Discuss about the Customer Purchase Behavior.
The process used by customers in deciding whether to purchase a product or service is indeed changing day in day out. The behavior is so complex that the producers, the sellers, and marketers find it so hard in identifying the exact features and factors that influence customers in making the buying decision. Customer behavior, therefore, is defined as the complex and dynamic process a user or buyer of a product goes through before purchasing a product. It is a process that starts with the development of the desire to buy a particular commodity (Blythe, 2009). It starts with the realization of the need. To satisfy this need, the customer has to purchase the product. And before buying this product, a customer usually undergoes various stages explicitly discussed in the body of the report (Blythe, 2009).
In this report, I have covered the subjects as follows. First and foremost, there is the identification of a company as well as the product offered. Then concerning this product, I have comprehensively discussed customer behavior. The primary factors covered under the section include personality, attitudes and motivation. Secondly, the report has explored how these two elements relate to the customer behavior. Also, the report has how the marketers in Woolworths Limited can apply the understanding of these influences on customer purchase behavior to enhance acceptance of clothes in particular suits offered by Woolworths. Lastly, the report has provided recommendations concerning marketing and customer behavior.
Company
Woolworths was established in 1924 and majorly carry its operations in Australia and New Zealand. In Australia, Woolworths Holdings Limited is one of the biggest Supermarkets and commands a market share of about 40% in retail and grocery industry. It majorly sells home ware, digital products, foods, clothing, drinks, and others. Customers prefer shopping in the stores of Woolworths just because of high-quality goods and varieties of the goods provided at the same warehouse. The company has recorded stellar performance for several years in Australia. Through the duopoly that was established between Coles and Woolworths, the strategy assisted them to dominate the market for a long period. However, the entrance of competitors like Aldi into the industry has spurred a new rivalry. The pricing strategy adopted by Aldi has successfully won a significant market share that was initially for Woolworths. The new market forces have thus forced Woolworths to redefine marketing and operational strategy to retain the market share and even grow further.
Product and location
As earlier noted, Woolworths provides various types of products. These goods can only be sold in bulk if proper marketing plans are put in place to enhance consumer preference. This report has primarily based on the entire range of products offered by Woolworths. They include clothing, electronics, fruits, drinks, vegetables, and other household goods. The fact is that convincing a customer that these are the best quality and products that can satisfy their need require the application of various marketing and promotional approaches. For instance, if Woolworths was a manufacturer, I could suggest that it manufactures quality products, offer discounts to customers and further base much on sales promotional initiatives. With the case of a retailer, however, the requirements are slightly different. Indeed, these stylish products like clothing, electronics and drinks require regular study of the users’ behavior and enact different principles to influence the buying behavior.
Moreover, Woolworths Supermarkets has located its headquarters at Bella Vista in New South Wales, Australia. It has about 961 locations or branches that were established to serve the ever-growing consumer needs. Woolworths works closely with the farmers and growers in Australia to enhance production of quality products. Additionally, it has incorporated technology through creativity and innovation. Using this technology, consumers are able to shop online. They use the developed Woolworths app to place orders wherever they are and the products are timely delivered to their door steps. Any person within Australia can order the products without consideration of the distance. It thus implies that the company is located in most parts of the country and even those who hail from the interior parts of Australia can be served.
Consumers
These are individuals who purchase the products for consumption purposes. Before making the purchase, they follow various steps and considerations. In this report, the consumers are the entire population in Australia since Woolworths provides a range of quality goods and services to all groups of people.
Photos of some of the target market by Woolworths
Marketers, therefore, have to use conceptual skills, technical expertise and marketing knowledge to ensure they read consumer’s mind and apply an appropriate technique to influence the purchase process (Lancaster et al., 2002). Customer behavior is affected by internal and external factors. The internal forces are those that can be controlled by the customer and are classified into personal factors and psychological factors. The individual factors include age, income, occupation, lifestyle and personality. The psychological factors include motivation, perception, learning and beliefs and attitudes (Salomon et al., 2010). On the other hand, the external factors are those that are beyond a customer control. They are primarily classified into cultural factors and social factors. Cultural factors include culture, sub-culture and social class. The social factors include the family, reference group and role and status (Awa et al., 2010).
Figure 1.1 factors that influences consumer behavior.
From the figure above, customer behavior is influenced by four major factors which include the cultural, social, personal and psychological. Just to mention, a customer undergoes five stages to purchase a product. The first step includes problem recognition. Here the customer realizes the need for a product. Next, the user search for more information regarding the product. The third step includes the evaluation of alternatives. The customer now uses the information gathered to assess if buying the product will be the best option. The consumer, however, weighs the needs and information identified to formulate a solution. The next step involves the purchase of the product. After the purchase, the consumer will undergo post purchase behavior which is the last step (Kardes et al., 2008).
Figure 1.2 consumer behavior purchase process
Source: Form this report.
Personality emanates from the interaction of physiological and psychological influences in an individual and leads to a constant character. It includes attributes like curiosity, adaptability, shyness, confidence and more (Sarker et al., 2013). Usually, customers apply these attributes in various proportions while trying to purchase a product. Some perceive that if they are purchase particular products, it can build the self –concept (O’Cass, 2000). Personality extends to consumers desire to be categorized in a particular social class. Some products can be seen as inferior and persons who may associate other factors like level of education, economic class and the status quo (Haliru, 2013). However, personality attributes vary from one person to the other. A marketer too has to be in position to identify complaint personalities, aggressive personalities and attached personalities to find appropriate measures how to handle such customers.
From the reading, I recognized adaptability as one of the personality exhibited by many youths. Woolworths provides high quality products. Some research say youths are people who go by fashions in most of the products they purchase (Rogers, 2010). Before consumers with personality issues purchases a product from the stores, they usually ascertain that any of the highlighted character attributes favors them. For instance, based on electronics, a consumer has to ascertain the manufacturer, the features, price and alternatives available. To overcome this form of personality, Woolworths for our case should ensure that all varieties possible in the retail industry should be provided (Chowdhury, 2007). These products should be further segmented based on attributes like price such that people from all economic spheres should get their quality in the same store (Tan et al., 2004). The diversification and offering of latest products will be an appropriate solution for this influence.
Most customers prefer trying out products that are very new to them. For instance, they can enter the shop just to check about the new fashions in the store. If they miss getting such products, they may develop a negative attitude about the company (Mathur, 2008). Notably, if customers fail to get the latest products, they may take long to make decision regarding whether they should make a purchase or not. To overcome such an influence, a company should provide varieties of products to allow them taste any that already exist in the market (Martinez, 2012). Besides, Woolworths should provide a variety of products to the entire target market to allow them to get all the products in one store.
Discussion and analysis of motivation
Everyone is motivated in a different ways to purchase a commodity. Motivation is perhaps a challenging aspect to identify from a customer because it involves working with the subconscious level (Murat, 2011). Because of the difference in biological, social and physiological needs, consumer motivation to purchase of particular products will always vary. A need becomes urgent when it is pressing (Schiffman & Kanuk, 2008).
Pressing needs are those that cannot be postponed (Frey, 2008). They are actually the opposites of impulse purchases. These majorly affect consumers in the food but the electronics and clothing departments where the quality, innovativeness, fashion, brand design, are needs that can be postponed. with motivation, a buyer has just to develop a desire to satisfy a particular need. This issue can be adequately addressed by providing a variety of quality products, in that when any need arises, consumers can access the product from the premises. However, considering this motivation aspect, the firm should establish some measures to influence undecided customers to perform an impulse buying. The goods should be appealing and conspicuous to make a consumer who had not developed the need for a given product to develop suddenly (Cook, 2008).
These are needs that customers don’t have a priority over them. They can be postponed and get satisfied the other time. Sometimes, they can fall under impulse purchasing decision making. Some buyers are usually undecided about the goods to purchase. Such people are significantly influenced by the attributes of the commodity. This factor is, therefore, sensitive for the marketers to be in a position of identifying such customers and convincing them to purchase the merchandise (Whiteside & Lynam, 2001). This consideration should be at the heart of the electronic and clothes department where the needs sometimes arise unexpectedly (Kotler & Armstrong, 2010). Marketers should therefore, be in a position to identify such customers so that they can convince them to purchase some commodities.
Ways the marketers can apply the knowledge of consumer behavior in developing marketing strategies.
Marketers can, however, fail to hit targets if they lack sufficient knowledge about the consumer purchase behavior. These strategies can base on Porters five forces to identify the level of competition in the markets and relate with the consumer behavior in establishing marketing strategies. For instance, the tool will assist in understanding the degree of competition, the possibility of a new entrance, powers of suppliers and powers of customers and formulate appropriate marketing strategies (Jobber, 2007). Command of adequate knowledge about internal and external influences on purchase behavior will assist marketers to apply the knowledge in undertaking the following:
First, the marketers can use the knowledge in segmenting the market. During marketing and sales promotions, Woolworths should use different mechanisms to differentiate. Based on the internal influences consumers should be segmented according to the age, personality, attitudes and more. The segmentation will assist in presenting the right product to the right people (Hawkins, Best & Coney, 2000). For instance, offering a free sample like match box to an individual hail from a royal family cannot create a positive impact, or giving the same matchbox to a kid of five years cannot positively influence the attitude of such customers. Therefore, a clear understanding of the internal forces can assist marketers to segment the market accurately.
Secondly, the marketers can apply the information to perform Target marketing. A strong understanding of consumers influence can help the marketing personnel to target the right group of customers (Kotler et al., 2005). Though the goal can involve the general public, some group of people will require being reached more than the other. Maybe, they could have developed a negative attitude towards the company, or they could be unwilling to associate their personality with the enterprise due to wrong information they withhold. Additionally, the knowledge about consumer behavior is instrumental in assisting marketers to apply the marketing mix tool and promotional mix to ensure the right information reaches the target market (Heath, 2001).
Products; through an understanding of the consumer behavior, the firm should provide products that only suits customer needs. They will also present the right products to the required target market.
Price; the firm can charge the right price. The variety of products offered will be tagged with an affordable price. Tagging of the price on products will enhance viewing of products by customers and those who are price sensitive can purchase the product based on the comparison.
Place; understanding the consumer behavior will assist in arranging the products in the stores to accessible places. The stores will also be located at a hub where customers can easily access them at their convenient time.
Promotions; the firm will manage to carry out appropriate promotions activities. It will lay out strategies that ensure the promotion campaigns reach every individual as planned (Vargas, 2013).
Woolworths however, has to consider adopting more strategies to ensure that it fully understands customer behavior and how the business has been affected. Some of the suggestions include the following:
First and foremost, the company has to undertake a significant investment in research. The research should focus on marketing and customer behavior. By so doing, it will be possible to unearth all the influences that affect purchasing behavior of different segments in Australia.
Also, the management should intensify the use of marketing campaigns. The campaigns can enhance the reach of more customers, identify some of their needs, and further affects their attitudes towards the company and its products. This closeness and interactions with the customers at the grassroots will foster a good relation hence reducing some of their consideration before making purchases.
Finally, the management should consider establishing career development programs. These programs should include training, coaching and seminars just to impart the relevant and current skills about consumer behavior. As a result, the marketers will use the skills to identify some influences and induce consumer purchases.
Conclusions
In conclusion, this dynamic and complex customer purchase behavior is a challenge to most of the marketers in developing appropriate marketing strategies. Apparently, most of the marketing mix and promotional strategies applied by organizations have failed to adequately address the challenge. Research is, however, believed to supplement technology in understanding the unknown characters about consumers. Marketing, therefore, intends to influence the customers in making a decision regarding a product and further make a purchase. It is the responsibility of the marketers to accurately position the product and assist the consumer to understand more about the product. Doing this can enhance purchase of a commodity and even create loyalty that automatically results in a repetitive purchase. The report has further, acknowledged the use of Porters five forces and marketing and promotional mix to assist in fully understanding of current internal and external customer behavior influences.
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