1. MARKETING PRESENTATION GROUP 4

2. QUESTIONS • Case Study Question 2 • Review Question 3

3. Case Study • Using the internal and external characteristics that influence consumer behaviour, • explain why you think organic food is popular among most Australian consumers?

4. Internal influences

5. Psychological Influences • Motivation • Perception • Learning • Beliefs and attitudes

6. Motivation • Maslow's hierarchy of needs • For Australians social status and esteem are an integral part of buying process. • The Australian Organic Consumer Survey (AOCS) established that ¾ of consumers consider it more ethically and sociable to buy organic –2005

7. Perception • Process by which people select, organise and interpret information to form a meaningful, whole picture of the world. • Selective distortion – support what we already believe • For example, 93% purchase organic food because of perceptive health benefits.

8. Learning • Describes changes in an individual’s behaviour arising from experience • 74% supported the notion that organic food tastes better

9. Beliefs and Attitudes • Popular belief that organic foods is too expensive • Australian Consumers Association,(ACA) recently confirmed that belief organics are 70% more expensive than regular inorganic foods. • Organic is now mainstream

10. Personal • Age and life cycle stage • Education • Socio – Economic status • Personality and self concept • Consumer lifestyle

11. Age and life cycle stage • People change the goods they buy over a life time (grand-parents, parents, children) • Includes family life cycle – large families may choose cheaper inorganic fruit and veg. concern for freedom from pesticides/ herbicide residues (93%)

12. Education • ACNielson in 2005 found that half of Australian consumers purchase organic goods. • With high level of education the only common characteristic.

13. Economic status • Affected by income – Inability of consumer to purchase organic goods • ACA claims that Australians are being ripped off. • AOCS – 70% more expensive • Australia is still a wealthy nation

14. Personality and self concept • Ridge (2007) describes a new type of eater • Ethicurean– likes food but gives priority to sustainability, organic, local and ethical.

15. Consumer lifestyle • Consumers preference for consuming organic food is a lifestyle choice. • Australia is very sporty nation, with the more physically active choosing healthier organic products

16. EXTERNAL INFLUNCES

17. Cultural Influences • Culture • Cultural diversity • Social Class

18. Culture • Cultural shifts • Entirely organic market – inorganic early 19thcentury • Organic movement of the1990’s • Now an established market in Australia

19. Cultural diversity • Food preference • Large families may not purchase more expensive organic foods, • compared to a young working couple

20. Social class • Lord Taverne – in his book The March of Unreason • States that organic food is a monument to irrationality and an indulgence of the rich.

21. Social • Household type • Reference groups • Roles and status

22. Household type • Trends toward smaller families in Australia • Increased dispensable income • Therefore increased purchases of organic goods

23. Reference groups • Family father or mother, as an opinion leader, may wish to purchase organic goods. • Increasing concern into how food is produced

24. Roles and status • Roles in Families – Australian mothers typically purchase goods • Children may influence

26. REVIEW QUESTION 3 MARKETING INFLUENCES

27. QUESTION • Influences – are some more important than others? • Figure 2.5 depicts the many different influences on consumer purchasing behaviour. • Might marketing management focus on the wrong influence?

28. CONT. • For example, the early marketers of instant cake mixes couldn’t see that the users had been left with nothing to do, and may have felt guilty about using such a convenient product rather than devoting the time and energy to family care that society of the day saw as necessary. • Psychological influences were far stronger than the influence of marketers until they enabled the consumer to ‘add an egg’.

30. Personal • Age and Life cycle – (children as users) • Occupation – (work boots, clothes) • Education – Social status (wealthier value highly) • Economic situation – Affected by income (Ferrari) • Self concept – Ethicurean (organic) • Lifestyle – Activities, opinions (sportsman, health food)

31. Psychological • Motivation – Maslow’s hierarchy of needs • Perception – General picture, Apple. • Learning – Consumers may switch to similar brands (generalisation) Nike – Adidas

32. Cultural • Culture – Culture to purchase apple products • Social Class – social status, being seen using a product in a certain environment. i.e. Ipod

33. Social • House hold type - Family of procreation – children/ spouse influence buyer (Nag Factor) • Reference groups – Opinion leaders, Family heads

34. Environmental • Economic – GFC – massive impact • Technological – advances, ‘the next’ • Political – Carbon tax, implications upon electricity usage

35. CONCLUSION • No one influence is more important than each other, • However considering each in light of certain individual circumstances some may be become more important.