MKT7001 Consumer Behavior Assignment Sample
MKT7001 Consumer Behavior Assignment Sample
1. Evaluation and analysis of the consumer behaviour conceptual framework and key drivers
Concept of consumer behavior
Consumer behaviour refers to the specific study of people generally making purchasing decisions to satisfy their needs and wants. Effective identification and analysis of consumer behaviour is an essential factor that is needed for understanding the purchasing habits of potential customers. Thus understanding usually helps the business executive to design and shape the products as per the needs, demands, and preferences of the customers.
In the opinion of Zhao et al. (2021), the business management of a reputed organization is generally needed to evaluate customer behaviour which as it gives effective insight and understanding of the product design of the organization
Conceptual framework of customer behavior
Essentiality of the customer behaviour in business management
Consumer behaviour generally consists of four types such as “complex-buying behaviour”, “variety-seeking buying behaviour”, “habitual buying behaviour”, and “dissonance-reducing buying behaviour”. The business markers generally seek effective strategies for gaining insight into the needs and desires of the customers as it helps the team to successfully design and shape their products (Lim et al. 2023).
The gain organization generally seeks opportunities to grasp the buying patterns and purchasing preferences of the potential customers. If the business executives cannot successfully perceive the extensive view and knowledge about the purchasing capability of the potential customers then successful business regulation cannot be achieved.
An effective understanding of customer behaviour is needed for effective business regulation. It can be further stated that the effective analysis of customer behaviour can help the organization to secure a “competitive advantage” and to deal with challenging situations in the business market.
Consumer differentiation
Customer differentiation is a particular strategy that generally differentiates a particular customer from other customers. It generally helps the business executive to successfully detect the desire of each target demographic (Spangenberg and Lorek, 2019). It is a fact that each customer generally possesses bad wants and by applying a single or fundamental strategy the desire of them cannot be fulfilled. Thus consumer behaviour further helps business executives to detect the needs of the separate customer base.
Customer retention
The main aim of the customer behaviour study is to satisfy the needs of the customers through effective product offers that meet expectations. It is not only essential to attract more customer base but also essential for retaining existing customers. Therefore, marketers should adopt a specific strategy that meets the expectation of the customers and convince them to purchase a particular product (Islam et al. 2021). Customer retention is one of the significant factors which generally help the business executive to successfully evaluate intention and preferences if the customers satisfy their desires and demands of them.
Incorporation of design-relevant marketing programs
Effective marketing strategies can be secured by understanding customer behaviour. According to Ismagilova et al. (2020), the effective study of “customer behaviour” further allows marketers to evaluate and understand which factor generally motivates customers in an effective manner. Thus by analyzing this, the marketer can successfully make the brand logo, packing, coupons, and gifts to review the consumer behaviour.
Effective prediction of the marketing trend
A successful analysis of these factors is needed to evaluate the behaviour of a particular customer and to understand the factors which generally influence them to purchase a particular product (Jakubowska, 2021). Effective “customer behaviour analysis” generally indicates the current market trends, For instance, the recent trend of their customers is to vail quality and healthy foods, and things several food manufacturing organizations have shifted their production towards safe and nutritious reduction.
After evaluating the customer behaviour the organization can save the resources of them. For insurance in the summer, the organization will not produce products which will not be purchased by the customers rather the organization can successfully secure the summer-related or addicts to meet the needs of potential customers.
Competitive advantage
By understanding the demands and needs of the customers the organization can defeat its potential market competition (Haseeb et al. 2019). They can attract more customers and create a new customer base. This will help the companies to gain customer satisfaction and positive responses from them. Thus the MNCs can get an effective opportunity for competitive advantage to secure long-term profit.
These are the benefits of customer behaviour that help a marketer satisfy potential customers there, securing their needs and demands.
Identification of the key drivers of customer behaviour
The detection of the prevailing diseases which affect overall customer behaviour is an essential factor for studying customer behaviour. As stated by Ajiboye et al. (2019), customer behaviour is such a thing that marketers generally use during their efforts to certain groups based on their “purchasing decisions” regarding environmental, personal, and social influences. Many small factors generally affect the overall customer behaviour and being affected by this factor and they generally make purchasing decisions.
These factors further include social influence, personal influence, “frequency of spending and staining ahead (Sheoran and Kumar, 2022). Furthermore, some other factors can also be found that affect customer behaviour. These include fear, uncertainty, anxiety, greed, urgency, and altruism. All these factors collaboratively affect overall customer satisfaction and purchasing capabilities.
Furthermore, age, income, social beliefs, attitude, religious background, and its factors generally affected overall customer behaviour. Chen et al. (2020) stated that the effective understanding and evaluation of these factors generally affect the buying patterns of customers. The application of conceptual framework consists of the styling of customer behaviour and there are also essentials in this aspect.
The contribution of the key drivers to detect consumer behaviour
The identification of the key dresses of customer behaviour is one of the essential factors that generally influence the purchasing capabilities of the customers. The key drivers which influence the customers are essential factor that generally affects the purchasing capabilities of the organization (Trudel, 2019).
“Frequency of spending and staining” Social influence, and personal influence, is one of the key factors which generally affect the effective handling of customers in an effective manner. The effective management of the key drivers as mentioned above generally helps the business executive to successfully detect the effective handling of business regulation. The business executives can sincerely handle the product offering in an effective manner.
The presence of these issues increases the likelihood of customers buying products impulsively. This increases the preference of the options to the customers that are safe and provides a sense of control in their purchasing habits. The presence of anxiety plays an important role in increasing the urge to splurge on luxury brands. It affects the decision-making process of the customers in the organisation (Han, 2021).
This seems to confuse the decision-making process of the customers and it increases the time in taking decisions of the voice of the customer in buying products. It makes the consumer unable to take responsibility on the products that are needed to be purchased. Thus, it is necessary to look after the factors that can help in reducing the issue that is faced by the consumer while buying products. Customers should look after their attitude while making decisions in buying the products. The presence of these drivers leaves the customers susceptible in nature.
The impact of key drives on the indemnification of the effective consumer behaviour
Key driver analysis is used to identify customer segmentation along with customer engagement with a specific brand. Customer behavior is influenced by several factors such as “situational”, “psychological”, “environmental”, “marketing factors” etc. All of these factors reflect a specific impact in determining customer behaviour.
On the basis of the context, it is necessary to mention that key driver analysis gathers information connected with market demand. In addition, it also collects demographic information and customer feedback. A brand can determine its potential by key driver analysis and understanding potential customers’ decision-making process. Brands use this analytic tool to understand the current needs of the market and manufacture products as per market demand.
2. Identification and critical analysis of the consumption habits with the theoretical implications
Detection of own consumption habit
Effective analysis of customer behaviour and one’s own customer habits is an essential factor that generally helps the marketer to successfully evaluate the needs and desires of its customers in the best possible manner (Amanto et al. 2019). As a customer, I always prefer purchasing quality products at an affordable price. I generally emphasize the quality but sometimes I also prefer the cost-effective product to save money.
Here I should mention that duality can be nominated with my behaviour which has categorized me as the “Variety-seeking customer” who sometimes prefers to switch products from the existing products. The analysis and evaluation of own consumption habits generally help the marketer to successfully evaluate and analyze their customer’s buying behaviour in a successful manner.
It can be further stated that the variety of use generally prefers product diversification as they want to include new and innovative products within their daily lives (Sesini et al. 2020). Sometimes I generally prefer the effective evaluation of the products which I generally need in my regular life.
Theoretical implication in relation to own consumption habits
The application of effective teeth is needed for the effective understanding and analysis of the need and relevance of “customer behaviour” in an effective manner. The application of “Social Influence Theory”, “Theory of Reasoned Action” and “Motivation-Need Theory” are relevant in this particular aspect of understanding “customer behaviour”. The ideas of “Social Influence Theory” refer to the particular framework which helps to understand how individuals are influenced by the people around them (Liu et al. 2020).
Here I have noticed that I am often influenced by the buying pattern of the surrounding people. “Theory of Reasoned Action” further determines that the behaviour of the person is generally determined by their intention and interest to perfume a particular behaviour (Sok et al. 2021). The application of this theory further helps business executives to determine the behaviours of the customers in an effective manner.
According to the motivation theory, the needs of human bugs generally include safety needs, physiological needs, esteem needs, “self-actualization needs’ and “love and belonging needs”. I can say that when I decide to be a particular product I am generally motivated by these factors. These factors essentially create a sense of purchasing needs within me. Thus it can be stated that customers are greatly influenced by these factors and the marketers should consider the application of this theory to engage the potential customers.
The consumption habit focuses on the study of customer behaviour and the purchasing pattern of the customer. It is considered as the process that studies the customer’s choice of product and services. As per the view of Han (2021), “Consumption behaviour” analysis deals with how people or a customer decides to choose a particular product or a service of an organization.
In my opinion, customer behavior is affected by certain factors like personal choice of products, psychological traits like belief and attitude behind buying, and social characteristics which include the social interaction and accessibility of the product in the market.
I think lifestyle and culture have a certain impact on my consumption behaviour. The “Consumer behaviour theory” is the study related to the study of how people make their decision when they buy a product. As per my understanding, this theory helps the business owner and the marketer to identify and predict the behaviour of the consumer.
As per the view of Domingos (2022), this theory helps the business owner to develop the product and have an idea about the thought of the customer behind purchasing a product. This also helps the business organization to understand the demand and requirements of the customer.
On the basis of the customer behaviour analysis, the business owner can develop and promote the product as per the market needs. As per my understanding “Consumer behavior theory” also helps to understand and identify the factors that influence the decision of the customer as well as the highlighted strategies to actively manipulate the customer behavior. I think the impulsive buying of the product may be a bad customer decision.
3. Recommendations to the Advertising Agency
The marketing of a product is considered the key aspect of any business. The marketing of the product not only showcases the products or the services offered by the company in the target market but also to the overall market (Raewf et al 2021). This helps the organization to survive in the highly competitive market. The organization is now focusing on the customer’s decision on purchasing the product. These help them to market the product or offer services that are needed to meet the requirement and demands of the customer.
The marketing strategies developed by the organization needed certain changes as per the market trends. As per the views of Ali and Anwar (2021), The Company implemented certain changes in the marketing of the product to achieve the goal set by the company in the changing market. It is often found that marketing strategies need to consider the psychology of the consumer while buying a product or service.
The business organization may be focused on implementing innovative ways to attract potential customers and form a strong customer network. As per the views of Upadhyaya (2020), the count needed to implement certain marketing strategies in the future market. One such example is the use of an “Advertising Agency ” to market the product in the marketing activities in the future market.
The study is based on our own consumption behaviour. The consumption behaviour and the purchasing pattern are provided in this report. As per the views of Ali and Anwar, (2021), consumer purchasing behaviour is influenced by certain factors like social factors, psychological factors, and cultural factors. On the basis of the information provided in the study, certain recommendations can be drawn to support the marketing of a product or a service by an organization or agency.
The marketing developed new techniques based on market analysis (Trudel, 2019). These techniques or strategies are based on certain factors like market demand, customer behaviour, and Consumption behaviour of the respected market. Various marketing activities help the marketer to promote the value of the company.
The improvement of the brand image helps the organization gain more customers. Brand image plays an important role in attracting potential customers and creating a strong customer channel. As opined by Trudel (2019), the promotion of the brand name sometimes influences customer behaviour. The company organization needed to focus on improving its brand image in the market.
These strategies collectively help the business to create a product or a service that values the customer’s opinion. The companies needed to focus on the feedback and opinion of the consumer. The company needs to identify the needs of the customer and identify the implementation of the demand of the customer.
The improvement in the development of the product as per the customer feedback always helps the business organization to retain its customer and attract new customers in the future. These market activities help the organization to develop its business in the future market. These strategies help the business to create and maintain a positive relationship between the potential customer, the existing customer, and the organization.
The organization needed to understand the future market before promoting its products or services. This information helps the organization and the advertising agencies to effectively market the product or services provided by the companies in the future market. Effective marketing activities help the business to generate new leads to boost the sale of the product. As per the views of Ali and Anwar (2021), this helps these companies to successfully grow their business in the business market.
The organization needs to use advertisements for the products and services offered by the companies in the potential market. In the era of digitalization, the organization needed to use digital platforms to advertise its products and services. In the advertisement, marketers often use both traditional advertising as well as digital advertisement.
In traditional advertising, the advertising agency uses print advertisement which includes newspaper, magazine, and radio. In the digital advertisement, the agency may use website banners, social media advertisements, and online promotion of the products and services. Young customers and young adult customers mostly rely on online advertisements of the products. The company needed to focus on the online advertisement of the product developed by the organization.
The marketer of a business organization needed to focus on the proper development of the online official website. The company needed to provide clear and transparent information about the company and the product they offer. It also needed to provide detailed information about the offers they provide on the official website of the company. Clear and transparent information needed to be updated by the organization on a regular basis. These will help the organization to increase the sale of the products and improve brand awareness among the potential customer.
4. Consumption Journals
| Serial Number of Articles | The list of Goods Purchased | The quantity of Goods | The Category of Goods | The Mode of Purchase | Cost per Unit | Frequency |
| 1. |
|
680 pieces | Food | Offline/Online | $100 | High |
| 2. |
|
550 pieces | Housing | Offline | $290 | Moderate |
| 3. |
|
250 pieces | Transportation | Offline/Online | $320 | Low |
| 4. |
|
410 pieces | Clothing | Online | $250 | High |
| 5. |
|
320 pieces | Electronics | Offline/Online | $450 | Moderate |
Table 1: Consumption Journals (Source: Self-Developed)
Based on the significant consumption journals which have been illustrated above there are various promising insights that have been acquired regarding the consumption pattern of the customer. The consumption journal has reflected that, there are overall five categories in which people and global customers are most interested in, and these categories are identified as food section, clothing section, household section, transportation section and electronic action.
The consumption trends that have been portrayed has helped in recognizing the fact that the food and Claritin factor has been high in frequency as most of the customer is keen to buy these products more. After that, the electronics and housing are another two sectors that have been found to be moderate in terms of buying and consumption frequency and the sector of household has been identified to be low in purchase and consumption frequency in comparison to the other sectors.
References
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Amanto, B.S., Umanailo, M.C.B., Wulandari, R.S., Taufik, T. and Susiati, S., 2019. Local consumption diversification. Int. J. Sci. Technol. Res, 8(8), pp.1865-1869.
Chen, J., Wang, X. and Chu, Z., 2020. Capacity sharing, product differentiation and welfare. Economic research-Ekonomska istraživanja, 33(1), pp.107-123.
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Domingos, M., Vale, V.T. and Faria, S., 2022. Slow fashion consumer behavior: A literature review. Sustainability, 14(5), p.2860.
Han, H., 2021. Consumer behavior and environmental sustainability in tourism and hospitality: A review of theories, concepts, and latest research. Journal of Sustainable Tourism, 29(7), pp.1021-1042.
Haseeb, M., Hussain, H.I., Kot, S., Androniceanu, A. and Jermsittiparsert, K., 2019. Role of social and technological challenges in achieving a sustainable competitive advantage and sustainable business performance. Sustainability, 11(14), p.3811.
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Ismagilova, E., Slade, E., Rana, N.P. and Dwivedi, Y.K., 2020. The effect of characteristics of source credibility on consumer behaviour: A meta-analysis. Journal of Retailing and Consumer Services, 53, p.101736.
Jakubowska, D., 2021. Market differentiation potential of traditional food quality labels: consumer and producer expectation. Entrepreneurship and Sustainability Issues, 9(1), p.239.
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Sheoran, M. and Kumar, D., 2022. Benchmarking the barriers of sustainable consumer behaviour. Social Responsibility Journal, 18(1), pp.19-42.
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Spangenberg, J.H. and Lorek, S., 2019. Sufficiency and consumer behaviour: From theory to policy. Energy Policy, 129, pp.1070-1079.
Trudel, R., 2019. Sustainable consumer behavior. Consumer psychology review, 2(1), pp.85-96.
Trudel, R., 2019. Sustainable consumer behaviour. Consumer psychology review, 2(1), pp.85-96.
Upadhyaya, Y.M., 2020. Mathematical analysis in static equilibrium of economics: as support to microeconomics course. Interdisciplinary Journal of Management and Social Sciences, 1(1), pp.135-148.
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