Consumer Behaviour and Purchasing Decisions - Marketing Psychology Assessment Answer

Consumer behaviour and purchasing decisions

Introduction

Psychology of consumers and their purchasing habits keep changing in the global and local market. People tend to purchase only those products which are either essential or have a good appeal towards them. Thus the aim of this report is to analyse and understand the changing behaviour and needs of the consumers. Its main objective is to identify how consumers make purchasing decisions and which theory is used by the grocery stores to attract potential customers and increase the sale of the products in the market. To understand things in detail, an interview of five candidates was scheduled. Data retrieved from consumers will be analysed to comprehend consumer behaviour and decision-making processes undertaken by them. The report is also intended towards the top three supermarkets in Australia that includes Coles, Aldi and Woolworths.

Analysis

It has been observed from the consumers that nowadays people purchase only those items or goods which provide personal satisfaction. It can be clearly identified from the products that demand for any item in the supermarket totally depends upon the utility of the product. Marshallian economist stated in the theory that there are some consumers whose purchasing decisions are based on the utility of the products whereas it has also been identified form the interview that there are some people in Australia who buy products with impulsion and curiosity to have it (Dasgupta et al. 2016). This proves that consumers these days are provoked by external advertisements, social media marketing and mouth publicity (Bong 2016). It has also been identified that some consumers purchase products without even focusing on the specifications of the product. It was observed from the answers that there are some people who do not understand their needs and desires. This indicates that the age and income of the consumer do not have much influence on the purchasing decisions. They purchase goods even when they do not require them. It was analysed from that generally people between 45 years and above purchase only those grocery items which are useful to them (Foxall 2014). They often visit the grocery store with a shopping list and only purchase the essential items and do not spend their money on unwanted products. Moreover, it was also identified that people visit a particular supermarket because there they are able to find all the products in the market. In addition to this, the supermarket provides car parking facilities. People prefer to visit more than buying products online because either the websites and applications are not fully established or they do not have much practice of online shopping. Likewise, the guarantee of the product and delivery is also a concerning issue for them. Still, service class people in Australia prefer to purchase things through grocery stores in comparison to picks and motor stores.

The main issue experienced by the supermarket is that they are losing their valuable customers because of increasing competition. Some organizations are coming up with strategies to increase their marketing share. They are trying to understand the issues present in the marketing strategies of the organization by overcoming the issues and promoting the organization in social media platforms (Lantos 2015). It has also been observed that online marketing is one of the main causes of declining sales in the market. More choices in front of consumers are another reason for the downfall of supermarkets. Changing habits of the consumers is also having a detrimental impact on the growth and success of the organization. In order to reduce the damaging effects of marketing strategies, Coles supermarket introduced different campaigns.

It was also analysed from the data that Coles and Aldis supermarket is the most popular in Australia when compared to Woolworths and other local stores. People most likely purchase goods and other essential items by visiting Coles supermarket. It is because of the organizations down down campaign. It was introduced in the market with an initiative to increase the market sale by reducing the cost of the products. Coles supermarket also came up with a campaign that good things are happening at the store to attract potential customers towards the store so as to increase the profitability of the organization. Coles was trying to turn all stones to meet the expectations of its consumers (Phillipov 2019). Reward and loyalty programs were started so that maximum people start buying products from the store. In addition to this, it was also observed that only a few people were happy with the Airstake partnership rest of the people are not happy with the move because consumers enjoy the shopping experience and this is why they go to physical stores for purchasing goods and services. On the other hand, some people stated that Airstake partnership will increase the sale of Coles supermarket. It will help those who do not have time to purchase things for themselves. Different people had a different perception to look at things. This is why some of the consumers found Aldi supermarket as the best store to purchase grocery items. According to them, it provides fresh milk and cream for its customers (Mortimer 2016). Moreover, the quality of the products kept by them is good in comparison to Coles supermarket but the price of the commodity is very high. Woolworth, on the other hand, is also one of the most influential supermarkets in the Australian market. It is considered among the top choices of the customers to buy the products.

Conclusion

It can be concluded from the findings that consumer beliefs, choices and attitudes vary from person to person. Some of them enjoy the physical shopping experience whereas others prefer online shopping. Most of the customers in Australia revealed that they purchase goods from Coles, Aldi and Woolworths organization to fulfil their needs and desires. The analysis helped in evaluating the fact that customer these days shops a product from an organization where they get maximum facilities and high quality at reasonable rates.

ReferencesDasgupta, P., Southerton, D., Ulph, A., amp Ulph, D. 2016. Consumer behaviour with environmental and social externalities implications for analysis and policy. Environmental and Resource Economics, 651, 191-226.

Foxall, G. 2014. Consumer Behaviour (RLE Consumer Behaviour) A Practical Guide. London Routledge.

Bong, S. 2016. The influence of impulse buying toward consumer store loyalty at hypermarket in Jakarta. Business and Entrepreneurial Review (BER), 101, 25-44.

Lantos, G. P. 2015. Consumer behavior in action Real-life applications for marketing managers. London Routledge.

Mortimer, G., 2016. ALDI gives suppliers, as well as shoppers, greater choice Retail expert.Journal of the Home Economics Institute of Australia,232, 39.

Phillipov, M., 2019. Supermarkets, television cooking shows, and integrated advertising New approaches to strategic marketing and consumer engagement. InCase Studies in Food Retailing and Distribution(pp. 255-265). Woodhead Publishing.

Appendix Interview ResponsesFirst candidate Female age 32 yearsI get groceries to form the supermarket. Off course, I am the only person who makes most of the decisions related to purchasing. I weekly visit the supermarket to purchase all the essential items required for fulfilling day to day actions. I generally buy fresh fruits, vegetables, pead, biscuits, baking mixtures, milk, cream, butter, cheese and so on. I purchase dry packaged food such as cereals, rice, flour, pasta, tea and coffee. Along with these products I also purchase health products and merchandise which includes shampoo, detergents, toothpaste, and sunscreen lotions and so on. I take my car to the supermarket for purchasing things. I usually purchase things alone but sometimes my husband accompanies me to supermarket place. There is no particular time for me to visit the supermarket. I go to the supermarket whenever I am free and ready to purchase all the essential products. Moreover, since the stores are open 247 therefore purchasing is not a problem. The supermarket is just 5 kilometres away from my house so I prefer to purchase goods physically rather than buying them online. Yeah definitely, I prefer to use shopping list rather than impulse buying. I visit the supermarket because I am able to purchase all the products by visiting the supermarket in one go. Moreover, there are many other benefits such as convenient parking, availability of premium food products and so on. I prefer Aldi supermarket in comparison to Woolworths and Coles. The products provided by Aldi are highly rich and are of good quality in comparison to Coles.

Second Candidate- Male -45 yearsI take most of the groceries from Coles supermarket. No, I am not a primary decision maker of the household items. I visit Coles supermarket twice in a month. I generally buy the flour, rice, sugar that is all the packaged food materials along with some dairy and bakery products. I typically visit the store by car. I generally purchase items through the shopping list provided by my wife. I am not an impulse purchaser and only purchase those items which are very essential for living. I generally shop all the other items such as detergents, soaps and shampoo through the online store of the Coles supermarket at a very reasonable rate. No doubt, there are many factors which are very important for purchasing items but I usually do not pay much attention to them due to my busy schedule. If I had to rank all the three supermarkets than definitely, I will give 1st rank to Coles followed by Aldi and then Woolworths. The down down market campaign of the Coles has attracted many middle-class consumers like us. The other strategies of Coles supermarket are introduced in the market so as to increase the profitability of the organization. I think the partnership of the company with Airtasker will give benefits to busy customers who cannot go and purchase the items required by them. Reward and loyalty programs are all increasing the number of buyers in the organization in comparison to other competitors. Online shopping through Coles is a big challenge. The company needs to improve the online shopping experience of its customers.

Third Candidate- Female- 25 years

I buy grocery from Aldi supermarket which is not very far away from my residence. Yes, I am the primary decision maker in my house. I visit the supermarket quite often. I buy almost everything that is from packaged food to health products and general merchandise. I visit the place by bus or car. I go and purchase things alone. I visit the supermarket mostly in the evenings. No, I do not require any shopping list for purchasing goods. I think I am an impulse buyer who gets attracted to new products in the store. I do not pay attention to the price rather focus on the quality of the product. According to me, Aldi supermarket is the best place to purchase grocery items in comparison to Coles and Woolworths. Moreover, my favourite products are always in store. High and middle-income class people tend to purchase goods from these supermarkets.

Fourth Candidate- Male 60 years

I go and purchase household essentials from Woolworths store. I am not a primary decision maker of the house. I go to the supermarket once in a month and try to purchase all the essentials which are required for a span of 30 days. Generally, I visit the place through a cab because it is far away from the walking distance. I sometimes take my wife to the supermarket. We both generally prefer to go in the morning or afternoon. We purchase things on the basis of needs and thus do require a shopping list. No we both do not belong to the impulse buyer category. We prefer physical shopping because we do not have much information about how to use the online store application and how to place the order. Moreover, we are also concerned about the deliveries provided by them. We are happy and satisfied with purchasing goods at Woolworths because of the various kinds of facilities provided to us.

Fifth Candidate- Female- 53 yearsHi, I usually visit Coles supermarket to purchase household items as I am the only decision maker of the house. I visit the place 4 to 5 times in a month to get fresh fruits, vegetables and all the other essentials. I go to the store on my own vehicle mostly during noon. I do not purchase items with the shopping list rather I buy all the products on the basis of needs and curiosity to have new things. I prefer Coles because it provides a lot of facilities, reward system and other marketing strategies to enhance its sales percentage by capturing the Australian market. I personally do not shop much through the online website because it still needs further enhancement. The joint venture between Airtasker will reduce the sale of the store because according to me people enjoy shopping themselves instead of paying someone to do for them. I personally like to shop things on my own it doesnt matter whether it is about clothings or groceries.

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