Drawing on the theories and models presented in BZ251 Consumer Behaviour, prepare a brief report for Pastor Pat discussing the factors to be considered for this venture.
The era of industrialization needs an improving factor among the business policies, which in terms defines the capability and competitiveness of the organization. Consumer behavior is the most important aspect for finding improved marketing strategies, which will maintain their position in the competitive market. Consumer behavior can be defined as, the procedure of the understanding the customer needs using proper procedure and services to fulfill the consumer needs (Aviv et al. 2015). Consumer behavior involves sociology, psychology and social anthropology. The demographic study is done on the customers to understand the behavior of them to cope up with the variable needs of them. An organization should have some effective planning and measures to calibrate the variable needs of their customers. According to the context of this report, Pastor Pat has decided to set up a combined Christian bookstore with the option of Op-Shop in Bankstown NSW. Pastor Pat has planned to arrange music set up and gifts with in his shops, which will make it more attractive and innovative to their customer (Cantallops and Salvi 2014).
Factors important for considering the venture:
The venture Capitalist has to be concerned about the venture while he is selecting the investment. In addition to this, it is the duty of the entrepreneur to consider several factors before selecting the venture.
The rapid growth of the venture capitalist industry caused as there are availability of unprecedented amount of capital. This means that, the entrepreneurs are facing bewildering choice between the different sources of finance. The following factors will help Mr. Pat to implement his decision:
The above mentioned factors are very essential for selecting a venture for marketing. For setting a One-Stop Shop in the center of the Bankstown these factors will be helpful to his entrepreneurial strategy development.
Consumer behavior has several issues for understanding the issues of the consumer and to do improvement among the strategies involved into the business policies:
The customers always chose between the brands, retailers and products according to their psychological behavior of them (Claiborne and Sirgy 2015).
Consumer behavior while considering the other marketing decisions and shopping.
A limitation of the knowledge among the consumer influences the marketing decision making from various ways.
Motivational aspect of the consumer in case of the decision making for choosing the products and services among different brand and providences is important.
The effective way of implementing marketing strategies to impress the consumer in a effective manner.
According to the context, Importance of consumer behavior specifies different applications of it in case of establishing One-Stop shop:
Firstly it is applicable towards the betterment of marketing strategies involved in to the establishment of the shop in Bankstown NWS. An example can easily explain this: consumers pay more attention towards the advertisement while they are purchasing something or interested for shopping, so Pastor Pat have to schedule their advertisements in those places and timings where they can easily attract their customers towards their offerings and services. It is always very crucial for any organization or business holder to impress their first customer, because at the stage of starting they don’t have numerous numbers of customers to advertise their offerings. So Mr. Pat must have good financial back plan with the pleasant atmosphere with innovative offering which includes good books and music collections (Escalas et al. 2013).
Secondly another innovative aspect of consumer behavior is that, the individual who is planning to build up a improvised business must have the idea of social marketing. Social marketing involves the strategies to understand the consumer, just selling of goods or services are not enough for the social marketing. According to the context of the research, Mr. Pat should more focus on the strategies understanding their customers more for developing his business, it will include promotion of their providing like books and their music collections and other attractive elements introduced at their One-Stop Shop (Escalas et al. 2013).
Final application of consumer behavior is that, study of consumer behavior makes the consumer better one. For an example: if one consumer buys a set of music CDs rather than buying two or a single CD’s they will have to a bit less than the single one. If these strategies are known to the employees of the one stop shop can approve the customers to buy more than one series of CDs, which in turns profitable to Mr. Pat.
The elaborated study of consumer behavior involves different kind of research methods for finding the various consumer behaviors:
There are two important methods for understanding the consumer behavior. The methods are: primary and secondary research methods. Primary research methods involves: the tools and specific elements for understanding the consumer demands. These tools are: customer feedback, questionnaire, surveys through phone and observing focus groups of consumers (Frank 2014).
Demographic information is all about the information about the shopping details of the consumer: educational specification of the consumer, income of the consumer, ages of the children of their family and habit of the family in a daily manner.
There are several identification factors which involved into the importance of the consumer behavior: economical attitude, determinant measured in terms of psychology, determinant measured according to the social factors (Goh et al. 2013).
Economic determinants may be stated as the financial condition or economic condition of the business holder or consumers. So the Mr. Pat need to first study the background of their consumer, what are their priorities and what kind of services and goods they prefer in their daily life (Venkatesh et al. 2012).
When the consideration comes to the determinants related to psychological measures of their customer, it is very crucial for Mr. Pat to examine the condition of the market and which sectors are in competition with their providing to their consumer. These steps are the base element for understanding the determinants involved in to the psychological aspect.
Determinant measured in terms of the social factors are concerned with the positional measures of the shop. Social issues are very much influencing to the consumers and it is mainly done through the atmospheric assessment of the area, where the shop is established (Hugstad et al. 2013).
In conclusion of the importance of consumer behavior the statement which can elaborately describes it is: the behavior or attitudinal variety developed by the consumer towards the seller or any organization, when they are purchasing any product (Juster 2015). Mr. Pat should have to focus on the consumer behavior for establishing his One-Stop Shop in the Bankstown NSW. As it is quite obvious that, if the owner know all the models and factors involved in the establishing a shop then it will be easy to set it up in the centre of the Bankstown CBD.
The importance of the consumer can be easily described with the help of some important models related to the consumer behavior. These models will be helpful for Mr. Pat for measuring his limitation of thought while considering the establishment of the One-Stop shop. Evaluation of the strategies from these models will be helpful to Mr. Pat for understanding the new innovative competitive market and requirements of the customers. The purpose behind the purchase gets clarified to the Mr. Pat then the implementation of the satisfactory strategies becomes quite easy (Kardes et al. 2014).
The consumer behavior model mainly serves two distinguishable functions:
These above mentioned points are very important to be maintained and for maintaining the points, consumer behavior model is very crucial. These models are the essential tools for judging the consumer behavior.
The black box model related to consumer behavior model is defined as the stimulus responsible for buyer behavior. The stimulus is known as the promotion of any goods or services, which is represented to the consumer and the total environment according to the black box of the buyer. There two subpart in the black box: 1) characteristics of the buyer and 2) decision making process of the buyer. Characteristics of the buyer may be related to the social, psychological and cultural perspective of the consumer. These factors are totally internal according to the consumer, so the decision can’t be changed easily by the marketer. The Black Box model is mainly concerned about the response of the consumer after the consumer’s well- knowledgeable assertion making (Li et al. 2013).
According to the context of the report, Mr. Pat can apply the Black Box model to understand the detailed background of their consumer and their various needs changing due to innovations in the market. The black box model helps Mr. Pat to gain knowledge about their customer and then the decision making aspect of the Black Box model, shows the way of how the consumer is get attracted towards the product or services and faces the alternatives and finally arrive at the step of purchasing decision making (Mullen and Johnson 2013). This aspect also leads to the feedback of the consumer which helps Mr. Pat to understand their standard of providences (Mullen and Johnson 2013).
Cognitive approach related to the consumer behavior is defined as the noticed actions towards the relational cognition. Each and every individual is taken as the processor of information.
There are mainly two type of cognition model related to the consumer behavior. These are: Analytical model and prescriptive model. The analytical model mainly focuses on the crucial elements those are involved in analyzing the consumer behavior. These elements establish intimacy among the decision making factors of the consumer. The scope of these models makes them capable to achieve the label “grand models”. The model related to consumer decision and behavioral model of buyer are two very important models of analytical model of consumer behavior (Solomon 2014).
Analytical cognitive model involves the theory related Buyer Behavior and the model related to Consumer Decision Making process. Both the process are involved in to the process of understanding the customer and about making strategies for innovation accordingly the consumer demands (Sparks et al. 2013).
These two aspects of cognitive model of consumer behavior also state the same ideologies for setting good position in the market. In case of Mr. Pat, analytical behavior of the cognitive model introduces the elements, which are very important for the meeting the consumer demands. Socially, psychologically and economically this model can guide Mr. Pat how to set up the strategies and how to implement those on their field of business (Sparks et al. 2013).
Prescriptive model of consumer behavior defines the proper structure of the consumer behavior. The above mentioned element explains the effects and the sequence of the elements. These elements help the marketer to analyze the situation and they easily find the factors, which needs to be modified or changed according to the consumer demands (Venkatesh et al. 2012). Prescriptive model of related to the cognitive model is all about theories about the rational action and theories of deliberate behavior. This model highlights the attitudinal sense of the behavior towards the providing of any organization or any marketer. The expectation of the buyer can easily be measured by the theory related to the rational action. This factor makes the marketer alert about the on-going trends in the market, which they have to add in to their offerings (Wyer Jr and Srull 2014).
Cognitive model related to consumer behavior helps Mr. Pat, which elements should noticed while considering the consumer demands. In the center of the Bankstown in NSW there are several influential factors which motivate the customer from various angles; this should be the matter of concern of Mr. Pat. Apart from these aspects Mr. Pat can get innovative ideologies to improve their strategies by knowing the choice of interest of their consumer, which will guide him to understand, what their customer want new beyond their providing.
Economic man model is another model related to the consumer behavior. This model comprises of mainly utility factor of any products according to the view point of the consumer. There are few factors which are the part of the this model:
Effect of the price: According to the consumer, if the price of the product is less then, the products have the high utility factor and can be considered as the quantity for purchase.
Effects of substitutions: If the substitute products are less costly than the original product in the market, then the original products have less utility than the alternate one.
Effect of the income: If there is availability of money in the hand of the consumer, then there will be more amount of purchase. This will in turns affect the profitability or that concerned organization.
The decision making aspect related to the economic man model is totally based of some assumptions: if the consumer resources are inadequate, the consumer will invest the existing money to the get high level of satisfaction. Consumers always have the idea of the utility of and product or services, which makes him aware of the trends going on in the market.
According to the context of the report, Mr. Pat can implement Economic Man Model, to evaluate his consumer’s capability of purchase and how innovatively he strategize his providing, that his customer easily can buy and satisfy their need according to their choice. Mr. Pat can recognize the utility of each product and services in his One-Stop Shop, which make him aware about the attitudinal behavior of the consumer, as this factor is very crucial in case of his business, it will strengthen his strategies.
Conclusion:
The paper has an elaborate study of consumer behavior, which involves the actual meaning of consumer behavior and its importance in marketing and last but not the least the application of the consumer behavior. These factors mentioned above shows the deliberate usages and advantages of consumer behavior while considering the improvement of any business. This paper discuses about the implementation of Black box model, Economic Man Model and Cognitive model in terms of consumer behavior, which is too much helpful for Mr. Pat to set up his business in Banksown in NSW. The behavior of the buyer and decision making process of the buyer while choosing the product or services are differentiate in well described manner by these three models of consumer behavior. Decision making of the buyer influences the marketer in various ways, as decision making make the marketer aware of the alternative products in the market and the evolving trends for the upcoming days. So consumer behavior along with its different models are very crucial for understanding the behavior of the consumer to compete with in the market, this approach strengthen the positional approach of the organization.
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