Consumer Behavior and their impact on Marketing Strategies

Running Head: CONSUMER BEHAVIOR IMPACT ON MARKETING
Factors Influencing Consumer Behavior and their impact on Marketing Strategies
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CONSUMER BEHAVIOR AND THEIR IMPACT ON MARKETING 2
Table of Contents
Introduction......................................................................................................................................2
The Scope of Consumer Behavior...................................................................................................2
Selected Case Company under Analysis.........................................................................................3
Individual Factors influencing consumer behavior.........................................................................4
Consumer attitudes and its influence on consumption behavior.....................................................4
Personality and its influence on Consumption behavior.................................................................5
Application of consumer attitudes and personality along with consumer decision making and
Experiences......................................................................................................................................6
Use of consumer behavior related theories and the knowledge of consumer attitudes and
personality influences in improving Woolworths Marketing Strategies.........................................9
The 4Ps marketing Strategy...........................................................................................................10
Consideration and involvement Marketing Theories....................................................................11
Conclusion.....................................................................................................................................12
References......................................................................................................................................14

CONSUMER BEHAVIOR AND THEIR IMPACT ON MARKETING 3
Introduction
The understanding of consumer behavior has become a critical aspect of business growth.
The success of any firms marketing strategy is dependent on the firm’s ability to understand
consumer behavior and incorporate policies aimed at meeting consumer needs. Consumer’s
behavior is influenced by consumer tastes and preferences which keep on changing, and
therefore business has increasingly adopted the knowledge of consumer behavior in a bid to
understand the different factors influencing their consumption behaviors to improve their sales
and product or brand development strategies (De Grauwe & Ji, 2018). Consumer purchasing
decisions are very critical in determining the size of company sales or profits, and therefore it has
become a very significant aspect that every manager of a company decided to implement. This
essay, therefore, seeks to provide an understanding of consumer behavior by analyzing various
factors influencing consumer behavior towards a firms brand or product and their impact on their
consumption behavior. It will also provide essential insights on how the knowledge can be used
to improve implementation of social change in firms and also improve their marketing strategies.
The Scope of Consumer Behavior
The scope of consumer behavior has been enhanced through the disciplines of behavioral
psychology, behavioral economics as well as the knowledge of marketing science. The
experience from these disciplines brings a prevailing view of the nature of human behavior or
consumer behavior and the factors with which the response is a function. Consumer behavior
can, therefore, be understood as the individual decision or actions that influence their
consumption and purchase behavior towards a particular brand or product line (Yang &

CONSUMER BEHAVIOR AND THEIR IMPACT ON MARKETING 4
Gabrielsson, 2017). In behavioral economics, consumer consumption behavior is constrained by
their income levels or their resources which determine their purchasing power. Consumers are
generally characterized to have unlimited needs or wants, but their resources to have their needs
met are scares. Therefore consumers have to make choices about which of their wants is to be
satisfied first depending on their available resources. According to the marginal utility approach
and the indifference curve concept in behavioral economics explains consumer behavior as
influenced by the changes in prices and income (Minton et al., 2017). However, in the modern
corporate world as much as rate and income are critical determinants of purchasing power of
consumers, the consumption behavior is highly by consumer choices based on individual tastes
and preferences.
Selected Case Company under Analysis
The chosen case analysis is the Woolworths Group Limited which is an Australia based
Retail Company. The company supermarkets occupy over 80 percent of the retail industry and
the second largest retail company in the country. As of 2016, the company financial reports
recorded net revenue of USD 59 billion which was a loss of USD 1.2 billion resulting from the
company write down activities of the failed master business. Despite the loss the company has
remained competitive in the industry with the company top brands such as the Delicious
Nutritious, Farmers Own Milk and Free From, Woolworths range among others (Solomon et al.,
2014). The company profitability and performance in term of sales growth is determined by the
consumer behavior towards the company brands. It is therefore essential to analyze the factors

CONSUMER BEHAVIOR AND THEIR IMPACT ON MARKETING 5
influencing the company brand or product consumption behavior to help the management on
developing effective marketing strategies for the products.
Individual Factors influencing consumer behavior
The factors affecting consumer behavior towards a particular company brand or product
vary from one person to the other depending on their tastes and preferences and the ability of the
product or brand to satisfy their wants or to maximize their utility (Cantallops & Salvi, 2014).
One the primary factor influencing consumer behavior is the consumer attitude towards the
company brands and secondly is the consumer personality or lifestyle. These factors play a vital
role in changing individual consumer behavior and can be used by the management of
Woolworth group limited to improve their marketing strategies and recover the losses the
company experienced by enhancing the company sales.
Consumer attitudes and its influence on consumption behavior
The consumption of a particular company brand is profoundly influenced by individual
views which include the beliefs and feelings the consumers have towards the product as well as
the behavioral intentions of the product or brand. A consumer can hold both positive and
negative sentiment towards the product or brand, for instance; a consumer can believe that the
Woolworth Delicious Nutritious brand is the best brand in Australia or even have an idea that
the brand packaging is not the best (Armstrong et al., 2015). The consumer feelings towards the

CONSUMER BEHAVIOR AND THEIR IMPACT ON MARKETING 6
brand are influenced by the belief in the products while the behavioral intentions are concerned
with the plans the consumer has for the product or brand.
Positive consumer attitudes towards a product or brand will have a positive impact on the
product purchase decision. If the consumer believes that the commodity is valuable to them, then
this belief will positively influence their purchasing decisions for the product. If the idea is
contrary, then the consumer may shift his or consumption decision towards the consumption of a
substitute brand. Regarding the behavioral intentions, it is essential for each brand to be able to
help the consumer achieve a certain level of satisfaction or utility (Lantos, 2015). A consumer
will continue consuming a particular brand if the brand is helping him or her achieve or
maximize efficiency.
Personality and its influence on Consumption behavior
Nature can be understood from two dimensions; the first dimension is the consumer’s
personality while the second dimension is the brand personality. Consumer personality is an
internal characteristic and plays a more significant role in influencing consumer behavior
towards a company brand, brand loyalty and also their purchasing behavior (Ghose et al., 2014).
A consumer will for instance even pay more for a product which is environmentally friendly
compared to other products. The ability of a brand to satisfy the consumer needs is what dictates
the consumer personality and decision making and therefore most company marketing
departments use consumer personality traits to predict a brand consumption behavior in the
market. Brand personality explains the differentiation of the brand from other brands in the
market and plays an essential role in contributing to favorable attraction to the brand. It has been

CONSUMER BEHAVIOR AND THEIR IMPACT ON MARKETING 7
one of the most effective determinants of consumer behavior in consumption of consumable
products than the durable products. Therefore both consumer attitudes and personality may be
internal characteristics and play an essential role in influencing consumer consumption and
purchasing behavior, and their practical analysis can help develop effective marketing strategies
which will help improve product performance in the market.
Application of consumer attitudes and personality along with consumer decision making
and Experiences
Changing consumer attitudes towards a particular company brand is complicated
however companies can develop alongside some psychological strategies which will slowly help
in improving their position or shift towards newly developed brands (Foxall, 2015). Developing
strategies to change a consumer’s attitude towards the brand may be seen as a company motive
to increase sales, and therefore it will take significant company efforts to change the consumer
belief, feelings and behavioral intentions towards the brand. The consumer attitudes can be
improved through classical conditioning which implies that the marketing department will
attempt to condition the brand with liked stimuli by the consumers (Hudson et al., 2015). For
example, to change the consumer's attitude towards the Woolworth Farmers Own Milk brand by
conditioning the brand to sweet products from milk such as yogurt, chocolate among others.
Changing a consumer behavioral intention with a brand may not be easy however when
the market is characterized with similar products, to avoid consumers brand loyalty from shifting
to other substitute brands the marketing department can develop marketing strategies such as

CONSUMER BEHAVIOR AND THEIR IMPACT ON MARKETING 8
offering discounts and coupons as well as ensuring that there is better shelf space to facilitate
efficient shopping (Vigneron & Johnson, 2017). Changing a product belief may be difficult
especially when the consumers have an unfavorable view towards the brand. However, the
company has the opportunity to develop and strengthen their brand image to the consumers
which may drastically change their belief by changing the aspects which the consumers consider
unfavorable.
Consumer decision making regarding the purchase of a product is determined by the
products ability to meet their needs and help them maximize their utility. Consumers are
considered to be indifferent and that their consumption behaviors have increasingly changed due
to the change in taste and preferences and the existence of substitute goods in the market
(Davvetas et al., 2015). Many firms are therefore concerned with understanding the consumer
behaviors and using the knowledge to predict their behavior and develop effective brand
marketing strategies. Following a consumer personality and how their traits impact their
purchasing behavior will contribute positively to enhancing the brand loyalty and purchase
decision. If a consumer decision making on a product is based on environmental sustainability of
the product, then such a trait can be used by the company to produce and brands which are
environmentally friendly.
Product branding and increased advertising strategy can play a significant role in
influencing consumer purchasing behavior. Brand advertising has changed the face of marketing
strategies, and most firms are using the classical conditioning and celebrities to increase their
sales volumes and get the consumers love their products (Heding et al., 2015). However, the
strategy has become comparative advertising which every brand is using and henceforth led to

CONSUMER BEHAVIOR AND THEIR IMPACT ON MARKETING 9
change in consumers thinking that the move is made to increase company sales but not to
improve their satisfaction.
For the case of consumer’s personality, the social character of a consumer is essential in
making product or brand purchasing decision. Social nature can be analyzed in the fact that some
consumers rely on themselves when making decisions while others depend on the opinion of
other people before making a consumption or purchase decision (Medway et al., 2015). For the
consumers who rely on themselves, they are considered to be innovative, and the company brand
marketers are required to use strategies which offer more appeal, more rational and provide
descriptive, detailed information about the brand. The brand marketers can also look at the
features which are attractive to the consumers or which enhance consumer’s feelings towards the
brand or even seek to improve on value addition on the product (Aras et al., 2017). If the
consumer relies on others in making their purchasing or consumption decisions, then it is
essential to develop effective marketing strategies by the use of social media platforms and to
focus more on the brand advertisement. As long as the ad is well organized and attracts positive
feedback, then such consumers will be able to purchase the company brands.
Consumer decision making consists of significant fives steps; need recognition,
information search, evaluation of possible alternatives, purchase and post-purchase behavior.
Such steps alongside the understanding of consumer attitudes as well as consumer and brand
personality can be beneficial for the company marketers in helping them understand their
customers and improve their communication regarding a particular brand (Edbring et al., 2016).
Need recognition can be based on consumers internal or external stimuli, and it occurs whenever
a consumer is faced with the difference between the current actual and desired states. A

CONSUMER BEHAVIOR AND THEIR IMPACT ON MARKETING 10
consumer can recognize the need to satisfy a particular want from an internal stimulus and
influence a purchasing decision for a brand while on the other hand he or she knows a need that
wants to be satisfied from external stimuli that are from friends or surrounding environment.
Therefore the marketing department is supposed to identify the different methods of need
recognition by consumers and develop effective strategies for meeting their needs.
The second step involves the process of information searching about company brand and
the type of information available is very important in influencing consumer behavior. The
consumer after getting the relevant information will then evaluate the possible alternatives. It is
essential for the company to ensure that the brand or product is unique to other brands in the
market to influence purchase decision making (Pollard et al., 2017). The consumer will then
purchase a brand and react to the consumption behavior. Understanding the process of consumer
decision making as well as the two factors influencing consumer behavior for Woolworths group
top brands will, therefore, be very useful in helping the management as well as the marketing
department to develop helpful product and brand marketing strategies which will eventually help
the group recover from the 2016 loss by increasing their sales returns and profitability.
Use of consumer behavior related theories and the knowledge of consumer attitudes and
personality influences in improving Woolworths Marketing Strategies
Different marketing strategies have been used by various companies to help the
companies or business increase their performance through increased sales and help offer quality
goods and services which will assist in meeting consumer demands and needs (Souiden et al.,
2017). Different theories have also been developed to help in understanding the various

CONSUMER BEHAVIOR AND THEIR IMPACT ON MARKETING 11
marketing strategies. The analysis of the marketing strategies and different methods will help us
know how they can be used by the marketing department of Woolworths Group to understand
the high individual influences on consumer behavior and improve the company marketing
strategies.
The 4Ps marketing Strategy
This strategy has been developed to help marketers understand the various factors which
must be taken into consideration when designing a marketing strategy for a company product or
brand in a particular market (Menidjel et al., 2017). For effectiveness of the plan, the marketers
must take into consideration the following factors; the product, price, place and promotion
aspects of a company. These four factors or elements form a company product or brand
marketing mix.
When developing a marketing strategy, the marketers should take into consideration the
price aspect of the brand or product. They should evaluate the existing pricing strategies and

CONSUMER BEHAVIOR AND THEIR IMPACT ON MARKETING 12
compare with the competitors pricing strategies. The price range of a product influence consumer
behavior and some consumer segments may develop a personality trait that a less priced brand is
more inferior in the market regarding quality (Orji et al., 2017). Therefore the company pricing
strategy should be considerate of the competitor’s price range as well as the marketing
environment. The product worth is also a very crucial factor in developing an effective
marketing strategy since its worth is measured by consumers’ willingness to pay.
The strategic location or environment is also very critical in developing an effective
marketing strategy. It defines the place where the consumers can access or obtain the brand s or
products from. The markers of the company should ensure that the pace is convenient, accessible
and economical regarding the cost incurred by consumers to obtain the goods as well as to the
company (Keller & Richey, 2017). Consumers will consume or are likely to purchase products
and services in place which is more convenient to them. The company promotional activities
should be aimed at communicating the benefits of the company top brands, and therefore the
marketers should ensure that the brand promotion activities are apparent to the target market
(Ong et al., 2017). These will be helpful in attracting the brand consumers whose consumption
behavior is influenced by advertisement or social media or depend on their external stimuli to
recognize a need.
Consideration and involvement Marketing Theories
These marketing theories are used in helping marketers and the management of different
companies or firms to develop or improve their marketing strategies. The consideration
marketing theory provides that the brand consumers act as subsets by which the decision-making

CONSUMER BEHAVIOR AND THEIR IMPACT ON MARKETING 13
strategies are applied. The purchasing behavior, therefore, will be influenced by consumer’s
ability to develop a list of possible places to purchase or acquire and brand (Parsons et al., 2017).
The choice will then narrow down to a specific number which will then be used to make the final
consideration to make a purchase decision. The Woolworth marketing department should also,
therefore, ensure that their brands are strategically located by establishing different stores in their
value chain grocery and supermarkets to increase consumer convenience to access the brands.
On the other hand, the involvement marketing theory is useful in helping the marketers
understand the efforts made consumers acquire a brand and how it’s influenced by consumer
behavior. The approach has established a direct relationship between the number of cognitive
efforts used by consumers to purchase a brand and the level of perceived importance of the brand
to the consumer life (Bilgin et al., 2018). For example, the cognitive efforts used by a consumer
to obtain cleaning detergent are less significant compared to the cognitive efforts used to get a
new car. The theory, therefore, deposits that the consumer degree of involvement in purchasing a
brand is not a function of the brand price but the perceived impact of the brand on the
consumer’s quality of life (Aviv et al., 2018). The above marketing strategy and theories can,
therefore, be used by the Woolworth Marketing department to develop effective marketing
strategies which will help the company improve profitability and service delivery to their
consumers.
Conclusion
Developing effective marketing strategies from the above analysis can be said to be a
function of consumer behavior towards the company brand. The knowledge of consumer

CONSUMER BEHAVIOR AND THEIR IMPACT ON MARKETING 14
behavior is therefore essential in enhancing company brand development and improving the
company marketing strategies. Consumer behavior is influenced by many factors including
cultural, social and personality related influences. The understanding of consumer attitudes, as
well as the consumer personality and brand personality, will, therefore, help the company
improve their strategies and recover from the current loss and also improve the company
competitiveness in the Australian retail industry.

CONSUMER BEHAVIOR AND THEIR IMPACT ON MARKETING 15
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