Consumer Behaviour Framework and Unilever's Economic Model

This report discusses the consumer behaviour framework and how Unilever applies it to their products such as soap, laundry, and beauty products. It also explains the economic model of consumer behaviours and their effects on price, substitution, and income level.

Consumer Behaviour

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Consumer behaviours framework................................................................................................3
Three factors are as follows.........................................................................................................3
CONCLUSION
REFERENCES................................................................................................................................1

INTRODUCTION
Serving customer in global market means selling product internationally, organization with huge
success in local market go for international opportunity (Bamossy and Solomon, 2016). This
study is based on Unilever, their products fulfil daily want and satisfy essential need. In this
report we will discus consumer behaviours framework and how behaviour impact the demand of
the product.
MAIN BODY
Consumer behaviours framework
Consumer behaviour framework Hawkins stern predict that how customers do purchasing
and make decision to buy, this let producer capitalize behaviour and produce goods accordingly
(Mothersbaugh, et.al., 2020). Many other framework show only rational action where Hawkins
stern framework argued on sudden purchasing of product by the customer. Researchers of
Unilever understand the impulse purchasing of their customers.
Three factors are as follows
Lifebuoy soap of Unilever, this product had massive sell last year, due to health
precaution and to be safe from spreading COVID virus. People have purchased soap on daily
basis, Unilever understand the change in behaviour decided to make improvement in the soap
and started selling it in new packaging which show the ingredient in product that protect from
COVID virus. Unilever's economic model of consumers behaviours:
Price effect: This means how price affect consumer's demand, prices of lifebuoy remain same
even after the massive increase. Unilever understand the concept that if price is high, consumer
is not ready to purchase but if the price is low or reasonable customer will happily buy the
product. This consumer behaviours helps Unilever as well as other companies to understand
what exactly customer want, Unilever study behaviour of consumer and make marketing plans or
product accordingly.
Substitution products: Unilever have large number of competitors, mainly in essential products
like soap (Solomon, et.al., 2017). There are many substitution products that decrease the sales
and shift their customer to cheaper alternatives, sales of lifebuoy decreased because of same
product produced by many other companies such as Dettol.

Income level: Even if income level of customer keeps rising and declining they will still
purchase product that fulfils their essential need for example soap, so Unilever never increases
their price of every product. Increase in price of daily life product will decrease the sales for the
product, for example if Unilever stared selling lifebuoy soap in price of 15 rather than 10, the
company will lose half of their customer base and this will going to shift the customer to other
soap providers.
Factor of laundry product:
Other product of Unilever such as fabric cleaner and surfs which is developed to reduce
the consumption of water, which is one of the scarce resources. Unilever's produce laundry
product to help consumer clean their clothes, they understand the changing habits and behaviours
of consumer with the help of Hawkins theory, they identify what consumer want to clean the
laundry and then company come with the idea of surf and fabric cleaners (Szmigin and
Piacentini, 2018). Unilever's economic model of consumers behaviours:
Price: There was rise in price of fabric cleaner and surfs product after good sell, the company
started to lose customer after the price hike which decreased the demand of the product. Various
seasons also effect the price of the product, for example if there is winter season then the price of
wool or sweater cleaners will rise because there will be high demand of product that fulfil the
customer need at that particular seasons.
Substitute: Unilever's laundry products such as fabric cleaners and surfs started declining after
competitor's substitution product which fulfil exact demand of customer in very cheaper rates,
there was massive decrease in sales after price hike as well as substitution products available in
low rates.
Income level: income level of people effect the growth of the product for example fabric
cleaners are expensive for lower and middle class income groups whereas high income level
people regularly use expensive products, for example Unilever started selling small pouches or
packs of fabric cleaners and surf in low prices to cover lower level and middle level income.
Factor of beauty product:
Lastly beauty products of Unilever such as ponds and Vaseline, fulfil the consumer
demand mainly women customers. Unilever identify the women behaviours for example most
women want products that enrich their skin (Trudel, 2019). Women behaviours shows impulse

purchasing of beauty product and Unilever successfully satisfied the demand. Unilever's
economic model of consumers behaviours:
Price: Lastly beauty products such as ponds and Vaseline of Unilever have both higher and
lower prices accordingly to demand of the customer, they produce product in every size to
overcome pricing problem. For example Unilever sells shampoo in various packet size, they
pack shampoo in bottles as well as small pouch to fulfil the demand of the every customer.
Substitute: Ponds and Vaseline also have substitute products which slow down the sales of the
product. There are various same products in low price available which shifts consumer of
Unilever to competitors.
Income level: Whereas beauty products such as ponds and Vaseline target middle and upper
income level groups because they believe lower level income group will not purchase beauty
products.
Unilever's economic model of consumer behaviour identify what consumer wishes for, this
economic model shows the income level of consumer, price that effect the product and
substitution level that decreased the sales. Different seasons also plays an important role in sales
of the product such as there will be more demand of dry cleaning and laundry products in winter
season, demand of Vaseline and petroleum products will rise in winter season. Whereas demand
of both soap and beauty products remain same throughout the year as these products is not
influenced by seasons because these are the most essential product which is consumed by
customer on daily basis.
CONCLUSION
In this report we have discussed consumer behaviours framework and how Unilever
successfully apply them to their products such as soap, laundry and beauty products. In the end
this report have given details of economic model of consumer behaviours and their effect which
include price effect, substitution effect and income level effect.

REFERENCES
Books and journals
Bamossy, G.J. and Solomon, M.R., 2016. Consumer behaviour: A European perspective.
Pearson Education.
Mothersbaugh, et.al., 2020. Consumer behaviour: Building marketing strategy. McGraw-Hill
Education.
Solomon, et.al., 2017. Consumer behaviour: Buying having and being. Boston MA: Pearson.
Szmigin, I. and Piacentini, M., 2018. Consumer behaviour. Oxford University Press.
Trudel, R., 2019. Sustainable consumer behaviour. Consumer psychology review 2(1)pp.85-96.
1