Global Consumer Behaviour

This report explores the behaviour of UK consumers in perspective of Sony Corporation, focusing on the influence of family life cycle on household consumer decision-making. It discusses the factors that affect household decision-making and the role of children in purchase decisions. The report also provides insights into marketing strategies based on consumer behaviour.

Global Consumer
Behaviour
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Table of Contents
Introduction......................................................................................................................................3
Main Body.......................................................................................................................................3
Household and Household decision-making ..............................................................................3
Influences on household consumer decision-making.................................................................6
Conclusion.......................................................................................................................................9
References......................................................................................................................................10
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Introduction
Marketing is that department of an organisation which is responsible for promotion of
business and products of the company. It undertakes various aspects before deciding on
marketing strategies and promotional mix. Most of the marketing strategies are designed around
consumers. Thus, understanding consumer behaviour becomes vital for the company (Moore and
Berger, 2015). This report undertakes the process of understanding the behaviour of UK
consumers in perspective of Sony Corporation. Sony Corporation (popularly known as and
hereafter referred as Sony) is a Japanese multinational manufacturer of consumer and
professional electronic products, video games, computer hardware, telecommunication
equipments and robots. It is also one of the most comprehensive media companies in the world
dealing in music record labels, production of films and TV shows,etc. This report presents an
insight about the influence of family life cycle on household consumer decision-making.
Influence of children in family purchase decisions are also discussed in the report.
Main Body
Household and Household decision-making
Consumer Behaviour study is to find out what factors influence and inspire decisions of
consumer purchases and disposals. This behavioural study helps in planning and executing
effective marketing plan (Solomon and Lowrey, 2017). It aims at exploring, explaining and
finally predicting how an individual behaves in a marketplace. For example, there is a
professional photographer who uses latest high end professional camera of a certain company.
He finds out that his peer has a Sony camera which is better in technology, has better features
and is more advanced to his camera. Based on his observation and his discussion with his peer,
he would automatically think about purchasing a new Sony camera to stay updated in the market.
He would also advise his peers not to purchase the other company's camera (Zandstra, Lion and
Newson, 2016).
Marketing strategies revolve around influencing consumer decision-making. Basic unit of
individual decision-making is individual consumer and the most basic unit of group purchasing
decision-making is family. UK government defines the term household as “One person or a
group of people who have the same accommodation as their only or main residence and the
group, either share at least one meal a day or living accommodation i.e. living room or sitting
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room” (Household – definition and meaning, 2020). Household can be two types of social units
of people living under one roof. It can be family household wherein the in-mates are related to
each other by blood or law. Another, can be non-family household, wherein in-mates are non-
related acquaintances or friends living together. Household decision-making is a collective
decision-making process in which more than one person is involved in taking decision as to what
products shall be purchased or what services shall be availed to be used by one person or more
than one in the household (Rapoport and Rapoport, 2019). There are multiple factors that affect
household decision-making process which are below mentioned: Personal factors - These are those characteristics that are specific to a person and may be
different in all members of a household. These factors include aspects such as age,
income, life style, personality, different interpersonal needs of housemates, etc. For
example, a young person would definitely seek better technology and advance features
over pricing factors while choosing a smartphones. On the other hand, an elderly would
have price as deciding factor and would not mind having less features in phone. Psychological factors – These are those factors that make thought process of every
housemate different from others. These factors include perception, belief, attitude or the
level of utility or involvement with the product, power and responsibility of the
housemates, etc. This makes every person reacts differently to different marketing tools
(Smetana and et.al., 2016). Therefore, marketers always keep into account psychological
factors while designing campaigns so that they can attract maximum people with
different mindset.
 Social and cultural factors – These are those factors which are influenced by social
characteristics of a person. Social influencers can include people such as friends and
relatives, acquaintances and references, etc. Factors such as status in society, culture and
tradition in the social class of the household, living conditions, education level, etc. also a
have lasting impact over the consumer decision-making. Companies generally use social
influencers like celebrities to influence these aspects of consumer decision-making.
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Household purchase decisions can be syncretic where the decision are taken by two
people in family or can be consensual wherein purchase decision was taken after the consensus
of every members of household (Balabanis and Siamagka, 2017). Some decisions are taken by
head of the family or when a purchase decision affects only one member, and thus is taken by
only one member. Such decisions are called autonomic decisions. It is very important for
marketer to find out the type of decision making for they shall devise strategies accordingly
(Artz and et.al., 2018). For example, it is generally seen that decisions about purchase of kitchen
appliances are taken by women of household. So, naturally they shall be the target of formulating
marketing strategies for promoting kitchen appliances. Household decision making process starts
much before they actually make a purchase (De Mooij, 2019). For the purpose of crisp reporting,
process is divided into following stages: Need recognition – This is that stage where one housemate or the family starts realising
their need. This could be because of internal or external stimulus (.Sonnemann, Tsang
and Schuhmacher, 2018). Advertisements by companies played a very big role at this
stage. For example, a child saw play-station with his friend and immediately wants to
purchase one for himself or may be television at a home is facing issues and the family
decided to purchase a new and better technology television at home. Sony marketing
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team here need to identify their needs and presents the products of Sony as a good
alternative of satisfying their need. Information search – Once the need is identified, customer starts searching for more
information about various alternatives they have to satisfy their needs. Say, the customer
is searching for new TV as the need was identified earlier. They would check on various
brands and would seek feedback from their family and friends. They would also seek
information online, through advertisements and other sources. Marketing department
shall focus on all sources of information where customer can go to. For example, they
shall play advertisement on television and social media, run hoardings and shall focus on
providing good post purchase customer service so that their customers always have
positive word of mouth for them. Evaluation of alternatives – This step is short listing decision on the part of customer
wherein they shortlist few brands out of all choices available before making a final choice
(Li and et.al., 2015). Every person has different criteria for choosing a preferred brand
and the choices of all family members would comprise of the list of shortlisted brands.
After short listing next process is to evaluate all the shortlisted options. For example,
final evaluation of choosing out of shortlisted brands for television shall be based on
varied factors such as price, looks, features, technology, compatibility with other related
accessories, reviews, post purchase service available, etc. Marketing team shall look out
all such information processed by customers and should try to ensure that the customer
find their product best on these criteria. Purchase Decision – After the final evaluation, customers generally place alternatives in
a list based on the order of preference. Obviously the first on the list is the most preferred
choice and the consumer would go for the brand. But, there may be some unexpected
circumstances that will divert their choice such as rise in price of the product at the last
moment or a bad review of the brand or product preferred by some trusted friend or
relative. Marketing team shall look out for such last minute changes for they can be the
reason of so many customers lost on part of the company (He and et.al., 2019).
 Post Purchase Behaviour – Customer does not feel completely satisfied with purchase
and seek good post purchase services from the company. This is the most important job
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of marketing team because a satisfied customer will be a testimony of their good services
and will help them in promoting their products without much of an additional effort.
Influences on household consumer decision-making
FAMILY LIFE CYCLE
Family life cycle plays an important role in buying behaviour of a household. Life
experience of consumers defines their preferences to various kinds of products (Szmigin and
Piacentini, 2018). They react differently to different stimulus and thus, marketers have to plan
differently for different age group. Family buying behaviour is also affected by family life cycle
for family members play a defining role in influencing buying decisions of other members of the
family. There are various types of families that exist in society. A family with husband, wife and
their children is called nuclear family. When grandparents also join them, it is termed as joint
family. In today's time single parent family are also increasing where a single parent is living
with his/her children. The life cycle of the family goes through a process where two young
people get married, they fall in love and have children and then ends with a family of two people.
They have to make decisions at each stage of the family life cycle so that they can manage their
family, money and solves the problems of the family (Cleveland, Laroche and Papadopoulos,
2015).
The phases of family life cycle
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 Bachelors phase- This phase of family life cycle is based on individuals who gets
attracted to each other by the appearance. The individuals at this phase invest in fashion
an expensive products and maintains their looks. They invest money and the
characteristics of the individuals is impulsive buying and premium buying.
The marketing department of Sony should focus on giving technology products for customers as
they will purchase it to impress others (Sethna and Blythe, 2016). The products like Sony smart
watches and phones can attract customers.
 The newly married couple- They are individuals who gets married and considers to have
a good buying power and financial position as they do not have children. The companies
should focus on quality as it is possible that the couples are earning. They will make
decisions for their future and they will buy products for the long term.
The marketing department of Sony can attract the newly married couple by providing the best
quality Sony speakers, headphones and music system. The price should be according to the
quality of products (Patrick, 2016).
 Full nest 1 and 2- This phase is when they become a family of 1 or 2 children and the
decisions of the family is based on the needs of the children. In full nest 1, the family is
focussed on the needs of children as they grow and get attracted towards products so the
marketing department can promote Sony play stations. They should provide attractive
discounts as the family plans to save for their future.
Full nest 2 is when the children are growing and they can make decisions about what products to
buy so the companies should make attractive products which are important for them and they can
ask for it from their parents (Shiel, do Paço and Alves, 2020). The products like Sony laptops
and smart tv will help them in their classes and the parents will get it for them.
 Empty nest- This phase is when the children goes of studies or gets leaves their home.
The family members saves for their children's future or for their retirement so the
products they will have is Sony cameras which are affordable and have decent features.
The strategy for customers which be less priced products which are durable (Sears, 2019). Later family life- They consists of retired people who are maintaining their savings and
they spend on medication more than expensive products. They sit at home and cannot do
work because they are old so they will have a demand for Sony Tv. They marketing of
the normal Sony tv should have strategies for providing them affordable products.
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ROLE OF CHILDREN IN HOUSEHOLD DECISION MAKING
Children today play a dramatically important role in the purchase decisions of the
families today, not only for the products that are for their personal use but also for the products
that are for common family use (Schütte and Ciarlante, 2016). Children today are more digitally
aware and sometimes know much more about companies, brands,products and review than their
parents. Single child households are increasing and parents are therefore more willing to give
more preference to child's need and desires than before. That's why they are a special focus of
most of the marketing strategies that are designed today specially in digital space (Gupta, 2020).
It would be no misnomer to say that they would be primary focus of digital influencers in the
future and they would take decisions as adults for themselves and their families. As of now, they
have direct and indirect impact over purchase decisions of a household (Kasriel-Alexander,
2016).
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 Direct influence - They have direct influence over the decisions which are directly related
to them such as their clothes, accessories, entertainment, food, toys, etc. Sony as a
company has various products to offer for children. Its most famous product among kids
is play station and other various video games. Not just video games, Sony offers high
quality headphones, MP3 Players, wireless speakers, watches, etc. which is absolutely
loved by the kids. Other than consumer electronics children also are a customers of
various music videos, films, shows, etc. that Sony offers.
 Indirect influence – They exert indirect influence over those purchases which are of
common use to whole family such as television, furnishing, mobile, computer, laptop,
stereo systems, etc. They not just influence their digital purchase decisions but also have
a substantial say in shopping at stores. They also choose consumer electronics such as
smartphones, television, cameras and video cameras, home theatres, etc.
This makes children a primary household decision making influencer and thus, shall be a
good focus of the marketing department in strategies and policy making. This process is called
childhood consumer socialisation. It is defined as the process by which young children acquire
skills, knowledge and attitudes to function as consumers in the marketplace. Children learn about
consumption from their parents, family, relative, friends and surroundings, etc. Another biggest
influence is television and digital advertisements (Quinn and Davis, 2015). Advertisement
shapes attitudes and decisions of the children which is shown in their buying behaviour. They
request for products of their preference while they accompany their parents for shopping. Sony
Marketing Department shall make children as separate target customer segment and then make
children specific marketing mix (Rezaei and et.al., 2016). That mix shall be aiming at promoting
marketing of consumer electronics to the household marking children as the focus of the
decision-making by the household.
Conclusion
Consumer behaviour is a part of general human behaviour as the consumer. This
behaviour is special focus of marketing strategies of any company. Consumer behaviour is
affected by multiple influences and it is the aim of the marketing department of a company to
influence them for their own good (Ingrao and et.al., 2018). Consumer behaviour can be
differentiated between individual or household decisions. Marketers study to explore and exploit
this behaviour to make policies to increase organisational sales. It is seen that family life cycle
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matters a lot while taking decisions about purchasing a product and even children play a deciding
role in influencing the household decision-making.
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Online
Household – definition and meaning. 2020. [Online]. Available
through:<https://marketbusinessnews.com/financial-glossary/household-definition-
meaning/>
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