Consumer Behaviour and Service Satisfaction

This assignment delves into the relationship between consumer behavior and service satisfaction. It examines various factors that shape consumer preferences, needs, and expectations when interacting with services. The analysis explores how these behavioral patterns contribute to customer satisfaction levels and highlights the importance of understanding consumer motivations for businesses to deliver effective and fulfilling service experiences.

Running head: MARKETING & MANAGEMENT: CONSUMER PURCHASE ANALYSIS
Marketing & Management: Consumer purchase analysis
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MARKETING & MANAGEMENT: CONSUMER PURCHASE ANALYSIS
Executive summary
This report explores a data which has been collected from a specific consumer’s purchasing
behavior. The first part tries to define the consumer’s position in the research. The particular
consumer behavior in response with the marketing and consumer theories helped to understand
the practical implication of such practice. It has also been experienced that the consumer
behavior is constantly changing. The consumer is always looking for variations and better
options. However, some industrial products have great influence on the consumer’s life, as he
keeps purchasing them multiple times. The exploratory research on the selected product helps
to understand the successful company or product’s marketing and business strategies and how
they are influencing the customer decision making process. The comparison between the
different types of products also help to realize the products’ position in the market and what the
determinants that are influencing their business are.

MARKETING & MANAGEMENT: CONSUMER PURCHASE ANALYSIS
Table of Contents
Introduction....................................................................................................................................3
Consumer......................................................................................................................................3
Psychographics..........................................................................................................................4
Personality traits.........................................................................................................................4
Roy Morgan’s value segment....................................................................................................4
Consumer behavior.......................................................................................................................5
Maslow need-hierarchy and consumer behavior.......................................................................5
The black box model..................................................................................................................8
Woolworth and Fresh food............................................................................................................9
Comparison between high involvement and low involvement products......................................10
Conclusion...................................................................................................................................12
References..................................................................................................................................13

MARKETING & MANAGEMENT: CONSUMER PURCHASE ANALYSIS
Introduction
Consumer purchasing behavior is complicated and multi layered process. Several
cognitive factors are controlling the consumers’ choice, preference and need that lead to the
purchasing decision. The consumers are engaged in purchasing and decision making process
every day. He applies certain methods every time he buys a product or acquires some service
consciously or not. The psychology of the consumer plays the most important role in the
decision making process. Consumer psychology affects each steps of selecting, identifying,
searching, collecting, interpreting and purchasing. Consumers take help from many external
mediums in order to make the decision. The peer groups, own idea, other sellers and the
internet help him in the process.
Consumer
Age- 25
Gender –Male
Marital Status – Single
Education Level – university
Occupation - student
Generational Cohort – Generation Y
Value Segment – “Look at me”

MARKETING & MANAGEMENT: CONSUMER PURCHASE ANALYSIS
Psychographics
Wants to enjoy life at its fullest
Spends time with friends
Always visits some places
Believes in spending
Enjoys shopping
Prefers television, mobile phones, laptops
Personality traits
Loves his / her friends
Does not care about the family
Self cantered
Does not respect other or rules
Involved in fun activities
Roy Morgan’s value segment
The value segment developed by Roy Morgan focuses on the segments of people who
represent the consumer and act as the drivers for choice and change (Collie and Escorcia,
2016). The consumer in this report can be categorized in the segment of ‘look at me’. According
to Roy Morgan’s value segment, this segment can be identified as peer driven, unsophisticated,
active and self centered (Dawes, 2015). Family is not the deciding factor to measure them. They
represents the ‘decibel generation’ (Schiffman et al., 2013). The international products control
most of their consumption habit. The particular generation can be defined as McDonalds, Pepsi

MARKETING & MANAGEMENT: CONSUMER PURCHASE ANALYSIS
living generation who spend lot of money. They are always busy watching something
entertaining or visiting somewhere. This segment covers almost 12% of Australia’s population
(Kotler et al., 2015).
Consumer behavior
Maslow need-hierarchy and consumer behavior
According to Maslow the need-hierarchy is based on human’s need for physiology,
safety, self esteem, social, and actualization (Taormina & Gao, 2013).To understand the
consumer behavior the theory of need, developed by Abraham Maslow (1954) can be helpful.
According to Maslow, human need can be categorized in five sections. Human need related to
psychology, safety, affection, esteem and self actualization form the hierarchy model from lower
level of need to the higher level of need. However to reach the higher level of need the
consumer must meet the lower level of needs. The lower level of needs mostly consists of the
basic needs such as food, water or safety. The feeling of accomplishments and need for love
are the psychological needs and finally the consumer feels the need to achieve his full potential
(Caruana & Chatzidakis, 2014).
There are several factors which act as the drivers for maintaining the continuity of the
process. The current companies engage in applying marketing strategies which are mainly
focused on consumer buying habit. All the companies aim to increase their business in the
market and revenue by increasing the consumers. The behavior of the consumers is a
complicated process and the decision regarding buying a specific product or from a specific
vendor depends on his or her learning and experience. Consumers are selective and influenced
by factors like family, peers, society, motivation and personal (Solomon, 2014). Their practice of
repurchasing is also depends on previous experience and psychological factors. Customized

MARKETING & MANAGEMENT: CONSUMER PURCHASE ANALYSIS
techniques related to marketing have been adopted by the large companies in order to
understand the consumers’ decision making process. The customer goes through the steps
such as the problem recognition in the initial stage of purchasing, selection before deciding
upon a specific product (Rani, 2014).
Figure: Consumer Buying decision making process
(Source: Made by Author)
However which products are successful in building the customer loyalty will not face
such challenges easily as the customer will repeat their purchase habit similarly with the same

MARKETING & MANAGEMENT: CONSUMER PURCHASE ANALYSIS
product. Satisfied customer will not look for substitute products. It is examined that the most
successful companies have achieved such success by giving importance to the consumer
behavior. The cognitive learning and the psychological learning helping the company to gain
customer trust (Boush, Friestad & Wright, 2015).
The consumer not only acquires the products with greater brand value but also the
products that are offering additional services. The data shows that the consumer visits the
Woolworth supermarket for a coke or meat frequently. The Woolworth supermarket is popular
for its offers and discounts. The stores often offer many value added services, which attract the
consumer to visit the place at a regular basis. The consumer sometimes purchases the
necessary products through internet by using the Woolworth app. They give holiday tickets or
discount coupons to its customers. As the consumer is a regular customer at the supermarket,
he gets some special discounts. He has an account at the online transaction and benefits of
‘Everyday money credit card’. The consumer’s behavior can also be analyzed by dividing them
into two categories such as the collective deciding process and individual deciding process
(Anderson, 2013). The environment, demography and perception also play important role in
these two types of deciding processes.
Morgenstern and Bernoulli developed the decision making theory based on the
customer’s cognitive expectation and satisfaction. How the products are marketing and
promoting themselves in the market is also a significant factor in the customer decision making
process (Ribeiro, 2014). Example- The consumer’s purchasing of Coca-Cola almost seems to
be routine response. Selecting or purchasing this product does not involve much cognitive
process from the consumer. The brand is so recognized and influential to the consumer that he
does not even consider other soft drinks while making decision. The promotion of the US based

MARKETING & MANAGEMENT: CONSUMER PURCHASE ANALYSIS
world renowned company is so well advertised in all visual and audio medium turned the
consumer into a loyal customer.
The black box model
The black box model highlights the relationship between the stimulus of the consumers
and their response. The characteristics of the black box guide the consumers to response and
take decision (McFadden, 2014). The consumer affects the organizational marketing strategies
by actively participating from the identification to post purchase evaluation. Once the learning
appears positive for the consumer he narrows down the search for alternatives and focuses on
the current product.
The consumer’s age, personality, occupation, life style and financial condition influence
the consumer behavior as well. In this report the subject is a young adult male consumer, who is
engaged in studies and fun activities. He purchasing is dominated by fresh vegetables and meat
from the supermarket, ready to eat food products, snacks and soft drinks. The electronics goods
also take significant part in his consumer behavior.
From previous buying experience the consumer gain knowledge and learning (Glowik,
Slawomir, Smyczek 2011). The consumer is a regular loyal customer of the Woolworth super
market. Their effective advertisement of fresh food and healthy life developed a great impact on
the consumer. The brand value and image is very positive. Though other multiple supermarket
or grocery stores are available for the consumer, Woolworth is still his first choice. The data
shows if he is visiting some other stores of similar kind like Cole, he is more focusing on some
specific branded products. However when he is visiting Woolworth, a pattern is visible in
consumption behavior. So in other stores he is more focusing on products which are not the
store specific but when he is in Woolworth he prefers the products made by the store itself.

MARKETING & MANAGEMENT: CONSUMER PURCHASE ANALYSIS
For electronic products or accessories the consumer shows more dependency on
internet. The purchase data shows that apart from grocery or food he has purchased two
electronic products and accessories in the last week. The laptop can be considered as a high
involvement product. However in both the purchasing he used the online site Kogan
(Kogan.com, 2017). The consumer invested much time and thoughts before purchasing the
laptop. So the service that the company delivered to him was satisfactory. He received the
product on time, and the product was exactly what he expected it to be. However the post
purchasing evaluation made him decide to buy another product from the same site. Though this
was just a slipping mask , but the company has succeeded to gain his loyalty and the consumer
is likely to visit and buy from the site again.
Woolworth and Fresh food
Woolworth is one of biggest grocery sales market of Australia. Approximately 29
million customers every week get service from Woolworth (Woolworths.com.au, 2017).. In its
initial years it was just a food retailer, but now it covers majority of the Australian grocery
market. The organization is achieving customer acceptance and loyalty by applying marketing
strategies that are largely focused on product quality, customer convenience, diverse range,
heath and taste conscious and lower price. The annual report (2016) shows that they
continuously offer customers with rewards, offers, benefits in order to maintain customer
sustainability. The meat product by the super market is praised for its freshness. The company
claims that the 100% of meat is collected from authentic Australian growers and farmers
(Woolworths.com.au, 2017). Their slogan of transforming Australians into ‘fresh food people’
appeals to a lot of citizens. They are dedicated to offer the consumers the most comfortable and
simple ways to shop. The customers can order the service from their home by using the app or
by visiting the local store. The company makes sure that the products are getting delivered to

MARKETING & MANAGEMENT: CONSUMER PURCHASE ANALYSIS
the customer’s house fast. Woolworth offers hundreds of products to its customers in order to
satisfy the target consumers. They evaluate and analyze the consumer behavior and design the
ranges accordingly . The Woolworth is there in 961 locations across Australia. Above that it is
available online. The traveling cost is minimized for the consumer that encourages him to visit
the store often. The pricing strategy of market penetration has been adopted by the company
which helps the company to stay ahead of its competitors. The offers like ‘half price offers’ or
birthday offers’ successfully attract and retain the customers for longer period.
Comparison between high involvement and low involvement products
As we have experienced many internal and external factors influenced the consumer’s
purchasing habit. In most cases the consumer was able to make buying decision quickly but in
few cases the action was delayed. He used his learning, knowledge and experience in each
decision making. In most cases this consumer was not involved in the decision making process
for long. This can be analyzed both ways. In one hand the involvement level demonstrates how
much the consumer was interested in buying a specific product. On the other hand the
consumer was possessed adequate knowledge about the specific product, so he did not require
a higher level of involvement. The consumer’s frequent purchasing from a specific supermarket
reflects his routine while his purchasing certain products from different restaurants required
greater level of involvement. In those cases he took much time or others influence to make the
decision made it a longer process. It is always the customer who decides the involvement, not
the product or service. At times the consumer has looked for various products but opted for one
or none; however sometimes he wanted one or two products but ended up searching or
purchasing more than that.
The consumer’s routine response behavior can be linked to his purchasing the low
involvement products. In buying the low involvement products the consumer was involved in

MARKETING & MANAGEMENT: CONSUMER PURCHASE ANALYSIS
automatic buying decision. This automatic buying decision is built upon the information he has
been gathering for long. The consumers purchasing the soft drink can be defined as the routine
behavior. While the consumer was making the decision regarding buying a specific branded soft
drink, he might not even considered other drink options than the specific brand. Whenever he
needed the soft drink, he only searched for that one. It has been noticed that he bought same
soft drink from different stores.
This low involvement products required little to no planning. This practice of the buyer
can be defined as the ‘impulse buying’ (Muruganantham & Bhakat, 2013). While the consumer
was waiting at the counter to pay for the specific product or when he was reaching to the
definite spot, where the drink is available some other product might have caught his attraction.
These were bag of chips or a packet of instant noodles or another bottle of cold drink, which he
bought just based on his impulse. These products generally require low involvement as well.
The products with high price often led to higher decision involvement. The high involvement
products are not bought frequently but it was necessary and relevant for the consumer. the
consumer did not engage in the discussed routine response while buying the high involvement
products. However, here the consumer engages in the process of ‘extended problem solving’.
He invested more time, energy and thoughts before making the decision. Before buying the
laptop from Kogan, he not only thoroughly analyzed the description of the desired product but
also compared features and prices of other products. The consumer suffered from ‘post buying
dissonance’ (Sharma, 2014). as he was skeptic between two products. The companies are
aware that selling high involvement products can be risky for them. In order to resolve this
issue, the company provides the consumer with as much information related to the product as
possible.

MARKETING & MANAGEMENT: CONSUMER PURCHASE ANALYSIS
Figure: Comparison between low and high involvement product
(Source: Made by Author)
Conclusion
The studying of a specific consumer’s purchasing behavior actually helped to explore
and examine the determinants of the buying decision. Consumer behavior and marketing
theories have been referred and explained in order to justify the consumer behavioral pattern.
During the analysing it has been observed that consumer psychology, life style and marketing
stimuli pay significant role in the decision making process. The customer goes back to the
vendors who he was happy with. The positive impression is extremely necessary as it leads the
customer to repurchasing. The practical analysis of the world famous industrial products
highlights a successful business’ policies and strategies in relationship with the consumers.
Their understanding of consumer behavior and taking necessary actions to satisfy them has
Expensive

MARKETING & MANAGEMENT: CONSUMER PURCHASE ANALYSIS
made them frontrunners in the world market. The consumer in discussion is an explorer and
tries various things. However for certain products he only takes service from the same vendors.
The service there, fulfill his preference, need and satisfaction.
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MARKETING & MANAGEMENT: CONSUMER PURCHASE ANALYSIS
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