Case Study: Impact of Consumer Behavior on Business Decisions

This case study examines the impact of consumer behavior on business decisions, particularly focusing on the acquisition of utilitarian products driven by a perceived loss of control. The research highlights that consumers often compensate for a lack of control by purchasing products that solve everyday problems. For Amazon Australia, with its diverse product range and the Australian consumer's exposure to control-depriving situations (like job insecurity and trade policy changes), the recommendation is to emphasize utilitarian products, partner with local manufacturers, and cater to consumers' needs for both high-quality, reliable products (for those with power control-related constructs) and diverse options (for those with autonomy control-related constructs). The analysis draws on research findings related to consumer behavior, sense of control, and market dynamics.

I M PAC T O F
C O N S U M E R
B E H AV I O R O N
B U S I N E S S
D E C I S I O NN A M E O F T H E S T U D E N T :
N A M E O F T H E U N I V E R S I T Y :
A U T H O R ’ S N O T E :

FINDINGS OF THE
RESEARCH ARTICLE
• Low-control consumers are found to acquire utilitarian products due to:
– Motivation from perceived loss of control that engages the consumers to
problem solving nature
– And the typical everyday problem solving value arising from the products
• It has been found that by purchasing utilitarian products people
compensate for their lack of control as these products ensure solving
problems of everyday life (Chen, Lee and Yap 2017)
• Sense of control among individuals have been found to be affiliated with
two constructs, which are power and autonomy
– Threat to one’s own power triggers the requirement of high-status product
– A threat to autonomy triggers the requirement of unique products

RECOMMENDATIONS FOR
THE ORGANIZATION
• Amazon Australia is found to sell more than 29 products and service categories consisting
of both local and international brands (Patchell, 2017)
• It has been found that in Australia factors such as loss of job, security and change in
trade policies are the reasons that make consumers exposed to control-depriving
situations (Nguyen and Duncan 2017)
• Based on the findings from the article it can be recommended that
– Amazon needs to focus more on utilitarian products than hedonic products
– More local manufacturers and retailers are to be partnered for retail product category
– For people with power control-related construct, higher quality day-to-day products are required
– For people with autonomy control-related construct, products from multiple brands serving the
same purpose are required

REFERENCE LIST
• Chen, C. Y., Lee, L., & Yap, A. J. (2017). Control deprivation motivates
acquisition of utilitarian products. Journal of Consumer Research, 43(6),
1031-1047.
• Nguyen, H. T., & Duncan, A. S. (2017). Exchange rate fluctuations and
immigrants' labour market outcomes: New evidence from Australian
household panel data. Journal of International Economics, 105, 174-186.
• Patchell, J. (2017). Amazon: It's just business. Electrical Connection, (Spring
2017), 6.