Thursday, September 1, 2011

Local (Non)Sense

An excellent post at The Conversation from Maxwell Winchester, Senior lecturer, School of Hospitality, Tourism and Marketing at Victoria University. The Buy Australian theme is as similarly flawed as the 'buy local' theme prominent in Cairns.

"While such programs may have a slight impact on consumer preferences, the evidence is pretty clear that they do not make significant differences to market share of locally made products."

"Academic research suggests that consumers are more concerned about product quality and price than country of origin. So why do we expect them to buy Australian?"

"Australian companies who export are suffering enough; to ask them to lose more revenue to support other Australian businesses just won’t work."
A marketing strategy based on convincing locals to buy local per se is unlikely to be sustainable as a business strategy long term unless competitive on price and quality.

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