Lecture Consumer behaviour: Chapter 18 - Cathy Neal, Pascale Quester, Del Hawkins

Chapter 18 Consumers and Society
• Role of consumerism and consumer movement
• Role of government legislation and regulation
• Growing importance of ethics in marketing
• Meaning of negative consumer behaviour
• Effects of the Internet on marketing and consumer

behaviour

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Consumer Movement in Australia,
New Zealand and Internationally
• Australian Consumers Association (ACA)
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Ministerial Council on Consumer Affairs

Consumers’ Institute of New Zealand

Consumers International


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Consumerism: Definition
The evolving activities of governments, businesses,
independent organisations and concerned consumers
aimed at protecting and enhancing the rights of
consumers

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Consumerism
Can be viewed from 3 levels:
• Relationship between consumer and manufacturer
• Consumer’s relationship within the broader societal

context
• Consumerism at a political level

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Global Consumer Movement
• Consumers International

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250 consumer organisations in 115 countries

• Covers:
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Product safety
Consumers’ economic interests (banking, financial
services, insurance)
Consumer information and education
Redress and complaint facility
Draft legislation on electronic commerce

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The Rights and Responsibilities
of Consumers

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The Consumer Movement in

Australia
• Australian Consumers Association
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Non-profit, non-party-political organisation
Conducts comparative tests
Publishes reports and speaks out on issues such as:
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Information and advice on goods, services, health and
personal finances, and
Issues that help to maintain the quality of life of consumers

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The Consumer Movement in
New Zealand
Consumers’ Institute
• Non-profit, independent organisation
• Conducts comparative tests and surveys on
consumer goods
• Advises on financial, food, health, safety, welfare
and environmental matters

• Has representation on parliamentary committees
• Plays a role in educating consumers
• Advises them on how to make complaints

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The Government Regulatory
Environment
• Australia
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Trade Practices Act 1974
Australian Competition and Consumer Commission
(ACCC)

• New Zealand
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Fair Trading Act 1986
Consumer Guarantees Act 1993
Hire Purchase Act 1971

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Industry Self-Regulation
• Australia
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Some areas have favoured self-regulation
e.g. Advertising Standards Bureau

• New Zealand
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Advertising Standards Authority
(administers Advertising Standards Complaints Board)

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Ethics in Business
• Marketing ethics
• A societal marketing concept
• A framework for marketing ethics

(see next slide)

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Marketing Ethics Framework

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Marketing Mix Decisions
• Product
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design and safety
packaging and labelling
product recalls and
bans

• Pricing
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resale price
maintenance
price discrimination
two-price advertising

• Promotion
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portrayal of women
advertising to children
use of sex in ads

• Market research
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privacy
Internet

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Marketing Mix Decisions (cont.)
• Product issues
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Product design and safety
Packaging and labelling
Nutritional labelling
Product recalls and bans

• Pricing issues
• Promotion issues

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Negative Consumer Behaviour
• Potential detrimental effects on consumers
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compulsive buying
compulsive consumption
(e.g. compulsive eating, drinking or gambling)

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The Electronic Marketplace

• Current consumer protection provisions were

developed in the traditional marketplace
• Government and consumer groups have new

concerns with issues of privacy, security, access
and consumer protection

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