Understanding Markets and Consumer: Analyzing Consumer Behavior of Walmart Customers

UNDERSTANDING MARKETS AND CONSUMER 1
UNDERSTANDING MARKETS AND CONSUMER
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UNDERSTANDING MARKETS AND CONSUMER 2
Contents
Introduction.................................................................................................................................................3
Research problem/issue..............................................................................................................................3
Research Questions.....................................................................................................................................3
Research objective......................................................................................................................................4
The significance of the study.......................................................................................................................4
Literature review.........................................................................................................................................4
Conceptual Framework...............................................................................................................................6
Methodology...............................................................................................................................................7
Discussion and analysis................................................................................................................................7
Limitations...................................................................................................................................................9
Conclusion...................................................................................................................................................9
Recommendations.......................................................................................................................................9

UNDERSTANDING MARKETS AND CONSUMER 3
Introduction
This report analyzes the environment of WalmartInc to identify the factors that affect consumer
behavior for this market. The retail industry is very dynamic and unique and it is therefore
important to understand the behavior of consumers so as to be able to serve them appropriately.
The retail industry is also very competitive and there are very many players in this industry and
hence its very crucial that the players in this industry understand the customers are that they can
be able to serve them better( Seth, & Randall, 2011). Walmart is the world leading supermarket
chain retailer by revenues. The company operates in many countries such as Brazil, Canada,
Chile, Japan, and India. In 2016, Walmart was the biggest company in the world in terms of
revenue with revenue estimated at $480billion(Mandel et al., 2017).Walmart also became the
biggest employer in the world with 2.3 million employees in 2017 (Mandel, Rucker, Levav, and
Galinsky, 2017).This report analyzes the behavior of consumers who purchase specifically from
the Walmart stores. The theory of reasonable action, the EKB model, and the Motivational need
theory are discussed in this report ( Lichtenstein, 2011). These theories are analyzed in relation
to the Walmart retail store customers. The theories of consumer behavior are based on
psychology, economics, and human behavior. Understanding consumer behavior helps in
creating a message that catches the eye and the imagination of the consumer.
Research problem/issue
Walmart is a global leading retailer that operates worldwide and it deals with a wide range of
products. The retailer has been facing increased competition from new firms who offer products
at very cheap prices(Reny, 2015). In order to be able to survive in this ever increasingly
competitive environment, it is important for Walmart to understand the factors that influence the
customers to buy from the company and not from the competitor. The report uses the EKB
model, theory of reasoned action, Hawkins Stern Impulse buying and the Motivation Need
Theory to analyze the behavior of Walmart Stores Inc ( Spellman, 2016). This helps in
identifying the recommendations that need to be made in order to improve the organization.
Research Questions
What is the target audience of Walmart StoresInc?

UNDERSTANDING MARKETS AND CONSUMER 4
What is the market position of Walmart retailer?
Who are the competitors of Walmart?
What value does the company offer consumers?
Why do consumers prefer buying from Walmart as opposed to competitors?
What are the psychological factors that affect consumer behavior?
What are the social factors that affect the behavior of Walmart customers?
Research objective
The study aims at understanding consumer atmospherics and how they affect Walmart customers
to help make recommendations on the changes that the company should apply to meet the needs
of consumers.
The significance of the study
The study is important in helping to understand how customers behave and how the company
can use this information to influence the demand of the customers to improve the performance of
the company. This will help Walmart to put together strategies that will help to attract more
customers to and increase its market share.
Literature review
Consumer behavior is the study of individuals and organizations and how they make their buying
choices. These factors may be psychological, motivational and behavioral. These factors have
different effects on the behavior of customers. It is therefore important to understand these
factors in order to be able to serve the needs of the customers in a better way. Different authors
have defined different theories that explain the behavior of consumers. Ali, (2017) explains that
consumer thinks and feel differently concerning the alternative products that are at their disposal.
The way in which a consumer thins about a product is very critical in determining whether or not
the customer will buy the product. The thinking of a customer towards a particular brand or