I regularly watch online news for current updates of happenings in our city. And recently, I’ve wondered how news media influences consumer decision making from a marketing perspective. CTV News has an online section called “Olsen on Your Side” in which the reporter, Olsen, investigates the merits of a specific product: he interviews experts, refers to recent studies, quotes consumer report findings and personally tests products to make an overall assessment. As a consumer looking for fast and reliable information, I personally find Olsen’s reports very informative and relevant; a month ago, I learned of a Dell Printer that saves costs in the long term by providing the best prints with the least amount of ink and that cartridges can be refilled. Another story explored air filter devices, revealing that the most expensive brand was outperformed by a less expensive one. It’s easy to see how handy this information could be for someone looking for a product covered in his reports. From a marketing standpoint, Olsen’s Reports on specific products will modulate consumer purchases by providing facts and expert opinions. In the case of printers or air filters, a most trusted product line (or brand) may no longer be reliable, replaced by a more cost effective and functionally superior one.
Another section of CTV News that I enjoy watching is the Health Section. Within, Dr. Rhonda Low covers the latest scientific findings on drugs, non-prescription remedies, and special treatments. (Here is the link to her page: http://www.ctvbc.ctv.ca/drrhonda/ ) Under the “Prescription drugs” story, for example, Dr. Low talks about a new social trend that has recently emerged in the U.S. States: That teenagers were abusing prescription drugs, namely anti-depressants and painkillers by ingesting them from their parent’s medicine cabinets. News coverage prompted authorities to set up local programs which created drop off depots for parents to safely (from environmental contamination) discard their old drugs. More importantly, it brought social awareness. As another example, the “Supplement Pills” story introduces herbal remedies that have been proven by recent studies to be effective to work against anxiety. Passion Flower, Kava and L-Arginine are some of these remedies. As new product information is brought to the attention of consumers, consumers become more knowledgeable about options and purchase the appropriate products accordingly. Perhaps anxiety sufferers will start to purchase passion flower containing supplements increasing certain product sales.
Another story I’d like to discuss relates to consumer protection: http://www.ctvbc.ctv.ca/servlet/an/local/CTVNews/20100927/bc_ctv_investigates_the_cure_3_100927/20100930?hub=BritishColumbiaHome
Briefly, this report is about an alternative health practitioner who claims to have herbal pills that cure cancer. The practitioner labels herself as a “Natural Health Doctor”, a designation that is currently unregulated by the statutes. This report is a good example of how the news media can serve to warn consumers of unscrupulous business practices. Natural health practitioners should receive a drop in business following this report.
On the topic of alternative medicine, I’d like to share a personal story. A friend of mine, “Jill”, had a gum/tooth problem and consulted a “Naturopath”. (Note: Naturopaths are approved and regulated in B.C.) The naturopath recommended injections into Jill’s gums; injections that were a mix of vitamins, minerals and some stem cells that would promote reattachment of teeth. These injections would be several and would range $9000 plus. I told Jill not to place too much trust into her naturopath and that she needed at least a second opinion before spending such a large sum. I also reasoned that if she had a rotten tooth, it would not make sense to reattach her tooth; instead it should be pulled out. Fortunately, after much periodic discussion with Jill, she took my advice and went to see a periodontist. Jill did have a rotten tooth that needed to be taken out. In the end, a specialist had solved Jill’s problem and money was not wasted on an opportunistic “service provider.”
Jill’s story reminds me of what Tamar said in class: That the more financial, or psychological risk that a consumer faces, the longer the search for product or service information becomes. Consumers who become heavily trusting and reliant on a health care practitioner would likely tend to become less critical and readily accepting to wrong advice. As an impartial observer, I gave quality advice that aided the consumer decision process that Jill implicitly went through. Being knowledgeable reduces overall risk and increases the chance of finding the right product solution.
News reports not only deliver current information on the quality and safety of consumer products (as in Olsen’s reports), but they also contribute to the macro environmental factors of marketing. In general, Rhonda Low’s reports commonly touch on drug safety and lab test results which prompt regulatory bodies to enact laws to regulate the distribution and sale of specific drugs. In this way, news coverage contributes to the “political/regulatory” factor- the last letter of C.D.S.T.E.P in marketing’s situational analysis.