Protecting the most vulnerable in consumer credit transactions

There are two key ways in which the Australian Uniform Consumer Credit Code seeks to protect consumers in relation to consumer credit transactions. The first is by means of disclosure regulation where information is required to be disclosed to the consumer before the credit contract is entered into and the second is by way of “safety net” provisions, where contracts can be varied or set aside in the event of hardship, a finding that the transaction was unjust, or a finding of unconscionable fees or charges. This article explores the limitations of both of these means of protection, particularly in the case of vulnerable, low-income consumers. In order to highlight the inadequacies of these forms of consumer protection and the need for regulatory reform, we draw on interviews conducted with 30 low-income consumers who had recently signed a credit contract, focusing on their understanding of information disclosed in the contract, as well as their responses to hypothetical unfair terms and their understanding of their rights, for example in the event of an unjust transaction. These interviews were conducted as part of a joint research project between Brotherhood of St Laurence and Griffith University’s Centre for Credit and Consumer Law, funded by Consumer Affairs Victoria.

Catching up with consumer realities: the need for legislation prohibiting unfair terms in consumer contracts

In the policy debate about the need for legislation to prohibit the use of unfair terms in consumer contracts, substantive unfairness is often distinguished from procedural unfairness. Current consumer protection laws appear to offer the potential for relief on substantive unfairness grounds alone. However, a review of cases involving credit contracts shows this potential is rarely realised. This reluctance to provide relief for substantive injustice reflects a preoccupation with freedom and certainty of contract, the notions underpinning classical contract theories. As a class, consumers are vulnerable in the marketplace, and they do need protection from substantively unfair terms. A new framework for regulating consumer contracts is needed, one that relies less on classical contract theories and takes the reality of consumer contracting and consumer behavior as its starting point. Unfair contract terms legislation will be a step on the path towards this new framework.

Contemporary consumer law : the role and effectiveness of regulation in consumer protection

This issue of the Griffith Law Review focuses on consumer law, and the pervasive nature of this area of law. We are all consumers, but do not necessarily identify as such, nor are we a homogeneous group. The boundaries of

Temporal construal in advertising : the moderating role of temporal orientation and attribute importance in consumer evaluations

In two experiments, we study how the temporal orientation of consumers (i.e., future-oriented or present-oriented), temporal construal (distant future, near future), and product attribute importance (primary, secondary) influence advertisement evaluations. Data suggest that future-oriented consumers react most favorably to ads that feature a product to be released in the distant future and that highlight primary product attributes. In contrast, present-oriented consumers prefer near-future ads that highlight secondary product attributes. Study 2 shows that consumer attitudes are mediated by perceptions of attribute diagnosticity (i.e., the perceived usefulness of the attribute information). Together, these experiments shed light on how individual differences, such as temporal orientation, offer valuable insights into temporal construal effects in advertising.

Self-referencing and consumer evaluations of larger-sized female models : a weight locus of control perspective

In two experiments, we show that the beliefs women have about the controllability of their weight (i.e., weight locus of control) influences their responses to advertisements featuring a larger-sized female model or a slim female model. Further, we examine self-referencing as a mechanism for these effects. Specifically, people who believe they can control their weight (“internals”), respond most favorably to slim models in advertising, and this favorable response is mediated by self-referencing. In contrast, people who feel powerless about their weight (“externals”), self-reference larger-sized models, but only prefer larger-sized models when the advertisement is for a non-fattening product. For fattening products, they exhibit a similar preference for larger-sized models and slim models. Together, these experiments shed light on the effect of model body size and the role of weight locus of control in influencing consumer attitudes.

Using the imagination : consumer evoking and thematizing of the fantastic imaginary

This article explores the process by which consumers evoke and thematize the fantastic imaginary when playing a fantasy-based trading card game. Interviews with 15 informants, all players of Magic: The Gathering, serve as data. The result is a new framework that reveals how the fantastic imaginary is evoked and thematized. A typology of thematizing strategies employed by consumers is also presented. Implications are discussed in relation to consumer research, imagination theory, literary theory of the evoked fantastic imaginary, and the imaginary in play.

A FR.E.S.H idea

This paper explores the possibility of including human factoring in a business process model. The importance of doing so is twofold: (1) The organization becomes transparent in its processes as all participants (human, activities and events) are identifiable. (2) Including human factoring allows organizations to hire accordingly to the process needs. (3) Human factoring alleviates the current work related stress that is being encountered. (4) Enable quicker transition for newer employees into job scope. This was made possible by including a human behaviour layer in between pools within a process to depict human behaviour and feeling. Future work includes having a human thought symbol and a human interaction symbol included into the Business Process Modelling Notation (BPMN).

The impact of susceptibility to informational influence on the effectiveness of consumer testimonials

In this article we examine how a consumer's susceptibility to informative influence (SII) affects the effectiveness of consumer testimonials in print advertising. More specifically, we show that consumers that are high in SII and that seek consumption-relevant information from other people are more influenced by the strength of the testimonial information than the strength of the attribute information. Conversely, consumers low in SII place greater emphasis on the strength of the attribute information when forming their evaluations. Our results show that consumer psychological traits can have an important impact on the acceptance of testimonial advertising. Theoretical and managerial implications of our findings are discussed.

Audience & Market Foresight : Consumer Trends in Digital News and Information in Australia

We all know that the future of news is digital. But mainstream news providers are still grappling with how to entice more customers to digital news. This paper provides context for a survey currently underway on user intentions towards digital news and entertainment, by exploring: 1. Consumer behaviours and intentions towards digital news and information use; 2. Current trends in the Australian online news and information sector; 3. Issues and emerging opportunities in the Australian (and global) environment. Key influences on digital use of news and information are pricing and access. The paper highlights emerging technical opportunities and flags service gaps as at December 2008. These gaps include multiple disconnects between: 1. Changing user intentions towards online and location based news (news based on a specific locality as chosen by the user) and information; 2. The ability by consumers to act on these intentions via the availability and cost of technologies; 3. Younger users prefer entertainment to news; 4. Current digital offerings of traditional news providers and opportunities. These disconnects present an opportunity for online news suppliers to appraise and resolve. Doing so may enhance their online news and information offering, attract consumers and improve loyalty. Outcomes from this paper will be used to identify knowledge gaps and contribute to the development of further analysis on Australian consumers and their behaviours and intentions towards online news and information. This will be ndertaken via focus groups as part of a broader study by researchers at the Creative Industries Faculty at the Queensland University of Technology supported by the Smart Services Cooperative Research Centre.

National consumer credit laws, financial exclusion and interest rate caps : The case for diversity within a centralised framework

Australia is going through a major reform of consumer credit regulation, with the implementation of a proposal to transfer regulatory responsibility from the State and Territory Governments to the Commonwealth Government. While the broad policy approach is supported, the reform process has missed a significant opportunity to engage directly with issues of financial exclusion and with the potential role of regulation to reduce financial exclusion. The imposition of an interest rate cap can limit the impact of financial exclusion. However, the future of the existing interest rate caps is uncertain, given the diversity of approaches, and the heated debate that surrounds this issue. In the absence of support for regulatory initiatives to increase the availability of low cost, small loans, permitting regulatory diversity on this issue of interest rate caps, within an otherwise centralised regulatory framework., can minimise the impact of financial exclusion on consumers.

Destination branding case study : tracking brand equity for an emerging destination between 2003 and 2007

Place branding has become a major focus of operations for destination marketing organizations (DMOs) striving for differentiation in cluttered markets. The topic of destination branding has only received attention in the tourism literature since the late 1990s, and there has been relatively little research reported in relations to analyzing destination brand effectiveness over time. This article reports an attempt to oprationalize the concept of consumer-based brand equity (CBBE) for an emerging destination over two points in time. The purpose of the project was to track the effectiveness of the brand in 2007 against benchmarks that were established in a 2003 student at the commencement of a new destination brand campaign. The key finding was there was no change in perceived performance for the destination across the brand's performance indicators and CBBE dimensions. Because of the common challenges faced by DMOs worldwide, it is suggested the CBBE hierarchy provides destination marketers with a practical tool for evaluation brand performance over time.

Providing youth with skills, training and employment opportunities through ICT Initiatives

Youth population is increasing explosively particularly in developing countries as a result of rapid urbanization. This increase is bringing large number of social and economic problems. For instance the impacts of job and training availability, and the physical, social and cultural quality of urban environment on young people are enormous, and affect their health, lifestyles, and well-being (Gleeson and Sipe 2006). Besides this, globalization and technological developments are affecting youth in urban areas in all parts of the world, both positively and negatively (Robertson 1995). The rapidly advancing information and communications technologies (ICTs) helps in addressing social and economic problems caused by the rapid growth of urban youth populations in developing countries. ICTs offer opportunities to young people for learning, skill development and employment. But there are downsides: young people in many developing countries lack of having broad access to these new technologies, they are vulnerable to global market changes, and ICTs link them into global cultures which promote consumer goods, potentially eroding local cultures and community values (Manacorda and Petrongolo 1999). However we believe that the positives outweigh such negatives. At the beginning of the twenty-first century, the world’s young population number more than they ever have. There are over a billion young people between the ages of 15 and 24, which 85 per cent of them live in developing countries and mainly in urban environments. Many of these young people are in the process of making, or have already made, the transition from school to work. During the last two decades all around the world, these young people, as new workers, have faced a number of challenges associated with globalization and technological advances on labour markets (United Nations 2004). The continuous decrease in the manufacturing employment is made many of the young people facing three options: getting jobs in the informal economy with insecurity and poor wages and working conditions, or getting jobs in the low-tier service industries, or developing their vocational skills to benefit from new opportunities in the professional and advanced technical/knowledge sectors. Moreover in developing countries a large portion of young people are not even lucky enough to choose among any of these options, and consequently facing long-term unemployment, which makes them highly vulnerable. The United Nations’ World Youth Employment report (2004) indicates that in almost all countries, females tend to be far more vulnerable than males in terms of long-term unemployment, and young people who have advanced qualifications are far less likely to experience long-term unemployment than others. In the limited opportunities of the formal labour market, those with limited vocational skills resort to forced entrepreneurship and selfemployment in the informal economy, often working for low pay under hazardous conditions, with only few prospects for the future (United Nations 2005a). The International Labour Organization’s research (2004) revealed that the labour force participation rates for young people decreased by almost four per cent (which is equivalent of 88 million young people) between 1993 and 2003. This is largely as a result of the increased number of young people attending school, high overall unemployment rates, and the fact that some young people gave up any hope of finding work and dropped out of the labour market. At the regional level, youth unemployment was highest in Middle East and North Africa (MENA) (25.6%) and sub-Saharan Africa (21%) and lowest in East Asia (7%) and the industrialized economies(13.4%) (International Labour Organization 2004). The youth in economically disadvantaged regions (e.g. the MENA region) face many challenges in education and training that delivers them the right set of skills and knowledge demanded by the labour market. As a consequence, the transition from school to work is mostly unsuccessful and young population end up either unemployed or underemployed in the informal sectors (United Nations 2005b). Unemployment and lack of economic prospects of the urban youth are pushing many of them into criminal acts, excessive alcohol use, substance addiction, and also in many cases resulting in processes of social or political violence (Fernandez-Maldonado 2004; United Nations 2005a). Long-term unemployment leads young people in a process of marginalisation and social exclusion (United Nations 2004). The sustained high rates of long-term youth unemployment have a number of negative effects on societies. First, it results in countries failing to take advantage of the human resources to increase their productive potential, at a time of transition to a globalized world that inexorably demands such leaps in productive capacity. Second, it reinforces the intergenerational transmission of poverty. Third, owing to the discrepancy between more education and exposure to the mass media and fewer employment opportunities, it may encourage the spread of disruptive behaviours, recourse to illegal alternatives for generating income and the loss of basic societal values, all of which erode public safety and social capital. Fourth, it may trigger violent and intractable political conflicts. And lastly, it may exacerbate intergenerational conflicts when young people perceive a lack of opportunity and meritocracy in a system that favours adults who have less formal education and training but more wealth, power and job stability (Hopenhayn 2002). To assist in addressing youth’s skill training and employment problems this paper scrutinises useful international practices, policies, initiatives and programs targeting youth skill training, particularly in ICTs. The MENA national governments and local authorities could consider implementing similar initiative and strategies to address some of the youth employment issues. The broader aim of this paper is to investigate the successful practice and strategies for the information and communication related income generation opportunities for young people to: promote youth entrepreneurship; promote public-private partnerships; target vulnerable groups of young people; narrow digital divide; and put young people in charge. The rest of this paper is organised in five parts. First, the paper provides an overview of the literature on the knowledge economy, skill, education and training issues. Secondly, it reviews the role of ICTs for vocational skill development and employability. Thirdly, it discusses the issues surrounding the development of the digital divide. Fourthly, the paper underlines types and the importance of developing ICT initiatives targeting young people, and reviews some of the successful policy implementations on ICT-based initiatives from both developed and developing countries that offer opportunities to young people for learning, skill development and employment. Then the paper concludes by providing useful generalised recommendations for the MENA region countries and cities in: advocating possible opportunities for ICT generated employment for young people; and discussing how ICT policies could be modified and adopted to meet young people’s needs.

Exploring Chinese consumer's perceptions of using new mobile technology : A qualitative study

This study examines the case of Chinese consumer's intention to adopt the upcoming mobile technology, 3G. The qualitative study involved 45 in-depth intervie3ws undertaken in three major Chemise cities to explore what perceptions, beliefs and attitudes will influence their decisions about adopting 3G. Perceived beliefs about using 3G technology were found to be important determinants. Additionally, there was evidence of influences from their social network that could motivate the adoption behaviour, as well as influence from the secondary information sources, such as the media and the Internet. Finally, some constraints were identifies that may inhibit Chinese consumers' adoption of this technology.

An investigation of consumer acceptance of M-Banking in Australia

Mobile phone banking (M-Banking) adoption around the world has been slow, and this has been perpetuated by the limited research that has been undertaken in the area. To address this gap, the study developed a model of antecedents to consumers' intention to sue M-Banking using attitudinal theory as a framework. To test the model, a quantitative web-based survey was undertaken with 314 respondents. The findings show that perceived usefulness, compatibility, perceived risk, perceived cost and attitude are primary determinants of consumer acceptance of M-Banking in an Australian context, The research contributes to an enhanced understanding of the multiple antecedents beliefs to customer attitudes and usage intentions that must be considered when introducing technology into the service encounter.