This assessment analyzes the changes in consumer behaviour towards McDonalds burgers using the Theory of Reasoned Actions. It includes a sentimental analysis of the product and recommendations for marketing implications.
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Running head: CONSUMER BEHAVIOUR Consumer Behaviour Name of the Student: Name of the University: Author’s Note:
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1 CONSUMER BEHAVIOUR Introduction The main purpose of this assessment is to analyze a branded product for which the behavior of the consumer has changed. The brand which is selected for this assessment are Burgers which is offered by McDonalds. The burgers which is offered by McDonalds is quite popular in the market and therefore has significant number of loyal customers. The assessment would be further applying Theory of Reason Actions while considering the changes in the consumer behaviors towards the consumer products. In addition to this, the strengths and weaknesses of the theory and how the same is applicable to the brand. The theory which is considered for the assessment is theory of related actions which effectively shows how the behavior of a consumer is affected by behavior of a group of consumers(Schütte & Ciarlante, 2016). The assessment also includes sentimental analysis for the product and how the same discloses consumer behaviors towards a particular product. Discussion The brand which is selected for this assessment is burger products of McDonalds and the same is considered to be a popular brand in Australia and most of the consumers prefer the burgers which are offered by the business. McDonalds is anAmericanfast foodcompany which offers a variety of Burgers, fries and shakes(Mcdonalds.com.au., 2019). The business also operations in different countries and follows franchise model to expand the operations of the business. The company is renowned for the fast food protects and it is considered as one of the giants in the food industry.
2 CONSUMER BEHAVIOUR Theory Framework and Overview The behaviour of the consumers towardsa product is an importantfactor which determines the sales which is generated by the business.It is imperative that the management of a company before launching a new product, survey of consumer behaviour is necessary to find- out whether a particular product will sell or whether the same would be successful in the market. The consumer behaviour can be determined by using one of the models which is available for such aspect. The assessment considers the theory of Reasoned Actions (Cohen, Prayag & Moital, 2014). As per this theory, the past consumer behaviour is a better predictor for estimating the preference patterns of the consumers and how the same has an impact on the brand. The model also considers the social power of others which have an influence on the consumer behaviour. In a business, when any decision is taken regarding a product, the consumer preference and behaviour trends are always studied so that appropriate decisions can be taken. It is rightly said that the customer are the kings as their demands determine the price for the products and also how the products would be sold in the market (Ackermann & Palmer, 2014). In most of the cases, the behaviour trends of the consumers can help the management predict whether the
3 CONSUMER BEHAVIOUR product would be successful in the market or not. Some of the strengths which can be identified regarding analysis of the consumers attitudes are: ï‚·The business would be able to judge the taste and preference which is prevailing in the market and accordingly set policies so that the sales of the business is maximised. ï‚·A through analysis of the consumer behaviours in a competitive market definitely saves a business from disasters as in such a market it is a common thing for new products to be unsuccessful. ï‚·The process of market segmentation is assisted by analysis of the consumer behaviours for same or similar products. This in turn helps the management of the company to formulate appropriate strategies for purpose of marketing the product (Hoppe, Vieira & Barcellos, 2013). The analysis of the consumer trends also helps businesses to select the target customers and formulate strategies accordingly so that appropriate revenue is generated by the business. ï‚·The process of analysing the consumer behaviours is especially useful when the business is trying to introduce a new product in the market. It is generally the custom which is followed by businesses for ensuring that new products are developed considering the behaviour and buying patterns of the consumers. The above mention strengths which is listed above shows that a business should consider consumer behaviour before any strategies are formulated by the management of the company. However,therearecertaindisadvantageswhichisassociatedwithrelyingonconsumer behaviour for a particular product. The disadvantages which can be pointed out are listed below in details:
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4 CONSUMER BEHAVIOUR In certain situations, the marketers make use of the consumer behaviour trends and engage in questionable practices for the purpose of enhancing the revenue of the business. These practices are not only detrimental to the consumers but also affects the reputation of the business adversely. Some of the businesses even spread false claims regarding a product as a marketing tool which is done for the purpose of attracting a group of consumers. An example can be given of a beauty product. The theory which is considered is based on the reasons which can influence a consumer’s behaviour towards a product offered in the market. The burger products which is offered by McDonalds is considered on which the theory of Reasoned Actions would be applied to suggest why the consumer behaviour changed towards the product. Application of the Theory As per the theory of Reasoned Actions, the social environment in which the consumer is operating has a big influence on the behaviour a consumer depicts towards a particular product. The theory considers two approach Normative Belief and Motivation to Comply. The normative belief considers what actions other believes to be taken or not to be taken (Montano & Kasprzyk, 2015). On the other hand, Motivation to Comply considers how much the consumers takes into account the reaction of the other consumers in the market. The theory is mainly used to predict how individuals will behave based on their pre-existing attitudes and behavioural intentions (Mishra, Akman & Mishra, 2014). The theory also considers the changes in the consumer attitudes in the market.
5 CONSUMER BEHAVIOUR In my case, I have been a loyal customer for McDonalds as I have always liked the burgers and combo meals which is offered by the business. The burgers products are one of my favourite items and it is my go to fast food. However, in recent time my behaviour towards the product has changed. The main reason which can be identified for the changes in my preferences is due to the fact that most of my friends prefer burgers from popular brands such as Burger King and KFC. The reason which I can identify is due to the influence which my friends have on taste. In addition to this, I am of the opinion that the quality of McDonalds has slightly decreased over the period. The product which is offered by KFC and Burger Kings are also at par with the quality of the products which is offered by the business. The theory of Reasoned Actions is applicable in my case as the reactions of other customers also has an impact on the perception regarding a product. Therefore, the analysis of my case above shows that the behaviour of the other consumers has a significant impact on my consumer behaviour (Burak, Rosenthal & Richardson, 2013). The analysis of the consumer behaviour has an impact on the overall demand for the product in the market. The theory which is considered is based on market perception and the same affects the individual consumer behaviours. Therefore, the analysis shows that reactions of a group of other customers have an impact on individual behaviour regarding the product. Marketing Implications and Recommendations In order to determine the consumer behaviour more effectively, a sentimental analysis of the product is undertaken which is mainly aimed to record the reactions of the consumers towards the products which is offered by the business. Sentiment analysisis contextual mining of information which identifies key source materials and it helps the business to effectively understand the social sentiment for their product and their brand on an overall basis. The analysis
6 CONSUMER BEHAVIOUR involves analysis of social information and conversation available for the product which is being offered by the business. The sentimental analysis for burger products for McDonalds is being considered for the analysis and the same utilizes the application of social media. The sentimental analysis for the product of burger is shown in the below graph. Figure 1: Sentimental Trend for the McDonalds Source: (Created by the Author) The above graph shows the sentimental analysis for burger products which is offered by McDonalds. The positive responses of the people are denoted by the green line while the negative responses for the product is shown by the red line. The graph shows that the product is still preferred by a majority of the people in Australia but the trend shows a slight decline in the preference of the products which is available from the social media(Medhat, Hassan & Korashy, 2014). In an overall estimation, it can be said that the product which is offered by the business is
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7 CONSUMER BEHAVIOUR appropriate. The burger products which is offered by the business is shown to be popular in social media and other platforms and most of customers as per current estimates prefer the products which is offered by McDonalds. The brand related information which is available on social media and different online forums have a major impact in influencing the decisions and behaviors of the consumers of the business. In case there is positive responses in the social media, more and more customers would want to try out the product on the basis of the positive responses which is made for the product. The marketers can use such media and the information which is available from the Saleforce Information in predicting the behavior of the consumers and then take appropriate actions according to the behavior of the consumers. The marketers can also decide at what time the product is to be actually launched in the market judging from the behavior patterns of the consumers of the business. Therefore, some of the recommendations which can be suggested to the business of McDonalds for ensuring that there is a positive impact on the consumers regarding the products which is offered by the business are listed below: ï‚·The business has the power to influence the behavior of the consumers but using different social media tools for actively promoting the products which is offered by the business (Kwok & Yu, 2013). The business can attract consumers in such a manner and ensure that they are satisfied with the products which is offered by the business. ï‚·The business can also offer special discounts and combo meal offers in order to create a buzz among the consumers which would tilt the preferences of the consumers towards the products which is being offered by the business.
8 CONSUMER BEHAVIOUR ï‚·One of the main consideration which is related to any product is the prices and quality of the product. The management of McDonalds needs to ensure that prices which is charged for the burgers are appropriate. In addition to this, the management also needs to ensure that the quality of the products which is offered by the business is at par if not better in comparisons to the products offered by KFC and Burger King. Conclusion The above discussion effectively shows that the consumer behavior has an important role in the launch of a new product or even an existing product in a new market. The above analysis is related to the burger products which is offered by McDonalds and how the consumers react to the same in current scenario. The assessment shows sentimental analysis for the product and the same is shown to be positive. In an overall analysis, it can be concluded that consumer behavior towards a product have an impact on the overall sales and also individual consumer behavior for the same product.
9 CONSUMER BEHAVIOUR Reference Ackermann, C. L., & Palmer, A. (2014). The contribution of implicit cognition to the Theory of ReasonedActionModel:Astudyoffoodpreferences.JournalofMarketing Management,30(5-6), 529-550. Burak, L. J., Rosenthal, M., & Richardson, K. (2013). Examining attitudes, beliefs, and intentions regarding the use of exercise as punishment in physical education and sport: an application of the theory of reasoned action.Journal of Applied Social Psychology,43(7), 1436-1445. Cohen, S. A., Prayag, G., & Moital, M. (2014). Consumer behaviour in tourism: Concepts, influences and opportunities.Current issues in Tourism,17(10), 872-909. Hoppe, A., Vieira, L. M., & Barcellos, M. D. D. (2013). Consumer behaviour towards organic food in porto alegre: an application of the theory of planned behaviour.Revista de Economia e Sociologia Rural,51(1), 69-90. Kwok, L., & Yu, B. (2013). Spreading social media messages on Facebook: An analysis of restaurant business-to-consumer communications.Cornell Hospitality Quarterly,54(1), 84-94. Mcdonalds.com.au.(2019).McDonald'sAustralia.[online]Availableat: https://mcdonalds.com.au/ [Accessed 5 Apr. 2019]. Medhat, W., Hassan, A., & Korashy, H. (2014). Sentiment analysis algorithms and applications: A survey.Ain Shams engineering journal,5(4), 1093-1113.
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10 CONSUMER BEHAVIOUR Mishra, D., Akman, I., & Mishra, A. (2014). Theory of reasoned action application for green information technology acceptance.Computers in human behavior,36, 29-40. Montano, D. E., & Kasprzyk, D. (2015). Theory of reasoned action, theory of planned behavior, and the integrated behavioral model.Health behavior: Theory, research and practice, 95- 124. Schütte, H., & Ciarlante, D. (2016).Consumer behaviour in Asia. Springer.