The understanding of consumer behavior has become a critical aspect of business growth. The success of any firms marketing strategy is dependent on the firm’s ability to understand consumer behavior and incorporate policies aimed at meeting consumer needs. Consumer’s behavior is influenced by consumer tastes and preferences which keep on changing, and therefore business has increasingly adopted the knowledge of consumer behavior in a bid to understand the different factors influencing their consumption behaviors to improve their sales and product or brand development strategies (De Grauwe & Ji, 2018). Consumer purchasing decisions are very critical in determining the size of company sales or profits, and therefore it has become a very significant aspect that every manager of a company decided to implement. This essay, therefore, seeks to provide an understanding of consumer behavior by analyzing various factors influencing consumer behavior towards a firms brand or product and their impact on their consumption behavior. It will also provide essential insights on how the knowledge can be used to improve implementation of social change in firms and also improve their marketing strategies.
The scope of consumer behavior has been enhanced through the disciplines of behavioral psychology, behavioral economics as well as the knowledge of marketing science. The experience from these disciplines brings a prevailing view of the nature of human behavior or consumer behavior and the factors with which the response is a function. Consumer behavior can, therefore, be understood as the individual decision or actions that influence their consumption and purchase behavior towards a particular brand or product line (Yang & Gabrielsson, 2017). In behavioral economics, consumer consumption behavior is constrained by their income levels or their resources which determine their purchasing power. Consumers are generally characterized to have unlimited needs or wants, but their resources to have their needs met are scares. Therefore consumers have to make choices about which of their wants is to be satisfied first depending on their available resources. According to the marginal utility approach and the indifference curve concept in behavioral economics explains consumer behavior as influenced by the changes in prices and income (Minton et al., 2017). However, in the modern corporate world as much as rate and income are critical determinants of purchasing power of consumers, the consumption behavior is highly by consumer choices based on individual tastes and preferences.
The chosen case analysis is the Woolworths Group Limited which is an Australia based Retail Company. The company supermarkets occupy over 80 percent of the retail industry and the second largest retail company in the country. As of 2016, the company financial reports recorded net revenue of USD 59 billion which was a loss of USD 1.2 billion resulting from the company write down activities of the failed master business. Despite the loss the company has remained competitive in the industry with the company top brands such as the Delicious Nutritious, Farmers Own Milk and Free From, Woolworths range among others (Solomon et al., 2014). The company profitability and performance in term of sales growth is determined by the consumer behavior towards the company brands. It is therefore essential to analyze the factors influencing the company brand or product consumption behavior to help the management on developing effective marketing strategies for the products.
The factors affecting consumer behavior towards a particular company brand or product vary from one person to the other depending on their tastes and preferences and the ability of the product or brand to satisfy their wants or to maximize their utility (Cantallops & Salvi, 2014). One the primary factor influencing consumer behavior is the consumer attitude towards the company brands and secondly is the consumer personality or lifestyle. These factors play a vital role in changing individual consumer behavior and can be used by the management of Woolworth group limited to improve their marketing strategies and recover the losses the company experienced by enhancing the company sales.
The consumption of a particular company brand is profoundly influenced by individual views which include the beliefs and feelings the consumers have towards the product as well as the behavioral intentions of the product or brand. A consumer can hold both positive and negative sentiment towards the product or brand, for instance; a consumer can believe that the Woolworth Delicious Nutritious brand is the best brand in Australia or even have an idea that the brand packaging is not the best (Armstrong et al., 2015). The consumer feelings towards the brand are influenced by the belief in the products while the behavioral intentions are concerned with the plans the consumer has for the product or brand.
Positive consumer attitudes towards a product or brand will have a positive impact on the product purchase decision. If the consumer believes that the commodity is valuable to them, then this belief will positively influence their purchasing decisions for the product. If the idea is contrary, then the consumer may shift his or consumption decision towards the consumption of a substitute brand. Regarding the behavioral intentions, it is essential for each brand to be able to help the consumer achieve a certain level of satisfaction or utility (Lantos, 2015). A consumer will continue consuming a particular brand if the brand is helping him or her achieve or maximize efficiency.
Nature can be understood from two dimensions; the first dimension is the consumer’s personality while the second dimension is the brand personality. Consumer personality is an internal characteristic and plays a more significant role in influencing consumer behavior towards a company brand, brand loyalty and also their purchasing behavior (Ghose et al., 2014). A consumer will for instance even pay more for a product which is environmentally friendly compared to other products. The ability of a brand to satisfy the consumer needs is what dictates the consumer personality and decision making and therefore most company marketing departments use consumer personality traits to predict a brand consumption behavior in the market. Brand personality explains the differentiation of the brand from other brands in the market and plays an essential role in contributing to favorable attraction to the brand. It has been one of the most effective determinants of consumer behavior in consumption of consumable products than the durable products. Therefore both consumer attitudes and personality may be internal characteristics and play an essential role in influencing consumer consumption and purchasing behavior, and their practical analysis can help develop effective marketing strategies which will help improve product performance in the market.
Changing consumer attitudes towards a particular company brand is complicated however companies can develop alongside some psychological strategies which will slowly help in improving their position or shift towards newly developed brands (Foxall, 2015). Developing strategies to change a consumer’s attitude towards the brand may be seen as a company motive to increase sales, and therefore it will take significant company efforts to change the consumer belief, feelings and behavioral intentions towards the brand. The consumer attitudes can be improved through classical conditioning which implies that the marketing department will attempt to condition the brand with liked stimuli by the consumers (Hudson et al., 2015). For example, to change the consumer’s attitude towards the Woolworth Farmers Own Milk brand by conditioning the brand to sweet products from milk such as yogurt, chocolate among others.
Changing a consumer behavioral intention with a brand may not be easy however when the market is characterized with similar products, to avoid consumers brand loyalty from shifting to other substitute brands the marketing department can develop marketing strategies such as offering discounts and coupons as well as ensuring that there is better shelf space to facilitate efficient shopping (Vigneron & Johnson, 2017). Changing a product belief may be difficult especially when the consumers have an unfavorable view towards the brand. However, the company has the opportunity to develop and strengthen their brand image to the consumers which may drastically change their belief by changing the aspects which the consumers consider unfavorable.
Consumer decision making regarding the purchase of a product is determined by the products ability to meet their needs and help them maximize their utility. Consumers are considered to be indifferent and that their consumption behaviors have increasingly changed due to the change in taste and preferences and the existence of substitute goods in the market (Davvetas et al., 2015). Many firms are therefore concerned with understanding the consumer behaviors and using the knowledge to predict their behavior and develop effective brand marketing strategies. Following a consumer personality and how their traits impact their purchasing behavior will contribute positively to enhancing the brand loyalty and purchase decision. If a consumer decision making on a product is based on environmental sustainability of the product, then such a trait can be used by the company to produce and brands which are environmentally friendly.
Product branding and increased advertising strategy can play a significant role in influencing consumer purchasing behavior. Brand advertising has changed the face of marketing strategies, and most firms are using the classical conditioning and celebrities to increase their sales volumes and get the consumers love their products (Heding et al., 2015). However, the strategy has become comparative advertising which every brand is using and henceforth led to change in consumers thinking that the move is made to increase company sales but not to improve their satisfaction.
For the case of consumer’s personality, the social character of a consumer is essential in making product or brand purchasing decision. Social nature can be analyzed in the fact that some consumers rely on themselves when making decisions while others depend on the opinion of other people before making a consumption or purchase decision (Medway et al., 2015). For the consumers who rely on themselves, they are considered to be innovative, and the company brand marketers are required to use strategies which offer more appeal, more rational and provide descriptive, detailed information about the brand. The brand marketers can also look at the features which are attractive to the consumers or which enhance consumer’s feelings towards the brand or even seek to improve on value addition on the product (Aras et al., 2017). If the consumer relies on others in making their purchasing or consumption decisions, then it is essential to develop effective marketing strategies by the use of social media platforms and to focus more on the brand advertisement. As long as the ad is well organized and attracts positive feedback, then such consumers will be able to purchase the company brands.
Consumer decision making consists of significant fives steps; need recognition, information search, evaluation of possible alternatives, purchase and post-purchase behavior. Such steps alongside the understanding of consumer attitudes as well as consumer and brand personality can be beneficial for the company marketers in helping them understand their customers and improve their communication regarding a particular brand (Edbring et al., 2016). Need recognition can be based on consumers internal or external stimuli, and it occurs whenever a consumer is faced with the difference between the current actual and desired states. A consumer can recognize the need to satisfy a particular want from an internal stimulus and influence a purchasing decision for a brand while on the other hand he or she knows a need that wants to be satisfied from external stimuli that are from friends or surrounding environment. Therefore the marketing department is supposed to identify the different methods of need recognition by consumers and develop effective strategies for meeting their needs.
The second step involves the process of information searching about company brand and the type of information available is very important in influencing consumer behavior. The consumer after getting the relevant information will then evaluate the possible alternatives. It is essential for the company to ensure that the brand or product is unique to other brands in the market to influence purchase decision making (Pollard et al., 2017). The consumer will then purchase a brand and react to the consumption behavior. Understanding the process of consumer decision making as well as the two factors influencing consumer behavior for Woolworths group top brands will, therefore, be very useful in helping the management as well as the marketing department to develop helpful product and brand marketing strategies which will eventually help the group recover from the 2016 loss by increasing their sales returns and profitability.
Different marketing strategies have been used by various companies to help the companies or business increase their performance through increased sales and help offer quality goods and services which will assist in meeting consumer demands and needs (Souiden et al., 2017). Different theories have also been developed to help in understanding the various marketing strategies. The analysis of the marketing strategies and different methods will help us know how they can be used by the marketing department of Woolworths Group to understand the high individual influences on consumer behavior and improve the company marketing strategies.
This strategy has been developed to help marketers understand the various factors which must be taken into consideration when designing a marketing strategy for a company product or brand in a particular market (Menidjel et al., 2017). For effectiveness of the plan, the marketers must take into consideration the following factors; the product, price, place and promotion aspects of a company. These four factors or elements form a company product or brand marketing mix.
When developing a marketing strategy, the marketers should take into consideration the price aspect of the brand or product. They should evaluate the existing pricing strategies and compare with the competitors pricing strategies. The price range of a product influence consumer behavior and some consumer segments may develop a personality trait that a less priced brand is more inferior in the market regarding quality (Orji et al., 2017). Therefore the company pricing strategy should be considerate of the competitor’s price range as well as the marketing environment. The product worth is also a very crucial factor in developing an effective marketing strategy since its worth is measured by consumers’ willingness to pay.
The strategic location or environment is also very critical in developing an effective marketing strategy. It defines the place where the consumers can access or obtain the brand s or products from. The markers of the company should ensure that the pace is convenient, accessible and economical regarding the cost incurred by consumers to obtain the goods as well as to the company (Keller & Richey, 2017). Consumers will consume or are likely to purchase products and services in place which is more convenient to them. The company promotional activities should be aimed at communicating the benefits of the company top brands, and therefore the marketers should ensure that the brand promotion activities are apparent to the target market (Ong et al., 2017). These will be helpful in attracting the brand consumers whose consumption behavior is influenced by advertisement or social media or depend on their external stimuli to recognize a need.
These marketing theories are used in helping marketers and the management of different companies or firms to develop or improve their marketing strategies. The consideration marketing theory provides that the brand consumers act as subsets by which the decision-making strategies are applied. The purchasing behavior, therefore, will be influenced by consumer’s ability to develop a list of possible places to purchase or acquire and brand (Parsons et al., 2017). The choice will then narrow down to a specific number which will then be used to make the final consideration to make a purchase decision. The Woolworth marketing department should also, therefore, ensure that their brands are strategically located by establishing different stores in their value chain grocery and supermarkets to increase consumer convenience to access the brands.
On the other hand, the involvement marketing theory is useful in helping the marketers understand the efforts made consumers acquire a brand and how it’s influenced by consumer behavior. The approach has established a direct relationship between the number of cognitive efforts used by consumers to purchase a brand and the level of perceived importance of the brand to the consumer life (Bilgin et al., 2018). For example, the cognitive efforts used by a consumer to obtain cleaning detergent are less significant compared to the cognitive efforts used to get a new car. The theory, therefore, deposits that the consumer degree of involvement in purchasing a brand is not a function of the brand price but the perceived impact of the brand on the consumer’s quality of life (Aviv et al., 2018). The above marketing strategy and theories can, therefore, be used by the Woolworth Marketing department to develop effective marketing strategies which will help the company improve profitability and service delivery to their consumers.
Conclusion
Developing effective marketing strategies from the above analysis can be said to be a function of consumer behavior towards the company brand. The knowledge of consumer behavior is therefore essential in enhancing company brand development and improving the company marketing strategies. Consumer behavior is influenced by many factors including cultural, social and personality related influences. The understanding of consumer attitudes, as well as the consumer personality and brand personality, will, therefore, help the company improve their strategies and recover from the current loss and also improve the company competitiveness in the Australian retail industry.
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