...BEHAVIOURAL ECONOMICS AND CUSTOMER COMPLAINTS IN COMMUNICATION MARKETS A report prepared for the Australian Communications and Media Authority (ACMA) in connection with the public inquiry “Reconnecting the Customer” by Dr Patrick Xavier* Adjunct Professor of Economics & Finance, Curtin University Business School. May 2011 * Dr Patrick Xavier BEc (Hons), M.A., M.Ec, PhD is Director of Info-Comm Strategies and Adjunct Professor of Economics, Curtin Business School, Curtin University of Technology, Australia. Dr Xavier has published widely and has had extensive experience as a consultant to national and international agencies on regulatory reform in the (tele)communications sector, including the OECD, ITU, World Bank and APEC. He was part of the OECD’s regulatory reform team that visited a range of countries to advise on regulatory reform in major industrialised and emergent economies. He has undertaken work in Hong Kong and in a range of developing countries, including Lao PDR, Romania, Armenia, Vietnam, Pakistan, Pacific Islands, Thailand, Bhutan and China. He can be contacted at: poxavier@gmail.com Disclaimer. The views in this report are those of the author and do not necessarily reflect the views of the ACMA. © BEHAVIOURAL ECONOMICS AND CUSTOMER COMPLAINTS IN COMMUNICATION MARKETS Executive summary 4 1. INTRODUCTION 10 1.1 Purpose of this report 10 1.2 Customer complaints in the telecommunications sector 11 1.3 Structure...
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...CONSUMER BEHAVIOR PAPER Consumer Behavior Paper University of Phoenix Consumer Behavior MKT435 Dustin Youngdahl July 19, 2011 Consumer Behavior Paper The main role of the marketing function is to anticipate and satisfy customer needs and wants. This sound easy to do, but the true is that to achieve this goal organizations need to make understand very well its customer behavior, needs, and believes. This paper the subject to discuss is the concept of customer behaviors and its relationship with marketing. It also explain the impact that the different element of the marketing mix will have in the purchase decision. Consumer Behavior According to Hawkins−Mothersbaugh−Best the meaning of consumer behavior “ is the study of individuals, groups or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society.” Awareness of consumer behavior is critical for companies that want to be successfully in the marketplace because it will help with the understanding of the process consumers follow to make a purchase decision. It also help the organization to identify which elements of customer experience are important or relevant and which ones have very little impact in buying a specific product or service. This include areas such as the psychology about the feelings, believe, thinking, motivations, and reasons to choose...
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...Intoduction 3 III. Company Background 3 IV. Customer Profile - Fashion Conscious 4 - Price conscious 4 - Product feature conscious 5 V. Buying Behaviour - Fashion Conscious 5-8 - Price conscious 8-12 - Product feature conscious 13-16 VI. Recommendation 16-17 VII. References 18 II, Introduction This project works on a well-known cosmetic brand – Shiseido. In the following parts, the project will evaluate the positions of SHISEIDO, the competitions within the industry, customer’s buying behavior (including their personalities) and their decision making process. We separated the customers mainly into three groups. They are (a) fashion followers, (b) price-conscious consumers and (c) consumers who focus on product features. Recommendations are made referring to the consumers’ profile. III, Company Background SHISEIDO is established in 1919, by a pharmacy launched in 1872. SHISEIDO then tried to develop different brands. It includes IPSA, CLE DE PEAU, ETTUSAIS, AQUA LABEL, MAJOLICA MAJORCA. In 1989, SHISEIDO make up was awarded with Marie Claire Prix d’Excellence／Astir Magazine Astir Award. It becomes one of the most famous global cosmetic brands in the world. The core values of the company are “RICH”, “HUMAN SCIENCE” and “OMOTENASHI”. “RICH” means enriching our hearts and minds. “HUMAN SCIENCE” means enhancing beauty and Wellbeing. “The spirit of OMOTENASHI” means providing social and human care services to customers. All the products and services are developed...
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...Consumer behaviour is extremely complex ever changing matter that is based on many aspects such as culture, social class, life style, gender, locations and many other things. Either purchasing for a need or a want. Motives for purchasing or owning something is different. Automotive industry for instance, individuals can buy car because it will save them time, effort to go to work. Others can buy a car while already having another one for the “fun, joy” of having it. Information process model points out the consumer as a an individual that is capable of reflecting the capability for correct and valid reasoning who find a solution to concerns or problems to make purchasing decisions (HOLBROOK and HIRSCHMAN, 1982). This model is questionable in terms of that it has a lack of attention towards the consumption phenomena where feelings effect the consumers behaviour. If we would consider the “consumption” of a luxury car, could we consider it from a information processing perspective? “Consumption has begun to be seen as involving a steady flow of fantasies, feelings, and fun encompassed by what we call the "experiential view."” (HOLBROOK and HIRSCHMAN, 1982: 132) This is where consumers “experience” by actual “consuming” the product (or service). There is a difference between “purchase / buying” and consuming. Consuming is simply “experiencing the product by actually consuming it” (HOLBROOK and HIRSCHMAN, 1982: 137). So the term “consuming” in the perspective of “experiencing”...
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...Reason of choosing BENEFIT cosmetic brand the product that I commonly purchase is benefit cosmetic from san Francisco. I usually buy a compact powder, primer, foundation, eyeliner and mascara. I bought brand cosmetic benefits because the benefit has many advantages compared to other cosmetic brand. such as for example powder and foundition benefits when durable and stay flawless on the face and does not cause irritation . the price is not too expensive at around Rp. 500 000 per products able to show quality of cosmetics compared to other more expensive brands. I usually buy the cosmetics directly to the store that sold the product. As we all know that the actually the uses of cosmetics cannot be used every day. I usually just buy the cosmetics every six months because I only buy when I finished the product. The stores that sell cosmetic benefits are in some malls in Jakarta such as plaza Indonesia and plaza senayan. they also sell their products at Sephora cosmetics store in Indonesia that located in plaza Indonesia and kota kasablanka mall. They also do the online shopping and giving free delivery for their consumer. Company background Benefit is founded by two twin sister jean and jane ford in the middle of 1970, Benefit enjoys a resolutely unique status in the realm of cosmetics brands .The relevance and effectiveness of its products with bold and girly names, its creative packaging and bespoke services have enabled the House to win over a community of women...
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...STATEMENT ON FRAUD On the 27th day of June 2012, at about 1:10 pm, two gentlemen walked into the bank under the pretence of depositing money. They both sat at the reception area where one of them gave monies to the other who in turn walked to the teller point. They exchanged some few words then he walked towards the UT Life Rep. He asked to open an account for his father but upon giving the requirement he decided to go and bring the father himself. He walked out of the banking hall leaving the other gentleman seated at the reception. At that point the man seated at the banking hall was interrogated by the security lady if he needed assistance but he confirmed that he came in with someone who is buying tiles across the street. After a few minutes he walked out of the bank and came in again with the one who said he wanted to open account for his father. He sat again at the reception area whiles the other man walked to the UT Life Rep., he came back walked out of the bank and never returned. The other gentleman sat there for about 30minutes and was questioned again by the security lady but then he insisted he was waiting for his partner. I came back from lunch and realized the man has spent close to an hour then we asked him again who exactly he was waiting for, he then told us that the gentle he came in with said he was a staff and of UT. He went on to say that the supposed staff of UT met him around Barclays Bank and said he can change his money thus five thousand eight hundred...
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...Adoption of Internet Banking and customer behavior The financial service industry plays very important role in the development of any country especially in country like India where service industry is contributing app. 48% of overall GDP And also financial sector is growing at the rate of 8.02% (according to SBI). By knowing such a huge importance of banking industry in India, it is very important to monitor and access new development in the industry. And one of the major development that happened in past decade was emergence of core banking which helps banks to move fast and provide better services to their customer. Due to core banking various new technologies came in to periphery of banking. These technology have change the definition of Banking. One of the major technology that is playing important role in last 5-7 years is Internet Banking services. Commercial banks across the region have invested hundreds of millions of rupees in developing required infrastructure as per the guideline of RBI for providing better experience to customer. Now with the help of net banking and other electronic banking services customer can access all banking services anywhere and anytime 24x7. This study is conducted to know How the customer especially youth reacting towards net banking services? Are they cashing the benefits? Why and Why not they are using it? What is Internet Banking? And what are the advantages and disadvantages of Internet Banking? Online banking (or Internet...
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...How does celebrity endorsements influence consumer behavior in fast fashion industry? 1. Introduction The fashion industry has come a long way over the past two decades. In the early years, big players such as Marks & Spencer offered a relatively straightforward fashion retail choice. However, with the lower cost of starting a retail outlet, the market has become more crowded since then. So called fast fashion retailers, are by no means the only one who succeeded and grew over the past years. Overall, the fast fashion retailers experienced a greater growth compared to the fashion industry as a whole (Cachon and Swinney, 2011). Such retailers are now ubiquitous and spotting a person on the streets who does not wear at least one fast fashion clothing item is rare. The key point to success lies in their business model; making the trends available to everyone. The rapid global changes have restructured the way fashion retailers do business. In today’s competitive market, using celebrity endorser to promote brands on television is a fairly common practice (Erdogan et al. 2001). Celebrity endorsements is believed to help consumers remember the message of the advertisement and the brand name the celebrity is endorsing. This creates the personality of a brand because when a celebrity is paired with a brand, this image helps shape the image of that brand in the minds of consumers (Argrawal & Kamakura, 1995). Celebrity endorsement is a new strategy in brand selling...
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...Business Management Simeon Alvas D0913058 David Game College HND Business Management Simeon Alvas D0913058 Abstract Consumer behaviour models are designed to explain how individuals make decisions to spend their available resources. It includes what they buy, how they buy it, why and when they buy it and how often they used it. One of the ways to influence this behaviour in a fast fashion retail setting is to use visual merchandising strategies which trigger a number of stimuli influencing the consumers’ perception. The purpose of this research is to establish to what extent this visual merchandising strategies influencing consumers with a different cultural background in a highly competitive multicultural retail environment with an emphasis on the flagship store of Armani Exchange Regent Street, London. The author argues that the available models of consumer behaviour does not provide sufficient flexibility due to their linear nature. Therefore, they are unsuitable to address the needs of a contemporary retailer operating in a multicultural environment. The researcher build his hypothesis by examining the available literature in the area of retail marketing. Consequently, the hypothesis is tested by analysing a mixed sources of primary and secondary data. The conclusion of the author is that due to the absence of adequate consumer behaviour model the researched organisation is missing on a considerable amount of sales. Furthermore, the author argues that the contemporary...
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...are selling very similar products at almost the same price, and of the same quality to even the similar consumers, These consumers are free of charge to make use of other, ethical criteria in making their choice between opposite options. There are definitely different levels of ethical consumption - with some people being highly morals determined, while some are just getting on a generally satisfactory bandwagon. The reality still that there is a rising crowd of ethical consumers which need to be taking seriously. Because now it is very easy to be an ethical consumer The Internet, press, and magazines are all spreading company’s information about where and how their products and services are being generated. Blogs and customer help desk are also help customers who by one way or the other had terrible experience or who have important inside information to obtain immediate international exposure. Exposing unethical conduct and practices is a definite title for journalists, so business organisation is under more enquiry than before. Businesses like Sainsbury’s are carefully but continuously examining how well they are meeting the evolving ethical expectations of consumers; they simultaneously respond to the trends of ethical consumerism; continue being profitably sustainable in a very flat economy. Introduction In response to theory of ethical consumerism, companies are now developing more responsible products and corporate practices, this report is basically to analyse the issues...
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...ASSIGNMENT OF MARKETING MANAGEMENT { LG MUSIC SYSTEM} 1. CONSUMER BEHAVIOUR PROFILE 2. IDENTIFY THE FACTORS AFFECTING CONSUMER BEHAVIOUR 3. EXPLAIN HOW BUYING TAKE PLACE SUBMITTED TO SUBMITTED BY: MS.GURDEEP SILKY ROLL NO. 52 SEC 319 MBA 1ST SEM INDEX 1) INTRODUCTION TO LG AND LG’S MUSIC SYSTEM 2) CONSUMER BEHAVIOUR PROFILE OF LG MUSIC SYSTEM 3) FACTORS AFFECTING CONSUMER BEHAVIOUR 4) EXPLAIN HOW BUYING TAKE PLACE 5) BIBLIOGRAPHY • INTRODUCTION TO LG The history of LG Electronics has always been surrounded by the company's desire to create a happier, better life. LG Electronics was established in 1958 and has since led the way into the advanced digital era by manufacturing many home appliances such as radios and TVs. LG Electronics has unveiled many new products, applied new technologies in the form of mobile devices and digital TVs in the 21st century and continues to reinforce its status as a global company. LG Electronics has set a new mid-term and long-term vision, aiming to achieve a position as one of the top three electronics, information, and telecommunication firms...
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...3. LITERATURE REVIEW 3.1 . CONSUMER BUYING BEHAVIOR Consumer buyer behaviour is considered to be an inseparable part of marketing (keller, 2011) state that consumer buying behaviour is the study of the ways of buying and disposing of goods, services, ideas or experiences by the individuals, groups and organizations in order to satisfy their needs and wants. Buyer behaviour has been defined as “a process, which through inputs and their use though process and actions leads to satisfaction of needs and wants” (Enis., 1974) Consumer buying behaviour has numerous factors as a part of it which are believed to have some level of effect on the purchasing decisions of the customers. Article (Wrighter, Friday, April 13, 2012) There are people who prefer shoes that are comfortable rather than being fashionable. Today's footwear market offers a large selection of styles that comfortable as well as being stylish which is good news for people who have foot problems. Shoe designers have provided all the latest variety in footwear that can be found online or your favorite local store. The latest trends in footwear are often seen on famous celebrities or athletes. Fashion magazines feature the latest styles as well. If you know the brand name, you can search the internet to find what is currently available for you to purchase. The shopping has become much easier for the consumer. There are thousands of stores present online to take bundle of orders at the same time. You can...
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...international environmental groups such as World Wildlife Fund (WWF) and local organisations such as the Auckland Zoo (over the potential loss of Orang-utan forest habitat to palm oil plantations). The negative publicity from the palm oil debate created damaging ‘noise’ for Cadbury’s ongoing worldwide ethical brand building efforts and its high profile announcements that it would shortly be using the Fairtrade logo for the flagship Dairy Milk brand in key global markets, including Australia and New Zealand (Fairtrade Foundation 2009). Less than three months later Cadbury caved into the conservationists’ demands and reversed their palm oil policy (e.g. New Zealand Herald 17th August 2009). This case study illustrates the relevance of buyer behaviour theories...
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... 2.5. Research | 8 | 2.6. Motivation | 9 | 2.7. Disposition, Recylce and Reuse | 10 | 2.8 Group Influence | 11 | 3. Conclusion | 12 | 4. Appendix | 13 | Introduction ‘Consumer behaviour is the study of the processes involved when individuals or groups select, purchase, use or dispose of products, services, ideas or experiences to satisfy needs and desires’ (Solomon, 2010, p. 33) We chose Le Marché supermarket to record our observations. Marché Retail Pvt Ltd, has been in the food business for the last 20 years. Well located, aesthetically designed and well stocked with the best from across the globe, the large format stores under the brand name Le Marché. Le Marché caters to the food requirements of people at every level. By offering the convenience of shopping in comfort, assisted by customer focused staff, and a wide selection of exotic and basic groceries to choose from, Le Marché aims to be the preferred destination for food shopping in India. We visited the store on 27th October around 5 pm and recorded our observations. To record our observations we kept in mind the various components of Consumer Behaviour, like: * Meaning * Learning * Self Concept & Personality * Culture * Research * Motivation * Dispositon * Group Influence Observer 1 (Meaning) Consumer Meaning differs with respect to an individual, his past experience, his future...
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...Customer loyalty is widely accepted by marketers as being something that's worth nurturing, with many renowned analysts and researchers repeatedly showing the value of loyalty programmes in terms of greater spending and satisfaction, more profitable customer behaviour, reduced defection levels, and unique competitive advantages. But what are the main business factors that directly influence the loyalty of your customers? According to Peter Clark, co-editor of The Wise Marketer and co-author of The Loyalty Guide report series, there are six major factors that play key roles in influencing the loyalty and commitment of customers: In this article, we've drawn guidance from many of the 36 chapters of The Loyalty Guide Volume II, to offer practical insights into the workings of customer loyalty programmes and the ways in which they can positively influence shoppers' behaviour toward the company. The result is that customer retention is not only increased but customer lifetime value and profitability are also likely to increase significantly thanks to longer-lasting and more relevant customer relationships. This article is copyright 2007 TheWiseMarketer.com). Factors influencing loyalty Looking in more detail at the major factors that influence consumers' loyalty - not only to retailers but also to suppliers in all sectors, including business to business (B2B) - the six key areas of focus identified in the report can be summarised as follows: 1. Core offering The companies that...
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