Unpacking the perceived opportunity to misbehave: The influence of spatio-temporal and social dimensions on consumer misbehavior

Purpose This study aims to use opportunity as a theoretical lens to investigate how the spatio-temporal and social dimensions of the consumption environment create perceived opportunities for consumers to misbehave. Design/methodology/approach Drawing on routine activity theory and social impact theory, the authors use two experiments to demonstrate that spatio-temporal and social dimensions can explain consumer theft in retail settings. Findings Study 1 reveals mixed empirical support for the basic dimensions of routine activity theory, which posits that the opportunity to thieve is optimised when a motivated offender, suitable target and the absence of a capable formal guardian transpire in time and space. Extending the notion of guardianship, Study 2 tests social impact theory and shows that informal guardianship impacts the likelihood of theft under optimal routine activity conditions. Originality/value The study findings highlight important implications for academicians and retail managers: rather than focusing on the uncontrollable characteristics of thieving offenders, more controllable spatio-temporal and social factors of the retail environment can be actively monitored and manipulated to reduce perceived opportunities for consumer misbehaviour.

Increasing attractiveness of high-end products

An important decision brand managers have to make when positioning their products in a retail setting is to whether price new line extensions at parity or let products vary in the price/quality spectrum. Despite the growing interest in vertical line extension issues, there has been little research investigating how product-line length affects extension favorability. Therefore, this paper investigates the framing effect that a product line price structure has on consumer judgments of vertical extensions and, in particular, of upscale extensions. A basic proposition of this research is that the parent brand price range affects the perceived or psychological distance between extension and parent brand, influencing extension favorability ratings. In two experiments, it is shown that positioning an upscale extension in the context of a wide product-line will lead to higher consistency perceptions between the parent brand and a new upscale extension than an equivalent upscale extension positioned in the context of a narrow parent brand product-line.

‘Lemon Laws’: an inquiry into consumer protections and remedies for buyers of new motor vehicles

1. Under the Terms of Reference for the Committee’s Inquiry, ‘lemons’ are defined as ‘new motor vehicles with numerous, severe defects that re-occur despite multiple repair attempts or where defects have caused a new motor vehicle to be out of service for a prolonged period of time’. Consumers are currently protected in relation to lemon purchases by the Australian Consumer Law (ACL) located in Schedule 2 of the Competition and Consumer Act 2010 (Cth) (CCA). The ACL applies as a law of Queensland pursuant to the Fair Trading Act 1989 (Qld). The voluntary recall and consumer guarantees law took effect on 1 January 2011. 2. In 2006, the Government of Victoria made a commitment to introduce a lemon law into the provisions of the then Fair Trading Act 1999 (Vic). The public consultation process on the proposal to introduce a lemon law for motor vehicle purchases in Victoria was conducted by Ms Janice Munt MP, with the assistance of Consumer Affairs Victoria (CAV). CAV released an Issues Paper to canvas with industry and the community options for the development and introduction of a motor vehicle lemon law.(Consumer Affairs Victoria, Introducing Victorian motor vehicle lemon laws, Issues Paper, (September, 2007). 3. A CAV report prepared by Janice Munt MP was released in July, 2008 (Consumer Affairs Victoria, Motor Cars: A report on the motor vehicle lemon law consultations (July 2008) (Victorian Lemon Law Report). However, the Victorian proposal was overtaken by events leading to the adoption of a uniform consumer protection law in all Australian jurisdictions, the ACL. 4. The structure of this submission is to consider first the three different bases upon which consumers can obtain relief for economic loss arising from defects in motor vehicles. The second part of the submission considers the difficulties encountered by consumers in litigating motor vehicle disputes in the courts and tribunals. The third part of the submission examines the approach taken in other jurisdictions to resolving motor vehicle disputes. The final part of the submission considers a number of possible reforms that could be made to the existing law and its enforcement to reduce consumer detriment arising from the purchase of ‘lemon’ motor vehicles. 5. There are three principal bases upon which a consumer can obtain redress for defects in new motor vehicles under the ACL. The first is where the manufacturer admits liability and initiates the voluntary recall procedure provided for in s 128 of the ACL. Under this basis the manufacturer generally repairs or replaces the part subject to the recall free of charge. The second basis is where the manufacturer or dealer denies liability and the consumer is initiates proceedings in the court or tribunal seeking a statutory remedy under the ACL, the nature of which will depend on whether the failure to comply with the consumer guarantee was major or not. The third basis upon which a consumer can obtain redress is pursuant to public enforcement by the ACCC. Each basis will be considered in this part. What all three bases have in common is the need to conduct an investigation to identify the nature of the defect and how it arose.

Will supermarkets go the extra aisle?

The drastic social and demographic changes of the past few decades have radically changed traditional gender roles within the family structure in Australia.In the process, they have also changed the way we shop.

We are what we eat: The demise of the ethical grocery shopper

In 1954, American consumer behaviour academic, Gregory Stone identified four different types of consumers. Consisting of 150 in-depth interviews, Stone’s research found there was an “economic” shopper, who was after bargains, a “personalising” shopper, who liked interaction with staff, and an “apathetic” shopper, who was disillusioned and unengaged in shopping activity. Then there was the “ethical” grocery shopper – consumers who demonstrated a moral obligation to patronise local merchants, purchase locally produced products and felt the need to “shop where they ought to”. This ethical shopper was willing to sacrifice lower prices, convenience and range, in order to “help the little guys out”.The idea of the ethical shopper has since taken hold in mainstream retailing. But my new research has suggested that socially responsible consumption may be a thing of the past.

Get ready for a fruit fight: the fallout from Coles' price war on produce

Amid tough trading conditions and intense competition, Coles has fired the latest salvo in its ongoing supermarket war with Woolworths, announcing it will reduce the price of some fruit and vegetables by 50%. The move is the latest in a battle between the supermarket giants to wrest market share and follows previous cuts to staples such as milk and bread, beer and chicken. However, Australia’s peak industry body of vegetable growers, Ausveg, is concerned about the impact the price decision will have on growers' livelihoods.

Is pharmacy the final frontier for supermarkets?

Australia’s two major supermarket retailers, Coles and Woolworths, already have vested interests in fuel, convenience, liquor, hardware, hotels, apparel, general merchandise and technology. While they continue to battle each other for a share of the household food shopping dollar, pharmacy appears the final opportunity to grow their business.

FactCheck: is our grocery market one of the most concentrated in the world?

With one of the most concentrated food retail sectors in the world dominated by the supermarket duopoly, the barriers to making it easy to buy local food in Australia are significant. It is time for Australia to learn from the example of other countries and provide assistance to rebuild local food systems.” – The Australian Greens. However, the percentage of market share controlled by the two major supermarkets, Coles and Woolworths, depends on which groceries you include.

Aussie retailers should get their Christmas wish this year

Consumer Sentiment fell by 4.8% in December, but despite the drop other indicators still point toward a robust Christmas period for retailers. Retail trade recorded its strongest result for three consecutive months to October, with Queensland and Western Australia leading the way. A closer inspection of ABS Retail figures indicate six consecutive months of positive results and this suggests consumer confidence has finally returned to the market. But it may not be a rosy outlook for all retail sectors. Overall we are spending more, but not where we once traditionally did.

Ready, steady, shop: shopping as sport

Do you approach shopping as if it is a competitive, sport-like activity? Or perhaps you attach social or emotional value in being recognised by your friends and peers as a great shopper, a proficient or efficient shopper? If so, you could be a “sport shopper”, according to an academic paper presented at an international conference earlier this year. This shopper can recount in detail where and when they purchased items - and most importantly, how much they saved. For this shopper, it is not about spending the least, but saving the most. This new “type” should not be confused with the economic shopper; constrained financially and forced to seek out low prices and generic products. And they are definitely not the recreational shopper, who enjoys shopping as a fun activity, engaging in the task to reduce stress and seek pleasure.

What does the future hold for our traditional department stores?

Years of buy-outs, takeovers, mergers and rebranding have whittled a once plentiful landscape of department store competitors down to two major players, Myer and David Jones. Now, despite David Jones confirming it refused a potential A$3 billion merger proposal approach from its arch-competitor in October 2013, we must face the distinct possibility of there only being room for one, full line, up-market department store in Australia.

A Lidl bit of grocery competition could cause a Coles rethink

Australian shoppers have inadvertently invited global discount grocers to our shores by demonstrating their readiness to adopt private labels. In 2001, German discounter Aldi opened its first store in Sydney. The impact this business format would have on the Australian grocery sector was underestimated.

How your shopping choices will help Coles and Woolworths take on the banks

The days when Coles and Woolworths only sold groceries are long gone. Both are now established players in a broad range of consumer markets, with interests in liquor and hotels, fuel and convenience, general merchandise and mobile phones. With a network of over 1,600 supermarkets, 1,100 service stations, 2,200 liquor stores and nearly 400 hotels, the supermarket duo are now getting ready for a war with Australia’s big four banks.

Predicting the last brand standing in the supermarket price wars

On January 26, 2011, grocery retailer Coles fired the first salvo in what would soon be dubbed the “supermarket price wars” by reducing the price of its own-brand milk to A$1 per litre. Woolworths immediately responded. In the three years since, grocery prices have been tumbling, with 85 cent bread being the latest “sacrificial lamb”. This period of intense competition has brought about not just lower grocery prices, but a senate enquiry, and increasing media and analyst interest.

Sorry Joe, consumer spending will disappoint Santa this Christmas

Treasurer Joe Hockey called on shoppers this week to “not let Santa down” and asked them to spend up big at the stores this Christmas. Unfortunately, the latest retail and consumer confidence data indicate his calls are falling on deaf ears. Westpac’s Consumer Confidence Index shows pessimists outnumber optimists. This has been the case for the last nine months. The index was up 1.9% in November, but still well below its level a year ago.