Buyer behaviour - Social Influence Report 2022

Please refer to the assessment description and sample file. I would also require a presentation as stated in the assessment description file. The company for this assessment should be a business to customer related and operating in Australia.

Running head: BUYER BEHAVIOUR - SOCIAL INFLUENCE
Buyer behaviour - Social Influence
Name of the Student
Name of the University
Author Note

1BUYER BEHAVIOUR - SOCIAL INFLUENCE
Executive Summary
This research report is an analysis of the element of consumer buying behaviour elements
creating impact on purchase decisions and business. JB Hi Fi is known for its large series of
consumer electronic and white goods and increasing chain of operation in Australia. In the
report, target segment market of JB Hi-Fi has been analysed to generate key insight about the
challenges and opportunities that brand presently face in the market. Consumers look for a
better quality products that effectively meet their needs instead of being happy with the
traditional heavy gadgets. When the competition with respect to market share of electronic
products is relatively growing, retaining and attracting customers is only possible when the
quality of product is considered as value that consumer receive in exchange of the money
they spend. In order to remain active in today’s competitive consumer electronic sector, JB
Hi Fi should certainly understand the importance of emerging Artificial intelligence.

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Overview
Company – JB Hi-Fi Australia
Product Category- Consumer Electronic products (home entertainment products)
Value proposition
Low cost business structure enabling the business to have the highest market share in each
product they sell. Absence of warehouse cost is allowing JB Hi-Fi to reduce price in
products.
Marketing and Digital Strategy Director
James Saretta
Target Segment
Australian households, corporates, government setting
Challenge
Increasing number of online selling channels and emerging AI technologies
Opportunity
Access to remote markets through technology based platforms

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Target Segment of the company – JB Hi-Fi
JB Hi-Fi despite knowing that there is a growing competition with respect to
electronic consumer goods, and telecommunication products, focused on the areas of market
where traditional retailers would overlook. It paid attention to corporate, government,
wholesale markets, and hospitality and education sector. While the traditional retailers look at
the macro segment of the market, JB Hi-Fi prefers to stick to niche market where demand is
always stable.
Demographic
 Mostly the people with high educational qualification who understands the value of
branded products
 Self-employed individuals who decorate their work setting
Geographic
 JB Hi-Fi focuses on all cities across Australia and particularly social life in the
downtown area of the city.
Psychographic
 Focussed on the salaried people working in the corporates
 People working in the government setting are able to afford the cost of the branded
electronic products
 Employers in the hospitality sector who prefer to give visitor luxury experience with
technology
 Government staffs a persistent social status and thereby, they would prefer high-
quality electronic gadgets than the substitute items
b) Needs and wants of the target market

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Consumer electronic goods market in Australia is most likely to grow but there are
certain changes required in the process (Khan Bamber & Quazi 2012). As the technology
advances are there in the market, the targeted segments, household and consumer electronic
products are in the need of suitable regulatory requirements. Moreover, as information
technology and smart phone vibe is hitting the sector consumers’ interest is shifting to mobile
technology, innovative gadgets that are user friendly, easy to carry instead of using at home
only.
c) Value being sought by target segment
Even though the sable economy is allowing the consumers to become fond of the
electronic gadgets but electronic products are manufactured with less durability (Chao, Reid
& Mavondo, 2013). However, consumers today are more inclined to products that have high
durability in return of money they spend.
d). Insight about the target market
Customers in consumer electronic goods market are more inclined towards innovative
goods with high durability. Consumers are most likely to pay more the product that have
unprecedented innovative functions. For example, a Washing Machine with high durability
and innovation so that the price is justified.
One core insight of the company
Even though JH hi fi shifted its attention to white goods by coming into the
acquisition with The Good Guy Australia but it has completely overlooked the ongoing pace
of technology advances. The launch of AI products in the market has been a chronic anxiety
for all traditional electronic manufacturers and retailers (Lemley, Bazrafkan & Corcoran,
2017). AI in consume electronics would gain enormous momentum due to ongoing
acceptability of consumers in Information Technology. Certainly, JB hi-fi is lagging behind

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the race of Artificial Intelligence (AI). Nonetheless, this challenge can be treated as
differentiating opportunity for JB Hi-Fi because the competitors in the sector are still
confident with the existing product portfolio. So, to stand against the challenge, it would be
wise for JB Hi-Fi extend its focus to the adoption of AI.
Explaining one element of buyer behaviour
On the basis of the above analysis it can be mentioned that buyer behaviour is most
likely to be influenced by the market dynamic- changes in the product quality and adoption of
AI. Consumers are most likely to linger with the quality of products. Cheng, Zhang and Yang
(2016) mentioned that brands that have incorporated the AI-enabled functions with electronic
goods are steps ahead with respect to customers’ preferences. Therefore, when buying a
gadget will make consumers think whether the product they are going to purchase has value.
When the competition with respect to market share of electronic products is relatively
growing, retaining and attracting customers is only possible when the quality of product is
considered as value that consumer receive in exchange of the money they spend.
Therefore, it is worth mentioning that consumer attitude is one such element of buyer
behaviour that has highest impact in purchase decision. Lemley, Bazrafkan and Corcoran
(2017) mentioned that consumers’ attitude is referred to the opinions and feelings regarding
the product or the company. Consumers have a positive vibe towards the next gen smart
products which are powered by AI and machine learning. So, marketers that are able to
provide real value and delightful experience to consumers are most likely acquire the market.
It is certain that individuals and the corporates at large communicate on a daily basis through
several maps and devices that are designed with AI and thereby, consumers expect a more
similar experience when using consumer electronic products. So, the psychographic element

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of buyer behaviour such as the opinion towards the innovation would create a significant
impact on the purchase decisions in the field of consumer electronic sector.
It can be stated that consumers’ opinion towards the quality of product is better
understood with opinion leadership approach. According to Kim, Jang and Adler (2015),
opinion leadership can be defined as the technique in which one individual influences the
attitude or action of other individual in an informal way, who may be identified as an opinion
leader and such individuals or leaders may be the part of the social group. For example, if one
of the potential customers of JB Hi-Fi bought an AI-enabled music device, that individual can
give suggestion to others when they require information about music device. Nagy et al.,
(2017) mentioned that opinion leadership can also be treated as word of mouth
communication in marketing of goods and services as the most significant personal influence
on buyers.
Proposing the senior marketer about the required BB element should be used
The above presented analysis state the fact that in order to remain active in today’s
competitive consumer electronic sector, JB Hi Fi should certainly understand the importance.
The above presented analysis state the fact that in order to remain active in today’s
competitive consumer electronic sector, JB Hi Fi should certainly understand the importance
of emerging Artificial intelligence. Element of buyer behaviour –concern towards the quality
and innovation in products can be effectively promoted to steam consumers’ attention
towards this emerging adoption in products. Firstly, to in order to ensure customers about the
quality of products it would be effective for JB Hi-Fi to incorporate the trends in its core
operation. This means the promotion and advertisement of the goods should be customer
centric which means customers’ consideration toward the product:

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Product: The existing electronic goods such as music devices, TV, Laptops, and the
white goods like refrigerator, Washing Machine, cleaner should be designed with next- gene
smart technology and machine learning. White goods are saturated in market and to light
them again in the market, the brand should come up with the machine learning to pause
consumer from the race and give them experience of using the product.
Price: AI and machine learning in product is highly demanded segment and all tech
savvy and technology lovers would agree to pay for the product when their perception of
needs are met adequately. Therefore, JB Hi-Fi should not compromise with the price of
products because the low cost model would not bring the desired here. The brand should
adopt a skimming pricing strategy when focussing the high end consumers in the market.
Promotion: As Australian market is technologically advanced, the company needs to
leverage the digital platform to reach out the consumers who are hunting new product
experience. Therefore, with the help of digital platform it can reach the audience both in
regional markets and the people living in the remote areas of the city. Hence, use of social
media tools in promotion the products increase intensity of product awareness. Moreover, to
socially influence individuals or buyers, JB Hi-Fi could apply strategy of opinion leadership
in which the brand can gain consumers’ attention through the customers who have already
purchased the high quality product and they can further influence their friends and family to
choose the same by providing the required information. This approach would work as word
of mouth communication in promotion.
People: Certainly, the company needs to focus on the high consumers –such as large
corporation, government organizations and the construction companies who are need of
machine learning electronic products.

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References
Chao, C. W., Reid, M., & Mavondo, F. (2013). Global consumer innovativeness and
consumer electronic product adoption. Asia Pacific Journal of Marketing and
Logistics, 25(4), 614-630.
Cheng, X., Zhang, R., & Yang, L. (2016). Consumer-centered energy system for electric
vehicles and the smart grid. IEEE intelligent systems, 31(3), 97-101.
Ibisworld.com.au. (2019). JB Hi-Fi Limited. Retrieved 6 October 2019, from
https://www.ibisworld.com.au/australian-company-research-reports/retail-trade/jb-hi-
fi-limited-company.html
jbhifi.com.au. (2019). JB Hi-Fi - Australia's Largest Home Entertainment Retailer. Retrieved
6 October 2019, from https://www.jbhifi.com.au/
Khan, H., Bamber, D., & Quazi, A. (2012). Relevant or redundant: Elite consumers'
perception of foreign-made products in an emerging market. Journal of Marketing
Management, 28(9-10), 1190-1216.
Kim, D., Jang, S., & Adler, H. (2015). What drives café customers to spread eWOM?
Examining self-relevant value, quality value, and opinion leadership. International
Journal of Contemporary Hospitality Management, 27(2), 261-282.
Lemley, J., Bazrafkan, S., & Corcoran, P. (2017). Deep Learning for Consumer Devices and
Services: Pushing the limits for machine learning, artificial intelligence, and computer
vision. IEEE Consumer Electronics Magazine, 6(2), 48-56.
Nagy, A., Kemény, I., Szűcs, K., Simon, J., & Kiss, V. (2017). Are opinion leaders more
satisfied? Results of a SEM model about the relationship between opinion leadership
and online customer satisfaction. Society and Economy, 39(1), 141-160

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