Consumer Behavior and Marketing Psychology

This paper analyzes the impact of FMCG products on consumer behavior, including perception, attitudes, motivation, group and individual differences, culture, family, lifestyle, psychological factors, and value proposition.

Consumer Behavior and Marketing Psychology
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Table of Contents
Introduction.................................................................................................................................................2
Analysis of FMCG products........................................................................................................................2
What is the importance of perception on customer’s behavior of oranges from Spar?................................3
How are the attitudes of the consumers towards the oranges from Spar?....................................................4
What motivates the consumers to purchase oranges?..................................................................................5
What are the effects of group differences on oranges from Spar?...............................................................6
What are the effects of individual differences on oranges?.........................................................................7
How culture influences the consumer behavior towards the oranges from Spar?........................................8
What role does family play in the customer behavior on oranges as a FMCG product?..............................9
How the lifestyle of the consumers impacts their behavior towards oranges?...........................................10
What are the psychological factors that influence the purchasing power of the consumers?.....................11
What are the significances of value proposition on consumer behavior?...................................................12
Analysis of the Summary..........................................................................................................................12
Conclusion.................................................................................................................................................14
References.................................................................................................................................................15
Appendices................................................................................................................................................17
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Introduction
Fast moving consumer good or FMCG are those goods which has a little shelf life and has to be
utilized in a short span of time. There are various goods under this category, and some of these
items are milk products, eggs, meat, vegetables, fruits, beverages, soaps, and washing powders.
This paper will point out the vital aspects which will survey 15 participants those who purchase
FMCG products. The crucial elements that will be explained in this paper are customer
perception, customer attitudes, and customer motivation, effects of group and individual
differences, culture, family and lifestyle on customer’s behavior, psychological aspects and
significances of the value proposition.
Analysis of FMCG products
Fast-moving consumer goods (FMCG) are those goods that are sold rapidly in the market at a
meager price. Most of the FMCG products have a very little shelf life either due to high demands
of the customers or quick damage to the goods. Some FMCG goods like fruits, vegetables, meat,
milk products, and baked products are very consumable good. Some other products like cold
drinks, chocolates, packaged foods, toiletries, and cleaning goods have very high profitable
goods. Although FMCG goods are sold in huge amounts the profit gained by these goods are
comparatively little (Fetscherin and Heinrich, 2015).
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What is the importance of perception on customer’s behavior of oranges from Spar?
Graph 1
The perceptions of the customers on the goods have an intense impact on their purchasing power.
Proper strategy and implementation by any companies could affect the attitudes and influence
the behavior of the customers (Godey et al., 2016). It is the spontaneity which persuades any
consumer to buy anything from a specific market. 80% of the people found it extremely
valuable, whereas it was somewhat valuable for 6.67% people. They had purchased fruits before
from other markets also, but the quality of the fruits in Spar is the best according to them.
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How are the attitudes of the consumers towards the oranges from Spar?
Graph 2
An attitude might be positive or negative that a customer would have towards the goods. A
customer with the positive attitude towards the FMCG goods is more possibly buy these goods.
The survey of the customer's position is very significant for the sellers (Habibi, Laroche and
Richard, 2016). 50% of the people were very interested in it whereas there were 40% of the
people who extremely interested towards the products. All the 15 participants had purchased
fruits from another market also, but after buying oranges from Spar. Therefore, it is of positive
attitude of 5 peoples that permits them to purchase oranges from Spar only.
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What motivates the consumers to purchase oranges?
Graph 3
Sellers and ad companies invest lots of capital and time to govern the motivations of the
customers those who buy the FMCG goods from Spar stores. 40% of the people voted that very
high quality of the products motivates them whereas there were 45% of the people those were
satisfied with high quality and 7% of the people voted that the do not look for so much quality
but they look for cheaper cost. Customers also want to identify the goods and utilizing are not
going to make them fall sick or any other effects. Most of the customers choose fresh fruits that
do have any toxic or colored substances (Inoue and Kent, 2014). Spar always sell fresh and
healthy fruits which motivated only 5 peoples to purchase oranges from the Spar store.
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What are the effects of group differences on oranges from Spar?
Graph 4
Groups consist of some people that the individuals compare themselves with others. Colleagues,
family members, relatives, neighbors, and friends are included in the groups. All the members of
this group effect the purchasing power of the customers. They had utilized the goods before and
know everything about the goods. 40% of the people found it to be a great deal and were to be
very interested from the fact that the products generated great impact on the consumers. 7
peoples agreed that group differences always plays an important role to purchase fruits from a
particular store. They had full information regarding the features and specifications of the goods.
A customer is also influenced by the members of their community (Mathras et al., 2016). Some
groups consist of those people who do not share direct relations with the customers. These
members are more casual and do not communicate with the customers regularly.
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What are the effects of individual differences on oranges?
Graph 5
The profession of an individual is an essential aspect in the purchasing power of the customer.
The job of any individual has a direct impact on the goods they would select for themselves
(Petersen, Kushwaha and Kumar, 2015). 35% of the respondents were fund to be extremely
familiar with the products of FMCG and 29% of the respondents were very familiar. All the 15
participants had purchased fruits before from other markets also, but the quality of the fruits in
Spar appealed to only 5 peoples. 6 participants agreed that individual differences has an effect on
the purchasing power of the consumers.Age of an individual also affects the behavior of the
customers. The personality of an individual to influences the purchasing power. Each customer
will buy goods according to their personal choice.
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How culture influences the consumer behavior towards the oranges from Spar?
Graph 6
Cultural aspects have a significant impact on the purchasing power of the customers. Each and
every customers has different habits, morals and ethics, family position and culture (Schmitt,
Joško Brakus and Zarantonello, 2015). 40% of the people found that “culture” to be very
effective for the consumers to get influenced for the products whereas 15% were found it
somewhat effective. Spar store sells goods at the reasonable price which made the interested
participants to shop from this store. All the 15 participants agreed that culture usually influences
the consumer behavior. Customers from high status would prefer expensive goods whereas
customers on average and low rank would spend money on expensive goods. A customer with
low income would buy those goods which are needed for their living. A customer from medium
status would be more interested in purchasing goods that would be required in the future.
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What role does family play in the customer behavior on oranges as a FMCG product?
Graph 7
A married customer will always show the strong tendency in purchasing goods that are useful
not only for the customer but also their family in comparison to an unmarried customer. The
family is a vital factor in the purchasing power of the customers. Sellers too target the families
for their promotion strategies (Sen, Du, and Bhattacharya, 2016). A family where the interaction
level among them is high, purchasing any goods will be based on the likings of other members
also. 55% respondents found that it above average that family plays vital role in consumer’s
behavior, whereas 45% found it to be average. Only 5 peoples were encouraged to purchase
oranges from Spar only. All the participants had purchased fruits before from other markets too,
but the quality of the fruits in Spar attracted only few participants. All of them approved that
family impacts the buying power.
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How the lifestyle of the consumers impacts their behavior towards oranges?
Graph 8
Lifestyle is also a vital factor when the customers select their preferences. Two customers of the
same age and income will not purchase the same goods. The lifestyles of the customers are
significant when the question comes regarding the high association with the goods (Sillani and
Nassivera, 2015). These goods might huge risk factor or might be expensive. Those who are
health conscious, they would invest money on fruits or healthy food items. 75% people found it
above average and 45% people found it at average. Spar always sell fresh and healthy fruits
which persuaded the 5 participants to purchase oranges from the Spar store. All of them agreed
that lifestyle always persuades the customers to purchase from a particular store.
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What are the psychological factors that influence the purchasing power of the consumers?
Graph 9
Attitudes – A customer with the positive attitude towards the FMCG goods is more possibly buy
these goods. . 55% people found it above average and 27% people found it to be at average. The
buyers of fruits from Spar were concern about the advantages of the oranges as healthy fruit as
well as beauty products. Moreover, they also know that the Spar stores sell the better quality of
oranges and other fruits.
Perception – Proper strategy and implementation by any companies could affect the perceptions
and influence the behavior of the customers (Stephen, 2016). They had the knowledge that
drinking orange juice for breakfast leads to less calorie and adequate amount of antioxidants and
Vitamin C in the body. Thus, it is their perception to purchase oranges from Spar only and drink
orange juice in the breakfast.
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What are the significances of value proposition on consumer behavior?
Graph 10
A value proposition of the customer is a commitment of advantages to being given, interacted
and accepted and enhance the accessibility of the consumers. It is the positive aspect that
motivates the customer to purchase a product from a specific market (Zeugner-Roth, Žabkar, and
Diamantopoulos, 2015). It was found to be very positive for 33% of respondents and 47% of the
respondents voted it to be as positive. Only 1% peoples selected Spar as they believe that Spar
provides importance to their consumers. Value propositions increases the faith of the consumers
towards the goods. A value proposition is formed by advantages, prices, and value which a firm
could offer to its consumers. It also makes any consumers depend on a specific firm and suggests
it to others too.
Analysis of the Summary
The first step was the decision making the process of the customer when 40 to 50% of the
respondents provide priority to purchasing more superior quality of products. All the 15
participants went to the Spar store to purchase oranges as we know that Spar sells better goods at
a reasonable cost. The second step is the psychological aspects where only 5 peoples realized the
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advantages of the orange drink in their breakfast (Zhao et al., 2014). There were 80% of the
respondents who found that importance of perception is extremely valuable for influencing the
decision making behavior of the customers. The attitudes of the customers reflected that 40% of
them were extremely interested and 50% of them were very interested towards purchasing of the
products. Next is the demographic elements where all the family members of the buyers of
fruits from Spar choose to drink orange juice and selected the Spar store to purchase fresh
oranges at a reasonable cost. Perception is also a vital aspect of the purchasing power of the
customers. Only 1% of the 15 participants were affected by the perspective which prompted
them to purchase fresh fruits from the Spar store.
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Conclusion
This paper had pointed out the vital aspects which motivated only 5 peoples of the 15
participants to purchase oranges from the Spar store, which is in the city of New South Wales in
Australia. The essential elements that had been explained in this paper are customer perception,
customer attitudes, and customer motivation, effects of group and individual differences, culture,
family and lifestyle on customer's behavior, psychological aspects and significances of the value
proposition. Hence, when a consumer wants to purchase goods from a specific store, lots of
elements effects them. Every element explained in the paper are related to the quality of goods
that are suitable for the consumers.
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References
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Habibi, M.R., Laroche, M. and Richard, M.O., 2016. Testing an extended model of consumer
behavior in the context of social media-based brand communities. Computers in Human
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Inoue, Y. and Kent, A., 2014. A conceptual framework for understanding the effects of corporate
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Mathras, D., Cohen, A.B., Mandel, N. and Mick, D.G., 2016. The effects of religion on
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Schmitt, B., Joško Brakus, J. and Zarantonello, L., 2015. From experiential psychology to
consumer experience. Journal of Consumer Psychology, 25(1), pp.166-171.
Sen, S., Du, S. and Bhattacharya, C.B., 2016. Corporate social responsibility: a consumer
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Stephen, A.T., 2016. The role of digital and social media marketing in consumer
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Zeugner-Roth, K.P., Žabkar, V. and Diamantopoulos, A., 2015. Consumer ethnocentrism,
national identity, and consumer cosmopolitanism as drivers of consumer behavior: A social
identity theory perspective. Journal of international marketing, 23(2), pp.25-54.
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Appendices
Figure 1: Factors affecting the Consumer’s behavior
Source: (Fetscherin and Heinrich, 2015)
Figure 2: Psychological factors influencing the Consumer’s behavior
Source: (Stephen, 2016)
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