Referral selling is when a consumer is persuaded to purchase goods or services by promising a rebate, commission or other benefit for supplying information that helps the trader sell to other consumers. The consumer does not get the promised benefits unless the supplied information is fulfilled.
For example a salesman for a telephone company persuades you to sign up to a contract for a mobile phone plan and says that you will receive a commission for introducing the product to other customers who buy the same product.
Unconscionable conduct is when the consequences of a contract is unfair and harsh. Where one party is in a position to exploit a particular weakness of the ...view middle of the document...
The program will implement conformity within the business and assistance them to become or remain a good corporate citizen.
iii) A company that incorporates a Legal compliance program is DeLonghi it protects its marketing activities because De Longhi's commitment to compliance is demonstrated by the company's implementation of a comprehensive, company-wide Competition and Consumer Law Compliance Program, including:
• the appointment of a Compliance Officer;
• the provision of regular compliance training to, and assessment of, its employees and agents;
• the provision of on-line competition and consumer law training to all employees and agents; and
• the introduction of Whistleblower and Complaints Handling policies and procedures.
As an employee, agent or representative of DeLonghi you are obligated to be familiar with the competition and consumer act 2010.
i) The Product Diffusion Curve model uses a bell-shaped curve or an s-shaped curve to show the stages in which a successful product is adopted by people within your market. It consists of five people in the market, they are; innovators, early adopters, early majority, late majority and laggards.
As you can see from the graph below the Apple ipod sales mirror the shape of a typical product diffusion model shape. From early 2006 to late 2006 was the innovators, 2006 to early 2007 were the early adopters, 2007 to 2009 were early majority, 2009 to 2010 were late majority and mid to late 2010 to 2011 were laggards.
The drop in sales that starts in 2008 is mainly due to increased competition and also the introduction of the iPhone. These factors impacted on the ipod’s sales during its product lifecycle.
ii) using the diffusion curve Apple are able to identify their target market at each stage of the diffusion curve, either innovators, early adopters, early majority, late majority and laggards. Apple can create promotional strategies specifically targeted at any one of these groups of people at the given time. This will result in a more successful and effective advertisement and promotional strategy. Also Apple are able to identify when to implement the elements of the promotional mix. For example, Apple would begin advertising before and during the lifecycle. Publicity would be used mainly before the launch of a new product. Personal selling would be more used towards the later stages aimed towards the early and late majority and laggards to persuade them to purchase the product using their product knowledge. A sales promotion would be aimed towards the early adopters to stimulate consumer demand. Due to the fact that apple has a good corporate image the consumers are more likely to be more susceptible to buying the products based on the company’s good reputation, they can use this as an competitive advantage in their marketing strategy
i) a. The ACCC states that the advertisements are misleading because Optus leads the consumers into believing that...