Consumer Behaviour and Retail Strategies

This assignment examines various aspects of consumer behaviour within a retail context. It investigates the influence of personal values, ethical beliefs, and personality traits on purchasing decisions. The analysis also considers the impact of store atmospherics, customer experience, loyalty programmes, and online shopping factors such as perceived risk and trust. Students are tasked with understanding how retailers can leverage these insights to develop effective strategies that cater to consumer preferences and drive sales.

Running head: CONSUMER BEHAVIOUR
Consumer Behavior
Submitted by

CONSUMER BEHAVIOUR 2
Table of Contents
Introduction.................................................................................................................................................3
Company Background.................................................................................................................................3
Product description......................................................................................................................................3
Target customers.........................................................................................................................................4
Consumer buying behavior..........................................................................................................................4
Process of consumer buying behavior.........................................................................................................5
Impact of individual influences on the consumer purchase decision process...............................................7
Theories of consumer behavior to implement social change.......................................................................8
Marketing strategies to influence buying decision.....................................................................................12
Product:.................................................................................................................................................12
Price:.....................................................................................................................................................12
Place:.....................................................................................................................................................12
Promotion:.............................................................................................................................................13
Targeting strategy..................................................................................................................................13
Market segmentation.............................................................................................................................14
Conclusion.................................................................................................................................................14
References.................................................................................................................................................16

CONSUMER BEHAVIOUR 3
Introduction
This essay discusses the description of Woolworth’s Supermarket and its products. It also
illustrates the target customer for their selected product. Along with this, it defines the consumer
buying behavior and its process. This essay also elaborates the impact of individual influences on
consumer buying decision towards food products. It also exemplifies two set of theoretical
evidence to compare the food product in the Australian market. In the last, it examines the
different marketing strategy which may influence the individual factors to take purchasing
decision towards food products.
Company Background
Woolworth’s supermarket is a grocery retail store that was developed in 1924, which headquarter
is located in New South Wales, Australia. This company is owned by Woolworth limited. It is
analyzed that Woolworths has covered a large part of Australia. After 1924, the interest of the
consumer is enhancing to buy the food product from Woolworth supermarket. Further,
Woolworths Supermarket has acquired the American giant Safeway in the years of 1985. It is
also implemented green apple logo in current business practices (Woolworths, 2017).
Product description
Woolworth’s supermarket sells a wide range of products and services such as footwear,
accessories, food, and cosmetics. For evaluating the purchasing decision of customer, the food
product is chosen because if the company will assess the consumer buying decision towards each
product then it could take a long time and high cost. Hence, the only food product is selected to
assess the buying decision of customers (Woolworths, 2017).

CONSUMER BEHAVIOUR 4
Target customers
Woolworths can target the customers on the basis of different factors such as psychographics,
demographic, behavioral and geographical factor. Under the geographic factor, Woolworth’s
supermarket will target the customer who comes to the urban areas within an Australia. As per
the demographic variable, the company will target both genders of customers such as female and
male because food products are consumed by both of gender. The corporation will also target
the 19-29 and 29-39 years of people to gain awareness about individual factor which may
influence the consumer buying decision. Woolworth’s supermarket will also target both middle
and higher class of people to examine the effects of individual factors on purchasing decision of
consumers (Badgaiyan, and Verma, 2015). As per the psychographic factor, Woolworth’s
supermarket will target the consumer who gives their preference to shop eco-friendly food
products.
Consumer buying behavior
Consumer behavior is the study of ways by which a person, consumer, organization and group
select, buy, consume and dispose of their belief regarding product and services to meet their
desired needs. It is also evaluated that the consumer action in the market could be differed due to
different underlying motive. It entails the understanding of the behavior of a person and the
technique that they employ to select, use, and buy the products and services to meet their needs
and desires. There are different factors which may affect the consumer buying decision such as
cultural, social, and individual factors (Pappas, 2016). Consumer behavior is defined as the act,
feeling and thoughts that a person has or takes earlier or when buying food product from
Woolworths Supermarket. Buyer behavior is the concept which develops the understanding
regarding how, when, what, and where a person makes a purchase decision. Consequently, the

CONSUMER BEHAVIOUR 5
outcome customer behavior reflects the decision of buyers (Rani, 2014). The whole procedure of
purchasing entails belief regarding what should be purchased, which brand could be appropriate,
at what location and from whom should the purchase be completed, when to buy, how many
times to purchase and how much to spend on purchasing of food products. As a result, the end
outcome of customer’s attitude is the final decision about the food product choice, brand choice,
purchase timing, purchase frequency, dealer choice, and purchase amount (Jung Chang, et. al.,
2014). Consumer behavior is the integration of three streams like social, individual and cultural
psychology, which may affect their purchasing decision towards food products of Woolworths
Supermarket.
Process of consumer buying behavior
Stage 1 − Needs and Requirements
It is the initial phase of purchasing process by which consumer identify the needs and
requirement that is to be fulfilled by them. This need is generated either from internal stimuli or
external stimuli. In this phase, the marketer must identify the customer’s behavior. For example,
it should address what the customer wants to purchase, which sort of product, and how they can
make a decision regarding the particular product (Biswas, and Roy, 2015).
Stage 2 − Information Search
After identifying the needs and requirement, the customer identifies more facts and figures. The
customer may focus on the dynamic search for information regarding food products. For
collecting the information, the customer uses different sources like industrial sources, public
reviews, and personal factors. In such way, personal sources incorporate the acquaintances,
family, friends, and neighbors. Public sources include the mass media, customer rating and
corporation. At the same time, it can be evaluated that experimental sources include the

CONSUMER BEHAVIOUR 6
measuring, organizing and utilizing the food products of Woolworths Supermarket (Clemes, et.
al., 2014). Along with this, industrial sources entail the advertising, dealer, packaging, and
salesperson.
Stage 3 − Evaluation of Alternatives
After searching the information, the consumer finds a large amount of information to identify the
best supermarket from different alternatives. This phase defines that how the consumer makes an
assumption about evaluating buying alternatives. In this phase, consumer decision is based on
the purchasing condition and needs of the individual buyer (Ladhari, and Tchetgna, 2015). In
some case, consumers implemented logical belief whereas, in other situation, they can make little
evaluation to buy the food products according to their perception and desires.
Stage 4 − Purchase Decision
In this phase, the consumer finally purchases the food product from the Woolworths
supermarket. Although, in this phase, a consumer purchases their desires food products yet, it
may influence by two different factors like purchasing intention and purchasing decision. The
initial factor is demonstrating the viewpoint of customers whereas another factor depicts the
unforeseen situational factors (Singh, et. al., 2014). There are also other factors which may affect
the purchasing decision such as usual income, usual product benefits, and usual price.
Stage 5 − Post-Purchase Behavior
In this phase, customers take step after purchasing decision regarding food production. This
phase is depending on the dissatisfaction and satisfaction level. In such condition, satisfaction
level relies on the relationship amid consumer expectation and product’s performance. When a
corporation does not involve the belief of customers within their food product then it will

CONSUMER BEHAVIOUR 7
dissatisfy to them (Ozer, and Gultekin, 2015). But, at the same time, it can be stated that if
Woolworth’s supermarket exceeds the customer’s expectation then it will gratify them.
Impact of individual influences on the consumer purchase decision process
Individual factor
There are different factors which may impact on the consumer buying behavior like motivation,
customer involvement, learning, attitudes, belief, and perception. Therefore, the marketer should
alter the thought and opinion of customers by initiating particular advertising campaign (Joshi,
and Rahman, 2015). The below factors are considered as individual factors:
Needs
The degree of motivation can affect the buying behavior of customers. It is assessed that each
person has their different needs such as biological, physiological, and social needs. Needs could
be distinct from individual to individual. For example, it could be imperative for an individual
whereas it could be less critical for another one. Therefore, a need becomes drive of buying the
food product from Woolworth supermarket. Along with this, when the need is urgent then it
could influence an individual to seek the satisfaction. The motivation level may also influence
the buying decision of the consumer. Each individual has their distinct needs like social,
physiological and biological needs. The nature of need could be differed such as it could be
urgent or less imperative (Gunter, and Furnham, 2014). Further, when a need is urgent then may
drive the customers to take action as it would be beneficial to them to attain satisfaction.
In addition, customers have particular needs and want that they want to attain. Therefore, it could
be examined that if the customers do not have the specific needs then Woolworth’s supermarket
cannot use the personal selling. Along with this, Woolworth’s supermarket should address
effective marketing strategy by addressing the needs and wants of consumers as it would be

CONSUMER BEHAVIOUR 8
beneficial to influence the consumer buying behavior (Muruganantham, and Bhakat, 2013). It
can also use face to face communication strategy to make bonding with the customers as it would
be significant to persuade the buying decision of customers.
Personality
Personality is another individual factor which may influence the consumer buying decision.
Personality may change from individual to individual, time to time and place to place. Hence, it
can highly persuade the purchasing decision of customers. It is analyzed that personality is the
sum of the conduct of an individual in a different circumstance. Personality shows the different
characteristics of an individual like confidence, aggression, confidence, a dominance which
could be effective to persuade the consumer buying behavior towards food products (Tingchi
Liu, et. al., 2013).
Theories of consumer behavior to implement social change
Maslow’s Hierarchy of Needs theories
(Sources: Kuan, et. al., 2014).
Physiological Needs:
The basic need of customers could be attained by Woolworths supermarket by using effective
marketing strategy. This need shows the lower level of the pyramid. It also emphasizes on
certain factors like superior and fresh quality products and hygienic atmosphere in their retailer

CONSUMER BEHAVIOUR 9
stores (Pantano, and Viassone, 2015). It also considers the initial need to make product decision
as it would be significant to influence the purchasing decision of the customer.
Safety and Security Needs:
This need demonstrates the second phase of hierarchy needs where Woolworth’s supermarket
focuses on delivering the safety and security assurance to their potential consumers. Under this
level, the company emphasizes on different factors to influence the purchasing decision of
customers such as appearance and texture on the product’s package, superior quality, and
effective flavor of food products. Consequently, the company would be able to persuade the
consumer’s purchasing decision by accomplishing their safety and security needs. It will also
create a favorable impact on the company’s revenue (L.C., et. al., 2015).
Love and Belongingness Needs:
This phase of hierarchy level focuses on different kinds of needs such as intimacy, family, and
friendship. This need is linked with the competencies of an individual to build liaison with
others. Hence, Woolworth’s supermarket should integrate the customer preference into the
decision making the process of business to make a strong link with them (Fang, et. al., 2016).
Esteem Needs:
This stage depicts that the customer’s need is associated with a feeling of recognition and
appreciation. It is stated that lower and higher version needs should be considered by
Woolworth’s supermarket to influence the purchasing decision of customers. In such situation,
lower version of need is related to appreciation and recognition of an individual while a higher
version of needs is related to achievement, independence, self-esteem, and freedom (Hirche and
Bruwer, 2014). Thus, it can be stated that Woolworths supermarket should emphasize on

CONSUMER BEHAVIOUR 10
satisfying the self-esteem requirement of end consumers because it will have a favorable impact
on the company’s profitability.
Self-actualization Needs:
Self-actualization needs show the individual growth needs and achievement requirement of end
consumers. But, this need depends on the personal drive and self-attitude of the consumer. Thus,
it can be suggested that Woolworths supermarket should consider this needs in their marketing
planning to increase the customer loyalty towards their food products (Bianchi, and Mortimer,
2015).
Personality theory
Following the theory of personality depicts the consumer buying process:
Freud’s Theory
This theory is developed by the Sigmund Freud which focuses on stresses among people and
unconscious nature of personality. As per this theory, personality system of human included
different elements such as ID, ego, superego. These elements focus on the consumer purchasing
decision (Sahney, 2015). It is discussed as below:
ID:
ID is a source of psychic energy which seeks to prompt gratification for needs such as hunger,
and self-preservation. It is conceptualized as the impulsive and primitive drive of Woolworth’s
supermarket by which customer looking for prompt satisfaction without knowing the particular
mean of satisfaction. The id element is based on one principle such as directing the behavior to
attain pleasure and to avoid pain. The id is unconscious and relied on the no objective reality
(Nuttavuthisit and Thøgersen, 2017). This element could be focused by Woolworth’s
supermarket to influence the purchasing decision of consumers towards their food products.

CONSUMER BEHAVIOUR 11
Superego:
Superego demonstrates the internal expression of an individual, ethical code of conduct, and
moral of society. It also restrains the id and acts in opposition to their impulses. It does not
organize the id but controls it through punishing the intolerable attitude and creation of guilt. The
key role of the superego is to satisfy the need of an individual in a socially acceptable manner
(Schiffman, et. al., 2013). As a result, superego could be considered to influence the purchasing
decision of consumer with respect to food products.
Ego:
The ego depicts the self-concept of an individual and manifests the objectivity reality. It is
developed by communication with external forces in the environment. Ego is conscious control
of an individual which act as an internal monitor to make balance amid the social-cultural
constraints of superego and impulsive demand of id (Amos, et. al., 2014).
As per this theory, it can be stated that ego organizes the conflicting requirement of the id and
superego. For example, when a customer manages the conflicts regarding food products then this
determinant shows the adult personality. However, if a conflict of the consumer will not be
solved then this will consequence of defense mechanism and will persuade the upcoming
purchasing behavior. Thus, a defense mechanism is an effective strategy that should be used by
Woolworth supermarket to reduce the tension of ego of the consumer (Evanschitzky, et. al.,
2015). Further, it would be beneficial to persuade the purchasing behavior of consumers towards
their food products as compared to competitors in the marketplace.

CONSUMER BEHAVIOUR 12
Marketing strategies to influence buying decision
Product:
Woolworths Supermarket is a leading company in the Australia as it can deliver distinct sort of
food products. These products could be fruits, meat, organic product, vegetables, and packaged
food products. In each sort of food product, Woolworth’s supermarket can deliver the wide range
of choices such as local as well as international brands and cuisines. Consequently, it will enable
the customer’s need by delivering them a wide range of alternatives. Along with this, the food
product should be measured by experts to provide the superior quality food products to
customers. This standard will allow the company to meet the need of customer as per their
personality (Hornibrook, et. al., 2015). As a result, it would be beneficial to influence the
purchasing decision of consumer towards food products of Woolworth’s supermarket as
compared to others in the market.
Price:
Woolworths maintains the slightly higher prices as compared to its key market players within the
market. It is evaluated that Woolworths facilitates a wide range of premium food products due to
competitiveness in the market. Woolworth’s supermarket can provide reward program for
influencing their purchasing decision like it can offer $25 vouchers for pooling the 2500 points.
It can also facilitate the shopping card to their customer as it could be significant to automatically
keep the record of customers (Duarte, et. al., 2013). As a result, there would be no need to
maintain the paper receipts with respect to customer purchasing data.
Place:
Woolworths Supermarket operates in approximately 1200 stores across the Australia where
greater than 950 stores are supermarkets and others are convenience stores. Along with this,

CONSUMER BEHAVIOUR 13
some stores act as Safeway shops in Melbourne city. Woolworths can use the online mechanism
to persuade the buying behavior of consumer with respect to food products. It can also include
the private label food products in their supermarket as it will enable to meet the need of a large
number of the customer (Mittal, et. al., 2015). It can provide the mobile app facilities to their
customers for buying the food products from anywhere and anytime as it will be beneficial to
attract the customers in the marketplace.
Promotion:
Promotion is another strategy which could be beneficial to favorably influence the individual
factors. Hence, Woolworth’s supermarket can use the innovative and creative message to
promote the food product. It can facilitate the loyalty plan for their customers like food discount.
Furthermore, Woolworth’s supermarket can use the online media and digital media strategy to
effectively influence the individual factors such as need and personality through promoting the
food products (Devedi, et. al., 2017). Consequently, it would be beneficial to persuade the
buying behavior of consumers as compared to other company in the marketplace.
Targeting strategy
Undifferentiated marketing strategy could be implemented by Woolworths to eliminate the
individual influential factors as it may affect the consumer buying behavior. In this strategy, the
company focuses on producing only one product and target the whole population through single
marketing mix. Through this strategy, Woolworth’s supermarket can influence a large number
of customers by avoiding the segmentation of customer from marketing practices. In this
strategy, Woolworth’s supermarket can entail various media strategies such as newspaper, social
media, digital media, radio, and television (Lin, 2014). The main motive of using targeting
strategy is to demonstrate the food product amongst a large number of customers.

CONSUMER BEHAVIOUR 14
Market segmentation
Woolworth’s supermarket can segment the customer according to demographic and behavioral
factors to influence the buying behavior of customers towards food products. It is described as
follow:
Demographic factor:
Woolworth’s supermarket can focus on delivering the superior food products to their prospective
customers. In such situation, customers can be segmented as per the level of income. It can also
facilitate the 20% discount to the government workers at the end of months. As per this factor,
customers can be segmented by the company as per their age like 19-29 and 29-39 years of an
individual. This age-group will be chosen to influence both business and middle-class customers
(Cheah, et. al., 2015). Woolworth’s supermarket can segregate the customer according to
individual behavior, expectation, and requirement because it would be advantageous to influence
the buying decision of customers.
Behavioral Segmentation:
Woolworth’s supermarket can segregate the customer as per the customer’s behavior about the
food products like purchasing meat, fruits, and vegetables from retail stores. Through this
strategy, the company can emphasize on loyal customers, however, there is required to provide
discount and reasonable food product price to their customers (Bruwer, et. al., 2014).
Consequently, it would be beneficial to persuade the buying behavior of consumer towards food
products.
Conclusion
As per the above discussion, it can be summarized that Woolworth’s supermarket is one of the
leading retail stores in the Australia which operates in wide areas of Australia. For understanding

CONSUMER BEHAVIOUR 15
the consumer buying behavior, the food product is selected by the company. It is also found that
company has targeted the 19-29 and 29-39 years of customers to understand their buying
decision. Furthermore, Maslow’s hierarchy need of theory and Freud theory of personality can
be used to influence the purchasing decision of consumer towards food products in the Australia.
Along with this, it can be summarised that needs and personality are two individual factors
which may influence the customer’s purchasing decision. In the last, it can be concluded that
Woolworths supermarket can use different marketing strategy to persuade the buying decision of
customers. These strategies are a product, price, place and promotion, targeting and market
segmentation.

CONSUMER BEHAVIOUR 16
References
Amos, C., Holmes, G. R., & Keneson, W. C. (2014). A meta-analysis of consumer impulse
buying. Journal of Retailing and Consumer Services, 21(2), 86-97.
Badgaiyan, A. J., & Verma, A. (2015). Does urge buy impulsively differ from impulsive buying
behavior? Assessing the impact of situational factors. Journal of Retailing and Consumer
Services, 22, 145-157.
Bianchi, C., & Mortimer, G. (2015). Drivers of local food consumption: a comparative
study. British Food Journal, 117(9), 2282-2299.
Bruwer, J., Burrows, N., Chaumont, S., Li, E., & Saliba, A. (2014). Consumer involvement and
associated behavior in the UK high-end retail off-trade wine market. The International
Review of Retail, Distribution and Consumer Research, 24(2), 145-165.
Cheah, I., Phau, I., & Liang, J. (2015). Factors influencing consumers’ attitudes and purchase
intentions of e-deals. Marketing Intelligence & Planning, 33(5), 763-783.
Clemes, M. D., Gan, C., & Zhang, J. (2014). An empirical analysis of online shopping adoption
in Beijing, China. Journal of Retailing and Consumer Services, 21(3), 364-375.
Devedi, P., Sujatha, R., & Pathak, R. (2017). A study on parameters of online reviews content
that influences consumers buying behavior-an Indian perspective. Journal of Business
and Retail Management Research, 11(4).
Duarte, P., Raposo, M., & Ferraz, M. (2013). Drivers of snack foods impulse buying behavior
among young consumers. British Food Journal, 115(9), 1233-1254.
Evanschitzky, H., Iyer, G. R., Pillai, K. G., Kenning, P., & Schütte, R. (2015). Consumer trial,
continuous use, and economic benefits of a retail service innovation: the case of the
personal shopping assistant. Journal of Product Innovation Management, 32(3), 459-475.

CONSUMER BEHAVIOUR 17
Fang, J., Wen, C., George, B., & Prybutok, V. R. (2016). Consumer heterogeneity, perceived
value, and repurchase decision-making in online shopping: The role of gender, age, and
shopping motives. Journal of Electronic Commerce Research, 17(2), 116.
Gunter, B., & Furnham, A. (2014). Consumer Profiles (RLE Consumer Behaviour): An
Introduction to Psychographics(Vol. 5). UK: Routledge.
Hirche, M., & Bruwer, J. (2014). Buying a product for an anticipated consumption situation:
Observation of high-end low-involved wine buyers in a retail store. International Journal
of Wine Business Research, 26(4), 295-318.
Hornibrook, S., May, C., & Fearne, A. (2015). Sustainable development and the consumer:
Exploring the role of carbon labeling in retail supply chains. Business Strategy and the
Environment, 24(4), 266-276.
Joshi, Y., & Rahman, Z. (2015). Factors affecting green purchase behavior and future research
directions. International Strategic Management Review, 3(1), 128-143.
Jung Chang, H., Yan, R. N., & Eckman, M. (2014). Moderating effects of situational
characteristics on impulse buying. International Journal of Retail & Distribution
Management, 42(4), 298-314.
Biswas, A., & Roy, M. (2015). Green products: an exploratory study on the consumer
behavior in emerging economies of the East. Journal of Cleaner Production, 87, 463-
468.
Ladhari, R., & Tchetgna, N. M. (2015). The influence of personal values on Fair Trade
consumption. Journal of Cleaner Production, 87, 469-477.

CONSUMER BEHAVIOUR 18
Lin, Z., & Bennett, D. (2014). Examining retail customer experience and the moderation effect
of loyalty programmes. International Journal of Retail & Distribution
Management, 42(10), 929-947.
Lu, L. C., Chang, H. H., & Chang, A. (2015). Consumer personality and green buying intention:
The mediate role of consumer ethical beliefs. Journal of Business Ethics, 127(1), 205-
219.
Mittal, S., Sondhi, N., & Chawla, D. (2015). Impulse buying behavior: an emerging market
perspective. International Journal of Indian Culture and Business Management, 11(1), 1-
22.
Muruganantham, G., & Bhakat, R. S. (2013). A review of impulse buying
behavior. International Journal of Marketing Studies, 5(3), 149.
Nuttavuthisit, K., & Thøgersen, J. (2017). The importance of consumer trust for the emergence
of a market for green products: The case of organic food. Journal of Business
Ethics, 140(2), 323-337.
Ozer, L., & Gultekin, B. (2015). Pre-and post-purchase stage in impulse buying: The role of
mood and satisfaction. Journal of retailing and consumer services, 22, 71-76.
Pantano, E., & Viassone, M. (2015). Engaging consumers in new integrated multichannel retail
settings: Challenges for retailers. Journal of Retailing and Consumer Services, 25, 106-
114.
Pappas, N. (2016). Marketing strategies, perceived risks, and consumer trust in online buying
behavior. Journal of Retailing and Consumer Services, 29, 92-103.
Rani, P. (2014). Factors influencing consumer behavior. International journal of current
research and academic review, 2(9), 52-61.

CONSUMER BEHAVIOUR 19
Sahney, S. (2015). Critical success factors in online retail–an application of quality function
deployment and interpretive structural modeling. International Journal of Business and
Information, 3(1) 1-6.
Schiffman, L., O'Cass, A., Paladino, A., & Carlson, J. (2013). Consumer behavior. Australia:
Pearson Higher Education.
Singh, P., Katiyar, N., & Verma, G. (2014). Retail Shoppability: The Impact Of Store
Atmospherics & Store Layout On Consumer Buying Patterns. International journal of
scientific & technology research, 3(8), 15-23.
Tingchi Liu, M., Brock, J. L., Cheng Shi, G., Chu, R., & Tseng, T. H. (2013). Perceived benefits,
perceived risk, and trust: Influences on consumers' group buying behavior. Asia Pacific
Journal of Marketing and Logistics, 25(2), 225-248.
Woolworths (2017). About us. Retrieved from:
https://www.woolworthsgroup.com.au/page/about-us/our-brands/supermarkets/
Woolworths