Reference no: EM133092639

You will discuss all 3 main questions plus the ethical questions.

Question 1. Name three products and the corresponding consumer segments for which the outlet would be the primary consideration rather than the product/brand. Justify your selections.

Question 2. How are social and financial risks likely to affect buying decisions of the following products:

a) a car
b) wine
c) rain jacket

Will either type of risk affect store choice? If so, in what way?

Question 3. Compare the store atmospherics of two different convenience stores. Which is superior on each aspect, and what is the overall impression created in each store? What three recommendations would you give to the stores' managers to improve their stores' atmospheres?

For this question, find photos of that store and attach in your document to help explain the atmospherics.

Ethical - Alcohol promotion at the point of sale

In their efforts to maximise sales of their products, alcohol companies engage in a wide range of marketing activities. These include advertisements in traditional and electronic media, sports sponsorship, involvement in community events and point-of-purchase promotions.
Ethical issues arise when such efforts cause excessive alcohol intake-especially among young people, who are particularly vulnerable to the negative health consequences of alcohol consumption. As point-of purchase promotions target people who are already in the retail outlet, regulations that limit other forms of promotion do not apply. For example, regulations are in place that limit alcohol companies' ability to advertising on television during children's viewing times, but such constraints are not considered necessary in retail environments because alcohol cannot be sold to minors.

Recent research indicates that continued brain development up until the early 20s means that alcohol consumption should be avoided beyond the legal drinking age of 18 years. As such, the ethics of promoting alcohol to those aged 18 to 25 years has been called into question.

An Australian study found that point-of-purchase promotions could be particularly effective with this age group. Especially when combined with price discounting and free merchandise. During focus groups, young adults were able to nominate point-of-purchase promotions to which they had been exposed in liquor stores and to describe in detail the nature of these promotions and the effects they had had on their selections.

There was general agreement that promotions involving cheaper or larger quantities of alcohol were very attractive. Many participants noted that, when buying a larger quantity of alcohol than onginalty intended due to being tempted to do so by in-store displays, they were likely to consume the total amount in the one sitting rather than keep the extra amount for later consumption. This raises concerns that such promotions may increase young adults' risk of experiencing alcohol-related harm.

Question 1: Is it ethical for retailers to intentionally promote alcohol to young adults? Why, or why not? Would your response vary according to the type and/or quantity of alcohol being promoted?

Question 2: What could alcohol retailers do to ensure that their point-of-purchase promotions are more likely to be attractive to older rather than younger customers?