Consumer Behavior in Marketing: Square & Compass Analysis Report

This report provides a comprehensive analysis of consumer behavior within a marketing context, focusing on the factors that influence purchasing decisions. It examines the importance of understanding consumer behavior for organizations, including the impact of economic conditions, personal preferences, and peer opinions. The report uses the Square & Compass restaurant as a case study to illustrate consumer profiles, differentiating between primary and secondary segments based on geographic, demographic, psychographic, and behavioral characteristics. It explores various theories of consumer behavior, such as the theory of reasoned action and the EKB model, and discusses the role of impulse buying. The analysis highlights the significance of tailoring marketing strategies to specific consumer segments and understanding the psychological processes that drive buying behavior. The report also identifies key issues and provides insights for effective marketing practices, including promotional strategies and the importance of positive brand image.

Running head: MARKETING CONSUMER BEHAVIOUR
Marketing consumer behaviour
Name of the student
University name
Author’s note

1MARKETING CONSUMER BEHAVIOUR
Executive summary
The current assignment focuses on the aspect of consumer behaviour which governs the
selection of products and services. These are a combination of a number of intrinsic and
extrinsic factors such as personal preferences, peer reviews, economic a geographical
feasibility. Therefore, these factors govern the frequency at which certain business outlets are
frequented by customers. Additionally, the theory of reasoned behaviour along with
impulsive buying behaviour further explains the tendency of the customers in selecting
particular products or services. The report explains the different aspects of consumer buying
behaviour with the help of theories and practical examples.

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Table of Contents
Introduction............................................................................................................................3
Consumer behaviour..............................................................................................................3
Importance of consumer behaviour for organizations...........................................................5
Consumer profile....................................................................................................................6
Primary segment.........................................................................................................................7
Secondary segment.....................................................................................................................9
Issue identification...............................................................................................................10
Conclusion............................................................................................................................11
References............................................................................................................................12

3MARKETING CONSUMER BEHAVIOUR
Introduction
Consumer behaviour is a vital aspect of marketing and needs to be understood in the
broader terms. It is the study regarding approaches or factors guiding decision making in the
target customer segment. It is necessary to understand the driving factors behind particular
customer choices over others. This helps in the development of suitable action strategy for
pitching a product right. The analysis of the consumer behaviour not only helps in analysing
the past but also helps on predicting the future. The factors influencing customer choices
could be divided into a number of components such as- geographic, demographic,
psychological and behavioural. In the current report we have tried to relate the importance of
consumer behaviour within the business prospects. For the discussion of the report we have
taken into consideration Square and compass which is a Melbourne based coffee and food
restaurant ("Square & Compass", 2018).
Consumer behaviour
The decisions and actions which influences the purchasing behaviour of a target
customer base is known as consumer behaviour. Most of the selection process is backed by
emotions and reasoning. Some of the most common factors influencing consumer choices
and decision making are economic conditions, personal preferences, opinions of peers.
Economic condition serves as a guiding factor in dictating consumer choices. As
commented by Chung et al. ( 2017), the capacity of making purchases is often restricted by
poor or limited economy. Therefore, indulging in an espresso which costs anywhere between
4-5 dollars may not be a convenient option where the family is looking out for a cheap
grocery.

4MARKETING CONSUMER BEHAVIOUR
As argued by Kerins et al. (2017), personal preferences often govern the customer
choices and behaviour while choosing over a range of products and services. For example, a
person simply love espresso over simple black coffee and may choose the same irrespective
of the prices. As argued by Astuti & Hanan (2016), the opinions of the peers are also
important in choosing particular products or services. As commented by Chung et al.
(2017), negative publicity about brand or its services can also prevent the maximum sales of
the services. Additionally, the dependency on social media for collecting reviews about
products and services provides a much wide forum for the consumers; where they are
exposed to the opinions of others which further goes into making the purchase plan.
There are a number of theories guiding consumer behaviour such as –theory of
reasoned action; Engel, kollet, Blackwell (EKB) model; Hawkins stern impulse buying
behaviour. The theory of reasoned action states that the customer will only plan to indulge in
particular products and services when they can expect a positive outcome out of it. As
commented by Yeboah & Owusu-Prempeh (2017), the consumers are the rational actors who
choose to acts in their best interests. However, as argued by Alphonce, Alfnes & Sharma
(2014), from the time of decision making to the actual purchase time the consumer have the
propensity to change their mind about using specific purchases.
The EKB model further expands the theory of reasoned action which explains the
selective approach of the customers while making the purchases. The first step is where the
customer collects sufficient data about particular services before processing of the
information. As commented by Lo, Wu, Law & Au (2014), the costumers move into decision
making phase based on rationale. The decision making is also influenced by process
variables including the after satisfaction rate of the customers after making the purchase.

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With respect to the current scenario the theory of impulse buying can be highlighted.
As commented by Gelbric, Roschk & Gafeeva (2016), impulse purchases are driven by
external stimulus and have no relation with traditional aspects of decision making. For
example placing an order for medium sized pizzas worth rupees 199 at domino’s a taco
Mexicana is offered free which is quite an indulging deal. Additionally, offering of attractive
coupons, discounts such as cashback on every purchase at a food court are some of the
marketing gimmick that can appeal to the impulses of individual customers.
Importance of consumer behaviour for organizations
The marketers can use the theory in their favour where they can associate a purchase
with a specific and positive outcome. The theory of reasoned action also helps the marketers
in understanding that longer the gap between the initial desire and making the actual purchase
the more are the chances of losing the customer (Kerins et al., 2017).
With respect to the EKB model the marketers need to provide the customers with
sufficient information regarding the products. This helps in keeping the products under
consideration for purchase. For example a restaurant in order to attract maximum number of
customers would need to invest in marketing gimmicks and advertisements. Here, the
sumptuous meals prepared by the restaurant can be pitched to the customers based upon the
feel and culture of the specific region. This is help in attracting maximum number of
customers to the restaurant time and again.
The consumer behaviour is highly important with respect to an organization. The
focus on consumer help in developing the business practices. As commented by Aday &
Yener (2014), consumer behaviour is highly complex and dynamic in nature. During the
process of buying a product or selecting services the consumer go through a number of

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psychological processes in their mind which dictate their actual purchase behaviour. As
argued by Gelbrich, Roschk, & Gafeeva (2016), the personality traits are also imperative in
guiding the decision making approaches. The pragmatic people would purchase what is
useful and necessary. With respect to a restaurant selling food one can say that the pragmatic
people will choose a basic and healthy meal than a luxurious and sumptuous meal. An
aesthetically inclined customer will be drawn towards the look of the product than its
contents. However as argued by Wikström, , Williams, Verghese & Clune (2014), it is
difficult to convince the intellectually inclined customers to buy out a certain product. As
they mostly want to know regarding the benefits of the product or collect much knowledge
regarding the positive reviews associated associated with the product before they could make
the purchase.
A huge part of their mentality is affected by peer responses. Therefore, the
organization needs to develop a positive image about itself. Recent studies have established
that the consumer takes less than 20 minutes time in deciding about the products or services
that they want to buy (Gelbric, Roschk & Gafeeva, 2016). Therefore, the marketers need to
be selective as well as line up maximum diversity in promoting their services. Additionally,
58% of the purchases are unplanned which means that maximum time the customers are
buying more out of impulses than out of needs (Aday & Yener, 2014). Therefore,
understanding the decision making approaches of the customer will help in maximization of
the sale and the profit margins.
Consumer profile
The profile of a customer helps in describing the target customer segments
categorically so that they can be grouped for advertising and marketing purposes. The
services and products can be tailor made to satisfy individual needs and demands. As

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commented by Ye, Cronin & Peloza (2015), before pitching of the products it is necessary to
design suitable customer profile. The consumers of the square and compass restaurant have
been identified based on a number of features such as –preference, lifestyle, stage of life,
attribute and traits. The customer profile can be further divided into primary and secondary
segments.
Primary segment
The primary segment refers to the target market from where majority of the revenue
from sales could be extracted. It focuses on marketing efforts where maximum amount of
returns could be obtained.
Geographic The primary target customer for the square and compass
restaurant are the residents of East Melbourne
Demographic They are mostly customers within age group of 18-30.
Psychographi
c
An overall positive opinion about the square and compass
restaurant attracts the maximum number of customers.
Additionally, the contemporary feel of the place attracts huge
number of youth customers
Behavioural The customers mostly within the young age group have been
seen to be impulsive buyers and are aesthetic buyers who
choose a product over their looks and feel than health benefits
or nutritional value.
Table 1: Primary segment target customers
(Source: author)

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Figure 1: primary customer segment
(Source Lo, Wu,Law, R & Au, 2014)
Analysis:
The residents of the East Melbourne form the primary market consumers which could
be attributed to feasibility of location ("Square & Compass", 2018). The suitable and
convenient location of the square and compass restaurant on the Clarendon Street makes it
one of the most visited restaurants. Additionally, the place is mostly visited by the youth
owing to its contemporary feel and look. The open spaces and the plenty of activities
available make it one of the favourite hangout places for the youth. The aesthetic feel of the
place also attracts huge number of target customer. The segmentation is further based upon
the four P’s of marketing which are –product, price, place and promotion. The promotions of
the product, the prices as well as the location are some of the major contributors (Namkung &

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Jang, 2017). Since the customer profile hitting the square and compass restaurant are mostly
youths or young adults, price as well as place of the business outlet are some of the governing
factors (Kang, Jun & Arendt, 2015).
Secondary segment
Geographic The secondary target market is located within greater
Melbourne and adjacent areas.
Demographic They are mostly customers within the age group of 33-65.
Psychographic Opinion of peers or reviews collected from social media sites
influence the buying behaviour of the secondary target
customer base.
Behavioural The manner of making choices is influenced by the peer
opinions. The nature of selection is guided by intellectual
abilities where the health and nutritional aspects are taken into
consideration before making a purchase.
Table 2: secondary segment target customers
(Source : author)

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Figure 2 : market segmentation
(Source : Alphonce, R., Alfnes, F., & Sharma, 2014)
Analysis:
The secondary target market consists of the ones residing in greater Melbourne and
adjacent areas. These customers fall within the age group of 33-65 and mostly hit the place
based upon the reviews and opinions of their peers and the collective reviews over the social
media sites ("Square & Compass", 2018). Since the customers fall within the middle age
group they apply intellectual abilities in making the purchase decisions (Oliver, 2014). These
are based upon collective reviews of peers and the amount of positive publicity done
regarding the square and compass restaurant. Therefore, the promotional aspects form a very
important component of business growth and profitability. Therefore, the management at the
square and compass restaurant need to focus upon the marketing gimmicks where promotion
of the sumptuous menu choices offered by the restaurant can be done over apps such as
Zomato. Additionally, a link to the menu of the restaurant has also been pasted over their
facebook and instagram pages.
Issue identification
Some of the issues which have been found with respect to the square and compass
restaurant situated in Melbourne are threats from similar market players in a highly
competitive market. Additionally, labour and shortage in the number of international chefs
are affecting the productivity of the Australian restaurants at large scale (Sethna & Blythe,
2016). The square and compass restaurant stands at no exception. One of the dominant issues
which are faced by the square and compass restaurant apart from cut-throat competition and
labour shortage is the lack of adequate finances. In the lack of finances managing the day-to

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day operations of the restaurant becomes difficult (Lehman, Kovács & Carroll, 2014).
Additionally, the entry of new restaurateurs in the emerging market scenario puts excessive
pressure on the existing ones. The new entrants could come out with marketing gimmicks
which may affect important parameters such as customer loyalty.
Conclusion
The square and compass restaurant constantly needs to renew its services and policies
to attract the maximum number of customer base. Additionally, focusing upon the consumer
buyer behaviour helps in improving the business sense and ethics. This further helps in
expanding the future customer profile. Moreover, economy, personal preferences, opinions of
the peers are further instrumental in affecting the customer buying behaviour and approaches.
In addition the geographic, demographic, psychologic and behavioural aspects further govern
the decision making. Additionally, promotions and strategic planning are some of the other
aspects which can help in expanding the target market based upon customer preferences.