Online Offline Consumer Behaviour Assignment Sample
Introduction
The present portfolio report will pay attention to demonstrating a conclusive understanding by signifying consumer behaviour in relation to vegetarian foods consumption. In this regard, the decision-making unit and consumer persona will be highlighted to analyse both offline and online consumer behaviour for vegetarian foods. The decision-making process will also be supported with adequate theories and models along with the influence of consumer identity and lifestyle, reference groups, paid influencers and others. Lastly, the report will highlight the influence of culture to justify consumer behaviour along with practical recommendations for an organisation wishing to enter this sector.
a.Decision-making unit and Buyer Person
Figure 1: Decision-making unit model
The figure has highlighted different components of the decision-making unit including initiator, gatekeeper, influencer, decision-maker, buyer, the user. The initiator in this case highlights the company whereas the gatekeeper’s role is played by the employees receiving customer orders. Apart from that, the decision-making unit also plays the role of influencers to some extent that provides both direct and indirect influence on consumer purchasing behaviour (Barat et al. 2019). Concerning the offline contexts for vegetarian foods, the family, and social community might also play the role of influencers along with the desire to comply with health awareness. The customer plays the role of decision-maker, buyer, and user. In this case, a complete sequence can be notified regarding the overall decision-making process. A survey was conducted with around 12,000 English-speaking vegans among which 25% of participants reported health and environmental motivations for preparing vegetarian foods (Polanco, 2019). In this context, the offline decision-making aspect is related to health awareness behaviour from consumers’ perspectives concerning the consumption of healthy and nutritious foods.
In this regard, a consumer persona is presented below for highlighting its relevance to the analysis of vegetarian consumers purchasing behaviour.
Consumer persona
| Background | ● Well educated and socially aware
● Preference for a healthy lifestyle and sustainable living |
| Demographics | ● Age group of 18-60 and above
● Average monthly income beyond $1,500 ● Residing mostly in urban areas |
| Identifier | ● Consideration of health awareness
● Preference for healthy food ● Growing emphasis on vegetarian foods ● Climate change conscious |
| Motivations | ● Animal ethics
● Environmental conscious ● Understands the importance of sustainability |
| Behavior | ● Follows vegan influencers and lifestyle on social media
● Researches and visits different vegan restaurants ● Tries out various vegetarian dishes ● Promotes veganism in their close group of acquaintances and social media ● Criticises non-vegetarian food habits |
Table 1: Consumer persona
The table has described a general consumer persona concerning vegetarian food consumers. In this aspect, the decision-making unit can efficiently analyse consumer behaviour with consideration of online contexts.
Figure 2: Updated communications model
(Source: Shah et al. 2017)
Profound usage of the updated communications model can be considered in this case. It is expected that around 3.7 billion dollars will be invested in the plant-based market (Jasimovic, 2020). In relation to this real-life example can be drawn from the context of McDonald’s. The company has extended their reach over the social media platforms as an integral part of maintaining profound communication with the target audience in different markets and countries. This aspect has been beneficial for McDonald’s to consider the vegetarian consumers’ behaviour in the Indian market. India is noted to obtain the maximum vegetarians across the globe where around 400 million population or more prefer the consumption of vegetarian foods (Ramesan, 2021). McDonald’s paid attention to relate with the Indian consumers’ purchasing intention through online channels.
As a result, the company has emphasised on introducing vegetarian food items for their offerings in India. For example, McAloo Tikki burger and others can be noticed in the food menu of McDonald’s. The rising growth of vegetarian foods consumption has eventually been supportive to ensure extended financial feasibility for McDonald’s. In India, McDonald’s revenue experienced gradual and consistent growth from 2013 to 2020 (Statista, 2021). The statistics and market facts highlight greater consideration of consumer persona for the vegetarian population of India based on which the decision-making unit of McDonald’s initiated vegetarian food options. Similar consequences can be reflected from the perspective of KFC. The American multinational company followed a similar concept to McDonald’s which served them beneficially in the UK market. KFC generated a revenue of USD 2.27 billion in 2020 (Lock, 2021).
b. The Decision-Making Process and Models
In case of highlighting the usage of the decision-making process and models to understand vegetarian food consumers’ behaviour, the aspects of consumer perception process theory can be undertaken. The theoretical underpinning defines three different phases related to consumer perception, which includes sensing, organising, and reacting (Filieri et al. 2018). A profound growth of health awareness can be noticed around the global consumers that have been driving their purchasing intention with increasing preference of vegetarian foods. The same thing, in this case, reflects the generation of awareness among global consumers regarding the hygiene benefits of consuming vegetarianism. The health benefits for vegetarian food highlights a reduction of the risk of death from heart disease by 40% (Jasimovic, 2020). It also defines the impulse buying behaviour from the consumers’ perspective with the consideration of both suggested and planned impulse purchasing decisions.
Around 7% of the UK population are considered vegetarians (Wunsch, 2021). Therefore, several renowned restaurants and foodservice providers have initiated organising vegetarian food options for potential UK consumers, which reflects their decision-making process with a profound understanding of consumer behaviour. Thus, the context of a renowned global organisation Burger King can be considered which initiated to provide vegetarian food menus like a plant-based whopper, vegan royale and others in the UK market. Positive reaction has been achieved by the organisation by profoundly complying with the UK vegetarian consumers’ purchasing intention. It can be highlighted on the organisational financial standing over the UK market that the company was able to achieve 594 million GBP revenue despite experiencing fierce market competition (Bracken, 2018).
Figure 4: Tri component attitude model
The tri-component attitude model of consumer behaviour can also be undertaken in this case. It reflects three different aspects related to consumer behaviour including cognitive, conative, and affective aspects (Lorenz and Langen, 2018). The cognitive aspect reflects the growing consideration of health awareness that increased the accountability of vegetarian foods across the global market. However, it defines the improvement of brand awareness for vegetarian food service providers by complying with the current market consumer trend of going with health-aware food consumption.
The theory of planned behaviour can be highly signified in this context where the behavioural achievement of customers is depending on the intention of going with healthy food consumption along with behavioural control for avoiding non-vegetarian items (Tornikoski and Maalaoui, 2019). The normative beliefs, in this case, have eventually signified the hygiene benefits of consuming vegetarian food items. This cognitive attitude foundation has undertaken a large step to understand consumer behaviour in the context of vegetarian foods consumption.
Respective business organisations like Burger King and others are highly obtaining an inclusive decision-making process with an advanced analytical approach that has been making them familiar with consumer behaviour through online channels.
c. Reference group, lifestyle, consumer identity and paid influencer
The investigation of individual people, groups, or organisations, as well as all behaviours involved with both the purchasing, distribution and selling of goods and services, is referred to as customer behaviour. As mentioned by Boccia et al. (2019), consumer behaviour can be regarded as the fact how a particular individual’s values, perceptions, as well as interests may have a major influence over the decision making possibilities while purchasing products or services. To understand people’s needs and wishes along with patterns of consumption, consumer-buying behaviour formally uncovers individual characteristics. As suggested by Knickmeyer (2020), the characteristics are such as demographic trends, public persona behaviours, and psychological variables such as participation rates, due to availability, commitment, and strategic partnerships
As demonstrated by Boccia et al. (2019), a group is a collection whose viewpoints are considered by consumers. Moreover, the reference group for a consumer could be extensive or limited, consisting of a few individuals of friends or relatives. People’s purchasing decisions are heavily influenced by reference groups. As mentioned by Singer (2017), they determine behavioural standards as well as shopping habits. Primary and Secondary reference groups are the two categories. Primary reference circles are individuals with whom consumers interact on a daily basis. They could come to family, acquaintances, or housemates (Garg and Moreno, 2019). As they are important to the consumer, these individuals from primary groups might just have a particularly strong influence on their lives and purchase intent. When an individual is unsure about a product, primary groups help them to feel at ease and provide consumers with the impression that they are with that individual and help them to figure it out. As stated by Boccia et al. (2019), since they are connected to customers, those people will give users incredibly genuine and unambiguous advice, making a person feel more confident about the purchase. Even, people’s interconnections encourage them to be successful, highly social, as well as delighted purchasers (Lubowiecki-Vikuk et al. 2021).
As suggested by Singer (2017), secondary reference groups are generally more formal and have fewer meetings. They could be workers, acquaintances, or co-workers, elders at the company, or a club associate. Individuals in secondary reference groups have much less power over people than in primary reference groupings since they are generally less comfortable giving personal ideas or opinions about purchasing (Lorenz and Langen, 2018). Companions or workers at the office can teach the individual about trends, fashion, and taste. In this context, 81% of consumers have stated that they are highly influenced by their friends (Umashankar et al. 2017). Friends and companions are another factor as after family the spare time is spent with the friends along with talking about latest trends and new things. Going out and eating together will be a turning point for vegans to shift towards non-vegetarian (Garg and Moreno, 2019).
Lifestyle
Apart from that, when it comes to consumer choices, lifestyle is critical. As mentioned by Boccia et al. (2019), even though two women having same ages, and earn the same amount of money does not really guarantee that they will buy similar things. When it comes to actual items, people’s lifestyles play a big role. Those goods are slightly elevated, sophisticated, or cost a lot of money. For example, some people may love animals and birds and become so much connected that they start to change their eating habits thinking about their safety (Aknin et al. 2020). In this context, it can be said that, sometimes some people get so moved by the campaigns protesting for animal rights, they take a step to improve their eating standards to being vegan along with not harming any single living being.
Along with this, some of the consumers busy with their lifestyle or their working schedule do not permit them to cook a non-vegetarian meal so they prefer vegan dishes, which are convenient to make under minimal time (Singh et al. 2021). Taking the case of McDonald’s, their Big Mac beef burger is the most loved product worldwide along with this it is their signature dish as well (Times Internet Limited, 2020). However, as India does not have the culture to consume beef, they have changed their menu to vegetarian sides and dishes such as McVeggie, Paneer Salsa Wrap, and many more (Times Internet Limited, 2020).
The above figure reflects how consumers are keen to make a difference in the world through being sustainable. In this relation, what consumers prefer is heavily influenced by their perception of how they are contributing to the wellness of the society. As the current trend in the market is sustainability and reduction of greenhouse gas emission (Singh et al. 2021)
Figure 7: Carbon emission by species
Consumer identity
Consumer identity is linked with the information that helps in determining the consumption pattern of consumers present in the market. As a result, organisations that can successfully identify their consumers based on the consumption pattern are also able to identify their buying behaviour and shifts in the same. This helps organisations to identify how people react to different products and services coming from different social-economic backgrounds (Konuk, 2018). This data allows organisations to study the changing consumer behaviour among their target customers. Moreover, companies can also identify if the consumption of a particular product has increased or decreased in time, which can be linked to influences in the socio-economic context.
Even, the shifts in consumer behaviour are not necessarily dependent upon the social or cultural environment and can also be dependent upon the way individuals tend to lead their lives and choose their products and services (Konuk, 2018).
There are different aspects that help in the determination of consumer identity such as the cultural beliefs of a consumer, the society in which they live, their personal preferences and their psychological behaviour. Companies segment their products and market operations based on these above-mentioned factors in order to appeal to a specific target group (Carfora et al. 2019). For instance, the vegetarian culture has been increasing in the present generation considering various aspects where the views of individuals who are quitting non-vegetarian food have different views. For instance, consumers, vegetarians have a distinct psychological reason for quitting non-vegetarian food whereas consumers who particularly adopt veganism have a different psychological approach towards their choice to quit non-vegetarian food (Khare and Pandey, 2017). These are two different consumer identities that companies need to focus on while developing and creating new products and services for their target customers.
Considering the growth of people who have started adopting vegetarian food it has been seen that companies have started to develop plant-based alternatives for non-vegetarian items (Garg and Moreno, 2019).Therefore, plant-based alternatives for cheese, milk, meat and eggs have grown by 17% in 2020, when it comes to food sales, it has increased only by 2% (Forbes, 2021). Such information linked with consumer buying behaviour can be identified specifically by companies when they are able to develop consumer identities and profiles based on their preferences and purchasing patterns. The estimated total market of plant-based on rent in foods has reached a total of $3.7 billion in the last year (Forbes, 2021).
This information and data linked with consumer buying behaviour and consumer identity allow organisations to develop and focus upon strategies that would help them in developing a plant-based alternative. As a result, the identification of customer identities has helped organisations to develop new opportunities that have not only helped them in gaining a considerable amount of growth in the market but has also helped in the development of new products. Products such as vegan meat have now become a reality considering the fact that these food items are designed and developed to taste exactly like their non-vegetarian counterparts (Araya et al. 2019). For instance, vegan cheese, chicken, and meat have become a common source of diet for several vegan individuals. Developments of these products in the markets have also helped organisations to gain a consistent amount of competition against their competitors who are in losing customers that adopt veganism. The increasing number of vegans in different markets can be identified to be a threat and opportunity at the same time. For instance, fast-food chains such as KFC, McDonald’s, Burger King have a wide selection of non-vegetarian food items but do not have a wide selection of vegetarian food items (Ehgartner, 2018). Considering the growth of vegans in the market, companies like these need to make changes to the menu and add more food items that can cater to vegan customers. Similarly, grocery retail stores like Woolworths, Tesco, Coles, and others have also started the development and sale of several vegan specific items.
The above figure reflects the growth of American packaged food in Australia and considering such organisations such as Woolworths have taken full advantage and developed their own line of vegan food items based on the shifts and consumer identity towards veganism (Statista, 2021). It has been seen that companies like Woolworths and calls are focusing upon the increase in consumers who are adopting a vegetarian diet. Based on such changes in consumer identity, these grocery retail stores have introduced 83% more vegetable-based products after 2017 (Forbes, 2021). Opportunities for Woolworths and Coles are higher considering the fact that Australia has been identified to be the third fastest-growing country in terms of vegan market. To avail such opportunities, they have taken a step ahead and launched the Metro Shop concepts that specifically address consumers who are health conscious and offer a wide range of organic and vegan products (Food navigator, 2021).
Paid influencer
Paid influencers are social media influencers that have also affected consumer behaviour in the market in several ways. Influencers are known for the promotion of new products, services and practices in society using their social media accounts and by far in terms of social media marketing, they are the most successful individuals in altering consumer behaviour (Singh et al. 2021). Therefore, social media platforms such as Facebook, YouTube, TikTok, Twitter and Instagram can be taken into consideration as their influences regularly update their content, and in the case of vegetarian food adoption, there are several social media influencers who have been promoting veganism lately.
In this regard, influences such as Tabitha Brown can be taken into consideration who has 1.8 million followers on her Instagram. Followed by her is Ella Mills who has 1.7 million followers and considering the engagement rate of these influences on their social media platforms specifically on Instagram it can be said that they have been influencing millions of people on different social media platforms on a regular basis (Neoreach, 2021). Apart from them, there are other influences as well who have millions of followers, and these individuals are constantly being motivated to adopt vegan food. Such influence upon the general consumers has a huge impact on the consumer behaviour due to which trends towards a particular product change. Furthermore, it is also been seen that changes in the consumer behaviour can also be brought about by companies who pay influence is to promote their products in the market (Phua et al. 2020). Social media influencers can often be found to endorse a particular brand or company for their products and services; hence, consumers buying behaviour changes significantly.
This phenomenon has been widely utilised by several organisations in different industries and specifically in the food retail industry. Influencers are not limited to promoters but food review bloggers who visit different restaurants and rate the products and services of a particular place (Pilař et al. 2021). In this regard, platforms such as Zomato, Uber Eats, and similar companies have turned out to be a great place for food bloggers that has not only helped customers to understand the quality and services of a particular restaurant but has also held restaurants to improve their existing products and services (Man of many, 2021). All these factors address changing consumer behaviour and are a result of influencers engaging their followers in the process.
d. The influence of culture
Culture can be said to be one of the biggest factors, which has an extensive contribution towards influencing consumer behaviour towards veganism. Consumer behaviours on vegetarian foods or plant-based diets are severely influenced by culture (Griffin, 2017). Different locations have different cultures with diversified people having different opinions. Therefore, choices of foods for different cultures can be different which can affect consumer behaviour. A survey was made on the people of Loma Lind, which further inspires them to opt for diets that are plant-based with some indulgence of dairy and poultry, and on Copenhagen which was selected due to their pledge towards a sustainable lifestyle, for instance, achieving the award of Green Cities in Europe. Loma Linda was expected to be motivated by religion whereas Copenhagen participants were expected to be motivated by sustainability. However, from the results, it can be seen that there is a huge difference between both locations on how people perceive vegetarian diets. In Loma Linda, about 67% of the participants think that lacto-ovo-vegetarian diets are found to be healthy within the city, with the other 23% thinking that the diet is seen to be a lifestyle change due to the influence of religion (Table debates, 2020). On the other hand, in Copenhagen, 31% of participants think having plant-based foods is a measure to fight changes in climate and 27% prefer as they have a strong belief in the rights of animals (Table debates, 2020). The main motivation for continuing their diet was animal welfare (41%), health (22%) and climate/environment change (29%). Whereas, in Loma Linda in California, the proportion was health (70%), habit (7%) and spiritual/religious belief (7%) (Table debates, 2020).
Based on Hofstede cultural dimensions different consumers from different locations perceive vegan food from different perspectives based on their differences in culture. For instance, in case of adopting vegetarian diet the long-term orientation of the Hofstede’s cultural dimension can be taken into considerations (Mindtools, 2021). Vegans have a long term in goal in reducing climatic changes thus these consumers in the market can be identified to be consumers with long term orientation compared to the ones who have not yet adopted a vegetarian diet. Similarly, consumers who are motivated to adopt vegetarian diet can be identified to be more indulgent as they these individuals are optimistic in their nature (Mindtools, 2021).
However, non-vegetarian consumers can also be greatly influenced by the surrounding culture such as a consumer from a family of non-vegetarian can shift to plant-based diets. The Decision-making unit for the consumption of vegetarian foods includes a large population over the world. It has been noticed that 26% of millennials across the globe are vegetarians (Jasimovic, 2020). Moreover, 10% of the worldwide population are following a vegetarian diet. It reflects the rising popularity of vegetarian food consumption across the globe. With rapid consideration and growth of social media usage over the globe, consumers are able to disclose their preferences in digital platforms. The decision-making unit, in this case, might be widely benefited from an advanced consumer analytics approach that might be supportive to analyse consumer-purchasing intention. The existing vegan consumers operating across social media channels can be accounted as prime influencers in this case. The health aware people across the market is reflected to be the buyer in this case. Around 25% of the global population is also expected to consider vegan substitutes by avoiding meat (Jasimovic, 2020). According to the statistics, respective food service providers highly considered social media engagement as a subsequent pathway to analyse consumer behaviour and thereby arrange potential offerings.
After moving into a location with a high concentration on vegan food choices consumers can realise the importance of conserving the environment by decreasing the carbon footprint generated from the livestock’s (Oliver, 2021). Even, the concentration towards healthy lifestyle choices is rising extensively which can put an impact on the people for shifting to vegan food choices as they have a variety of food range with low levels of fats, more dietary fibre, lower risk of cardiovascular disease and other such benefits. According to the Society of Vegans, there were around 600,000 vegans in Great Britain, which is about 1.16% of the population (The Vegan Society, 2019). This signifies that the concept of veganism is expanding at an extensive rate.
Figure 10: countries with an increasing vegetarian population
The awareness towards the green environment is increasing among the consumers and along with those; animals’ rights are on the move in the minds of the people with increasing use of social media.
With these, the culture is shifting at a phenomenal rate in the world, and therefore, consumer behaviour is also shifting. The overall population of the world is getting advanced in different aspects such as technology and others and are also understanding the importance of the resources of the world (Garg and Moreno, 2019). This shift can be the impact of several factors such as the influence of surrounding culture, self-awareness about the environmental progression, family traditions and many other such factors which contribute to the change or shift in the consumer behaviour towards making vegan food choices.
Moreover, the number of social media influencers are increasing which is creating a cultural change in the market. The above section has highlighted a number of social media influencers who positively influence people to adopt vegetarian diets. The influence of these individuals on various social media websites have created an increasing demand for fresh vegetables specifically organically grown. The organic food industry of Australia has been growing at a rate of 13%. As of 2019, the value of the organic food industry was estimated to be around $2.6 billion (Better health, 2021). This indicates that consumers are adopting organic food, especially vegetarian diets under the influence of various social media influencers that are growing on a regular basis. One of the main reasons due to which the influencers are able to create cultural changes and bring modifications to the food and diet behaviour of individuals is the fact that they specifically highlight the benefits of a vegetarian diet. These influences of social media play a vital role in altering consumer behaviour and preferences. The changes in consumer preferences thus create changes in the demand in the market based on which companies devise new strategies of product development and marketing to cater to the different needs and demands of the consumers.
e. Recommendation
Launch Campaigns for awareness
Woolworths is a supermarket company in Australia and to promote and support veganism around the locations, the company can launch its own campaign, which can specifically focus on spreading awareness for the benefits of consuming vegan foods over the normal non-vegetarian food choices among the people. In several cases, most of the consumers do not yet have much knowledge about the benefits and such related goodness about the vegan food choices (Lorenz and Langen, 2018). Moreover, they have a perception that vegan foods do not have much variation and thus can make them easily bored and force them to opt-out from the shifting in a very short period. However, this perception needs to change which can be done through launching campaigns. These campaigns can extensively assist in getting or conveying to the consumers about the knowledge of different varieties of vegan foods and their massive benefits towards the health of the people and along with that for the betterment of the environment through decreasing on the carbon footprint.
Supports existing vegans through resources
Woolworths, apart from launching their own campaigns for promoting every aspect of vegans, can also support the existing campaigns and other such related things of veganism through their resources such as financing, providing products as samples and others. In several cases, many issues arise when hosting a campaign such as financing could be one of the biggest factors, along with that, simple products also need to be provided for making the consumers understand the importance and value of vegan foods (Filieri et al. 2018). However, this gets critical with shortages of funds and resources, which can be supported by Woolworths in the process of spreading and promoting the concept of veganism. By supporting the promotional events of the existing vegan, the company can contribute extensively to the overall movement, along with that, the brand of the company also can be benefitted. With such promotions, the culture of vegans can be perceived by several others with the appropriate guidance and necessary knowledge for improving the world and as well as the health of the people (Filieri et al. 2018).
Introduction of new products
The concept or culture of veganism is increasing at a phenomenal rate; therefore, Woolworths can introduce several choices of products, which include differentiated options for vegan foods. This can assist the consumers by getting a variety of choices without having to get bored of having the same foods over time, along with that, with different choices, the chances of more consumers shifting towards a plant-based diet can be promoted. Additionally, the company can also create a separate section, which only provides products for vegans. This can be done flawlessly by putting on signals to make the vision of the consumers easy to direct them towards the section which provides only vegan food products (Shah et al. 2017). Other than that, the company can also differentiate their normal products and vegan products by introducing a new mark on the packages, which signifies only vegan foods. Furthermore, the mark on the packages can make it easier and time-saving for consumers to select their products. Even, the ingredients inside the food can be mentioned on the packages so that it gets easier for the consumers to analyse the contents of the foods and as per than can select their preferred food products.
Conclusion
From the above portfolio report, it can be concluded that the concept of vegans with plant-based diets is rising among the consumer base all over the world and to get a hold on that consumer base, several companies are approaching with various product ranges which can serve the needs of the consumers through different offline and online modes. Adding to that, this shift can be seen to be brought forth in the environment due to the culture and lifestyles changes of the consumers. This vegan concept has been extensively beneficial for the environment and thus promotions and awareness campaigns can further assist in converting the choices of the consumer towards vegan food products.
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