact of social media marketing on brand loyalty. Procedia-Social and Behavioral Sciences, 58, 1353-1360.

Letki, G. (2016). How Netflix is Winning Social Media- Case Study.   Retrieved from https://brand24.com/blog/how-netflix-is-winning-social-media-case-study/

Ohlheiser, A. (2017). The full timeline of how social media turned United into the biggest story in the country.   Retrieved from https://www.washingtonpost.com/news/the-intersect/wp/2017/04/11/the-full-timeline-of-how-social-media-turned-united-into-the-biggest-story-in-the-country/?noredirect=on&utm_term=.1cb69b71c4b5

Quester, P. G. (2015). Consumer behaviour : implications for marketing strategy (7th edition. ed.). North Ryde, New South Wales: McGraw-Hill Education Australia Pty Ltd.

Sweeney, E. (2018). United Airlines sees 140% increase in negative social chatter after dog dies on flight.   Retrieved from https://www.marketingdive.com/news/united-airlines-sees-140-increase-in-negative-social-chatter-after-dog-die/519180/

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In the process of evaluating and selecting alternatives for purchase of choice, often price is a surrogate indicator as consumers use this attribute to affiliate quality and worth, (Quester et al , 2014).

Recently I was shopping at Coles supermarket and found myself opting out of purchasing meat here as the price was lower than that of the local butcher I go too, assuming that the quality of the meat must not be a good. This heuristics is directly reflective of my market belief associating low price with low quality, (Quester et al 2014).

After conducting research I found that in 2017, The Roy Morgan Single Source Survey which included 12,000 grocery buyers results showed that 50.8% of The Australian Fresh Meat market share was owned by Coles and Woolworths, (Morgan, 2017). Comparatively, butchers and markets are holding only 24% of the market, (Morgan, 2017). Also a large range of meats sold in supermarkets are of higher animal welfare standards and display certified labelling from a range of welfare standards such as; RSPCA Approved, Australian Certified Organic and Pastured Proof, (Potter, 2017).

Commonly consumers lack the market knowledge or training to make accurate evaluations among products and brand and find themselves utilising surrogate indicators to guide their purchasing behaviours,

What purchases have you made based upon on a singular surrogate indicator opposed to market knowledge or training?

Morgan. R. (2018). Roy Morgan; It’s official: Majority of fresh meat now bought at Coles & Woolworths. Retrieved from https://www.roymorgan.com/findings/7562-supermarket-currency-report-fresh-meat-december-2017-201804130556

Potter. A. (2017) Choice; Ethical Meat, Understanding meat welfare labels at the supermarket. Retrieved from https://www.choice.com.au/food-and-drink/meat-fish-and-eggs/meat/articles/buying-ethical-meat

Quester, P., Pettigrew, S., Kopanidis, F., Rao Hill, S. and Hawkins, D. (2014). Consumer Behaviour Implications for Marketing Strategy (7th ed). Sydney: Irwin-McGraw Hill (p131-132).

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POST TWO; Brand Personality; Lorna Jane Gym Wear

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POST TWO; Brand Personality; Lorna Jane Gym Wear

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Brand personality occurs when a set of human characteristics are incorporated within the marketing strategy associating those particular characteristics with the brand, (Quester et al, 2014)

For example Lorna Jane commercial; Lorna Jane: Fitspiration II projects a range of human characteristics such as femineity, strength, empowerment, motivation and feeling good. With the use of quotes, actresses, music and phrases the commercial engages the audience with likened personality or aspects of personality to its branding.

This marketing strategy aims to influence its consumers or targeted market group by coupling brand and human persona through advertisements, packaging and branding to increase revenue, (Quester et al, 2014).

Lorna Jane branding is designed to, “Encourage women to achieve their best through active living and ultimately reach their full potential”, (Lorna Jane, 2018) the brand promotes personality traits of being fit, healthy and active, (Lorna Jane, 2018).

Consumers assign personalities to brands in response to the advertisements and packing, this can enables marketers to develop a distinct element of brand or brand personality allowing differentiation in the market and interpreting the success of the brand. Lorna Jane branding is designed to appeal to women who want to feel empowered, motivated, strong and inspired.

What brands do you purchase due to the association our both your own and the brands personality characteristics?

Jane. L. (2018).  Lorna Jane Active Living, Our Founder. Retrieved from https://www.lornajane.com.au/about/philosophy

https://www.youtube.com/watch?v=JJBwGMyacdw

Quester, P., Pettigrew, S., Kopanidis, F., Rao Hill, S. and Hawkins, D. (2014). Consumer Behaviour Implications for Marketing Strategy (7th ed). Sydney: Irwin-McGraw Hill (p313- 314).

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Culture in marketing and marketing to different cultures. Freya Rushton

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Culture in marketing and marketing to different cultures. Freya Rushton

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Culture plays a large part in marketing a product, in particular, if a company decides to take their product international. Taking a company global requires a thorough understanding of the country and the cultures within. For example (I’d Reference this example but I didn’t research it, I just remember hearing it somewhere but don’t remember where), Martle the company that creates the Barbie Doll entered the doll into a Muslim country. When they entered the doll, it was unchanged from its original look and therefore rejected by the Muslim culture. The parents of the culture refused to buy the doll for their children as it didn’t resemble their cultural beliefs and values, i.e. the dolls clothing and colour. The doll was quickly removed from the market. In the time it took Martle to create a doll that reflected the cultural beliefs and values another company had spotted the opportunity and entered their own doll into the market. Martel had lost the position in the market. With this example we can see that an understanding of the culture of the market is important for the product to be accepted by the market. Other product attributes to consider are, colours and what they mean in different countries and words and their meanings.

The discussion question is, when have you seen a product backfire or pulled from the market because of cultural beliefs? What were the specifics, what went wrong and what wasn’t accepted?

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As part of External influences, Chapter 12 deals with Gender roles and how CB have changed in the past 20 years, women are such as consumer who wants to know everything about some product (Mihic, RAdjenovic, Supic (2013) p. 117). She wants to collect as much information as she could in which base she would choose the most favorable product for her needs.

Today women make till 80% of decisions about their household consuming, for her a real product is the one which makes her life safer, simpler and more beautiful. As consumer she is willing to take the time and effort in order to collect a lot of information to decrease the risk during the purchase process, marketing researches have summarized the gender gap by saying: Men go shopping to buy what they want… Women go shopping to find out what they want... (“Online Shopping Gender Gap” n.d.)

I am aware of the marketing campaign aimed to more empowered women, better informed and changes to traditional stereotypes, however marketing aimed to men I believe has not changed in comparison with marketing for women.

Question:

How would you describe yourself as consumer, are you impulsive, do you research, are you an emotional consumer, etc.?
Reference

Quester, P., Pettigrew, S., Kopanidis, F., Rao Hill, S., and Hawkins, D. (2014). Consumer Behaviour: Implications for Marketing Strategy (7th ed.). Chapter 12 Australasian society: demographics and lifestyles, Gender (pp. 389) Sydney: Irwin-McGraw Hill.

Mihic, S., Radjenovic, D., Supic, D. (2013) Metalurgia International, Consumer Behaviour – Building Marketing Strategy Vol. 18(8), pp.116-120 retrieved from: https://primo.csu.edu.au/discovery/fulldisplay?docid=proquest1549923516&context=PC&vid=61CSU_INST:61CSU&search_scope=MyInst_and_CI&tab=Everything&lang=en

Online Shopping Gender Gap. (n.d.). Retrieved from

https://hypesavings.com/author/store-manager-hypesavings-com/

Jose Alejandro Cabrera Angeles

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Coffee, pyjamas and post-purchase activities

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Coffee, pyjamas and post-purchase activities

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The concept of using products outside of their intended use or “upcycling” products is not new, but it is not very often that a company would use it as part of their advertising campaign.

Recently, coffee company Moccona teamed up with popular pyjama retailer Peter Alexander to give a makeover to their packaging – bringing out a range of four different jar designs that represents different types of Moccona customers (Mitchelhill-Miller, 2018). The most fascinating part of this campaign, though, is the incorporation of the concept of upcycling into their advertising. As well as introducing these new designs to consumers, Moccona also offers different uses for their packaging after use that complements each design(Mitchelhill-Miller, 2018) – such as using the cupcakes jar to store cookies. Moccona also encourages the consumer to come up with other uses for their left over Moccona jar.

In the consumer decision process, product use and disposal are important factors when making purchase decisions. A product that is has unappealing packaging, is hard to dispose of, or unrecyclable can turn consumers off purchase (Quester, 2015, pp. 188-191). Moccona has utilised the knowledge of  their consumers' post-purchase activities to differentiate themselves in the market.

Do campaigns like Moccona’s make you think about or change the way you look at product disposal?

References

Mitchelhill-Miller, H. (2018). Sleep AND Wake Up In Style With These Moccona & Peter Alexander Coffee Jars.   Retrieved from https://www.hit.com.au/scoopla/food/sleep-and-wake-up-in-style-with-these-moccona-peter-alexander-coffee-jars?station=2day

Quester, P. G. (2015). Consumer behaviour : implications for marketing strategy (7th edition. ed.). North Ryde, New South Wales: McGraw-Hill Education Australia Pty Ltd.

Molly Goldrick

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I work for an Insurance Company and my role is within the Claims Department. I enjoyed reading Topic 2.6 in addition to the prescribed textbook regarding post purchase behaviour, because of the theory’s relevance to my work.

For example, the majority of my customer interactions occur a relatively significant period after they actually bought their insurance policy. When a customer becomes disabled, my role is to honour the policy of the Insurance Company and contractually pay income protection benefits.
It is therefore crucial that our customers receive an experience that meets the expectations that were promised at time of purchase. Supporting this are the following statistics obtained from a US customer research by Salesforce;

• It is 6-7 times more costly to attract a new customer than it is to retain an existing customer
• 89% of consumers have stopped doing business with a company after experiencing poor customer service.
• A 10% increase in customer retention levels results in a 30% increase in the value of the company.

Incidentally, my wife and I had purchased a custom sized kitchen specifically to fit our fridge. In the event that we have to replace the fridge, we would likely give preference to a retailer who is able to dispose of our fridge that we no longer have use for.

Does disposal of replacement goods play a part of your decision making process when contemplating new purchases ?

REFERENCES:

Quester, P., Pettigrew, S., Kopanidis, F., Rao Hill, S. and Hawkins, D (2014). Consumer Behaviour: Implications for Marketing Strategy (7th ed.). Sydney: Irwin-McGraw Hill.

https://www.appliancesonline.com.au/academy/environment-energy-and-water-saving/avoid-the-fines-let-us-take-away-your-old-appliance/

https://www.salesforce.com/blog/2013/08/customer-service-stats.html

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Consumer Behavior: Purchase Decision and Social Responsibility Chapter 5

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Consumer Behavior: Purchase Decision and Social Responsibility Chapter 5

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Informed consumers factor in their decision process the social responsibility of the company producing or selling the end product or service.

Women and younger consumers have been found in making socially responsible purchases than men and older consumers, socially responsible products are those that are environmentally friendly and have minimum negative social impact in communities (e.g. child labor, underpay wages, slavery, etc.)

Coca Cola and Pepsi has been exposed for their marketing tactics in countries and communities with low socioeconomic levels, soft drinks or flavored sugar-water drinks cost practically nothing to produce or buy yet have turned those companies in multi billion industries. The marketing campaigns are known to target children and poor communities where soft drinks are cheaper to buy than water or milk. (African and Latin-American communities). Whilst health issues and impact to health systems started to being address in developed countries (Sugar Tax, soda caps, etc.) while under- developed countries obesity and overweight remains a constant due to economic access to sugary drinks, nearly 70 percent of African and Hispanic Americans regularly drink sugar sweetened sodas, (Nestle 2015 p. 186) and their habits are strongly influenced by television advertising, especially when commercials feature celebrities of their own race or ethnicity.

Do you consider social responsible companies when making your purchase decision?
Reference

Quester, P., Pettigrew, S., Kopanidis, F., Rao Hill, S., and Hawkins, D. (2014). Consumer Behaviour: Implications for Marketing Strategy (7th ed.). Chapter 5 Evaluating and selecting alternatives (pp. 144-146) Sydney: Irwin-McGraw Hill.

Nestle, M., & Baer, N. (2015). Soda politics : taking on big soda (and winning). Retrieved from https://ebookcentral-proquest-com.ezproxy.csu.edu.au

Jose Alejandro Cabrera Angeles

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At a restaurant I often order a meal and later regret my choice, when I look at the menu again. I feel post purchase dissonance. Because I love good food and the decision of what to order is important to me and I am an anxious person, I am more likely to experience post-purchase dissonance (Quester et al, 2014, p. 205). When I read the article ‘’The Simple Way To Minimize Buyer’s Remorse” (Carvalho, 2013), I realised that the simple act of closing the menu and handing it back to the waiter minimises buyer’s remorse. It is about removing the choices once a decision has been made, to improve customer satisfaction. I noticed at fine dining restaurants often the waiter congratulates me on making an excellent choice, which makes me feel better.

Discussion question:

When did you feel post purchase dissonance? What tactics do you think companies use to reduce buyer’s remorse?

References

Carvalho, J., (2013). The Simple Way To Minimize Buyer’s Remorse.

Retrieved from: https://www.neurosciencemarketing.com/blog/articles/buyers-remorse.htm#

Quester, P., Pettigrew, S., Kopanidis, F., Rao Hill, S. and Hawkins, D (2014). Consumer Behaviour: Implications for Marketing Strategy (7th ed.). Sydney: Irwin-McGraw Hill.

Martina Akouri

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Demographics and Consumer Behaviour
(by Martina)

Last week I went shopping with my mum, who is part of generation baby boomer, while I am generation Y. After learning about how demographic factors influence buying behaviour, I noticed our differences in light of consumer behaviour theory. I was interested in clothing, while my mum wanted homeware. According to Parmert (2013), Generation Y is significantly more interested in clothing, and the success of retail chains such as Hennes & Mauritz and Zara are largely based on sales to younger customers. Another finding is that Baby boomers value customer service more than Generation Y does (Parment, 2013, p. 196). Generation Y has a higher social risk (worry what peers think about their purchase) profiling themselves through purchases in their social environment (Parment, 2013, p. 197). Changes in society such as demographics, create changes in market needs such as products and services. Marketers need to understand these changes to devise new or improve existing) strategies to account for these movements (Quester et al (2016, p. 384).

Have you notices changes in consumer behaviour between different generations?

References

Quester, P., Pettigrew, S., Kopanidis, F., Rao Hill, S. and Hawkins, D (2014). Consumer Behaviour: Implications for Marketing Strategy (7th ed.). Sydney: Irwin-McGraw Hill.

Parment., A. (2013), Generation Y vs. Baby Boomers: Shopping behaviour, buyer involvement and implications for retailing. Journal of Retailing and Consumer Services (20)2, 189-199 Retrieved from: https://www.sciencedirect.com/science/article/pii/S096969891200149X

Martina Akouri

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POST ONE; Situational Influence: The Easter Show 2017- Show bags

With a staggering 922,827 people passing through the Royal Easter Show Sydney, (Sydney Royal Easter Show, 2017), show bags prices are released in advance as the largest crowd in a decade attended the 2017 show.

With a range of show bags varying from $4.00 to $30.00 in price, (The guardian, 2017) and an expectation of more than 1.4 million show bags expected to be taken home,(The Sydney Morning Herald, 2016), situational influence is a key factor in generating sales.

As discussed in Chapter 2 the purchase situation is relative to where the product selection and purchase occurs, (Quester et al, 2014). In the event of the Easter show where adults are often accompanied by children the preference of the children is likely to influence the product purchase choice, (Quester et al, 2014).

Six of the official top 10 show bags for 2017 were either kids programs, movies and preference of foods including, Frozen, Bertie Beetle and Shopkins, (Kembrey et al, 2016), as event marketers are well aware of the situation influence children will impose on adults whilst browsing through the show bag pavilion at the Royal Easter Show 2017.

How have other events use the marketing strategy; situation influence to influence consumer behaviour of the attendees?

Sydney Royal Easter Show. (April 21, 2017).The last 14 day Sydney Royal Easter Show attracts best crowds in more than a decade. Retrieved from http://www.eastershow.com.au/content-hub/press-releases/2017/the-last-14-day-sydney-royal-easter-show-attracts-best-crowds-in-more-than-a-decade/

Rodie. C. (Sun 16, 2017). The Guardian: Rip- off rides and bags of landfill: Sydney’s Easter Show is not work it. Retrieved from https://www.theguardian.com/lifeandstyle/2017/apr/16/rip-off-rides-and-bags-of-landfill-sydneys-easter-show-is-not-worth-it

Kembrey, M. (Feb 25, 2016). The Sydney Morning Herald: Top Ten Sydney Royal Easter Showbags Revealed. Retrieved from https://www.smh.com.au/national/nsw/top-ten-sydney-royal-easter-showbags-revealed-20160224-gn254x.html

Quester, P., Pettigrew, S., Kopanidis, F., Rao Hill, S. and Hawkins, D. (2014). Consumer Behaviour Implications for Marketing Strategy (7th ed). Sydney: Irwin-McGraw Hill (p40).

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Gender differences in Decision Making (Post 3)

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Gender differences in Decision Making (Post 3)

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Understanding the consumers’ purchase decision-making process allows marketers to gain more knowledge about their consumers (Bakshi, 2012). According to Bakshi (2012) one of the major factors that influences customers decision making behaviour, is gender. This is because men and women have different methods of problem solving (Bakshi, 2012). Research suggests that shopping is a more exciting activity for women with respect to men. Female consumers feel more independent when they do their shopping in accordance with men (Bakshi, 2012). In addition, women consider shopping as a social need where male consumers pay importance to main function of a product instead of secondary function (Bakshi, 2012).

According to Bakshi (2012), women were found to be more dominant during the problem recognition and information search stage for “traditional” female products like home furnishing and appliances. On the other hand, men were found to be more dominant in the information search stage for male dominated products like cars, television sets, razors, etc (Bakshi, 2012). Furthermore, men tended to go to the most relevant cue while women will tend to comprehend all information available (Bakshi, 2012). This is because females are more subjective, instinctive, comprehensive, and relational processing while men are more logical, analytical, selective and item-specific processing (Bakshi, 2012). When it comes to decision making, women use other people’s opinions to help make their own decision while men use other people’s decisions to help them form their own opinion (Bakshi, 2012).

Question: Do you think these gender decision-making trends are still the same today? Why or why not?

Kaytlin Langdon
Reference List
Bakshi, S. (2012). Impact of gender on consumer purchase behaviour. Journal of          Research in Commerce and Management, 1(9), 1-8.

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This is a great idea, a great business just waiting to happen, where do I start?

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This is a great idea, a great business just waiting to happen, where do I start?

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Chapter 13 deals with household structure and how the lifecycle affects consumption

(Quester, Pettigrew, Kopanidis, Hill & Hawkins, 2014, p. 424 – 445)

I found the chapter very valuable in understanding how a business may identify the segment that meet the product or service profile and from there build up the marketing strategy. It is quite often that businesses or entrepreneurs have great ideas and a product or service in mind, they think is new, a novelty, or an improved version of similar product, etc.

There is always a rush associated with launching a new business, often because there has been a financial outlay and the entrepreneurs need to get to market as soon as possible to recoup, or because the fear that someone else might be about to launch a similar business.

It is important for a new business to decide on the stereotypical customer, both in their mind and to define the ideal customer within the Business plan. The Household life cycle is a important place to start building the Business.

Levitt argues (1975, p. 19) the industry begins with the customer and his needs, not the patent, materials or selling skills.
Question:
If you start your own business, do you know who your customers will be? If so, what proof do you have?
Reference:
Quester, P., Pettigrew, S., Kopanidis, F., Rao Hill, S., and Hawkins, D. (2014). Consumer Behaviour: Implications for Marketing Strategy (7th ed.). Chapter 13 Household Structure and Consumption Behavior (pp. 424-445) Sydney: Irwin-McGraw Hill.

Levitt, T (n.d.) Marketing Myopia. Retrieved from     https://faculty.mu.edu.sa/public/uploads/1358138639.7579Marketing%20Myopia.pdf

Jose Alejandro Cabrera Angeles (Alex Cabrera)

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Online shopping is having a huge impact on retailing across the world (Quester, Pettigrew, Kopanidis, Rao Hill, and Hawkins, 2014 p. 156). According to a journal article that I recently read, online shoppers appear to be attracted to the ease with which they can find products on the Internet, the detailed product information available and the variety of choices offered (Ward, & Lee, 2000). This is because of the relative ease of sales people setting up shop and the multitudes of smaller retailers that have embraced the Internet (Ward, & Lee, 2000). Due to the high demand of online shopping, retailers now need to know the amount of people using the internet for online shopping and how much the consumer is spending (Quester, Pettigrew, Kopanidis, Rao Hill, and Hawkins, 2014 p. 156).

Even though, online shopping has become very popular over the years, there are still many consumers who prefer shop in retail outlets rather than online (Quester, Pettigrew, Kopanidis, Rao Hill, and Hawkins, 2014 p. 156). This is because some consumers prefer the social side of shopping and they like try on the product before making a purchase(Quester, Pettigrew, Kopanidis, Rao Hill, and Hawkins, 2014 p. 156). Some consumers also have issues about using their credit card details online (Quester, Pettigrew, Kopanidis, Rao Hill, and Hawkins, 2014 p. 156).

How has online shopping impact the way you shop? Do you still shop online, or do you prefer to shop in an outlet? Why or why not?

Kaytlin Langdon
Reference List
Quester, P., Pettigrew, S., Kopanidis, F., Rao Hill, S. and Hawkins, D (2014).          Consumer  Behaviour: Implications for Marketing Strategy (7th ed.). Sydney:      Irwin-McGraw Hill.
Ward, M. R., & Lee, M. J. (2000). Internet shopping, consumer search and product branding. Journal of product & brand management, 9(1), 6-20.

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Drama amongst our larger financial institutions

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Drama amongst our larger financial institutions

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Recent media coverage of Australia’s major financial institutions has been quite dramatic of late. Banks going through royal commissions due to fees and interest being charged without previous disclosure or institutions not complying with the requirements of AUSTRAC. This media coverage has been thoroughly covered in all media types but is it enough to sway the decisions of the consumer?

Chapter 3 cover the three types of consumer decision processes which are habitual decision making, limited decision making and extended decision making (Quester, Et Al., (2014) p.65). When deciding whether to bank with the institutions currently being scrutinised, the matters may not be identified by individuals who follow the habitual or limited decision making processes as they do not complete an extensive information search as part of their decision making process. An extended decision making consumer would likely be aware of the current situation and factor these results of their information search into their final decision. This process can be described as the concept of purchase involvement and covers factors like the level of concern or having an interest in the purchase process (Quester, Et Al., (2014) p.65).

Question: Which kind of decision maker do you fall into? Are you likely to perform information searches prior to making decisions?

Quester, P., Pettigrew, S., Kopanidis, F., Hill, S. R., & Hawkins, D. (2014). Consumer Behaviour: Implications for Marketing Strategy. North Ryde: Australia: McGraw-Hill Education.

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The banking royal commission was established in late December, after years of public pressure from whistleblowers, consumer groups, the Greens, Labor, and some Nationals MPs.

The banking royal commission was established in late December, after years of public pressure from whistleblowers, consumer groups, the Greens, Labor, and some Nationals MPs.

Its first public hearings began on 13 March, and they will run at irregular intervals through 2018.

The royal commission has been asked to investigate whether any of Australia's financial services entities have engaged in misconduct, and if criminal or other legal proceedings should be referred to the commonwealth.

It's also been asked to consider if sufficient mechanisms are in place to compensate victims.

What have we found out so far?

We've heard evidence of appalling behaviour by Australia's major banks and financial planners from the past decade, including alleged bribery, forged documents, repeated failure to verify customers' living expenses before lending them money, and misselling insurance to people who can't afford it.

In this week's hearings, AMP admitted to lying to regulators, and the Commonwealth Bank admitted some of its financial planners have been charging fees to clients who have died.

AMP's chief executive became the first high profile casualty of the commission announcing he was standing down from the company with immediate effect.
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Which banks are involved ?

The so-called big four banks - Commonwealth Bank, Westpac, ANZ, National Australia Bank - are being looked at. They comprise four of the five largest companies in Australia by market value, holding an inordinate amount of power over the financial system.

Other companies including AMP, BT Financial, Aussie Home Loans and St George, and a number of small car finance companies will also be called, and more financial institutions will be asked to appear as the year rolls on.

Last year, the Commonwealth Bank, which is the largest company in the country, posted a full-year cash profit of $9.8bn, up 4.6%. It was followed by Westpac (full-year profit $8.1bn, up 3%), ANZ ($6.4bn, up 12%), and NAB ($6.6bn, up 2.5%).

Australia's seven largest authorised deposit-taking institutions (including the big four) hold roughly $4.6 trillion in assets - around two and a half times the size of Australia's $1.8 trillion economy, as measured by nominal GDP.

What is the problem with their financial advice?

The banks discovered long ago it was highly profitable to sell their customers financial advice and financial products. If they could charge customers for financial advice, and if that "advice" consisted of purchasing their financial products, then they would enjoy a profitable feedback loop.

The business model was called "vertical integration".

Earlier this year, the corporate regulator published a report scrutinising the practice: " Vertically integrated institutions and conflicts of interest."

It looked at the quality of financial advice being offered by the two largest financial advice licensees owned or controlled by the Commonwealth Bank, ANZ Banking Group, Westpac, National Australia Bank and AMP.

It found their financial advisers had failed to comply with the best interests of customers in 75% of advice files reviewed.

It concluded there was an "inherent" conflict of interest arising from banks providing personal financial advice to retail clients while also selling them financial products.

How has this affected customers?

It's not just poor financial advice that's affected bank customers. The poor advice has combined with reprehensible behaviour by bank employees.

Since 1 July 2010, almost $250m in remediation has had to be paid to almost 540,000 consumers by financial services entities for poor conduct in connection with home loans.

The poor conduct included fraudulent documentation, processing or administration errors, and breaches of responsible lending obligations.

Since 1 July 2010, almost $90m in remediation has been paid to almost 17,000 consumers by financial services entities as a result of poor conduct in connection with car loans.

Over $11m in remediation has been paid to over 34,000 consumers by financial services entities for breaching responsible lending obligations in connection with credit cards.

Over $128m has been paid in remediation to consumers by financial services entities as a result of poor conduct in connection with add-on insurance.

Aren't some banks already embroiled in scandal?

They're involved in multiple scandals.

In August last year, the Australian Transaction Reports and Analysis Centre (Austrac) announced it was suing the Commonwealth Bank for 53,700 breaches of money laundering and counter-terrorism financing laws after the bank failed to report properly on $77m worth of suspicious transactions through its intelligent deposit ATMs over a number of years.

In November, the federal court imposed pecuniary penalties of $10m each on ANZ and NAB for attempting to manipulate the bank bill swap rate.

What is the reaction so far to the royal commission?

The Turnbull government realised this week how bad the situation is.

After AMP executive Anthony Regan admitted that AMP had lied repeatedly to the corporate regulator, the treasurer, Scott Morrison, warned wrongdoers could face jail. "That's how serious these things are," he said this week.

The former Nationals leader Barnaby Joyce admitted he was personally wrong to have argued against a royal commission.

The Nationals senator John Williams said he was concerned the inquiry had been given too little time to unearth wrongdoing, and if it needed an extension of time it should be given it. The finance minister, Mathias Cormann, made a similar argument.

But the government has also tried to take credit for the royal commission, saying it established it, and if it wasn't for the government the terms of reference wouldn't be so robust.

But wasn't it the Liberals and Nationals who were so opposed to the commission?

Yes. The Coalition had to be dragged kicking and screaming to establish the royal commission.

For years, they rejected calls by the Greens and Labor to establish the commission, and when Malcolm Turnbull finally relented in November he presented the backdown as a "regrettable but necessary" step to deal with mounting political pressure and uncertainty for the industry.

He made the decision in the face of open revolt from some Nationals MPs and senators who had joined the push by the Greens and Labor to set up a banking commission of inquiry.

After Turnbull's announcement, Labor said it was "unforgivable" that the government had fought for 18 months against the opposition's calls for a royal commission, and noted that the prime minister had ruled out a royal commission just 48 hours earlier.

The Greens leader, Richard Di Natale, reminded voters that the Greens had been the first party to propose a royal commission "several years ago" and the idea had been consistently voted down by Labor, the Liberals and Nationals.

So what happens next?

The royal commission will run through the rest of this year. An interim report is due in September, and a final report is due in February 2019.

But there's a lot of time between now and then. It may have its time extended. It may have its terms of reference changed. It depends on the politics.
Topics

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Banking royal commission: all you need to know - so far

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The banking royal commission was established in late December, after years of public pressure from whistleblowers, consumer groups, the Greens, Labor, and some Nationals MPs. The banking royal commission was established in late December, after years of public pressure from whistleblowers, consumer groups, the Greens, Labor, and some Nationals MPs.

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Brand Loyalty

Jemimah Yow

Repeat purchase behaviour or brand loyalty is one part of the post purchase processes and aims to increase customer loyalty by rewarding them for doing business with them. It is the degree to which a customer holds a positive attitude towards a brand, company or even event. (Liu, 2007)

Brand loyalty can be influenced by several different factors which can include level of competition in the industry, the social benefits of product use and of course the reward scheme offered. (Quester, Pettigrew, Kopanidis, Hill and Hawkins, 2014, 326-328) suggest that due to the nature of brand loyalty it can inspire both good and bad experiences for the consumer. For example, high levels of loyalty mean a consumer may overlook a higher price point, even if the product quality is much poorer than it was originally. On the opposite side of the spectrum brand loyalty can go beyond the product itself. For example, buying a Thermomix machine also buys a consumer into a ready-made community. Thermomix users often share recipes online, meet up to cook and host or attend demonstrations for other members in the community.

Do you have any brands or products you are loyal to? Why are you loyal to that brand or product?

Liu, Y. (2007). The Long-Term Impact of Loyalty Programs on Consumer Purchase Behaviour and Loyalty. Journal of Marketing,71(4), 19-35. Retrieved from http://www.jstor.org/stable/30163995

Quester, P., Pettigrew, S., Kopanidis, F., Hill, S. R., & Hawkins, D. (2014). Consumer Behaviour: Implications for Marketing Strategy. North Ryde: Australia: McGraw-Hill Education.

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Reference Groups and Normative Influence
Jemimah Yow

Social Identity theory suggests that the more an individual identifies with a group the more likely they are to adapt or conform to the norms of that group. While they may not agree with the standards consumers will attempt to behave in manner that is consistent with the preferences of that group. (Thomas, Jewell & Wiggins, 2015)

(Quester, Pettigrew, Kopanidis, Hill and Hawkins, 2014, 700-701) argue this type of behaviour is used by reference groups whose values and perspectives are used by individuals to base her or his currently behaviour of. This type of conformity in a reference group is called normative influence. Normative influence occurs when an individual change their behaviour to either gain favour or avoid sanctions from a group. For example, ordering a certain drink whilst out to earn favour vs not wearing certain fashion items such as fur to avoid teasing or social isolation from the group.

Have you ever been influenced by normative influence to gain favour on avoid sanctions form a reference group?

Thomas, V. L., Jewell, R. D., & Wiggins Johnson, J. (2015). Hidden consumption behaviour: An alternative response to social group influence. European Journal of Marketing, 49(3), 512-531. Retrieved from https://search-proquest-com.ezproxy.csu.edu.au/docview/1672589372?accountid=10344

Quester, P., Pettigrew, S., Kopanidis, F., Hill, S. R., & Hawkins, D. (2014). Consumer Behaviour: Implications for Marketing Strategy. North Ryde: Australia: McGraw-Hill Education.

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Calendrical influence on Culture
Jemimah Yow

One under-researched impact on consumer behaviour is that of calendrical timing. This is the idea that consumers buying behaviour is influenced by exogenous factors. Consumers often have calendars which are interconnected and influenced by other calendrical events. (Martin,2018) These events can be dependent on calendar cycles or by calendrical timing plights. Calendar cycles can include: annual, bi annual, monthly, weekly and daily. For example, a consumer may be using a annual or semi-annual basis for car rego, or a monthly cycle for contents insurance. These cycles are less likely to be affected by other calendar plights. Timing plights for consumers are based on other types of calendars; these can include natures calendar (rain/ snow etc) to cultural calendars (holidays such as Christmas and Easter). (Martin,2018)

Cultural contributions to calendars have made consumers adapt to the cultural norms of the society. For example, drinking eggnog and eating gingerbread only during December for Christmas. This type of cultural interaction perfect example of the two components of nominal culture: enacted culture and cresive culture. (Quester, Pettigrew, Kopanidis, Hill and Hawkins, 2014, chapter 16)

Have you ever been unconsciously impacted by cultural calendars to behave or do certain activities during different parts of the year?

Martin, C. L. (2018). How nature, culture and legal calendars influence the calendrical timing of consumer behaviour. Journal of Customer Behaviour, 15(4),337-368. Doi:10.1362/147539216X14594363340136

Quester, P., Pettigrew, S., Kopanidis, F., Hill, S. R., & Hawkins, D. (2014). Consumer Behaviour: Implications for Marketing Strategy. North Ryde: Australia: McGraw-Hill Education.

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I’ve broken the cruiser……Again. Do I really need to purchase top quality?

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I’ve broken the cruiser……Again. Do I really need to purchase top quality?

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As part of one of my recent car dramas, I found myself thinking as to whether it is really worthwhile “splashing out and spending big” on replacement parts for my car. The decision I was faced with was whether I buy genuine replacement parts which are known to be quite expensive or do I go for an aftermarket option to save some money.

Chapter 5 Evaluating and Selecting Alternatives tells us that price is the most widely used surrogate indicator when consumers are choosing a particular product. In most instances, a consumer will conclude that if a product is deemed to be expensive then there will be a direct relationship with that products quality (Quester, Et Al., (2014) p.135).

While price is deemed as the most widely used surrogate indicator, it can also be used due to a lack of knowledge of a particular product or service. As a result I choose to purchase a mid-range product as I have had previous experience with the products and have found them to be a good quality replacement part.

In conclusion, although price is a widely used indicator when consumers are purchasing products or services, it should not be the only indicator used. When consumers use only price, it has been found that a less than optimal purchase is made.

Question: Have you ever used price as a sole indicator when selecting products, and did this have a negative effect on the purchase?

Quester, P., Pettigrew, S., Kopanidis, F., Hill, S. R., & Hawkins, D. (2014). Consumer Behaviour: Implications for Marketing Strategy. North Ryde: Australia: McGraw-Hill Education.

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EXAMPLE TWO: CHAPTER 4 INFORMATION SEARCH

When buying any item the consumer will either consciously or subconsciously have some kind of criteria for they are looking in particular product. This is known as an evaluative criteria – which helps the consumer decide on the desired characteristics of a product (Quester, Pettigrew, Kopanidis, Rao Hill, and Hawkins, 2014, p.224).

The consumer will also have an idea of an alternative product, this is known as an awareness set. There are three subcategories to an awareness set including: evoked set, Inept set & Inert set (Quester, Pettigrew, Kopanidis, Rao Hill, and Hawkins, 2014, p.224).

Evoked Set – the brands you decide to investigate/consider.

Inept Set- the brand you consider completely unworthy of further consideration.

Inert Set- the brands that you are aware of, but feel indifferently towards.

This theory can be applied to everyday life for a variety of different brands and products e.g. I have found that I do this subconsciously when buying simple household products e.g. Shampoo

(diagram example meant to be here, is in a separate post on padlet).

Sources of information

Reasons for an individual to choose a certain product may include:

·         Memories of past, personal experience

·         Personal sources e.g. family or friends

·         Independent sources e.g. consumer groups

·         Marketing sources e.g. sales staff, advertising, web

·         Experimental sources e.g. inspection or product trial

I have found that I select particular products based on previous experiences with a product/ product loyalty. I also find if a friend or family member suggests to try something I am more likely to buy a product I normally wouldn’t. I find it depends on the product as to whether
I do an in depth information search on a product e.g. I would do an information search (via web) for a car.

QUESTION

What factors influence or make you choose a particular product? Does everyone subconsciously have a criteria that they follow when buying a product?

- Jess Whyte

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Chapter 10 informs us that personality is used in marketing. Brand personality is a set of human characteristics that become coupled with a brand that are then used to influence individuals to purchase certain products. Like individuals, many products have a brand personality, for example, perfume can be advertised to have a sophisticated appeal such as Chanel No5 or edgy such as Katy Perry and many other celebrity brands.  Ford have a “Build Ford Tough” campaign that alludes to masculinity and endurance, this gives us the impression that this brand is rugged and durable.

Brand personality provides a distinct element of brand image which marketers need to manage through their packaging and advertising, a distinct brand personality can play a key role in the success of a brand.

Do you distinguish certain personalities to certain brands due to the way they are marketed and advertised? Do you purchase products due to them being advertised as more feminine or rugged?

Quester, P., Pettigrew, S., Kopanidis, F., Rao Hill, S. and Hawkins, D. (2014). Consumer Behaviour Implications for Marketing Strategy (7th ed). Sydney: Irwin-McGraw Hill (pp313-314).

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Prevention magazine is aimed at health and age conscience women aged 40+ women. The magazine enables marketers to create generic problem recognition to expand their market or to maintain the existing market share.  The article activates problem recognition by raising awareness to an issue that the reader may not recognise as a problem until they read the article (Quester, p. 5). For example, an article by “Daily Green Superfoods Combo” points out that poor eating habits and nutritional deficiencies can lead to a number of chronic health issues, including chronic fatigue and the flu (Prevention, 2018, p. 18). They point out that if you can’t work out how to eat a balanced diet or you just don’t like your greens then you can purchase Super Greens powder from Synergy Natural to prevent minor and chronic illness.

Consumers buy the magazine because they want to learn how to stay healthy and strong. Daily Green Superfoods Combo is influencing the desired state against the existing state by convincing consumers that their product is a failsafe way of getting all the nutrients your body needs (Quester, p. 153).

References:

Isubscribe (2018). Prevention magazine subscription. Retrieved from (2018): https://www.isubscribe.com.au/Prevention-Magazine-Subscription.cfm

Prevention Magazine (2018), Write in for your chance to win. Next Media, St Leonards, NSW.

Quester, P. G., Pettigrew, S., Kopanidis, F., Hill, S. R., & Hawkins, D. I. (2014). Consumer Behaviour: Implications for Marketing Strategy. North Ride, NSW: McGraw-Hill Education (Australia).

Fiona Johnstone

Q. What other factors can health food marketers use to create problem recognition?

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Information search before making a purchase

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Information search before making a purchase

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Topic 2.3 talks about the information search that consumers used before they make a purchase or select a particular product or brand. Consumers like to find information relating to products to evaluate criteria like: attributes and benefits, alternative products and alternative characteristics of products (Queter et al., 2014, p. 95). Few days ago, I wanted to purchase an iPhone X, but after all the bad reviews I found on the internet, I discarder the willingness to buy it, instead I bought the 8Plus which has better reviews and was better in price. Furthermore, this particular behaviour encouraged me to find an article that talks about the many stages customers will go before they buy a product.

According to the article, there has been many studies conducted in the last century which revealed that consumers will gather information from different sources, these sources could be reviews, using a company website, social media, using a face to face conversation with a sales person or simply by recommendations from peers. This information they gather before they make a purchase will influence consumers to make the purchase (Conversion xl, 2017).

In the modern world, online shopping has been a trend as people are having busy lives with a very small spare time to go to a physical place to make a purchase, these particular consumers are getting more comfortable doing online shopping in their homes, as result, this has been a boost for online shopping (Conversion xl, 2017), for consumers who particularly do online shopping they are more likely to search for information online and compare the product with many others, actually “73% of purchase decision begin with a google search” (Conversion xl, 2017).

Question:

Do you try to find information about a certain product before you make the purchase? What kind of information will you look for and which sources do you use to gather that information?
https://conversionxl.com/blog/9-things-to-know-about-influencing-purchasing-decisions/

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Chapter 9 of the text discusses learning by operant conditioning which is the act by which consumers consciously purchase products or services knowing that there is a special introductory offer that stimulates their desire to purchase this particular item. Many marketing strategies are aimed at securing an initial trial or a bonus product upon initial purchase to generate interest in new products or services. Shaping is used to encourage a partial response from consumers such as a free samples or bonus offer which will hopefully lead to full purchases and repeat business.

Hello Fresh is a good example whereby consumers are encouraged to sign up for their healthy meal plans with a bonus offer of 3 free meals with your first order.

Have you signed up to a particular program or purchased products simply because of to the initial bonus offer? Did this lead you to continue to purchase this item/s?

Quester, P., Pettigrew, S., Kopanidis, F., Rao Hill, S. and Hawkins, D. (2014). Consumer Behaviour Implications for Marketing Strategy (7th ed). Sydney: Irwin-McGraw Hill (pp267-269).

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Prevention is a monthly health and age prevention magazine for middle-aged women.  The magazine promotes the latest trends and scientific findings of how to stay fit and healthy after 40 (Isubscribe, 2018).  Each month the magazine asks readers to provide feedback on that month’s publication in exchange for a chance to win a prize (see example attached, March/April Prevention, 2018, p.3).  According to Quester et al (p. 427-430, 2014), this operant conditioning reinforces the consumer’s behaviour, strengthens the relationship between consumer and brand and encourages the writer (consumer) to continue to write in with comments to receive infrequent rewards. It also potentially reinforces the writer’s increased repeat buying behaviour while encouraging the consumer to provide comments that will help the brand to maintain product quality at a consistent or increased level. This survey approach helps the magazine to identify where improvements could be made to the brand’s published content to help them to determine the right marketing mix for their audience.  This is because product satisfaction is the “most effective way of shaping future repurchase behaviour” (Quester et al, 2014. p430). The penalty for not providing comments to the magazine is the lost chance of winning the product on offer.

Q. What are other examples of operant conditioning that the magazine could adopt to hook and retain repeat buyers?

References:

Isubscribe (2018). Prevention magazine subscription. Retrieved from (2018): https://www.isubscribe.com.au/Prevention-Magazine-Subscription.cfm

Prevention Magazine (2018), Write in for your chance to win. Next Media, St Leonards, NSW.

Quester, P. G., Pettigrew, S., Kopanidis, F., Hill, S. R., & Hawkins, D. I. (2014). Consumer Behaviour: Implications for Marketing Strategy. North Ride, NSW: McGraw-Hill Education (Australia).

Fiona Johnstone

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Post 1 - Evaluative Criteria in Marketing. 

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Post 1 - Evaluative Criteria in Marketing. 

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Yes Optus currently have Usain Bolt as their brand ambassador. Celebrity endorsement is a form of a surrogate indicator where companies use a celebrity to endorse their product to boost its legitimacy. Using a celebrity gives consumers the impression that they would not put their name to a product or service if they themselves did not value what they were advertising.

https://www.youtube.com/watch?v=PIfiqfE0QOE

The slogan for the ad campaign is “Ever wondered what life is like at the speed of Bolt?” (optus.com.au). The aim of the ad campaign is to promote to consumers the new faster Optus Network. Competitors may have the same product or service speeds however, by using the surrogate indicator that is celebrity endorsement gives legitimacy to their campaign and leads consumers to believe that this product or service would best suit their needs although competitor pricing could be cheaper or of a similar value because they have put a famous face to their product.

Do you buy certain products over another simply because they have been endorsed by a celebrity and the product seems more legitimate due to this endorsement?

Quester, P., Pettigrew, S., Kopanidis, F., Rao Hill, S. and Hawkins, D. (2014). Consumer Behaviour Implications for Marketing Strategy (7th ed). Sydney: Irwin-McGraw Hill (pp136-137)

Sonya Chapman

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Chapter 10 of the textbook which covers motivation, personality and emotions, discuss that there are ten fundamental emotions that people experience which are: disgust, contempt, fear, shame, guilt, interest, anger, sadness, joy and surprise (Queter et al., 2014, p. 321) the following article, encourages people to experience some of the fundamental emotions by looking at a sad or happy face photo used by charities to raise money.

Charities use sad and smiling photos to symbolize the people who will be benefit from the donations. According to the article, seeing a smile face can make people happy and when they are happy they will be more motivated to make a donation. Furthermore, this behaviour will create a happy feeling for the person as a happy face will remind him/she the positive contribution they are making (The conversation, 2017). On the other hand, seeing sad faces can boost the donations as the people will be touched by an image of a child or a person in need, this negative images create a negative emotion on the person, for this case the person will try to evade the sadness and the guilt and will make a donation to end his/her unhappy feeling (The conversation, 2017). Consequently, the person will try to end the suffering and resolve the problem behind the picture.

Question:
Have you donated money to a charity after looking at their emotional pictures and stories behind them? Have this negative/positive emotions that you have experienced motivated you to make a donation?

http://theconversation.com/do-happy-faces-or-sad-faces-raise-more-money-77775

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Post 3 – Mobile phones, Chapter 4- Mobile Marketing After reading this article by Alex Clarke in The Guardian (2015) it got me thinking about a world prior to mobile phones and that my child will grow up in an entirely different world because of the impact of mobile phones on communication. Marketers have also had to change marketing strategies to adapt to the use of mobile phones and the internet. Chapter 4 of the text shows how consumer behaviour can be used in mobile marketing – any marketing activity conducted through a network to which consumers connect using personal mobile devices (Quester, Pettigrew, Kopanidis, Rao Hill, and Hawkins, 2014) My relationship with my mobile is “Mobile professional” as I use my mobile for work and home often and tend to undertake limited information searches on product purchases and I still rely on word of mouth for a lot of my higher value purchases, so I may ask on FB if people have an opinion instead of searching forums etc. I love my mobile as it makes everything so much more convenient (paying bills, checking accounts, googling directions… etc)What relationship do you have with your mobile device? Could you live without it? Article:Clarke., A.  (2015) Mobile Phones have changed the world for better or worse. The Guardian. Retrieved from: https://www.theguardian.com/commentisfree/2015/jan/03/mobile-phones-have-changed-world-for-better-or-worseReference: Quester, P., Pettigrew, S., Kopanidis, F., Rao Hill, S. and Hawkins, D (2014). Consumer Behaviour: Implications for Marketing Strategy (7th ed.). Sydney: Irwin-McGraw Hill 

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Post 3 – Mobile phones, Chapter 4- Mobile Marketing After reading this article by Alex Clarke in The Guardian (2015) it got me thinking about a world prior to mobile phones and that my child will grow up in an entirely different world because of the impact of mobile phones on communication. Marketers have also had to change marketing strategies to adapt to the use of mobile phones and the internet. Chapter 4 of the text shows how consumer behaviour can be used in mobile marketing – any marketing activity conducted through a network to which consumers connect using personal mobile devices (Quester, Pettigrew, Kopanidis, Rao Hill, and Hawkins, 2014) My relationship with my mobile is “Mobile professional” as I use my mobile for work and home often and tend to undertake limited information searches on product purchases and I still rely on word of mouth for a lot of my higher value purchases, so I may ask on FB if people have an opinion instead of searching forums etc. I love my mobile as it makes everything so much more convenient (paying bills, checking accounts, googling directions… etc)What relationship do you have with your mobile device? Could you live without it? Article:Clarke., A.  (2015) Mobile Phones have changed the world for better or worse. The Guardian. Retrieved from: https://www.theguardian.com/commentisfree/2015/jan/03/mobile-phones-have-changed-world-for-better-or-worseReference: Quester, P., Pettigrew, S., Kopanidis, F., Rao Hill, S. and Hawkins, D (2014). Consumer Behaviour: Implications for Marketing Strategy (7th ed.). Sydney: Irwin-McGraw Hill 

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Car manufacturers frequently use gender stereotyping in their advertising.  Over the past 20 years, economies have experienced a shift in marketing toward women and men (Quester et al, 2014, p. 600).  While car marketers are now targeting women, these advertising and marketing campaigns encourage women to buy family orientated or smaller feminine vehicles. Jane Speechly, a freelance writer for Practical Motoring, believes  “the idea that woman are a single, homogenous group, that think and act as one, is as ludicrous as making the same assumption about men.”

Despite current marketing approaches, for example Volks Wagon’s Amarok, most independent women don’t want to ask male companions/relatives if they can borrow a ute/SUV so they can go to the tip or take their faithful Labrador to the lake for a swim. These women want bigger cars that are practical enough to transport large items or tow a trailer.

Holden’s director of marketing and customer service, Mark Harland, believes that if marketers can win over women they will “win the business” (Chambers, 2017). This is because “82% of purchase decisions are influenced by women, however, 87% of women in the automotive purchasing process feel completely misunderstood”.  Mr Harland said that although “strong, independent, self-assured women are driving SUVs”, all SUV commercials are catered to men. Women may appear in these commercials, but they are not in the driver’s seat.

Q. Despite Mr Harland’s comments, why is it that the woman in the following Holden Captiva commercial transporting a small guitar instead of gardening tools, Ikea furniture or surf gear?

https://www.holden.com.au/cars/Equinox?keyword=%2B2018+%2Bholden+%2Bsuv&gclid=CjwKCAjww6XXBRByEiwAM-ZUIGITFfNDAbp3AnJRk6VTtz64aMbtWPjmWMCDJw4QhTzY7bTZghu8jxoCb0MQAvD_BwE&gclsrc=aw.ds&dclid=CN-Ow-Tl6NoCFcsGvAodwxMBSA

References:

Amarok (n.d). Tough comes from within. Volkswagen. Retrieved from (2018): https://www.volkswagen.com.au/en/models/amarok.html?&gclid=CjwKCAjww6XXBRByEiwAM-ZUIPH25lR53rZ_6JRQ26jMBQTVBEaohOiE9nLSMtBQBD0AcGxkIxzCMxoCjusQAvD_BwE

Chambers, Pippa (2017). Car marketing to women - 'nail this and you'll win the Holden SUV creative pitch'. Adnews. Retrieved from (2018): http://www.adnews.com.au/news/car-marketing-to-women-nail-this-and-you-ll-win-the-holden-suv-creative-pitch

Equinox (2018). Holden. Retrieved from (2018): https://www.holden.com.au/cars/Equinox?keyword=%2B2018+%2Bholden+%2Bsuv&gclid=CjwKCAjww6XXBRByEiwAM-ZUIGITFfNDAbp3AnJRk6VTtz64aMbtWPjmWMCDJw4QhTzY7bTZghu8jxoCb0MQAvD_BwE&gclsrc=aw.ds&dclid=CN-Ow-Tl6NoCFcsGvAodwxMBSA

Quester, P. G., Pettigrew, S., Kopanidis, F., Hill, S. R., & Hawkins, D. I. (2014). Consumer Behaviour: Implications for Marketing Strategy. North Ride, NSW: McGraw-Hill Education (Australia).

Speechly, Jane (2017). How to Market Cars to Women. Practical Motoring. Retrieved from (2018): https://practicalmotoring.com.au/voices/how-to-market-cars-to-women/

By Fiona Johnstone

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 Post 1 – Mountain Buggy Urban Jungle, Chapter 7 - Post purchase processes I recently purchased a pram which is an important and expensive purchase ($900). I researched many options and settled on the Mountain Buggy Urban Jungle – advertised as a rough and ready buggy that can be used for jogging and off road. I received the buggy and have used it daily trying to get my little boy to sleep, walking around tracks and paths. Unfortunately, after the 8th puncture I was suffering with post purchase dissonance! I realised this after reading Quester, Pettigrew, Kopanidis, Rao Hill, and Hawkins. (2014, page 185) in hindsight this was a high- involvement purchase decision and I was disappointed with the performance! I contacted Mountain buggy to look for a solution and they were unhelpful essentially telling me I had to purchase new wheels. I then took direct action in the form of a complaint and will not recommend or buy their products in the future essentially taking private and direct action around my dissatisfaction of the product. I was surprised at how unhelpful Mountain buggy were in dealing with my issue – they did not attempt to resolve it. I was interested to see from Quester et al p. 196 - I fitted into the voices category of consumer which was the most common type of response. Have you ever been dissatisfied with a purchase and what consumer type are you in respect to response styles associated with dissatisfaction (p.196)? Advertising: https://mountainbuggy.com/au/Products/buggies/urban-jungle#.Wsrn4ohubIVReference: Quester, P., Pettigrew, S., Kopanidis, F., Rao Hill, S. and Hawkins, D (2014). Consumer Behaviour: Implications for Marketing Strategy (7th ed.). Sydney: Irwin-McGraw Hill 

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 Post 1 – Mountain Buggy Urban Jungle, Chapter 7 - Post purchase processes I recently purchased a pram which is an important and expensive purchase ($900). I researched many options and settled on the Mountain Buggy Urban Jungle – advertised as a rough and ready buggy that can be used for jogging and off road. I received the buggy and have used it daily trying to get my little boy to sleep, walking around tracks and paths. Unfortunately, after the 8th puncture I was suffering with post purchase dissonance! I realised this after reading Quester, Pettigrew, Kopanidis, Rao Hill, and Hawkins. (2014, page 185) in hindsight this was a high- involvement purchase decision and I was disappointed with the performance! I contacted Mountain buggy to look for a solution and they were unhelpful essentially telling me I had to purchase new wheels. I then took direct action in the form of a complaint and will not recommend or buy their products in the future essentially taking private and direct action around my dissatisfaction of the product. I was surprised at how unhelpful Mountain buggy were in dealing with my issue – they did not attempt to resolve it. I was interested to see from Quester et al p. 196 - I fitted into the voices category of consumer which was the most common type of response. Have you ever been dissatisfied with a purchase and what consumer type are you in respect to response styles associated with dissatisfaction (p.196)? Advertising: https://mountainbuggy.com/au/Products/buggies/urban-jungle#.Wsrn4ohubIVReference: Quester, P., Pettigrew, S., Kopanidis, F., Rao Hill, S. and Hawkins, D (2014). Consumer Behaviour: Implications for Marketing Strategy (7th ed.). Sydney: Irwin-McGraw Hill 

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Post 2 – Westpac Bump, Chapter 8 - Perception Recently having a baby I investigated opening a BUMP account, I had seen the ads on TV and wanted to be a financially responsible mother for my son.   https://www.westpac.com.au/personal-banking/solutions/having-a-baby/new-baby/After researching the product, I decided to opt for a better account as I felt the Westpac one didn’t offer very good returns. After reading Chapter 8 in the text on I can see that Westpac used elements of perception to advertise essentially a product that is not the best... They looked at individual and situational factors and targeted emotional parents who are vulnerable with the adverts striking a chord about doing what’s right for your child and they will support it- Post birth new parents have very little time to read the “small print”. https://www.choice.com.au/shonky-awards/hall-of-shame/shonkys-2017/westpac-bump-savings Are there any other businesses you think use Perception to market their products? 

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Post 2 – Westpac Bump, Chapter 8 - Perception Recently having a baby I investigated opening a BUMP account, I had seen the ads on TV and wanted to be a financially responsible mother for my son.   https://www.westpac.com.au/personal-banking/solutions/having-a-baby/new-baby/After researching the product, I decided to opt for a better account as I felt the Westpac one didn’t offer very good returns. After reading Chapter 8 in the text on I can see that Westpac used elements of perception to advertise essentially a product that is not the best... They looked at individual and situational factors and targeted emotional parents who are vulnerable with the adverts striking a chord about doing what’s right for your child and they will support it- Post birth new parents have very little time to read the “small print”. https://www.choice.com.au/shonky-awards/hall-of-shame/shonkys-2017/westpac-bump-savings Are there any other businesses you think use Perception to market their products? 

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Chapter ten of the textbook discusses the concept of emotion as a powerful way to retain messages in one’s memory (Quester et al., 2014, p. 320). It is said that “emotional advertisements may be remembered better than neutral ones” (Quester et al., 2014, p. 320).

I found an advertisement for Sprite that demonstrated a heart-warming scene of a loving bond between a father and his daughter. The advertisement utilised emotions of love with a degree of humour to reveal the lengths a father will go to, to show his affection for his daughter.

This commercial ‘true love’, encourages consumers to associate Sprite with a positive emotional experience, which has been proclaimed in the past to increase memory recall (Mehta, & Purvis, 2006). From my personal experience, I found this commercial to touch my heart and make me laugh, to the point where I was showing it to other people.

It is important for an advertisement to evoke an emotional response, as “the process that consumers go through in deciding what brands to buy has a heavy emotion-based dimension to it” (Mehta, & Purvis, 2006, p. 49). When consumers associate a product with a positive emotion, they will be more likely to consider it as a source for a positive experience (Mehta, & Purvis, 2006).

QUESTION: What was the last advertisement that stuck with you? Why did it stick with you?

REFERENCES:

Val. S. (2007, September 23). Sprite commercial – true love [Video file]. Retrieved from

https://www.youtube.com/watch?v=ssjmFrQNKBY

Mehta, A., & Purvis, S. C. (2006). Reconsidering recall and emotion in advertising. Journal of Advertising Research, 46(1), 46-59. doi: 10.2501/S0021849906060065

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Recently it was observed by a colleague of my unknown habit of selecting products red in colour, a  behavior I had not given much thought. This included everyday purchases such as a can of coca-cola, a coffee mug for in the office, a red blouse or purchase at the local KFC etc. I began to research this decision and found the following article +video which discusses the proven impact of colors on consumer behavior. Studies show a consumers choice of color is chosen at an unconscious level. This is advantageous to marketers as a consumers buying behavior can be influenced, creating a certain colored product can reflect consumers emotions and hence potentially altering the decision making process. The colour red is noted to be a color of aggression, intensity, confidence and urgency.

The concept of Perception influencing a consumers behaviour is noted, this includes exposure, attention and comprehension of the stimulus. For example, the colour red is a Stimulus determinant which captures the consumer immediate attention. This is noted by its intensity, contrast and position against other products. As quoted in the video and in many consumers’ perception ‘Red car’s go faster’, Red highlighting on online websites such as ebay triggers a reaction from the consumer and more. Consumers do not generally attribute the colour with the seller directly. Red stimulates the consumer to take immediate decisions and commit rash actions, so it is typical for advertising. However it is noted that the color should be used in moderation because an overabundance of it may cause irritation and aggression.

Question: When you are shopping does a particular color capture your attention or evoke emotion to purchase or not purchase? Can you think of an example?

https://www.youtube.com/watch?v=nUxDqIeiXt0 – Virginia Tech, The effects of Red on the Consumer Behaviour.

https://curatti.com/how-to-color-your-brand-color/ - The Proven impact of color on the consumer behavior.

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Emotion in advertising. I recently heard an ad on Spotify for work safety ‘safety starts with you’, I was listening to it while studying the emotion and marketing section in chapter 9. It got me thinking about how much we pay attention to adds and whether we notice them targeting our emotion, if I hadn’t heard the add while studying emotion would I have noticed them targeting my emotions? The add starts with the voice over of a work place accident and explains that ‘when things go wrong it doesn’t affect just you’. The voice has multiple people speaking, the guilty boss ‘I’m the boss, this shouldn’t have happened, this is my fault’, the child ‘daddy are you ok?’ and the wife ‘how will we manage?’. The use of emotion in this ad is strong and effective, by using children voices and real life situations it creates a connection between the ad and our own life’s.

My question is, are we always aware of the affect ads have on our emotions, or is it a subconscious effect? Does it affect the consumer behaviour the same if they’re unaware the ad is targeting their emotion?

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A very good example of situational influence is this article that I found about Woolworths supermarkets. As explained in chapter 2 there are five situational influences that affects the consumer behaviour. The one I will discuss is the physical surrounding of this particular supermarket.

Over the years Woolworths has probably been the most popular supermarket in Australia. The statistics have proved that their profits have growth by 38% in 2017 in comparison with Coles that just growth by 1.9%. These results have been due to their expansion with the number of stores that Woolworths operate in Australia as they have opened 200 more than Coles in the last years (The new daily, 2018).

According to Michael Callaghan, an advertising and marketing expert. Woolworths seems to focus more on the physical location as they are based on larger neighbourhoods where the big families are. Also, they are located opposite to service stations where people will have an easy access to their supermarkets (The new daily, 2018).

Another physical surrounding of Woolworths is their supermarket layout. Their products are usually labelled and grouped in different sections so can be easy to find. One last example of physical surrounding is the rustic design of Woolworths that make customers feel like they are in an authentic farmers market.

Question.

Do you think that layout, design and physical location are factors to consider when picking a supermarket to do your grocery shopping?

https://thenewdaily.com.au/money/finance-news/2018/02/23/woolworths-half-year-profit-coles/

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Example Consumer based theory in practice - The New Volvo XC60

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Example Consumer based theory in practice - The New Volvo XC60

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https://www.youtube.com/watch?v=pjQt2lEZIXg
Over the years, I have formed opinion that Volvos are perhaps not as edgy or bold as other cars on the market. That being the case, I would have no apprehension being behind the wheel of their vehicles with regard to my wellbeing and road safety.
The YouTube advertisement in my example primarily draws on the emotional appeal of Consumer Behaviour Theory.
The advertisement beautifully captures the innocence and ambition of a young child contemplating significant milestones in life. Being a father of a young child, it was easy for me to draw an emotional connection to this ad. I too often contemplate my son’s ‘moments’ such as first day of school, broadening his horizons to a new job, world travel and ultimately having his own family.
There was limited use of imagery of the car or detail about its features within the ad. Rather, attention was focused on the story and gaining a human empathy with Volvo.
The ad draws a confronting conclusion that emphasises the need for car safety. The scenario motivates me to make connection with Volvo having ability to meet my hierarchical needs (Maslow’s theory) for safety.
What is important in your decision making when buying a car ?
Kenneth

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Isuzu Australia - Market Strategy and Gender

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Isuzu Australia - Market Strategy and Gender

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While enduring those pesky advertisements between segments of what I want to be watching I recently noticed the Isuzu advertisements. Within these advertisements they have clearly identified target markets for the varying models that they offer. These advertisements go against the trend towards a modern lifestyle arrangements and clearly identified gender specific target markets for the particular vehicles.

The advertisements for the D-Max (Ute) was aimed solely at men by showcasing outdoor activities and art without a single woman appearing in the ad.

The advertisements for M-UX (SUV) were more targeted towards a family vehicle however the did showcase both the urban and off-road use for the vehicle.

While Chapter 12 of the text book covers product strategy and how companies are phasing out gender stereotypes as part of their advertising, I found that the two abovementioned ads were the complete opposite and that Isuzu Australia had purposely targeted particular genders to be purchasing particular models under what can be described as a traditional vehicle arrangement (Quester, Pettigrew, Kopanidis,  Rao Hill, and Hawkins, 2014, p.389).

Question: Is it possibly and/or viable for companies to completely phase out gender stereotypes as part of their marketing strategy?

- Rhys M

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2017 Isuzu D-MAX Showcase Video - Isuzu UTE Australia

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The consumer behaviour is generally associated with the activities in the context of purchasing and using of the products or services. In purchasing process of the products, consumers show their interests based on requirements and needs. However, in most of the situations, the needs and requirements of the consumers are motivated to purchase the products. In motivation process, consumer's emotional, and mental, as well as behavioural responses are considered in the consumer behaviour theory that is being used in the practice (YouTube, 2013). In this scenario, an example that shows an aspect of consumer behaviour theory being used in practice is the ‘Self Perception’.

This theory can be understood with the example of an advertisement of Nivea Crème for women in the perception. This is used as protecting dry skin and sensitivity to make face fair, bright, and fresh. A video advertisement on YouTube and the Internet shows that moral self perception of consumer behavior theory is being used in practice to motivate customers to believe in the products and purchase for personal use (YouTube, 2013). The video of Nivea Crème usually attempts to develop an understanding of the consumers that is a motivational process used in the consumer behaviour theory.

Illustration of the Relevant Area of Consumer Behaviour Theory

The example illustrates the relevant area of consumer behaviour theory through explaining the reasons of the individuals that develop an understanding relevant to the products purchase. The motivation behind the consumers’ own behaviour is the important aspect of the price perception theory in which it drives the buying behaviour. In the price perception theory, the attempt of the marketers is linked to emphasize the quality and value of the money of the customers that appeal them to be potential customers (Han & Hyun, 2015). The low prices in considering as an inherent virtue of the organizations that usually attempt to illustrate about the quality and value of money.

The price perception theory is implemented to improve believe of consumers about the fair prices charged for the products and services. Online shoppers and Wal Mart are the best examples that follow price perception theory to increase repeat purchasing of the customers. The price perception has capability to influence behaviour of the customers effectively and efficiently (Han & Hyun, 2015). The future purchase of the customers is also determined with the help of price perception theory adopted by the marketers. The use of price perception theory strongly influence the customers and satisfy their needs.

QUESTION

1 What are the main factors that influence the customers to make self decision about any product purchase rather than advertisement?
2 What are the other factors that are also responsible to change the purchasing behaviour of the customers.

References
Han, H. & Hyun, S.S. (2015). Customer retention in the medical tourism industry: Impact of quality, satisfaction, trust, and price reasonableness. Tourism Management, 46, 20-29.

YouTube (2013). Face Care Tips By NIVEA: How to care for dry & sensitive skin. Retrieved from: https://www.youtube.com/watch?v=CI9S30TmpHU

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I read an article on sustainability in the toy industry and the amount of waste created from discarded toy products. As a new parent and consumer of toys, I began to question product sustainability and whether I should be buying new products, especially those products consumed at such a fast rate.

Chapter 7 in the textbook discusses product disposal which is the final stage of the products life cycle where it is destroyed, shared, returned or sold (Quester, Pettigrew, Kopanidis, Hill & Hawkins, 2014, p. 188). It also talks about the importance of understanding disposal in a marketing strategy as disposal can impact on purchasing decisions.

The article highlighted how disposal can influence purchase decisions and made me think about alternative modes of disposal. It provides an example of families using toy libraries to exchange second hand toys rather than discarding them or purchasing brand new. This creates a second-hand market which organisations can also benefit from (Assadourian, 2013).

Patagonia, for example, offers a service where used products can be returned and then resold at a cheaper rate through the second-hand market (Assadourian, 2013). I think this is a great idea and really encourages sustainable consumer behaviour.

Question – Do you think about product disposal when purchasing products and do you purchase second hand?

Assadourian, E. (2013, December 17). Dear Santa: It’s time to rethink toys. The Guardian. Retrieved from: https://www.theguardian.com/sustainable-business/christmas-santa-letter-sustainable-workshops-toys

Quester, P., Pettigrew, S., Kopanidis, F., Rao Hill, S. and Hawkins, D (2014). Consumer Behaviour: Implications for Marketing Strategy (7th ed.). Sydney: Irwin-McGraw Hill.

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Recently I watched a Toyota Hilux television commercial. One of the things I observed was that Toyota still use gender stereotypes as part of their advertising campaign even though research suggests that traditional gender stereotypes are being phased out (Quester, Pettigrew, Kopanidis,  Rao Hill, and Hawkins, 2014, p.390).

In this commercial they used a typical working man who is looking to 'cut loose' on the weekends. The commercial also showed the Hilux doing 'manly' things such as off road driving and driving past a farm with a farmer waving at the Hilux as it passes by.

Chapter 12 of the text book discusses product strategy and how companies are phasing out traditional gender stereotypes (Quester, Pettigrew, Kopanidis,  Rao Hill, and Hawkins, 2014, p.390). In today's society, male oriented products such as cars, alcohol and motorcycles are now being designed for women (Quester, Pettigrew, Kopanidis,  Rao Hill, and Hawkins, 2014, p.390). In addition, women and mothers are now work full-time with a minimum of 40 hrs per week. Because of this, household jobs often get shifted to the husband or children to complete (Quester, Pettigrew, Kopanidis,  Rao Hill, and Hawkins, 2014, p.391).

Question:  Does gender stereotypes still impact the way you make purchases? If so, how?

References

Quester, P., Pettigrew, S., Kopanidis, F., Rao Hill, S. and Hawkins, D (2014). Consumer  Behaviour: Implications for Marketing Strategy (7th ed.). Sydney: Irwin-McGraw Hill.
Seymour Toyota - Toyotathon Hilux(2017). Retrieved from: https://www.youtube.com/watch?v=MbONKPIc2Ek

- Kaytlin L

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I read this article on a certain brand of eggrolls whose sales were “stagnant”  due to its lower pricing (Mohan, 2018, para. 2). I was confused at first, thinking that sales should increase if a price decreases, but then I remembered that in Chapter five of the textbook, its talks about ‘surrogate indicators’.

Many times consumers, including myself, use price as an indication of quality. The article that I read, talks about how loyal consumers to this brand were willing to pay MORE for the eggrolls due to their belief that the eggrolls were higher quality than the price offered (Mohan, 2018, para. 7).

I realised that consumers use lower prices and other factors such as common packaging, as surrogate indicators for ‘lower quality’, when the offering may actually be high quality (as the loyal customers recognised).

Research revealed, that once the company adhered to their loyal customers’ comments and suggestions to change the packaging and lift the price, the sales of the brand increased by 11% (Mohan, 2018, para. 8). This proved to me the power of surrogate indicators in determining a consumer’s perception of product quality.

QUESTION: What are some other reasons why consumers would be willing to pay more for an item over its cheaper alternatives?

REFERENCE:

Mohan, A. M. (2018, February 10). The power of packaging and the new price point

revealed. Packaging World. Retrieved from: https://www.packworld.com/article/package-design/redesign/power-packaging-and-right-price-point-revealed

Quester, P., Pettigrew, S., Kopanidis, F., Rao Hill, S. and Hawkins, D (2014). Consumer Behaviour: Implications for Marketing Strategy (7th ed.). Sydney: Irwin-McGraw Hill.

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EXAMPLE ONE: CHPT 8 & 9 PERCEPTION & PRODUCT POSITIONING  Product positioning “is a marketing strategy designed to achieve a specific brand image” (Quester, Pettigrew, Kopanidis, Rao Hill, and Hawkins, 2014, p.283). Perception is the “process by which consumers make sense of product information and marketing communication messages given to them on a daily basis” (Quester, Pettigrew, Kopanidis, Rao Hill, and Hawkins, 2014, p.224). The perceptions consumers have of a business/brand and its products /service has a very dramatic effect on a buyer’s behaviour. When watching TV at night I have found that two of the most replayed advertisements is Pro-activ and L’Oréal Anti-aging cream / L’Oréal Laser X. I have noticed that the L’Oréal product is aimed at a target market of women aged 40+, but the L’Oréal advertising and marketing team always uses young 20 to 30 something year old women, who have perfectly made up skin, with no wrinkles or any signs of ageing. The product claims to be better than laser surgery yet when it comes to advertising the product L’Oréal marketers don’t use actors of the correct age group of which the target market is.The brand is advertising that their anti-aging cream is a miracle cream which reduces visible wrinkles and increases the firmness of the consumers skin without needing laser surgery. But they are using younger women who don’t have wrinkles or skin ageing issues, to create the perception that their cream is better than having laser surgery when in reality the product most likely isn’t. By using these positioning tricks the brand doesn’t have to rely on the merit of the product itself and the brand appears to be trustworthy.  As for pro-activ, their target market is young adolescence, yet majority of their ads have mid twenty to thirty year olds who no longer have skin acne or any skin issues. One of their most recent adds includes a woman named Leslie who starts off with pale skin and some redness but has very few if any skin acne or imperfections and they show her very sad and embarrassed of her skin, before doing a reveal of her after the use of the product, only to show that they have now covered her face in makeup, done her hair and changed the background and she’s all happy. These techniques are used to position the brand as trustworthy and show that the product works, even though the actor has probably never actually used the product.By using ‘Leslie’, an unknown actor the marketing team can introduce her to the viewers as a regular person to make her relatable to the consumers. They have then showed the before and after shot and because people think she is just an average normal person and the product worked for her they believe that the product can work for them. Whereas when brands use famous actors people naturally perceive that they are perfect and have plenty money to look perfect, they aren’t relatable to consumers.  Generally with a cosmetic product, if people can visually see an improvement in the actor’s appearance (before and after shot) then the marketers have successfully created the perception that the product works and if people believe the product works they will buy it, even just to try it. QUESTION Does it become false advertising when marketers use product positioning tricks such as makeup and younger women to position their product a particular way to create the perception of good, trustworthy product? 

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EXAMPLE ONE: CHPT 8 & 9 PERCEPTION & PRODUCT POSITIONING  Product positioning “is a marketing strategy designed to achieve a specific brand image” (Quester, Pettigrew, Kopanidis, Rao Hill, and Hawkins, 2014, p.283). Perception is the “process by which consumers make sense of product information and marketing communication messages given to them on a daily basis” (Quester, Pettigrew, Kopanidis, Rao Hill, and Hawkins, 2014, p.224). The perceptions consumers have of a business/brand and its products /service has a very dramatic effect on a buyer’s behaviour. When watching TV at night I have found that two of the most replayed advertisements is Pro-activ and L’Oréal Anti-aging cream / L’Oréal Laser X. I have noticed that the L’Oréal product is aimed at a target market of women aged 40+, but the L’Oréal advertising and marketing team always uses young 20 to 30 something year old women, who have perfectly made up skin, with no wrinkles or any signs of ageing. The product claims to be better than laser surgery yet when it comes to advertising the product L’Oréal marketers don’t use actors of the correct age group of which the target market is.The brand is advertising that their anti-aging cream is a miracle cream which reduces visible wrinkles and increases the firmness of the consumers skin without needing laser surgery. But they are using younger women who don’t have wrinkles or skin ageing issues, to create the perception that their cream is better than having laser surgery when in reality the product most likely isn’t. By using these positioning tricks the brand doesn’t have to rely on the merit of the product itself and the brand appears to be trustworthy.  As for pro-activ, their target market is young adolescence, yet majority of their ads have mid twenty to thirty year olds who no longer have skin acne or any skin issues. One of their most recent adds includes a woman named Leslie who starts off with pale skin and some redness but has very few if any skin acne or imperfections and they show her very sad and embarrassed of her skin, before doing a reveal of her after the use of the product, only to show that they have now covered her face in makeup, done her hair and changed the background and she’s all happy. These techniques are used to position the brand as trustworthy and show that the product works, even though the actor has probably never actually used the product.By using ‘Leslie’, an unknown actor the marketing team can introduce her to the viewers as a regular person to make her relatable to the consumers. They have then showed the before and after shot and because people think she is just an average normal person and the product worked for her they believe that the product can work for them. Whereas when brands use famous actors people naturally perceive that they are perfect and have plenty money to look perfect, they aren’t relatable to consumers.  Generally with a cosmetic product, if people can visually see an improvement in the actor’s appearance (before and after shot) then the marketers have successfully created the perception that the product works and if people believe the product works they will buy it, even just to try it. QUESTION Does it become false advertising when marketers use product positioning tricks such as makeup and younger women to position their product a particular way to create the perception of good, trustworthy product? 

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Jessica Whyte

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A well-publicized example of situational influence on consumers is Ikea’s worldwide store layout, which has been described as ‘maze-like’ (The Daily Mail UK, 2011). Shoppers may intend on going to the store for a specific item, however given the layout of the store, shoppers have to follow a pathway throughout the entire store in order to get to the cash register, making it more likely for them to spontaneously make impulse purchases.

“Alongside its reputation for good, cheap design, Ikea's distinctive labyrinth has been phenomenally successful with 283 stores in 26 countries and profits of £2.3 billion last year”. (The Daily Mail UK, 2011)

Another example of situational influence within the Ikea store layout are the microcosms of products on the pathway to the register. These are set up in a way which appeals to consumers, enabling them to see how the product or products may look in their home and make their life easier, encouraging them to not only buy one product but the whole range which is displayed.

Discussion question: Do you think Ikea's store layout is helpful or a hindrance to your shopping experience?

-Eleanor

The Daily Mail UK, 2011 http://www.dailymail.co.uk/femail/article-1349831/Ikea-design-stores-mazes-stop-shoppers-leaving-end-buying-more.html#ixzz59OmeJnv4

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While I was waiting in the dentist browsing through an old magazine, I saw an ad that directly coincided with something I learned in chapter three of our textbook. It was an ad for an unhealthy snack but was marketed to encourage people to ‘rebel’ if you will, and ‘snack well’.

Chapter three talks about ‘problem recognition’ and how many organisations either try to use problem recognition alongside their ‘solution’, activate problem recognition to create awareness of unknown issues, or to ‘suppress’ problem recognition to ensure consumers do not avoid their products (Quester, Pettigrew, Kopanidis, Hill & Hawkins, 2014, p. 76-81).

I saw this ad as an act of ‘problem suppression’. By encouraging consumers to ‘be bad and snack well’, they are suggesting that they know the food their offering is unhealthy, but is okay to eat because of the smaller portion size.

I was able to see that they have suppressed the problem that their food is unhealthy, by delivering the message that their portion sizes ‘allow you to be bad while still being good’.  I thought it was a clever way to encourage someone to eat something that isn’t good for them.

QUESTION: Have you ever purchased something that wasn’t good for you because the advertising didn’t make you feel guilty about it?

REFERENCES:

Neman A. A. (2011, April 20). SnackWell’s Nudges Up the Portion Pack [Image]. The New York Times. Retrieved from http://www.nytimes.com/2011/04/21/business/media/21adco.html

Quester, P., Pettigrew, S., Kopanidis, F., Rao Hill, S. and Hawkins, D (2014). Consumer Behaviour: Implications for Marketing Strategy (7th ed.). Sydney: Irwin-McGraw Hill.

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Thanks for these great examples guys.  Nice links to theory and discussion questions.  Looking forward to the responses to your discussion questions

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An example of the types of posts I hope to see you putting up

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An example of the types of posts I hope to see you putting up

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Situational influences impact on our experiences as a consumer.  One of the five situational influences we talk about is social surroundings.  The image below shows an NFL stadium with hardly any fans. This provides a good example of how social surroundings can influence our experiences.  You can imagine how different the game would feel with a full crowd.  This is something that sports like the AFL in NSW and Big Bash cricket are working hard to overcome.  What do you prefer and full house or plenty of seating options?

Fox News (2017) Are the empty seats at games in Week 1 a concern for the NFL?  Sep 13, 2017 https://www.foxsports.com/san-diego/video/1045707331560 accessed 1/3/2018

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I recently went on a tour around New Zealand. when we came to Queenstown we were informed that the quality of accommodation for our three night stay was poor. as the guide was apologizing she explained they that had had to move from the original location to the current location as the first location was further from the CBD than the current location. in the end of tour survey, they were finding that the passengers were unhappy with the accommodation simply because of the original accommodation in Queenstown being further than walking distance to the CBD. so to fix this they moved it closer to the CBD and compromised on quality, safety and value. The company in this case used the direct method of determining evaluative criteria, through a survey,
to determine the important criteria for accommodation. in this case the location was more important to the consumer than quality, value and safety. -
- Freya.

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I often do my grocery shopping at Aldi. My local store has been renovated and I initially thought, what for? I learned in MKT220 that the new layout is aimed to influence the consumer decision process, known as physical situational influence. Factors like décor, sounds, aromas, lighting and room temperature influence the shopper. (Quester, Pettigrew,  Kopanidis, Hill, Hawkins, 2017, p. 41-42). For example there are new colourful fresh food displays near the entry and freezers are on eye level, so shoppers can easier access them. Aldi makes a big investment, a ‘1 billion makeover’ (Daily Mail 2017), based on this consumer behaviour theory. The physical influences create a certain perception of the store, an atmosphere, which influence the purchase decision. Aldi shoppers now are more likely to feel they are purchasing products of high quality. They enjoy the experience and might spend more time in store, adding extra items to their baskets.

Discussion question: Do you think you are more likely to shop at Aldi’s new outlets? Would you purchase extra items when shopping at the new store layout?

Quester, P., Pettigrew, S., Kopanidis, F., Rao Hill, S. and Hawkins, D (2014). Consumer Behaviour: Implications for Marketing Strategy (7th ed.). Sydney: Irwin-McGraw Hill.

Daily Mail Australia (2017). Fresh food in front, eye-level freezers to entice shoppers and a new logo: Aldi stores get $1 BILLION makeover as the German supermarket plans to add up to 200 products to its range. April 17, 2017 Retrieved from http://www.dailymail.co.uk/news/article-4418206/Aldi-spends-1-billion-change-store-layout-Australia.html accessed 7/03/2018

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Thanks to Kenneth for making the following post re Topic 1.1 (for full post see the discussion board)

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Thanks to Kenneth for making the following post re Topic 1.1 (for full post see the discussion board)

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"The most recent major purchase I made was a large flat screen TV

Initially, I had little need for a TV. We (my wife and son) had two perfectly functional TV sets at home, so the idea of another TV represented little value to us as a household unit. Money could have been better spent elsewhere. I was at my shopping center when I noticed in store advertisement for sale on TV’s. Like a moth to the flame, I could not help myself and wandered in for a closer look at this ‘sale’. Because there was no desperate need to have the TV, I could enter negotiations from a position where I would be comfortable walking away from. So, long story short, I ended up securing the TV at a drastically reduced price and on top of the sale...

I was conscious of how the product was marketed at the time of purchase and prior to reading the chapter. Ultimately, securing a good bargain was the biggest influence in me buying the TV, although had it not been for the sale sign at the front of the store, I would not have contemplated entering the store"
Nice example of a situational influence.  Anyone else had a similar experience?