Consumer Behaviour and Financial Decision Making - Presentation

This presentation delves into the realm of consumer behavior and its influence on financial decision-making, drawing insights from an empirical approach. It begins by highlighting the irreversible nature of certain financial decisions and the potential for significant losses if these decisions are poorly managed. The presentation then examines the challenges faced by companies in adapting to changing market conditions, particularly when substantial investments are involved. A case study of Woolworths in 2019 is presented, detailing the company's product offerings and financial challenges, including losses incurred due to the impairment of David Jones. The presentation concludes with recommendations for improving financial performance, such as adopting effective marketing strategies and adjusting product pricing. The research is based on the article by Park & Sela (2017) and financial data from Fin24.com (2019).

C O N S U M E R
B E H AV I O U R A N D
F I N A N C I A L
D E C I S I O N - M A K I N G

EMPIRICAL APPROACH IN
ARTICLE
• Different financial decision-making aspects are
irreversible decisions as the nature of the respective
decisions cannot be changed in a quick manner (Park
& Sela, 2017)
• It can be identified that in managing the financial
decisions ineffectively, there will be heavy loss which
will be incurred and changing of such decisions
become difficult

FINDINGS IN THE ARTICLE
• Due to the heavy investment which is being made
by the different companies who deal with different
kinds of investment along with other aspects, it
becomes very difficult to change such decisions
once it is taken and it affects the overall approach of
decision-making to a huge extent.

OVERVIEW OF
WOOLWORTHS AND
PRODUCTS SOLD IN 2019
• It is one of the biggest retail stores in Australia and it was founded in the year 1924
• Furthermore, the company has their huge presence in Australia and New Zealand economy
and it is headquartered in New South Wales, Australia (Woolworths.com.au, 2019)
• There are more then 205000 employees who are employed in the organization who are playing
a major role in managing the different business operations successfully
Products
• Beauty and Health Care Products
• Household Products and Stationary Items
• Grocery Items
Financial Crisis
• Due to the impairment of David Jones, it led to the huge loss of Woolworths that created huge
difficulties for the company in managing the same
• There was loss of share between R3.40 to R3.97 continuously for the next fifty two weeks and
it led to difficulty in handling the different activities in the organization negatively (
Fin24.com, 2019)

RECOMMENDATIONS
• Proper adoption of techniques related to marketing plays a beneficial role in
hiring talented individuals who have knowledge in financial domain to
handle the different losses and focus on activities which will make money
• Proper increase in the pricing of the different products which are sold to the
customers as it will be helpful in improving their financial status in the
organization

REFERENCES
• Park, J. J., & Sela, A. (2017). Not my type: Why affective decision makers are
reluctant to make financial decisions. Journal of Consumer Research, 45(2),
298-319.
• Fin24.com (2019) Woolworths sees full-year loss after David Jones impairme
nt
(Online)
Retrieved from https://www.fin24.com/Companies/Retail/woolworths-sees-fu
ll-year-loss-after-david-jones-impairment-20180719
[Accessed on 22th April 2019]