tag:theconversation.com,2011:/id/topics/audi-21379/articlesAudi – The Conversation2017-11-16T14:29:14Ztag:theconversation.com,2011:article/871152017-11-16T14:29:14Z2017-11-16T14:29:14ZHow shops use tricks to get you spending<figure><img src="https://images.theconversation.com/files/195011/original/file-20171116-15454-1p3rc98.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">See it, touch it, smell it, buy it.</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/people-shopping-city-motion-blur-273534773?src=KcT8mBRJySRUCPQgr326BQ-1-65">Shutterstock</a></span></figcaption></figure><p>In the business of shops and selling, times are tough. Retail sales indicate that shops are <a href="http://www.bbc.co.uk/news/business-41886330">are struggling</a> to persuade customers to part with their cash.</p>
<p>But there are some innovative methods which retailers are using to address the challenge of enticing and engaging consumers. And it’s not just about slashing prices and Black Fridays. Many well-known businesses make use of psychology to connect with customers and increase sales. </p>
<p>Here are some of the tricks they have up their shop sleeves.</p>
<h2>Sniffing out a sale</h2>
<p>A nice smell can make retail experiences more pleasurable. A scent can also have a strong association, some of which are shared, like the smell of a hospital or the seaside. It therefore makes sense to use smells that evoke positive emotions to improve sales. </p>
<p>This is the reason why branches of Starbucks are filled with the aroma of “Pumpkin Spice Lattes” during autumn, and gingerbread flavours over Christmas. The pumpkin fragrance is strong and can arouse positive seasonal memories related to “trick or treating” or Thanksgiving celebrations. But it is not just about memories. Using sweet smells can simply enhance the shopping experience in cosmetics stores such as Lush, or lingerie specialist Victoria’s Secret. </p>
<h2>A hands on approach</h2>
<p>A retailer that is precious about their products and prevents customers getting their hands on the goods, will miss out. Touch is vital for influencing consumer perception, and a lack of it can be frustrating. </p>
<p>Apple understand this better than anyone. Their stores are laid out specially to invite people to explore the products with their hands, in plenty of clean space. <a href="http://www.tandfonline.com/doi/abs/10.1080/10350330.2011.591996">Tactile interaction</a> not only increases the likelihood of purchase, it also increases perceived pleasure as touch is closely associated with emotions. </p>
<h2>Getting emotional</h2>
<p>Connecting emotionally with consumers is the holy grail of retail. Consumers subconsciously search their feelings when trying to work out what they think about a product. </p>
<p>Selling “self-assembly” products may seem like a simple cost cutting exercise, but for the company it also encourages engagement and increased emotional value. When consumers put “labour” into a product (such as putting together flat-pack Ikea furniture or getting to grips with <a href="https://www.buildabear.co.uk">Build-a-Bear</a>) they <a href="http://www.sciencedirect.com/science/article/pii/S1057740811000829">end up valuing them more</a>. These values are transferred onto the brand itself and can encourage repeat purchases. </p>
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<p>Another way of getting consumers on board emotionally is by telling them they are valued. Again, Ikea has been good at this. One innovative solution involved identifying the most common internet searches for relationship problems, and suggesting a solution through their products. A set of champagne glasses was thus labelled: “When children leave home” and a spotlight lamp named “My brother gets all the attention”. The company has used humour to show that they identity with modern life.</p>
<h2>Engaging the subconscious</h2>
<p>Our brains have a need to make sense of the information we see. If the information is incomplete, we automatically attempt to fill in the gaps. Effectively, by leaving out information, businesses can make consumers engage in a mental process which means they recall the brand later on. </p>
<p>For example, when the Audi A3 was launched, the advertising campaign featured <a href="http://www.siobhansquire.com/audi-a3-james-day/">headlines with gaps</a> in the word lettering. Consumers were forced to engage in an Audi-related thought process which meant the brand stuck in their minds. Are subtle cues praying on our subconscious the reason why Audi has its reputation? Perhaps not entirely, but the company has made clever use of perception techniques to ensure we think about it.</p>
<p>Successful selling involves attracting buyers by any means possible. Appealing to the senses, the subconscious and our emotions are clever business tools. It is unlikely that one method alone is the key to a successful brand – but if retailers want to have a chance in today’s competitive market, they need to be in the market for innovative ideas.</p><img src="https://counter.theconversation.com/content/87115/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Cathrine Jansson-Boyd does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>They engage with your senses and subconscious.Cathrine Jansson-Boyd, Reader in Consumer Psychology, Anglia Ruskin UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/761922017-05-25T10:12:40Z2017-05-25T10:12:40ZHow electric car racing could one day challenge the spectacle of Formula One<figure><img src="https://images.theconversation.com/files/170584/original/file-20170523-5782-4mcvzh.jpg?ixlib=rb-1.1.0&rect=45%2C58%2C1971%2C1189&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><a class="source" href="https://www.flickr.com/photos/53361872@N07/19021891769/in/photolist-uYUaHc-HLC2z1-76Mrkk-dfkExR-dVCJDD-nMsp9q-fnFby-bTFEp6-HNYwJR-qutdpc-cEMdvC-92Sv4S-92Pm1V-dfkFfc-drhN77-bBxmDu-79Yjg4-8UY4dK-8PvrMC-8V8VLf-pQ7E7R-79YzGn-8V5NdV-8V8Rbs-98Kwdc-8V1Qqj-92Pkzv-8UYccR-7arA25-qLTQ5V-pPTMM7-85Vyi4-8V5SW6-8V2dej-8UYjhZ-qJB1Bd-8UY1F2-8V2737-9epHG9-8UYhzV-bTFEgT-5XXkLp-pQ7DoB-pQ7Bcx-8UXQ6e-8UYfa8-77GxS9-8UXR5p-92PmJD-92SgH1">rollingstone64/Flickr</a>, <a class="license" href="http://creativecommons.org/licenses/by-nc-sa/4.0/">CC BY-NC-SA</a></span></figcaption></figure><p>Motor racing’s most glamorous event, the Formula One Grand Prix in the glittering tax haven of Monaco is just around the corner. It is 67 years since drivers first took on the famous, twisty roads through the principality on the south coast of France, but is age starting to creep up on the F1 scene?</p>
<p>Since the earliest Olympic Games, racing has been used to advance wheeled transport. It was in the <a href="http://www.ancient.eu/Olympic_Games/">Tethrippon, Keles and Apene</a> events in Ancient Greece, that chariots were developed and the numbers of horses, foals and mules adjusted to provide optimum power and handling. Centuries later, in 1899, the French Renault brothers understood <a href="https://www.autoevolution.com/renault/">that city-to-city racing</a> could help harness the very different horsepower of their new combustion-engined cars.</p>
<p>Today we use many F1 technologies on the road. Ferrari’s semi-automatic gearbox and the “flappy paddle” transmissions are now standard in many road cars. Shell and Total produced friction-reducing fuel additives, and tyres made by Goodyear, Michelin, Bridgestone and Pirelli have all benefited from F1 research. Williams Advanced Engineering created the technology behind the Kinetic Energy Recovery System (KERS) to be found in <a href="http://bleacherreport.com/articles/1816116">Volvo’s C30 Electric road car</a> and the BMW i3 electric city car is the first to be constructed from carbon fibre-reinforced plastic, a technique pioneered in F1 by McLaren. </p>
<p>But while F1 has driven innovation that has made it to the car showroom, there is a risk it may fall behind by failing to embrace the key evolving trend in road car technologies. Could Formula E (FE), the fully electric vehicle street racing competition, end up being more relevant to the world’s major motor manufacturers?</p>
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<a href="https://images.theconversation.com/files/170585/original/file-20170523-5782-j0alk1.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/170585/original/file-20170523-5782-j0alk1.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/170585/original/file-20170523-5782-j0alk1.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=411&fit=crop&dpr=1 600w, https://images.theconversation.com/files/170585/original/file-20170523-5782-j0alk1.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=411&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/170585/original/file-20170523-5782-j0alk1.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=411&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/170585/original/file-20170523-5782-j0alk1.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=516&fit=crop&dpr=1 754w, https://images.theconversation.com/files/170585/original/file-20170523-5782-j0alk1.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=516&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/170585/original/file-20170523-5782-j0alk1.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=516&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<span class="caption">Volvo: plugged in.</span>
<span class="attribution"><a class="source" href="https://www.flickr.com/photos/49698805@N06/4985837129/in/photolist-8AzHF8-a1Kbzu-89ULgT-9bdJoK-8CTWqx-9Nrrwf-8MpwbA-9NoEDM-9bdEya-9sfRT7-8AzHGn-9sfRpS-9nDRNr-6fLBbP-84ce6d-8CU2CH-8CX4vW-a1GiYx-8CU1S4-84ccfA-8CX8z3-84cd3J-8zFFa2-8CU3AD-8CTWYx-85FxQ3-oZqLsa-9bipD1-byLJGe-9bdMd8-9Rpxqq-9RbxUV-9Rbxqv-9Rbx9V-9RbxC6-9S3Aqc-8496Gx-9T5qEG-85FxKb-9bgNvu-9SZTJx-9scDvB-9SZTbX-9beTe8-9RbCdn-8zkDMN-9RewFA-8FdSPB-8vwY8A-9eXk6F">One Tonne Life/Flickr</a>, <a class="license" href="http://creativecommons.org/licenses/by-nc-nd/4.0/">CC BY-NC-ND</a></span>
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<h2>Urban planning</h2>
<p>This year, FE had its own race in Monaco, a fortnight before F1 arrived. According to Jean Todt, President of the Federation Internationale de L’Automobile (FIA), FE is the perfect showcase for new electric vehicle technologies; a device to promote the use of clean engine technology, especially in cities and towns.</p>
<p>It is in those urban settings that pollution is a major problem. Oslo banned diesel road cars for two days to <a href="https://www.theguardian.com/environment/2017/jan/16/oslo-temporarily-bans-diesel-cars-combat-pollution">combat rising air pollution</a> while the Norwegian government intends to ban the sale of fossil fuel-based cars <a href="http://www.independent.co.uk/environment/climate-change/norway-to-ban-the-sale-of-all-fossil-fuel-based-cars-by-2025-and-replace-with-electric-vehicles-a7065616.html">by 2025</a>. </p>
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<p>Others have similar intentions. India <a href="http://timesofindia.indiatimes.com/auto/miscellaneous/indias-green-car-plan-prioritises-electric-vehicles-over-hybrids/articleshow/58557589.cms?from=mdr">is considering a draft report</a> recommending that all vehicles should be electric by 2032. China, where pollution in major cities <a href="https://www.theguardian.com/commentisfree/2017/apr/06/air-pollution-beijing-china-smog-britain">can be devastating</a>, is the largest electric vehicle market in the world. BYD Auto sold <a href="https://www.technologyreview.com/s/604335/the-worlds-largest-electric-vehicle-maker-hits-a-speed-bump/">507,000 cars last year</a> and GAC Motor, another of China’s large motor manufacturers, intends to <a href="https://electrek.co/2017/05/09/china-gac-electric-vehicle-industrial-park/">build 200,000 vehicles per year</a>. Unsurprisingly, Alejandro Agag, founder and CEO of FE <a href="https://www.motorsport.com/formula-e/news/formula-e-eyes-shanghai-race-in-season-four-885678/">wants to expand</a> the championship into China.</p>
<p>Agag recognised that the automobile industry’s focus on electric vehicles offered a different direction to most motor sports. He would appear to be right. FE already has an impressive line-up of contributing manufacturers, many of which have been familiar names in F1. </p>
<h2>Brand awareness</h2>
<p>FE cars currently use batteries supplied by <a href="http://www.williamsf1.com/advanced-engineering/about/capabilities/hybrid-and-ev-systems">Williams Advanced Engineering</a>, a subsidiary of the Williams F1 Team. The <a href="http://www.renaultedams.com/?lang=en">Renault e.dams team</a> has allowed Renault to demonstrate its FE pedigree with the all-electric TreZor concept car, which was one of the stars of the 2016 Paris Motor Show. <a href="http://www.fiaformulae.com/en/news/2016/september/mclaren-to-supply-new-formula-e-battery/">McLaren Applied Technologies</a> will supply all the championship’s new batteries from 2018. Jaguar, which was formerly in F1, has backed FE’s <a href="https://www.jaguar.co.uk/jaguar-racing/index.html">Panasonic Jaguar Racing team</a> to showcase its future range of electric cars. </p>
<p>Other manufacturers, including current world F1 championship <a href="http://www.fiaformulae.com/en/news/2016/october/mercedes-takes-option-on-season-five-entry/">winning team Mercedes-Benz</a>, are joining FE soon and even Ferrari, a cornerstone of F1 since the World championship started, <a href="http://www.autoblog.com/2017/04/04/marchionne-hints-at-once-obscene-idea-a-formula-e-electric-fe/">is said to be interested</a>.</p>
<p>BMW, which used to have a prominent position in F1 attained <a href="https://news.bmw.co.uk/article/bmw-increases-involvement-with-formula-e/">“Official Vehicle Partner”</a> status by supplying electric utility vehicles for FE, including Safety Cars, Medical and Support Cars and the official Rescue Car. BMW will get further involved on track in the actual racing when it joins the FE grid in 2018 with the Andretti Team.</p>
<p>In 2017, Audi, which <a href="https://www.audi-mediacenter.com/en/press-releases/emotional-farewell-for-audi-from-the-fia-wec-7061">could have gone to F1</a>, completely realigned its motor sport strategy after being dominant in sportscar racing. It became involved in FE with a factory-backed commitment to The Abt Schaeffler Audi Sport team. This fits Audi’s business strategy to produce new electric vehicles, <a href="https://www.audi-mediacenter.com/en/press-releases/audi-ag-and-faw-group-sign-strategic-growth-plan-for-china-7222">particularly aimed at the Chinese market</a>.</p>
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<span class="caption">Musk makes baby steps into racing.</span>
<span class="attribution"><span class="source">EPA/PETER FOLEY</span>, <a class="license" href="http://creativecommons.org/licenses/by/4.0/">CC BY</a></span>
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<p>You might wonder why headline-grabbing US car maker Tesla hasn’t dipped its toe into FE. Well, Elon Musk’s firm has seen its Model S version P85+ chosen as the base car for the world’s <a href="http://www.electricgt.co/testanews">first Electric GT Championship</a>, which starts in a few months time.</p>
<p>So is F1 missing out? Certainly not financially. At the moment, the budgets involved in F1 remain much larger, but that should not be taken for granted if motor manufacturers continue to jump ship. The point has certainly been made that FE is attracting major companies for whom electric technology is becoming increasingly relevant, <a href="http://www.roadandtrack.com/motorsports/a30717/boring-formula-e-has-one-huge-advantage-over-f1-and-indycar/">to the detriment</a> of both F1 and Indycar. </p>
<p>It does seem unlikely that Formula e, as it stands, can truly compete with the decades of history and glamour associated with the combustion-engine machismo of F1. But in 2020, the FIA’s F1 engine rules are due to change and history shows that to justify the substantial investment, this will probably have to be for at least five seasons. The current 1.6-litre V6 600 horsepower hybrid turbo petrol engines, that gain an added 160 horsepower from their electrical recovery systems will be consigned to the scrap heap. </p>
<p>Will the FIA choose another hybrid engine configuration for F1 or could it too go more electric? Perhaps a path might even be laid for a fully electric F1 in later years? In any case, the FIA’s choice will be vital for the future of both F1 and FE. It will also be a strong signal of the pace of change which will dictate the types of cars we will all end up driving to the shops, in China, Norway and beyond.</p><img src="https://counter.theconversation.com/content/76192/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Bruce Grant-Braham does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>When manufacturers are chasing sales and more and more customers are plugging in, is the writing on the wall for F1?Bruce Grant-Braham, Lecturer in Sport Marketing specialising in motorsport, Bournemouth UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/488152015-10-10T01:16:58Z2015-10-10T01:16:58ZExplainer: can I get a refund for my emissions-cheating Volkswagen?<figure><img src="https://images.theconversation.com/files/97880/original/image-20151009-23854-nczmw4.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Volkswagen is recalling more than 90,00 vehicles in Australia.</span> <span class="attribution"><span class="source">Francis Storr/Flickr</span>, <a class="license" href="http://creativecommons.org/licenses/by-sa/4.0/">CC BY-SA</a></span></figcaption></figure><p>This week Volkswagen Australia <a href="http://volkswagendieselinfo.com.au/Content/Document/VGAupdatePM09Oct2015.pdf">confirmed it will recall</a> more than 60,000 Volkswagen, 5,000 SKODA and 15,000 commercial Volkswagen diesel engine cars potentially affected by emission rigging. This follows similar steps taken in other parts of the world. </p>
<p>The company has set up a <a href="http://volkswagendieselinfo.com.au/">website</a> where owners can enter their car’s VIN to see if it’s affected. It’s still unclear whether Volkswagen will provide any form of voluntary redress to the owners of affected cars and there has been some <a href="http://www.businessspectator.com.au/news/2015/10/8/national-affairs/vw-class-action-most-likely">talk of a class action claim</a> against the manufacturer. </p>
<h2>Legal minefield</h2>
<p>Australia and New Zealand have unique legislative regimes protecting consumers, which differ from almost every other affected country. The Australian Competition and Consumer Commission (ACCC) is investigating whether and to what extent VW may have breached Australian Consumer Law. ACCC Chairman Rod Sims <a href="http://www.accc.gov.au/media-release/accc-update-on-vw-enforcement-investigation">has said</a> using “defeat devices” to improve emissions during testing is specifically prohibited under mandatory safety standards in the Australian Consumer Law. </p>
<p>The ACCC has also raised the possibility of seeking civil pecuniary penalties against Volkswagon for false, misleading or deceptive representations. </p>
<p>If Volkswagen has misled Australian consumers about the level of emissions produced by its diesel engine cars in breach of the Australian Consumer Law, what rights do affected car owners have?</p>
<h2>Misleading or deceptive conduct</h2>
<p>Under the Australian Consumer Law, consumers who suffer loss or damage because they relied on a false or misleading representation in entering into a contract may seek to have the contract set aside. Alternatively, they could claim damages for the difference between the amount paid for the product and its real or actual value.</p>
<p>If Volkswagen misled Australian consumers about the emissions produced by its diesel cars, consumers who relied on those representations as a reason for purchasing their car might be able to either: </p>
<ul>
<li>return the car and obtain a full refund of the purchase price, or </li>
<li>keep the car and obtain damages for the difference between what they paid and what the car was actually worth. </li>
</ul>
<p>Those consumers might also be able to seek damages as compensation for other kinds of loss they may have incurred, including possibly for the disappointment and distress arising from their supposedly environmentally-friendly car not meeting expectations. </p>
<p>Under this regime consumers whose decision to purchase a particular car was not based on emission levels but on some other consideration, such as performance, would not be entitled to pursue a case of misrepresentation over emissions, unless of course the emission issue, or indeed the solution to the problem, in some way affected the performance of the car. </p>
<h2>Consumer guarantees</h2>
<p>Another potentially powerful option lies in the Australian consumer guarantee regime. This provides mandatory guarantees of quality in the supply of goods to consumers. This guarantee is often known as an “express warranty”, which is a statement or assertion about the performance or characteristics of goods made by a manufacturer or supplier in order to induce consumers to purchase those goods.</p>
<p>Any failure to comply with a consumer guarantee provides consumers with a statutory right to a remedy, determined by the degree of the failure. Consumers are entitled to a replacement, repair or refund of the goods that fail to live up to the manufacturer or suppliers’ representations. If the failure is a “major” one, affected consumers can seek to return the goods and obtain a full refund. Damages for reasonably foreseeable losses are also available.</p>
<p>Any promotional statements made by Volkswagen about the low emission levels of its diesel engine cars may well amount to an “express warranty” for the purposes of this consumer guarantee regime. </p>
<p>It is also possible that any failure of the cars to meet this represented low emission level would amount to a “major” failure to comply with a consumer guarantee. A reasonable person may not have bought the car if they had known the true situation, and in any event it is difficult to see how the situation can be remedied. If this is the case, consumers may have a right to return cars that do not meet the expressly warranted emission levels and obtain a refund. </p>
<p>Consumers would also have a right to seek damages for reasonably foreseeable losses arising as a consequence of any failure of the cars to comply with the consumer guarantee. These damages might include compensation for the costs incurred by consumers in looking for a replacement car or even in introducing their own reasonable measures to reduce fuel emissions. </p>
<p>Importantly for consumers, these rights under Australian Consumer Law cannot be excluded by contract by the manufacturer or retailer.</p><img src="https://counter.theconversation.com/content/48815/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Jeannie Paterson receives funding from the Australian Research Council.</span></em></p><p class="fine-print"><em><span>Arlen Duke does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Australia and New Zealand have unique legislative regimes protecting consumers, which differ from almost every other affected country.Jeannie Marie Paterson, Associate Professor, The University of MelbourneArlen Duke, Senior Lecturer, Competition and Consumer Law, The University of MelbourneLicensed as Creative Commons – attribution, no derivatives.