OPAIC Environment Analysis and Consumer Behavior

This document provides an analysis of the micro-environmental and internal environmental factors impacting OPAIC over the next 2-3 years. It also discusses the influence of reference groups on consumer behavior. Additionally, it includes a SWOT analysis of OPAIC and recommendations for improving its marketing strategies. The document further explores the concept of family life cycle and its impact on marketing strategies, as well as the influence of social class on consumer behavior. Finally, it explains the buyer decision-making process and discusses the author's decision to choose OPAIC as a choice of institute.

Running head: OPAIC ENVIRONMENT ANALYSIS
OPAIC Environment Analysis and Consumer Behavior
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OPAIC ENVIRONMENT ANALYSIS
An analysis of micro-environmental factors (at least two) and organization’s
internal environment (at least two) which are impacting or may impact OPAIC
over the coming 2-3 years.
Micro-environmental Factors
Corporate Culture
Otago Polytechnic International Campus (OPAIC) places great importance on
training of academic staff for the achievement of their major objective of graduating
sustainable practitioners. While the practice is currently voluntary, the institution plans
of ensuring that all its staff are trained well in over the coming 2-3 years to improve
their productivity. The training methods used include Education for Sustainability and
the Adding Sustainable Value Programme (ASV).
Suppliers and Distribution Channels
The management of the supply chain and channels of distribution is a factor
which may affect OPAIC to be successful or to fail. Having a supply chain that is well
managed would reduce OPAIC’s costs and improve organizational efficiency in years
to come.
Internal Environment Factors
Employees
OPAIC has employed qualified business and academic experts for the delivery
of its programmes. The employees are committed to build an inclusive, positive and
safe higher learning environment that celebrates cultural perspectives, skills and
diversity. In addition, the lecturers come from different countries with diverse cultural
backgrounds to assist students in excelling at their chosen career.

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OPAIC ENVIRONMENT ANALYSIS
Customers
The organization’s major objective is the satisfaction of the customers by
providing students with the knowledge and skills required to excel in their career. To
enrich future student experience and to enhance consistent growth in future, the
institution has constantly strengthened its relationships with international institutions
ranging from informal friendships to study abroad and exchange agreements which are
more formal.
An analysis of the macro-environmental factors i.e. PESTLE (at least five) which
are impacting or may impact OPAIC over the coming 2-3 years. (10 marks)
Political Factors
The New Zealand government is stable thus offering Otago Polytechnic
International Campus a great chance of success in its operations due to the
government’s strong regulations and rules. Happening after every three years, the
change of government in New Zealand results to the implementation of new regulations
and rules. In addition, there is an expensive labour force and strict labour laws which
affects operations at OPAIC.
Economic Factors
Defined by its excellent per capita income, the New Zealand government has a
strong economic system. Rates of services like educational services are very
economical thus customers can easily afford the services. In addition, there is low
inflation in the country which continues to positively impact on OPAIC’s business
processes.
Social Factors
New Zealand has a stable social system which has improved business with other
countries. The country is depended on other nations for its technological development

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OPAIC ENVIRONMENT ANALYSIS
thus resulting to lower costs on development and research work. Tourism has been
given priority hence people from different countries can visit New Zealand to learn
more about the country’s culture. Furthermore, the country allows international
students to learn in its colleges thus hosting culturally diverse individuals and learning
different cultural aspects.
Technological Factors
The New Zealand government has its own system of education run by the
OECD for International Student Assessment. Moreover, the country has made
important technological advancements for different products like the Information
Technology (IT) development and use in rural and urban areas. It is projected that the
country will implement more educational reforms to continuously improve the
educational sector which will result in schools and colleges like OPAIC to continuously
offer quality educational services.
Legal Factors
The New Zealand government has eliminated the aspect of graft that may have
continuously affected different sectors in the economy like the educational sector.
Therefore, only qualified students are admitted for various educational programs thus
resulting to a more qualified workforce. The country also welcomes international
corporations to launch their business operations which may impact OPAIC through
increased competition when international institutions join New Zealand’s educational
sector.
Environmental Factors
Located approximately nine hundred kilometres from Australia, New Zealand
has an ecological system which is unique and provides a conducive environment for
learners. New Zealand people are aware of weather changes and the government has

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implemented measures to curb pollution like the introduction of latest technology in
dealing with garbage. The government is taking new initiatives to deal with pollution so
as to deal with pollution and dust. OPAIC will benefit since a conducive learning
environment will improve the learning experience for students.
SWOT analysis for OPAIC
Strengths
 Experienced senior leadership who fully support the institution’s objective of
being a leader in the market.
 OPAIC’S strategic framework for sustainability attracts students thus offering
the institution higher competitive advantage.
 The institution is focused on the future by putting up strategies for development.
For example, OPAIC has embarked on continuous training of its employees.
Weaknesses
 The staff at OPAIC are mostly struggling with the daily requirements that are
associated with their position and significance of EfS is not enough.
 There is lack of sufficient leadership to implement strategic plans.
 The institution’s sustainability strategic framework was planned for without the
knowledge and skills required to deliver on it.
 The success and implementation of EfS is not being accounted for in the right way.
 There is no staff training for both general and academic staff.
Opportunities
 The institution has external opportunities. For example, various businesses are
engaging OPAIC in sustainable practice like the New Zealand Small Business
Collective (NZSBC) and Sustainable Business Network (SBN).
 OPAIC can consult other educational institutions for the effective launching of EfS.

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 The development and use of good tools for management success.
 Common conversation language.
 Leadership that drives the organization to success.
 Formal training of staff to drive the organization forward.
Threats
 Minimum support by the Education Ministry and central government at tertiary
level.
 Students at the college are not internationally marketed as sustainable
practitioners.
 Competitors are adopting the EfS training for their staff and doing it better
Discuss why ethics and social responsibility is an important consideration for this
organization in relation to its marketing activities, provide 2 specific examples of
how OPAIC is demonstrating this
New Zealand has a set of social pressures forcing OPAIC and other educational
institutions to act in a price-driven and more compact manner. According to Jenkins
(2009) ethics and social responsibility has resulted in a less than fifty percent ethics and
Corporate Social Responsibility objectives and principles. Therefore, OPAIC should
put their efforts in implementing the CSR concept as it provides positive business
reputation and better brand recognition. OPAIC has been committed to act in a socially,
environmentally responsible and ethical manner so as to become a fair-trade campus. In
addition, the institution strongly emphasizes on educating students so that they are able
to meet challenges in the society. Moreover, OPAIC has fostered the conservation of
the environment through the practise of sustainability measures.

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Based on the micro-environmental, macro-environmental and SWOT analysis
above, provide recommendations (at least 3) to the management of OPAIC to
improve its marketing strategies.
OPAIC should automate its marketing techniques since measuring results on a granular
level is quite challenging. In addition, the institution should build a brand which is
digitally friendly to enhance the learning environment. Furthermore, OPAIC should
track the right KPI’s and avoid mostly leaning on increased enrolment.
PART TWO: BUYER BEHAVIOUR (LO5)
1. Demonstrate the influence reference groups exert on consumer
behavior for two brand or two products of your choice. (5 marks)
Reference groups play a significant role in consumers’ purchasing
behaviour. However, the type of influence which can be exerted on
consumers may change depending on who the consumer wants to
associate with, the belief, age, whether the product is consumed publically
or privately, or depending on the product type. For example, consumers
who are high income earners may be influenced to purchase branded
products like Gucci clothing’s as compared to products that are not
branded. However, low income earners may not prefer wearing branded
clothes that are expensive since doing so would differentiate them from
their social class. In a different example, a particular consumer of
smartphone may prefer using the same type of smartphone as their
colleagues at work so as to ‘fit in’.

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2. Explain how an understanding of the concept of family life cycle will
enable a marketer to develop marketing strategies for their brands.
Give two example of a business that has capitalized on this concept. (5
marks)
According to research conducted by Bernini and Cracolici (2015) family
life cycle is part of the segmentation positioning and targeting used by
marketers to study the behaviour of consumers. Family life cycle is
concerned with the different generations and phases within a particular
family and how marketers can target them with their marketing efforts.
For example, Amazon marketers know that some brands of clothing are
believed to be top of line by single people while married couples view
them as regular. Therefore, Amazon segments its products in a manner
that groups the different groups of clothes according to the targeted family
segment. When a user views a certain product, Amazon software suggests
similar products which may result to a purchase. In another example,
Vodafone has segmented its products according to the family life cycle by
offering different data plans. Single people need more time to chat and
browse while married couples may not find time to chat due to family
responsibilities.
3. Demonstrate the influence that social class would exert on an
individual consumer for two brands or products/service of your
choice. (4 marks)
Social class affects consumer behaviour by influencing their purchasing
decisions (Huang, Lurie & Mitra, 2009). For example, a worker who earns
high income would probably use an iPhone if their friends earning the

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same level of income are using iPhones. Moreover, when choosing the
type of car to purchase, a high income earner will consider to buy a
Mercedes SUV if their work colleagues are using the same brand of
vehicle. Consumers refer to the social circle so as to decide on what to
wear, drive or where to eat out or go for holidays.
4. Explain how our self-concept influences our choices of fashion wear
and link the discussion to one example
(3 marks)
According to research conducted by Turner (2010) self-concept influences
the purchasing behaviour of consumers and varies greatly with time.
Aspects that are changeable like choice of fashion wear and how the
clothing’s complement a consumer’s style and features are affected by an
individual’s self-concept. For example, some thin people wear skin-tight
clothing which make them thinner, which means that the individual does
not perceive themselves as being thin.
5. Explain the buyer decision making process and discuss need
recognition. Information search, evaluation of alternatives, the
purchase decision ad post - purchase behavior as applied to your
decision to choose OPAIC as a choice of institute. (12 marks)
Need Recognition
The process starts by the buyer recognizing that they need a particular product
or service (Chang, Wu & Lin, 2009). The need may be to replace an already
existing item, to buy a new product or replenish stocks. The need may also arise
due to anticipated requirements for a particular product. I recognized that I
needed to study a particular course.

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Information Search
When the buyer has been satisfied with the requirements, a detailed
specification is developed, with technical and performance requirements for the
product. The requirements may be searched online to find organizations that
provide matching products. I searched for information on the best course that
could match the current job market.
Evaluation of Alternatives
The buyer evaluates the alternatives available in the market with consideration
to different criteria including reliability, technical reputation, financial stability,
price and brand reputation Brown, Zablah, Bellenger & Johnston, 2011). I
evaluated different colleges that offered my chosen course of study and settled
on OPIAC.
The Purchase Decision
Before the buyer orders the item, they negotiate payment terms, finance
agreements, discount and generally negotiate the price. In addition, delivery
dates are confirmed and the product performance may be reviewed. I called the
school administration and inquired in depth about the course, fees, duration and
additional requirements. Then after all agreements were all done, I joined the
OPAIC to take my course.
Post-Purchase Behavior
After the completion and delivery of the product, the buyer may decide to
review the performance of the entire buying process. In addition, the supplier of
the product may be reviewed against performance metrics and penalty imposed
if the product has failed to meet the specified criteria. I reviewed the criteria on

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OPAIC ENVIRONMENT ANALYSIS
which the whole process was undertaken and was satisfied that it was conducted
effectively.
6. Outline 4 major characteristics affecting consumer behavior - which
influenced your decision to choose NZ as a study decision.
Cultural Factors
Cultural factors that influenced my decision to choose New Zealand as an
area of study include the social class, sub culture and buyer culture of the
New Zealand consumers.
Social Factors
Social factors including reference groups, family, roles and status
influence the consumer buying decision (Goel et al., 2010). New Zealand
has people from different backgrounds and cultures thus it offered the best
area of study for the consumer behaviour.
Personal Factors
Consumers can be affected by various personal factors including
personality, lifestyle, economic situation, occupation or age. Personal
factors were evident and well brought out in New Zealand thus it offered
the best avenue for conducting my study.
Psychological Factors
The psychological factors affecting the purchasing decision of consumers
include beliefs, attitudes, perception and motivation. New Zealand
consumers have a wide range of psychological factors that offered the best
environment for consumer research.
END OF ASSESSMENT

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References
Bernini, C., & Cracolici, M. F. (2015). Demographic change, tourism expenditure and life
cycle behaviour. Tourism Management, 47, 191-205.
Brown, B. P., Zablah, A. R., Bellenger, D. N., & Johnston, W. J. (2011). When do B2B
brands influence the decision making of organizational buyers? An examination of the
relationship between purchase risk and brand sensitivity. International Journal of
Research in Marketing, 28(3), 194-204.
Chang, C. W., Wu, C. R., & Lin, H. L. (2009). Applying fuzzy hierarchy multiple attributes
to construct an expert decision making process. Expert Systems with Applications,
36(4), 7363-7368.
Goel, S., Hofman, J. M., Lahaie, S., Pennock, D. M., & Watts, D. J. (2010). Predicting
consumer behavior with Web search. Proceedings of the National academy of
sciences, 107(41), 17486-17490.
Huang, P., Lurie, N. H., & Mitra, S. (2009). Searching for experience on the web: an
empirical examination of consumer behavior for search and experience goods.
Journal of marketing, 73(2), 55-69.
Jenkins, H. (2009). A ‘business opportunity’model of corporate social responsibility for
small‐and medium‐sized enterprises. Business ethics: A European review, 18(1), 21-
36.
Turner, J. C. (2010). Social categorization and the self-concept: A social cognitive theory of
group behavior.