Consumer Behavior Report: External and Internal Influences Analysis

This report provides a comprehensive overview of consumer behavior, examining various theories and models used to understand consumer decision-making processes. It delves into the application of these theories in marketing, exploring segmentation strategies and how businesses can tailor their approaches to target specific consumer groups effectively. The report discusses the influence of both external factors, such as group dynamics, situational influences, and cultural values, and internal factors, including needs, motives, and perceptions, on consumer choices. Furthermore, the report analyzes the marketing planning process, covering segmentation, targeting, marketing mix, and promotional strategies. It highlights the importance of understanding consumer behavior for successful marketing and provides insights into how businesses can adapt their strategies to meet the evolving needs and preferences of consumers. The report also analyzes the case of shipping container housing and how the different models of consumer behavior can be applied to the product. Finally, the report emphasizes the importance of analytical skills in understanding consumer behavior and making informed marketing decisions.

Consumer behaviour

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Theories of consumer behaviour.................................................................................................3
Application of theories and marketing segments.........................................................................4
Models of consumer behaviour...................................................................................................5
Marketing planning process.........................................................................................................6
Theoretical perspective associated with consumer decision making..........................................7
Analytical skills...........................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
Books and Journals....................................................................................................................10

INTRODUCTION
This report will focus on the area related to consumer behaviour. Consumer behaviour is
the study of consumers and the methods they use to consume the products and services. This
includes the emotions, mental state and behavioural responses of them. It helps the marketers to
understand the ways of presenting their product to the targeted audience (Ekström, Ottosson, and
Parment, 2017). This process can help to fill in some gaps in the market and also help in
understanding which product is in more need. Shipping containers are designed in such a way
which enables them to carry heavy set of loads even during harsh climatic conditions. They can
even bear rough seas. When these are kept on top of one another they can create multi storey
housing which can be build off the actual site. This report deals with a deeper analysis on the
knowledge of the consumer behaviour. It shows the influence of segments and the offered
products.
MAIN BODY
Theories of consumer behaviour
These theories are used by the marketer to understand the behaviour of the consumers.
Some are based on the economical grounds depending on an individual’s experience while others
are related to the social sciences. Having knowledge of these theories will help the markets gain
benefit. The different types of theories are:
Traditional and modern theories: This approach is philosophical which explains the
physical and moral phenomena. This theory believes that customers behave mechanistically.
When the income of the consumers is increased, they tend to buy more and also increase their
consumption. This theory believes that consumers are rational creatures and every step they take
is well planned and logic based (Szmigin, and Piacentini, 2018). Traditional theories are based
on economic laws and intuitions.
Modern theories on the other hand are dependent on the findings of different disciplines
of social and behavioural aspects. Consumers are very unpredictable and irrational who can
change their mind anytime they want. Modern theories are based on the social sciences. These
are not very precise.
Economic theories: This theory explained a consumer as rational type of buyer which
moves forward having all the necessary information related to the market. They use their

knowledge and information into obtaining a maximum value from their purchase and gain
advantage of saving costs. According to this theory, consumers make decision about buying the
product depending on their self interest (Stankevich, 2017). Consumers compare the products,
features and their price and buy the product with least price. Retired and unemployed consumers
can use their liquid assets to buy the necessary items. The credits of the consumers have an
impact on the spending limit of consumers. Small fluctuations in their source of income can
change their idea for the purchase.
Psychological based theories: It says that decision to purchase a product is influenced
by the characteristics such as learning, attitudes and so on of the consumers. This theory will
help in understanding the personal characteristics which can have an impact on the consumer.
There is an importance given to the brand loyalty and the purchase is repeated depending on that.
This theory is very relevant to the field of marketing.
Application of theories and marketing segments
Consumer theories help in predicting the decision of the consumer about a purchase. It
helps the marketer to capitalise in the best way possible depending on the predictable behaviours.
Impulse purchases are an important part of the buying pattern of the consumers. They also have
rational decision making processes which dominate the behaviour of the consumers and affect
the theories of marketing. Shipping container housing leads to sustainable form of design. They
contribute to alternate living conditions. Marketing segmentation is becoming an important part
of a strong marketing strategy. It offers and opportunity window to focus on the things which
will drive the consumers to make a purchase. It gives a competitive advantage and forms an
effective communication to differentiate the business. The types of marketing segmentations are:
Demographic segmentation: It is the first thing in the marketing segmentation. It is a
straight forward way to define the customers and is very powerful. It focus on the traits such as
the age, gender, ethnicity, income, level of education and even the religion. It has the potential to
target customers based on their income.
Psychographic segmentation: This is focused on the personalities and interests of the
consumers. It is defined by the factors such as personality traits, hobbies, life goals, values and
beliefs and also the lifestyle of the customers (Laskova, 2017). This segmentation is harder to

identify. It allows incredible marketing where the customers will, be interacted on more personal
level.
Geographic segmentation: It is easy to discover. Customers are grouped depending on
their physical location. This segmentation is defined by various ways such as country, region,
city and the postal code. It makes the customers form a group within a set radius depending on a
particular location.
Models of consumer behaviour
There are various models which shoes the consumer behaviour and the perception of consumer
towards the products.
Traditional model
This is one of the earliest and old age models of consumer behaviour. This model has been
developed by economist to check the view of consumer on any new product (Mothersbaugh and
et.al 2019). This model helps in analysing the scarce resources to know the unlimited needs and
desires of the customers. As shipping container housing provide different houses which are made
from recycled materials so this model helps the company to know the perception of customers
towards this product. Whether they like this new product or not, if the customer do not like then
company can make certain changes in the products and again sell three houses to the customer as
per their needs and convenience.
Economic model
This model believes that people are rational human being and they will alternate all the things in
the cost and value received in the form of products. In short customer want best quality product
at cheaper prices. As consumer is the king of the market they have many choices available and
the competitors are always ready to supply all the necessary and demanded goods of the
customer on affordable and cheaper prices so that they can easily grab the consumer base of
shipping container housing. If the company wants that their sales and revenue increases then they
have to look for the need and demand of the consumer and according to their need this company
should provide them product so that consumers can easily afford that product and they do not
switch to their competitors. Apart from this economic model shows that if the consumer has
higher income level then they spent ample of money on the products but they want high quality
product.

Learning model
This model states about the respond of consumer behaviour towards the necessary goods which
satisfy the basic need of the consumer. To fulfil the basic needs consumer can pay any amount so
that they do not have to face any issues. The basic hoods and products includes – food, home and
those goods which are necessary for the survival. So shipping container housing is living in
necessary goods and products so the chances of increasing the sale of this company is high
because consumer have to buy necessary products which improve their standard of living and
also help them to survive.
Marketing planning process
Segmentation
Segmentation refers to the procedure of dividing entire Marketplace into small parts and
segments so that company can easily started their customers and sell their products to them in a
specified market (Trudel, 2019). Segmentation allowed the company and organisation to closely
target their customers and sell their products directly with the help of physical stores and online
website of the company. This organisation has targeted to the customers of UK so that they can
easily sell the products to such people.
Targeting
Targeting is the procedure of deciding the consumer space to which company want to target to
sell their products. Is company is targeting to the people who are above 35 years old and looking
for home to settle down. Apart from this company wants to target such people who have high net
worth and high income level so that they can easily purchase the products of this company and
afford them easily.
Marketing mix
Product
Shipping container house provide many product to the consumer whether it is container type,
architecture type, and various houses which is made from recycled products. As the home made
from steel so the people have chooses whether they want to purchase small house or big one
every product is easily available.
Price
The prices of these products depend on their size (Khan, 2020). If any consumer wants to
purchase smaller product and small house then it may cause them less than $30,000 but on the

other hand if the consumer want big house then it may cost more than $30,000. So this company
provides a full range of products.
Place
These products are available on online websites to which consumer can easily purchase them
apart from this customers can visit their physical stores is well to buy these products.
Promotion
For promoting their products this company is continuously conducting marketing and various
promotional activities with the help of social media apart from this company is active on their
website as well and providing all the necessary details such a size price and quantity so that
people can easily afford them. Along with this company is actively providing advertisement in
the newspaper in different business magazines so that more and more people can come to know
about this kind of homes.
Theoretical perspective associated with consumer decision making
Consumer decision making is based on various theoretical perspective of the consumer but one
of the common consumer perspective is that customer always want to buy best product at the
affordable prices (Agarwala and et.al 2019). This is the responsibility of the company that they
must offer good quality product at the cheap prices then only its consumer base can increase
apart from this if the company wants to increase the sales then it is one of the key feature a
consumer buying behaviour that they will easily by such products which can be affordable for
them through which company can increase their value and sales. Apart from this another
theoretical perception of the consumer is that they don’t want to use same products for so long
and short consumer wants various diversifications in the product. Consumer prefers to buy such
products that are trading in the market apart from this they might go for those products which are
new and updated. So the company has to make sure that it will not sell outdated products to the
consumer at cheap prices it doesn’t matter if the prices are low but consumers do not buy such
products that are outdated and I am not in the trend. So if the company wants to win the heart of
the customers with their product then it is very necessary for the company that we must provide
new range of products to the consumer and create a large consumer base for them. This company
is working on this perception and providing container house to the consumers which is totally
new for the customer as well therefore the sales of the company is continuously increasing in the
market. Because the company is focusing on providing new and innovative product to the

consumer for that consumer are not focusing on the price as they like the quality and idea of this
product therefore they are paying little higher price to buy these houses which has been made
from recycled products. Another perception of the consumer is that they always go for such
products which is necessary to prepare their basic needs and amenities and this company is
selling one of the basic product which is house there for consumers get ready to buy this product
at any cost.
Analytical skills
From the entire research it has been found that most of the consumer gives preference to the
price over the quality of the product. Apart from this it has been seen that buying behaviour of
the consumer depends on their income level (Bukhari and et.L2019.). Some people have high
level of income they may prefer to buy such goods which are expensive and rich in quality.
Besides this it has been seen that some people are those who do not have good income level but
they want to pay only for those products which are necessary for the survival. Apart from this
they do not spent much amount of money on those products which do not fulfil their basic needs.
Besides this from the research of this company and their product it has been seen that most of the
consumers prefer this kind of container houses as they fall under their budget apart from this it
also provide them quality product there for people are ready to pay little higher amount to
purchase such product. So from the entire analysis it can be said that consumer can make certain
changes in their budget if they like the products the most and on the other hand if they do not like
the product they did not want to spend money to purchase such products. Along with this another
consumer perception states that consumers want to buy new and latest products as I do not want
to spend money on such products which are not in trend and become outdated. Another
consumer perception which has been found that before buying any product consumer conduct a
research in the market about the quality of the product, prices and the also compare all the
products which are being sale by different vendors so that they may get best product at best
prices. In the research consumer give importance to the advertisement of the product which is
being given by the company apart from this they may visit the social media channels of the
company and also they go for feedback in previous which is being provided by customers so that
they can make a good decision whether they want to buy the product or not.

CONCLUSION
It can be concluded that understanding the behaviour of a consumer is very important for
a marketer. There are various theories made to understand the consumer behaviour in a better
way. These theories are dependent on the economical, sociological and even the geographical
factors related to the consumers. Many marketing segmentations can be derived from these
theories to help boosting the marketing condition of the organisation. It is used to target the
particular audience for that particular product. Along with theories there are different models
defined for the consumers which are relevant to the particular marketing situations. These
models are used to enhance the abilities and the knowledge of the marketing process. Lastly,
there is the analysis of different skills related on consumer research.

REFERENCES
Books and Journals
Agarwala and et.al 2019. Religiosity and consumer behavior: A summarizing review. Journal of
Management, Spirituality & Religion.16(1).pp.32-54.
Bukhari and et.L2019. Is religiosity an important consideration in Muslim consumer
behavior. Journal of Islamic Marketing.
Ekström, K.M., Ottosson, M. and Parment, A., 2017. Consumer behaviour: Classical and
contemporary perspectives.
Khan, M.A., 2020. Theory of Consumer Behavior: An Islamic Perspective.
Laskova, V.P., 2017. Socio-Psychological Theories About Consumer Behaviour. Izvestia Journal
of the Union of Scientists-Varna. Economic Sciences Series, (1), pp.45-51.
Mothersbaugh and et.al 2019. Consumer behavior: Building marketing strategy. McGraw-Hill
Higher Education.
Stankevich, A., 2017. Explaining the consumer decision-making process: Critical literature
review. Journal of International Business Research and Marketing, 2(6).
Szmigin, I. and Piacentini, M., 2018. Consumer behaviour. Oxford University Press.
Trudel, R., 2019. Sustainable consumer behavior. Consumer psychology review. 2(1). pp.85-96.