Impact of Consumer Behavior on Business Decision

This research article explores the impact of consumer behavior on business decision-making process. It discusses the findings that suggest low-control consumers tend to acquire utilitarian products, while individuals with power and autonomy control-related constructs require higher quality day-to-day products and products from multiple brands serving the same purpose, respectively. The article recommends that Amazon needs to focus more on utilitarian products than hedonic products, partner with more local manufacturers and retailers for retail product category, and provide products that cater to the control-related constructs of different individuals.

I M PAC T O F
C O N S U M E R
B E H AV I O R O N
B U S I N E S S
D E C I S I O NN A M E O F T H E S T U D E N T :
N A M E O F T H E U N I V E R S I T Y :
A U T H O R ’ S N O T E :

FINDINGS OF THE
RESEARCH ARTICLE
• Low-control consumers are found to acquire utilitarian products due to:
– Motivation from perceived loss of control that engages the consumers to
problem solving nature
– And the typical everyday problem solving value arising from the products
• It has been found that by purchasing utilitarian products people
compensate for their lack of control as these products ensure solving
problems of everyday life (Chen, Lee and Yap 2017)
• Sense of control among individuals have been found to be affiliated with
two constructs, which are power and autonomy
– Threat to one’s own power triggers the requirement of high-status product
– A threat to autonomy triggers the requirement of unique products

RECOMMENDATIONS FOR
THE ORGANIZATION
• Amazon Australia is found to sell more than 29 products and service categories consisting
of both local and international brands (Patchell, 2017)
• It has been found that in Australia factors such as loss of job, security and change in
trade policies are the reasons that make consumers exposed to control-depriving
situations (Nguyen and Duncan 2017)
• Based on the findings from the article it can be recommended that
– Amazon needs to focus more on utilitarian products than hedonic products
– More local manufacturers and retailers are to be partnered for retail product category
– For people with power control-related construct, higher quality day-to-day products are required
– For people with autonomy control-related construct, products from multiple brands serving the
same purpose are required

REFERENCE LIST
• Chen, C. Y., Lee, L., & Yap, A. J. (2017). Control deprivation motivates
acquisition of utilitarian products. Journal of Consumer Research, 43(6),
1031-1047.
• Nguyen, H. T., & Duncan, A. S. (2017). Exchange rate fluctuations and
immigrants' labour market outcomes: New evidence from Australian
household panel data. Journal of International Economics, 105, 174-186.
• Patchell, J. (2017). Amazon: It's just business. Electrical Connection, (Spring
2017), 6.