Consumer Behavior Analysis for Dick Smith Foods

Running head: CONSUMER BEHAVIOR ANALYSIS 1
Consumer Behavior Analysis
Student’s Name
Institutional Affiliation

CONSUMER BEHAVIOR ANALYSIS 2
Table of Contents
1.0 Section One: Brand Overview and Key Theory Identification.................................................3
2.0 Section 2: Problem Recognition................................................................................................3
2.1 Key theory: Consumer Motivation........................................................................................3
2.2 Linking Theory: Consumer Ethnocentrism............................................................................5
3.0 Section Three: Information Search............................................................................................6
3.1 Key Theory: Consumer Perception........................................................................................6
3.2 Linking Theory: Behavioral Learning...................................................................................7
4.0 Section Four: Purchase Behavior...............................................................................................9
4.1 Key Theory: Influence of Reference Groups.........................................................................9
4.2 Linking Theory: Opinion Leaders........................................................................................10
5.0 Section Five: Marketing Strategy Recommendations.............................................................11
5.1 Change Pricing Strategy.......................................................................................................11
5.2 Expand Target Market.........................................................................................................12
5.3 Improve and Maintain Consumer Perception......................................................................12
References......................................................................................................................................14

CONSUMER BEHAVIOR ANALYSIS 3
Consumer Behavior Analysis
1.0 Section One: Brand Overview and Key Theory Identification
Dick Smith Foods was founded in the year 1999 by Dick Smith (Denniss, 2016). The
company was created to provide a local alternative to food products from companies that are
foreign-owned. The company was also created in response to the high market share of the
foreign-owned companies (Denniss, 2016). This paper will tackle consumer behavior with
regards to problem recognition, information search, and purchase behavior. Problem recognition,
Information search, and purchase behavior are the key stages of the process of consumer
decision making. For this analysis, consumer motivation, consumer perception, and influence of
reference groups.
2.0 Section 2: Problem Recognition
Problem recognition arises when a consumer realizes that there is a difference between
the desired state and actual state (Bruner, 2017). The magnitude of the difference between the
actual and desired state must be adequate to trigger the purchasing decision process (Bruner,
2017). According to Bray (2014), the problem recognition depends on different professional or
personal circumstances and situations which lead to the creation of the idea of purchasing.
2.1 Key theory: Consumer Motivation
Consumers are faced with differences between the actual and desired state of affairs in
their analysis of their needs and wants. This occurs in the entire problem recognition stage of
their decision-making process. Problem recognition arises when the consumers think about the
level of satisfaction they will obtain from buying a different brand or the discontent of a prior

CONSUMER BEHAVIOR ANALYSIS 4
purchase (Belk, 2015). Consumption behavior of Dick Smith Foods consumers, OzEnuts
Crunchy, in particular, exhibit McGuire's motives theory and Deci and Ryan’s motivation theory.
McGuire came up with a system that categorized theories into sixteen classes. He divided
motivation into four categories which he then separated as affective, cognitive, growth, and
preservation-oriented (McGuire, 1974). McGuire (1974) further separated the motivation based
on source and objective of the motivation. He subdivided the categories to know whether a
consumer behavior is initiated or in response to a situation, or whether the behavior is external or
internal with regards to the environment.
McGuire (1974) asserts that teleology can have an impact on a consumer and eventually
giving the consumer reason to purchase a particular brand. Applying McGuire’s motivation
theory, it is evident that consumers of Dick Smith Foods brands is motivated by response to the
proliferation of foreign brands. Additionally, Dick Smith Foods was created to satisfy consumers
who prefer local brands and seek to buy products made in Australia and owned by Australia as
stated in the previous section. By buying Dick Smith Foods, the consumers would be supporting
an ethical Australian owned company. McGuire (1974) teleology motivation also explains the
fact that consumers of Dick Smith Foods because it is foreign owned. They also noted that feel
the need to belong and connect with others are motivated extrinsically. Tangible factors in Dick
and Smith consumers may include supporting local industries and creating jobs for Australians.
This is explained by Deci & Ryan (1985) extrinsic motivation concept, and purchasing from
Dick Smith Foods to support australian economy is an extrinsic motivation. It is clear that
consumers of Dick and Smith brands are motivated extrinsically. These consumers mostly
purchase Dick and Smith brands in support of Australian businesses and local products.