This report discusses how Unilever understands and applies factors that influence consumer behavior to market its products. It includes an analysis of the Engel, Kollet, Blackwell model and the different factors that affect consumer behavior such as psychological, personal, and social factors.
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Table of Contents INTRODUCTION...........................................................................................................................1 MAIN BODY...................................................................................................................................1 “How successful is Unilever in applying its understanding of factors that influence consumer behaviour to market its products?................................................................................................1 CONCLUSION................................................................................................................................3 REFERENCES................................................................................................................................4
INTRODUCTION Consumer behaviour can be describe as the study of how different individual customers or group of people select their goods or services. It is essential that organisation have proper understanding regarding different needs or wants of customers so that they can take right decision regarding customer purchasing practices(Hörl,Becker and Axhausen, 2021). This report is based on Unilever company. This organisation is dealing in consumer goods industry and it is offering its products and services to large market area. Unilever organisation was developed in year 1929 and founder of this organisation is Willian Lever and James Darcy Lever. Head office of this company is located in London, England. In this report different factors that influence consumer behaviour along with the relevant theory is mention in this report. MAIN BODY “How successful is Unilever in applying its understanding of factors that influence consumer behaviour to market its products? It is essential for Unilever company to understand and determine different factors which will lead to have direct influence over consumer behaviour. This is significant for conducting marketing task and practices in effective manner so that right and accurate decision could be taken. Consumer behaviour regarding products and services will lead to have major influence over strategies as well as profitability of respective company(Lam and et.al., 2021). Unilever is one of the largest company in consumer goods sector and it is able to meet with the needs and requirements of customers in appropriate manner. It has been determined that in order to successfully understand behaviour of customers respective company is considering accurate model that is Engel, Kollet, Blackwell model. This is one of the effective model in order to analyse or evaluate consumer behaviour regarding products and services. Engel, Kollet, Blackwell (EKB) model This is very useful model in order to determine consumer behaviour along with the process of decision making. Through the support of Engel, Kollet, Blackwell model Unilever company 1
will be able to take right decision by successfully understanding consumer behaviour. This model includes five stages of decision process. Awareness – This is the first stage and in this customer will get information about the productandserviceofferedbyorganisation.Atthisstagecustomerswillview advertisement of Unilever company and become more aware regarding the needs or desire to purchase that product. Information processing – Once information and awareness about the product has been gathered by customers then they will start processing information. In this stage, customer will focus on analysing their past experience about the product or full fill of current needs. Evaluation – In this stage customer will research and evaluate the product or service offered by organisation is significant manner(Belhocine, Dahane and Yagouni, 2021). Customers will also analysing the offering of other rival companies and compare it with the offering of respective organisation. It is essential for customers to correctly evaluate different elements of products in order to take right purchasing decision. Purchasing decision – When products and services has been successfully evaluated by customer they will make their purchase decision. In this customer will take decision according to the evaluation of the product and services of Unilever and its competitors. This helps in taking right and accurate decision of customers to purchase products or services that is according to the needs of customers. Outcome analysis – Once the purchasing decision has been taken by customer they will useproductsanddeterminetheirexperience.Accordingtotheoutcomeanalysis, customers will be able to determine whether the purchasing decision taken by individual is correct or not. Through the overall experience of customers about the used product or service has been determined in appropriate manner. Factor that influence consumer behaviour There are different factors and elements which will lead to have influence over consumer behaviour as well as affect purchasing decisions(Majercakova and Rostasova, 2021). It is crucial for Unilever company to analyse and evaluate these factors in order to take right decision for increasing sales of products and services. Different factors that affect consumer behaviour is mention below in detail – 2
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Psychologicalfactor–Thisfactorofconsumerbehaviourincludestheirattitude, perception about the product or services, ability to understand information provided by company along with this other factors of what motivate them to purchase product. The psychological factor consist of internal elements of consumer such asbeliefs and thinking regarding product. This will lead to have major impact over decision making of individual. It is crucial for Unilever company to understand the psychology of customers in order to determine their purchasing behaviour. It is very important that Unilever company is providing high quality products and services on which customer have trust. This will help in increasing sales of product and services. Personal factor – This factor of consumer behaviour includes personal characteristics of individual such as gender, financial situation, age, income group, location, religion, background and so on(Busalim and Ghabban, 2021). It is crucial that Unilever company is analysing and evaluating personal factor while developing and promoting products as this will lead to have significant influence on purchasing decision of customers. Social factor – This consist of customer’s family, friends, community, peer, social group and so on. All of these factor influence customer purchasing decision so Unilever organisation needs to analyse social factors of potential customer group as this will lead to have impact on increasing sales of business products and services. CONCLUSION From the above report it has been analysed that customer behaviour regarding products and services offered by organisation will lead to have major impact over sales of business. It is essential for company to determine customer purchase decision process as this will lead help in identifying different elements regarding how customer will take buying decision. 3
REFERENCES Books and Journals Hörl, S., Becker, F. and Axhausen, K.W., 2021. Simulation of price, customer behaviour and system impact for a cost-covering automated taxi system in Zurich.Transportation Research Part C: Emerging Technologies,123, p.102974. Lam, H.Y. and et.al., 2021. Data analytics and the P2P cloud: an integrated model for strategy formulation based on customer behaviour.Peer-to-Peer Networking and Applications,14(5), pp.2600-2617. Belhocine, L., Dahane, M. and Yagouni, M., 2021. Customer behaviour–based multi-objective approach for the recovery and remanufacturing of used products: application to smartphone reconditioning process.The International Journal of Advanced Manufacturing Technology, pp.1- 22. Majercakova, M. and Rostasova, M., 2021. Customer Behaviour and Sentiment Due to the COVID-19 Global Pandemic. InSHS Web of Conferences(Vol. 92). EDP Sciences. Kusumawati, F.R., Ferdous, E. and Bayramov, B., 2021. The impact of customer behaviour on travel intention abroad after a pandemic.International Journal of Tourism Policy,11(2), pp.142- 160. Maiwald, J. and Schuette, T., 2021. Decentralised Electricity Markets and Proactive Customer Behaviour.Energies,14(3), p.781. Busalim, A.H. and Ghabban, F., 2021. Customer engagement behaviour on social commerce platforms: an empirical study.Technology in Society,64, p.101437. 4