The Significance Of Consumer Behaviour For An Organisation

Definition of Consumer Behaviour

The aim of this report is to determine the significance of consumer behaviour. It explains how an organisation can use consumer behaviour to increase sales. 1932 café and restaurant has been taken in this task to explain issues of consumer behaviour. The report defines the importance of consumer behaviour and primary and secondary market of café. It also explains how consumer behaviour helps to tackle issues faced by the organisation. Along with issues, it also explains how these can be solved with the help of consumer behaviour approach.

Consumer behaviour is the study of individuals, groups or organisations and how they make purchase decisions that is how they select and use products and services in order to satisfy their needs. It is a branch which deals with various phases consumers go through before purchasing goods and services. It is the way individuals spend their money. Consumers help organisations to improve their marketing strategies. A marketer can easily predict the response of customers after studying consumer behaviour. It helps in market segmentation, product scheduling, designing and pricing of products. In the consumer behaviour, the consumer gets involved in the purchasing decisions either directly or indirectly (Schütte & Ciarlante, 2016). The way consumers make their decision helps an organisation to predict how they will react to different alternatives. It helps to understand the approach of customers towards buying a product. Consumer behaviour has direct influence on the performance of products. All the aspects of purchasing behaviour are included from pre-purchase, operations through to post purchase activities. The customer relationship management helps to measure behaviour of customers. It also helps to understand the potential future problems, which works as a measure against consumer exploitation. The study of consumer behaviour not only analyses the past performance but also helps to predict future. Marketing campaign and advertisement are the factors which influence the buying behaviour of consumers. Environmental factors also influence the operations of market. Consumer behaviour is also affected by the values, likes, dislikes, priorities and morals. Primary group and group influence also affects the decision of consumers. The primary group includes family members, neighbours, colleagues and classmates. They have a direct impact on the consumer behaviour approach. The consumers also analyse their purchasing capacity before purchasing goods and services. There are research methods also to know how consumers make their decisions such as ethnography and consumer neuroscience.

It is important for marketers to understand consumer behaviour before launching any product. If an organization fails to analyse the response of customers towards a particular product than there are more chances of failure of that organisation. It is quite complex to understand consumer behaviour as the attitude and mind set of employees keep on changing. The main aim of marketers is to satisfy the need of consumers. It helps organisations to decide the price at which consumers will be ready to pay. The consumer behaviour helps marketers to understand and investigate the behaviour of consumers so that products and services can be sold in the competitive market. The consumer behaviour is also used by the organisations to generate revenue and profitability (Claiborne & Sirgy, 2015). An organisation can easily fulfil the needs and requirements of consumers after studying consumer behaviour. The organisation can also decide it’s vision by analysing the need and requirement of consumers. It also helps in positioning of products to specify target groups. The organisation targets a group to make more profits. Since the customers are more known to the usage of product and other information, it is hard to convenience consumers to purchase products. A proper research is conducted to influence customers. Consumers have an important role to beat competitors in the market. Enhanced knowledge of salespersons also helps to sell a product. The marketing strategies have a great role now days to sale products and services. These strategies also help to maximise the number of consumers in the market. Understanding consumer behaviour helps to predict the future of an organisation. At the same time, consumer behaviour helps to understand the products and services which can ensure economic viability in future. For the successful launching of products and services in the market, it becomes necessary to understand consumer behaviour (Huang & Sarigöllü, 2014). The consumer behaviour data can also be gathered by organisations to decide what products and services can be produced. The consumer behaviour plays a substantial role in organisations and helps in deciding price of products and services.

Importance of Consumer Behaviour for an Organisation

Revenue and returns can be achieved from the sale of goods and services and it comes mainly from the primary target market. The primary target market is also known as primary segment. The café focuses on the primary segment to attain great returns. This market is responsible for the higher sales and profits and maintains common attributes and behaviour of consumers. The primary segment of 1932 café and restaurant includes young adults between 18-24 come to hang out and to study papers. They usually prefer to come for breakfasts, brunch and small mills. The secondary sengment includes men and women between 25-40 and old families who come together to have meals. The customers of secondary segment also influence the customers of primary market. The information of secondary segment is easily available compared to primary market. The café has been able to achieve goals and desired outputs by taking into concern the primary and secondary segment. The café also uses different strategies and methods to identify and measure the primary and secondary segment (Ashley & Tuten, 2015). 

The café has not been able to identify and understand the taste and preference of target audience because it is a critical task to recognise the target audience. The advertisement and promotional campaign are used by the café to analyse the requirements of different types of customers in the competitive market. A company cannot carry it’s activities and operations without availability of customers. The market is divided on the basis of demographic and behavioural factors. The market research methods, techniques and marketing strategies are used by the café to provide maximum advantage to customers. These are interview, observation method, focus group methods and questionnaire techniques to evaluate the choice of primary and secondary segment. These methods and techniques help to understand the nature and size of the target segments. There are some other methods which are used by the café to know the strength and weakness like SWOT analysis, PESTEL analysis and porter five forces model (Lantos, 2015). The market research methods and techniques provide benefits to café as well as to customers. The customers can get better variety and quality food at nominal prices and the café can make large profits by maintaining standard of products. It reduces the risk and challenges available in the segment. It also helps to maintain coordination in the café. These methods and strategies provide suitable solutions for issues and problems of café. Other than this, the secondary segment takes less time to solve and handle the complaint of consumers.

Geographic	· 1932 café and restaurants has divided it’s market in different groups on the basis of geography. · The café operates business activities and operations in Melbourne. · The market can be geographically divided by various manners. The café divides market geographical areas by state, region, city, country and international region.
Demographic	· The target age group of customers are youngsters and it varies from 18-24 years.  They prefer to visit café to hang out and like to have breakfast and brunches to taste good and quality food. · The café also focuses on the income level and taste habit of youngsters to bring expansion in dishes.
Psychographic	· The café divides market on the basis of attitude, interest, traits, taste and lifestyle of potential customer groups in the psychographic segment (Gunter & Furnham, 2014). · The café is also launching new and innovative dishes to attract youngsters in the market.
Behavioural	· Behavioural segment is used by the café to analyse the demand and preferences for dishes and it’s content. · Every consumer has unique behaviour. · The café divides market on the basis of knowledge and attitude of customers in the market.

Geographic	· In the secondary segment, the café operates activities and operations according to class of population such as high, middle and low class. ·  The urban and rural people have quite different eating habits. So, the class matters.
Demographic	· The secondary segment of the café includes men and women between 25-40 and families who prefer to come for brunch and short meals in group (Mitchell & Boustani, 2015). ·  The café is inspired from 1930s and is good in traditional food too.
Psychographic	· The café focuses on the value, ethics, taste and interest of people to attract more in the competitive market. · Culture has important role in this segment.
Behavioural	· 1932 café and restaurant conducts online surveys, feedback and interviews to determine the behaviour and taste of people. ·  It needs to conduct surveys time on time as the taste and behaviour of employees’ changes fast.

Primary and Secondary Market of 1932 Cafe and Restaurant

The café faces many issues related to the consumers. Many consumers are not aware of international cuisines. The café is not able to fulfil the demand of consumers in the competitive market. Other cafes have suppressed sales of 1932 café and restaurant effectively. Further, the café has higher prices when it’s compared to other cafes. There is significant difference in prices. Other than price, cafe is too slow to match demand of consumers. It was a small operating unit so it needed more marketing research. At times, the staffs are also not cooperative when it comes to customer handling. They are not satisfied the way, they are treated and the way service is provided. Apart from this, the quality of the food does not pass parameters of maintaing minimum standard. The processing system is lengthy and hygiene precautions are not considered. The consumers make many decisions almost every day. So, it has become essential for every café and restaurant to analyse and identify the taste and choice of consumers.

The café should reduce the price in order to increase number of customers. Discounts can also be introduced on specific occasions, it can sudden increase number of customers. The café should focus on the culture and training of staff (Pappas, 2016). The issues can be removed by taking into account the review of consumers and consumer behaviour. The study of consumer behaviour depends on the type of meal and ordering decision. So, the café should focus on the need, taste, priorities and preference of consumers. Now day’s people are conscious for fitness, so the café should focus on the more healthy meal options. Antioxidants, energy drinks, smoothie, diet food and high protein and fibre enrich food can also be introduced as it contains less fat. The consumer buying behaviour theories should also be used by the café to attract more customers (Vigneron & Johnson, 2017). The café also need to collect feedback reviews from customers to make necessary changes in the organisation. It also helps to handle complaint of consumers. The marketing strategies such as advertisement and promotional strategies should also be used by the café to retain more customers.

Conclusion

From the above discussion, it has been concluded that the consumers behaviour has important role in increasing sales and profitability of an organisation. It not only analyse the past performance but also decides the standard for future performance. It improves the quality of products and services by understanding the strength and weakness of products and services. Many factors such as economic factors, psychological factors, social factors, environmental factors, technological factors, geographical, legal and anthropology factors influence consumer behaviour. Consumer behaviour can be used to increase the demand of products and services by implementing appropriate strategies. Orientation of new products can be evaluated by using consumer behaviour. It also helps to promote products and services. The company can easily identify the income level and opinion of various groups of consumers by taking into consideration consumer behaviour (Rettie, Burchell & Barnham, 2014). 1932 café and restaurant has been taken in this task to understand primary and secondary market to identify the issue of consumer behaviour in the market. The primary and secondary market has important role in expanding and exploring the activities and operations of café. The café focuses on the behaviour and taste of consumers to expand and improve quality of dishes.

References 

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