Understanding Consumer Behavior and Ethical Responsibilites in Retail Environment

1. Consumer StudiesLeaving Certificate

2. Factors influencing consumer choice • Personal likes and dislikes • Personal Values • Other people • Income • Marketing • Advertising • Packaging and labelling • Selling techniques

3. Classification of retail outlets • Supermarkets: open plan, self service, variety – food, clothes, household, optional internet shopping eg. Tesco • Voluntary Supermarkets: independent owned grocery stores, many shops eg. Centra • Independent Shops: family owned, usually specialise in certain products eg. Ryan’s Shoes

4. Department Stores: Large store with wide variety, various departments eg. Debenhams / Brown Thomas • Multiple Chain Stores: One company with many branches, good value, self services eg. Pennys / Dunnes Stores • Discount Store: Catalogue orders, cheaper, prepacked goods eg. Argos

5. Other retail outlets • Hypermarkets • Street markets • Auctions • Shopping centres • Party selling • Vending machines • Mail order • Door-to-door selling • On-line/internet shopping

6. Retail Psychology • Store Layout: Size influences time spent in store, grid layout – follow flow of aisles and see more products • In-store stimuli: Lighting, background music, aromas • Product placement: essentials at back of store sweets at checkouts • Shelf-position: luxuries at eye-level • Loyalty cards: points for money off • Merchandising: 3 for price of 2 loss leader technique

7. Methods of consumer research • Field research –More detailed and expensive, interview sample groups, includes observation, watching and documenting consumer behaviour e.g. interviews, tasting, consumer panels • Desk research – quick, very general, analysis of data such as ESRI or CSO reports, trade associations e.g. graphs and analysis of other reports & written surveys

8. Shopping patterns • Large shopping centres –’one stop shopping’ • Opening hours – 24 hour shops, TV and online shops • Increased consumer awareness/price conscious • More foreign-owned shops lead to price wars eg. Lidl, Aldi Vs Dunnes and Tesco • Multi-cultural influences • Increased environmental awareness • Increased nutritional awareness/convenience foods • High hygiene standards expected • Cash replaced by laser/credit cards

9. Purpose of consumer research • To identify consumer wants and expectations • To test the market prior to developing / launching a new product • To highlight market trends • To identify market size • To identify potential markets • To identify competitors

10. Consumer Rights- consumers have the right to; • Choice: variety creates competition • Information: honest info about product • Value: entitled to value for money • Safety: goods should be :- • safe to use • carry safety symbols • carry warnings • carry instructions • Redress: to complain and receive the 3Rs • repair / replacement / refund

11. Consumer Responsibilities • To inform themselves: • know rights , safety and quality symbols • To follow instructions: • follow instructions for safe use and care • To complain: • to improve standards • Use resources wisely: • to minimise damage to environment

12. Environmental Responsibility • Avoid over packaged products • Recycle bottles, cans, paper • Reusable shopping bags • Compost kitchen waste • Do not waste water • Purchase goods made from recycled products

13. Types of Pollution Water Pollution

14. Air Pollution

15. Noise Pollution

16. Energy • Non-renewable sources: gas, coal, • Renewable: wind, solar, biomass • Wind: turbines have become popular in recent years. • Solar: solar panels now required in all new houses, heat water • Biomass: Natural plant growth (trees/crops) used to produce energy

17. Steps to Lower Energy Consumption • Energy efficient appliances (A or B) • Using CFLs • Turn off unused lighting • Line dry clothes • Lagging jacket on water cylinder • Shower instead of bath • Insulate the home – windows/attic/cavities • Solar panels • Don’t leave appliances on standby • Use timer on heating system • Reduce thermostat by 1 degree gives saving of 10% • Completely fill dishwasher • Economy cycle or half-load on washing machine

18. Environmental Initiatives • WEEE Directive- Waste Electrical and Electronic Equipment Directive- all producers must enable consumers to dispose of waste and electronic equipment by collecting and treating waste products • Plastic bag tax • Ban on incandescent light bulbs • Waste Management Act 1996- Act passed to ensure that Ireland would meet EU requirements on waste and recycling • SEAI- Sustainable Energy Authority Ireland- Ireland’s National energy authority, assists and promotes the development of energy awareness

19. Environment Symbols Green Dot- a European trademark. Repak is the licensor in the Republic of Ireland. The symbol shows that the user has contributed financially to the cost of recovery and recycling of the packaging it put on the market. European Union Eco Label- a product carrying this label has little effect on the environment An internationally recognized symbol used to designate recyclable materials.

20. Consumer Laws Sale of Goods and Supply of Services Act 1980 • Goods • Merchantable Quality • Fit for Purpose • As described • Correspond to sample • Services • Provider MUST be skilled • Care and diligence given • Quality materials used

21. Redress • Under the Act, consumers are entitled to complain • One of the following must be offered provided that the product is returned with a receipt and has not been tampered with: • Repair • Replacement • Refund • Compensation • Credit note • In the case of service, repeated without charge

22. Consumer Information Act 1978 • Predecessor of Consumer protection act 2007

23. Consumer Protection Act 2007 • The Act provided for the establishment of the National Consumer Agency • The NCA is obliged to enter into agreements with certain organisations including the Commission for Energy Regulation • Price display regulations -the prices of certain products be displayed in a specific manner. For example, they could provide that prices of certain products must be displayed inclusive of charges, fees and taxes • Statutory guidelines for local authorities in regard to the issuing of casual trading licences

24. Consumer protection Statutory Bodies • National Consumer Agency (NCA) • Responsible for enforcement of consumer legislation • Provides consumer information • Runs public awareness campaigns to educate and advise consumers • Carries out research into consumer habits and behaviour • Conducts surveys on pricing

25. 2. Office of the Ombudsman • Investigates complaints made by the public against: • Government Departments • Insurance Companies • Credit Institutions (Banks) • Health boards • An Post • Used as a last resort if no resolution can be made between the consumer and Dept. / agency • (Financial Services Ombudsman- investigates complaints against banks and financial institutions)

26. 3. National Standards Authority of Ireland (NSAI) • Establishes standards in relation to safety and quality in products • Implements the ISO 9000 scheme in industries 4. Citizens Information Board Provides the public with information about their rights and entitlements including consumer issues 5. European Consumer Centre- walk I advice centre providing consumers with information on consumer rights and protection in both EU and Ireland

27. Consumer Protection Voluntary Bodies • CAI – Consumer Association of Ireland • Informs consumers of their rights • Advises consumers • Publishes leaflets and ‘Consumer Choice’ magazine • Lobbies the government to improve consumer laws • Represents consumers’ interest in media • Surveys/reports on consumer products and services • Encourages high standards of quality in Irish products/services

28. 2. Advertising Standards Authority of Ireland • Voluntary self regulating body in the advertising industry • Ensures all marketin g and advertising is legal, decent, honest and truthful

29. Small Claims Court • Cheap, fast, easy way to resolve disputes without a solicitor • Claims include faulty goods and bad workmanship • Any dispute up to €2,000 • Fee of €15 • Application form completed by claimant and sent to local District Court office • Registrar attempts to settle it if complaint is disputed • Otherwise, case will be resolved in court • Cannot be used for • personal injury • debts • breach of leasing or hire-purchase agreements

30. Consumer complaints procedure • Return to retailer a.s.a.p. with faulty good plus receipt • Complain promptly to supplier if fault with a service • Speak to manager outlining complaint and stating what should be done (compensation must be realistic) • Letter to retailer/head office if unsatisfactory response • Letter: description of goods – model, brand, cost • copy of receipt and guarantee enclosed • where? when? bought • compensation sought • Seek help from C.A.I. and/or O.D.C.A. if still unresolved • Final step, Small Claims Court

31. Quality and Safety Symbols • https://www.clevernotes.ie/home-economics/hlol/leaving-cert/countdown-to-the-exam-7-consumer-symbols-acts-agencies/