Marketing Consumer Behaviour Of Organization - Myassignmenthelp.Com

Question: Discuss about the Marketing Consumer Behaviour Of Organization. Answer: Introduction Consumer behaviour is a vital aspect of marketing and needs to be understood in the broader terms. It is the study regarding approaches or factors guiding decision making in the target customer segment. It is necessary to understand the driving factors behind particular customer choices over others. This helps in the development of suitable action strategy for pitching a product right. The analysis of the consumer behaviour not only helps in analysing the past but also helps on predicting the future. The factors influencing customer choices could be divided into a number of components such as- geographic, demographic, psychological and behavioural. In the current report we have tried to relate the importance of consumer behaviour within the business prospects. For the discussion of the report we have taken into consideration Square and compass which is a Melbourne based coffee and food restaurant ("Square Compass", 2018). Consumer behaviour The decisions and actions which influence the purchasing behaviour of a target customer base is known as consumer behaviour. Most of the selection process is backed by emotions and reasoning. Some of the most common factors influencing consumer choices and decision making are economic conditions, personal preferences, opinions of peers. Economic condition serves as a guiding factor in dictating consumer choices. As commented by Chung et al. ( 2017), the capacity of making purchases is often restricted by poor or limited economy. Therefore, indulging in an espresso which costs anywhere between 4-5 dollars may not be a convenient option where the family is looking out for a cheap grocery. As argued by Kerins et al. (2017), personal preferences often govern the customer choices and behaviour while choosing over a range of products and services. For example, a person simply love espresso over simple black coffee and may choose the same irrespective of the prices. As argued by Astuti Hanan (2016), the opinions of the peers are also important in choosing particular products or services. As commented by Chung et al. (2017), negative publicity about brand or its services can also prevent the maximum sales of the services. Additionally, the dependency on social media for collecting reviews about products and services provides a much wide forum for the consumers; where they are exposed to the opinions of others which further goes into making the purchase plan. There are a number of theories guiding consumer behaviour such as theory of reasoned action; Engel, kollet, Blackwell (EKB) model; Hawkins stern impulse buying behaviour. The theory of reasoned action states that the customer will only plan to indulge in particular products and services when they can expect a positive outcome out of it. As commented by Yeboah Owusu-Prempeh (2017), the consumers are the rational actors who choose to acts in their best interests. However, as argued by Alphonce, Alfnes Sharma (2014), from the time of decision making to the actual purchase time the consumer have the propensity to change their mind about using specific purchases. The EKB model further expands the theory of reasoned action which explains the selective approach of the customers while making the purchases. The first step is where the customer collects sufficient data about particular services before processing of the information. As commented by Lo, Wu, Law Au (2014), the costumers move into decision making phase based on rationale. The decision making is also influenced by process variables including the after satisfaction rate of the customers after making the purchase. With respect to the current scenario the theory of impulse buying can be highlighted. As commented by Gelbric, Roschk Gafeeva (2016), impulse purchases are driven by external stimulus and have no relation with traditional aspects of decision making. For example placing an order for medium sized pizzas worth rupees 199 at dominos a taco Mexicana is offered free which is quite an indulging deal. Additionally, offering of attractive coupons, discounts such as cashback on every purchase at a food court are some of the marketing gimmick that can appeal to the impulses of individual customers. Importance of consumer behaviour for organizations The marketers can use the theory in their favour where they can associate a purchase with a specific and positive outcome. The theory of reasoned action also helps the marketers in understanding that longer the gap between the initial desire and making the actual purchase the more are the chances of losing the customer (Kerins et al., 2017). With respect to the EKB model the marketers need to provide the customers with sufficient information regarding the products. This helps in keeping the products under consideration for purchase. For example a restaurant in order to attract maximum number of customers would need to invest in marketing gimmicks and advertisements. Here, the sumptuous meals prepared by the restaurant can be pitched to the customers based upon the feel and culture of the specific region. This is help in attracting maximum number of customers to the restaurant time and again. The consumer behaviour is highly important with respect to an organization. The focus on consumer help in developing the business practices. As commented by Aday Yener (2014), consumer behaviour is highly complex and dynamic in nature. During the process of buying a product or selecting services the consumer go through a number of psychological processes in their mind which dictate their actual purchase behaviour. As argued by Gelbrich, Roschk, Gafeeva (2016), the personality traits are also imperative in guiding the decision making approaches. The pragmatic people would purchase what is useful and necessary. With respect to a restaurant selling food one can say that the pragmatic people will choose a basic and healthy meal than a luxurious and sumptuous meal. An aesthetically inclined customer will be drawn towards the look of the product than its contents. However as argued by Wikstrm, , Williams, Verghese Clune (2014), it is difficult to convince the intellectually inclined cus tomers to buy out a certain product. As they mostly want to know regarding the benefits of the product or collect much knowledge regarding the positive reviews associated associated with the product before they could make the purchase. A huge part of their mentality is affected by peer responses. Therefore, the organization needs to develop a positive image about itself. Recent studies have established that the consumer takes less than 20 minutes time in deciding about the products or services that they want to buy (Gelbric, Roschk Gafeeva, 2016). Therefore, the marketers need to be selective as well as line up maximum diversity in promoting their services. Additionally, 58% of the purchases are unplanned which means that maximum time the customers are buying more out of impulses than out of needs (Aday Yener, 2014). Therefore, understanding the decision making approaches of the customer will help in maximization of the sale and the profit margins. Consumer profile The profile of a customer helps in describing the target customer segments categorically so that they can be grouped for advertising and marketing purposes. The services and products can be tailor made to satisfy individual needs and demands. As commented by Ye, Cronin Peloza (2015), before pitching of the products it is necessary to design suitable customer profile. The consumers of the square and compass restaurant have been identified based on a number of features such as preference, lifestyle, stage of life, attribute and traits. The customer profile can be further divided into primary and secondary segments. Primary segment The primary segment refers to the target market from where majority of the revenue from sales could be extracted. It focuses on marketing efforts where maximum amount of returns could be obtained. Geographic The primary target customer for the square and compass restaurant are the residents of East Melbourne Demographic They are mostly customers within age group of 18-30. Psychographic An overall positive opinion about the square and compass restaurant attracts the maximum number of customers. Additionally, the contemporary feel of the place attracts huge number of youth customers Behavioural The customers mostly within the young age group have been seen to be impulsive buyers and are aesthetic buyers who choose a product over their looks and feel than health benefits or nutritional value. Table 1: Primary segment target customers (Source: author) Figure 1: primary customer segment (Source Lo, Wu,Law, R Au, 2014) Analysis: The residents of the East Melbourne form the primary market consumers which could be attributed to feasibility of location ("Square Compass", 2018). The suitable and convenient location of the square and compass restaurant on the Clarendon Street makes it one of the most visited restaurants. Additionally, the place is mostly visited by the youth owing to its contemporary feel and look. The open spaces and the plenty of activities available make it one of the favourite hangout places for the youth. The aesthetic feel of the place also attracts huge number of target customer. The segmentation is further based upon the four Ps of marketing which are product, price, place and promotion. The promotions of the product, the prices as well as the location are some of the major contributors (Namkung Jang, 2017). Since the customer profile hitting the square and compass restaurant are mostly youths or young adults, price as well as place of the business outlet are some of the governing facto rs (Kang, Jun Arendt, 2015). Secondary segment Geographic The secondary target market is located within greater Melbourne and adjacent areas. Demographic They are mostly customers within the age group of 33-65. Psychographic Opinion of peers or reviews collected from social media sites influence the buying behaviour of the secondary target customer base. Behavioural The manner of making choices is influenced by the peer opinions. The nature of selection is guided by intellectual abilities where the health and nutritional aspects are taken into consideration before making a purchase. Table 2: secondary segment target customers (Source : author) Figure 2 : market segmentation (Source : Alphonce, R., Alfnes, F., Sharma, 2014) Analysis: The secondary target market consists of the ones residing in greater Melbourne and adjacent areas. These customers fall within the age group of 33-65 and mostly hit the place based upon the reviews and opinions of their peers and the collective reviews over the social media sites ("Square Compass", 2018). Since the customers fall within the middle age group they apply intellectual abilities in making the purchase decisions (Oliver, 2014). These are based upon collective reviews of peers and the amount of positive publicity done regarding the square and compass restaurant. Therefore, the promotional aspects form a very important component of business growth and profitability. Therefore, the management at the square and compass restaurant need to focus upon the marketing gimmicks where promotion of the sumptuous menu choices offered by the restaurant can be done over apps such as Zomato. Additionally, a link to the menu of the restaurant has also been pasted over their facebook and in stagram pages. Issue identification Some of the issues which have been found with respect to the square and compass restaurant situated in Melbourne are threats from similar market players in a highly competitive market. Additionally, labour and shortage in the number of international chefs are affecting the productivity of the Australian restaurants at large scale (Sethna Blythe, 2016). The square and compass restaurant stands at no exception. One of the dominant issues which are faced by the square and compass restaurant apart from cut-throat competition and labour shortage is the lack of adequate finances. In the lack of finances managing the day-to day operations of the restaurant becomes difficult (Lehman, Kovcs Carroll, 2014). Additionally, the entry of new restaurateurs in the emerging market scenario puts excessive pressure on the existing ones. The new entrants could come out with marketing gimmicks which may affect important parameters such as customer loyalty. Conclusion The square and compass restaurant constantly needs to renew its services and policies to attract the maximum number of customer base. Additionally, focusing upon the consumer buyer behaviour helps in improving the business sense and ethics. This further helps in expanding the future customer profile. Moreover, economy, personal preferences, opinions of the peers are further instrumental in affecting the customer buying behaviour and approaches. In addition the geographic, demographic, psychologic and behavioural aspects further govern the decision making. Additionally, promotions and strategic planning are some of the other aspects which can help in expanding the target market based upon customer preferences. References Aday, M. S., Yener, U. (2014). Understanding the buying behaviour of young consumers regarding packaging attributes and labels.International journal of consumer studies,38(4), 385-393. DOI: 10.1111/ijcs.12105 Alphonce, R., Alfnes, F., Sharma, A. (2014). Consumer vs. citizen willingness to pay for restaurant food safety.Food Policy,49, 160-166. 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