Consumer Behaviour Report: MG2I Unit, Maltese Market Analysis

This report analyzes consumer behaviour in the context of Fun & Flavour Coffee House, a new business venture in the Maltese market offering organic and herbal coffee products. It begins by identifying appropriate bases of segmentation, such as geographic, demographic, psychographic, and behavioural, and then assesses the feasibility of demographic segmentation for the target market. The report explores various research methods, including surveys, questionnaires, and interviews, to understand consumer purchasing decisions. It includes a sample questionnaire and analyzes consumer attitudes towards the startup's new products, highlighting positive perceptions due to the focus on health-conscious consumers and the appeal of the products. Relevant influences on consumer behaviour are discussed, emphasizing the impact of product quality, taste, and the firm's target market. The report also examines the major promotional tools, namely product, price, place, and promotion, as well as strategies for attitude change within the marketing mix. The report concludes with a summary of the key findings and recommendations for the business.

Consumer Behaviour

Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Identify an appropriate basis of segmentation and segment the potential market for new
product.........................................................................................................................................1
TASK 2............................................................................................................................................2
Assess which of the market segments identify in above task is feasible to select the target
market..........................................................................................................................................2
TASK 3............................................................................................................................................2
Analyse the research methods accessible....................................................................................2
TASK 4............................................................................................................................................3
Conduct appropriate market research with the selected target segment to meet research
objectives.....................................................................................................................................3
TASK 5............................................................................................................................................4
(a). Define and evaluate the main consumer attitudes towards the start up’s new product.........4
(b). Describe the most relevant influences on consumer behaviour............................................5
TASK 6............................................................................................................................................5
(a). The major promotional tools- product, price, place and promotion......................................5
(b). Strategies for attitude change................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Consumer behaviour is the study of individuals and establishments and how they choose and
utilise commodities and facilities. It is majorly disquieted with psychology, motivations and
behaviour. It can be an examination of how customer take decisions about what they require,
want and desire and how do they purchase, utilise and organize of products (do Paco, Shiel and
Alves, 2019). This report is based on Fun & Flavour Coffee House which is a new business
venture and established by a UK businessperson in Maltese market. Within it, different kinds of
coffee products like organic and herbal coffee are offered by firm to its target audiences. The
document will consider information about market segmentation for new product and service,
research methods to use for acknowledging the buying behaviour and market research to meet
the research objectives. Further, will explain about main consumer attitudes regarding start up’s
new products, relevant influences on consumer behaviour, marketing mix and strategies for
attitude change.
TASK 1
Identify an appropriate basis of segmentation and segment the potential market for new product
Market segmentation is an activity of segregating a market of potential customer into groups
and segments on diverse characteristics. In Fun & Flavour Coffee House, the management can
divide the market for new herbal and organic coffee products on the basis of different market
segment. The explanation of them as below in reference to new coffee products of Fun &
Flavour Coffee House:
Geographic segmentation- This market segmentation is very beneficial to business because
it helps a firm to find out and segregate the market into segments based on language, population,
climate and lifestyles etc.
Demographic segmentation- This kind of segmentation includes of categorising the market
in to groups on variables like age, gender, occupation, interest, hobbies, level of education,
locality of residence and media preferences etc.
Psychographic segmentation- This kind of segmentation segregates the market into units on
social class, lifestyle and personality characteristics (Nguyen, de Leeuw and Dullaert, 2018). It is
supported to the assumption that the types of commodities and brands a person buys will reflect
that individual’s characteristics and ways of living.
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Behavioural segmentation- It is based on the actual customer experience of particular
products, their use of commodities and their responses to certain goods. This has the benefit of
utilising variables which are closely associated to the product itself.
For this new coffee product, the potential market can be drip coffee drinkers, coffee shop
lovers and particular coffee drinkers in Malta (Ismagilova and et. al., 2020). Because, the firm
offer organic and herbal coffee so there are some people who only want to drink a particular
coffee like organic or herbal from a special shop.
TASK 2
Assess which of the market segments identify in above task is feasible to select the target market
From the mentioned information in above task regarding market segment in context of new
product of Fun & Flavour Coffee House, demographic segmentation is feasible because it help
the firm in dividing customer on the basis of age, gender, occupation, hobbies, occupation,
interest level of education, media preferences and locality of residence. In context of Maltese
market, the management of respective firm can easily divide customer towards its products on
the basis of all age group of people, both male and female and many more. In context of it, in
that market, they can target gym trainer, health conscious people, professionals, workers and all
people. As known that Malta is a Tourism place so they can also target travellers because there
are some people who are making more focus on their heath and always prefer healthy and
organic coffee drinks.
Along with this, they target market of those individual who are influences by media by
seeing healthy drinks advertisement which shows the benefits of these kinds of products. So the
firm can select market of these people as they influence by media and prefer healthy drinks. In
addition to it, demographic segmentation of target market is effective as it help in building long
term and better customer relations (Szmigin and Piacentini, 2018). This market segmentation
categorised target people of the firm on the basis of different factors like age, income, gender etc.
so it also offer opportunity to business venture to make innovation and development its products
and services.
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TASK 3
Analyse the research methods accessible
There are different kinds of research methods which are used by the organisation to
determine and acknowledge the buying behaviour of potential target market. In context of Fun &
Flavour Coffee House, the management can use effective research method to analyse the
purchasing decision of target audiences. The explanation of some research tools are as under:
Surveys- It is a research method which is used for gathering information from a pre-
analysed groups and units of respondents to gain data and insights into different topics of interest
(Ahmed and et. al., 2019). They can have several purposes and surveyors can organise it in
several manner depending in the method selected and the study’s goal.
Questionnaire- It is another and an effective method of research and information collecting
tool. It is a kind of document in which a range and series of questions are included related a
particular topic or issue. It is an appropriate way to acquire information from a large number of
individual who may not have the time to attend an interview or the take part in observations.
Interview- It is a process and carried out a persona or individual for face to face interaction
and questioning-answering. It can also be managed and organised through telephone, using other
advance computer technology like Skype and direct manner (Di Talia, Simeone and Scarpato,
2019). It is an effective research method as it offers accurate and detailed information about the
related topic.
In Fun & Flavour Coffee House, the management can consider questionnaire as a research
method to understand the purchasing power of its potential target market by framing a document
which include number of questions regarding its new organic and herbal coffee products.
TASK 4
Conduct appropriate market research with the selected target segment to meet research objectives
Questionnaire
Q1. How often do your drink coffee?
(a) Daily
(b) Weekly
(c) Occasionally
Q2. For what reason would you drink coffee product of Fun & Flavour Coffee House?
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(a) Release stress
(b) Refreshing
(c) Health benefits
Q3. Do you satisfied with the environment of Fun & Flavour Coffee House in Malta?
(a) Yes
(b) No because it is Noisy
(c) No because it is Crowded
Q4. What is the most important aspect of coffee product of Fun & Flavour Coffee House?
(a) Price
(b) Taste
(c) Health benefits
Q5. Are you satisfied with the pricing strategy of Fun & Flavour Coffee House in Maltese
market?
(a) Yes
(b) No
From the above mentioned questionnaire, it can analysed its target customer and
determine the market group through the interest of selected target segment which will assist in
meeting the research objectives like monitoring target market interest (Wiederhold and Martinez,
2018). It can also be acknowledged that people are satisfy with this innovative products and the
cost which is used by the firm either there is any kind of requirement to make change and
alternation in product and its pricing strategy.
TASK 5
(a). Define and evaluate the main consumer attitudes towards the start up’s new product
From the mentioned research in above task, it can be identify that people of target market
has positive and favourable attitudes regarding products of Fun & Flavour Coffee House. It is
because the firm offer new coffee product like organic and herbal coffee in Maltese market. Now
these days, people are more health conscious than previous time and they also prefer healthy
drink and items to maintain their health (Boccia, Covino and Sarnacchiaro, 2018). So in target
market of Malta, the people will highly prefer this product of respective firm as well as
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demonstrate their positive attitude regarding this. Along with this the firm also target all age
group and both male and female for its new product. The venture also focused on the income,
occupation, hobbies and interest of people during the time of production of herbal and organic
coffee products. This will also help in making favourable attitudes of target audiences towards
the start up’s new coffee items.
It can also be evaluated from the above motioned research task that the shop’s environment
also help in making the favourable attitude of people regarding respective company’s
commodities (Spence and et. al., 2019). Because it provide a happy, safe and peaceful
environment to customer where they can they enjoy their coffee and perform their meetings and
other these kinds of work etc. Apart from this, due to having a good taste and pricing strategy,
customer like the product of Fun & Flavour Coffee House and have a good attitudes regarding it
which help in development and growth of the business enterprise.
(b). Describe the most relevant influences on consumer behaviour
The management of Fun & Flavour Coffee House influenced the consumer behaviour of
people by offering quality product and effective taste so that people are attracted toward its.
Along with this, the respective venture offer it’s new and innovative product of organic and
herbal coffee for all age group as well as both male and female which influence the consumer
behaviour regarding this products. The firm also consider health conscious and professional
which are the main customer as they use healthy drink for health benefits and working people
use it for refreshment, realising stress and fresh their mind so that they can do their work with
more effectiveness.
The respective product is launched by the new venture in Maltese market as a healthy drink
which is beneficial for all so it is more attractive. As known that Malta is travel and tourism
place so this product is also getting attention of visitors because incurrent era people highly
focused regarding their healthy and even they are travelling they are search for healthy food and
drinks. So this one of the main and essential factor and feature of this product, which creates a
positive impact on consumer behaviour (Silva and et. al., 2019). Along with this, due to having
quality or attribute of healthy drink, it provides several development and progress benefits to
respective organisation.
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TASK 6
(a). The major promotional tools- product, price, place and promotion
Marketing strategy indicates to a business’s overall game plan for reaching prospective
consumers and converting them into consumer of the products and service the venture offers. In
context of Fun & Flavour Coffee House, the management can consider marketing mix strategy
and the description of it is as under:
Product- It refers to the process and activity of converting raw material in to finished
goods and final products (Voramontri and Klieb, 2019). In Fun & Flavour Coffee House, the
firm offer coffee and beverage goods. But now in Maltese market, the venture enters with its new
organic and herbal coffee products.
Price- It states to the monetary value which is invested by the enterprise for manufacturing
commodities to offering them target audiences. It can also consider the cost of products at which
rate they are provided to target customer at marketplace. In Fun & Flavour Coffee House, the
company can use competitive, discount and value based pricing strategies for its herbal and
organic coffee items in Malta.
Place- It indicates to the area where goods and services are accessible to purchase and take
the benefits of them respectively. In context of respective firm, it offers its coffee products
through small shops where they also offer sitting arrange to its target audiences.
Promotion- It motions to the activity of promoting goods and services by using different
adverting channels and tools. In Fun & Flavour Coffee House, the management can use
newspaper, TV, radio, magazines, internet, social media tools and many more with the purpose
of creating awareness about its new products which are offered in Maltese market.
(b). Strategies for attitude change
It refers to that plan of actions and techniques which are used by the firm to make the
positive attitudes of customers regarding the products and services of the company (Ting and et.
al., 2019). In reference to Fun & Flavour Coffee House, the administration of this firm can also
consider these kinds of tactics with the purpose of making development in business and form the
favourable attitude of consumers regarding herbal and organic coffee products. The description
of some of them as under:
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Resolving two conflicting attitudes- With the implementation of this attitude change
strategy, the firm can resolve actual or potential conflict among two attitudes. If customers can
be made to see that their negative attitude regarding a product then by considering this strategy,
this kind of issue can be resolve (Young and et. al., 2018). In Fun & Flavour Coffee House, if the
customer has a negative attitude regarding new coffee product due to have another attitude of
flavoured coffee. Then it can be changed by offering flavoured coffee items.
Change the packaging of products- It is another attitude change strategy that can be
followed and considered by the administration of Fun & Flavour Coffee House in term of using
an effective packaging which can be easy to carry and recyclable. This will be assist in changing
the attitude of customers regarding the new organic and herbal coffee products of Fun & Flavour
Coffee House in form of positive attitude.
Changing the consumer beliefs about competitors’ brands- It is another strategy of
attitude change of customer in favourable manner regarding products and services of company.
In Fun & Flavour Coffee House, by making comparison of herbal and organic coffee with other
companies like Starbucks in term of its quality and attributes, the administration can alter the
customer’s perception regarding respective firm’s products (Spence and Velasco, 2018). They
can compare with packaging, price and products quality which assist in improving consumers
behaviours regarding respective firm’s coffee items.
CONCLUSION
It has been summarised from the above mentioned information that consumer behaviour is
an effective process or acts of people instantly engaged in acquiring, utilising and disposing of
economic goods and services, considering the determination activities that lead and analyse these
acts. Market segmentation is a crucial activity to analyse the needs of marker and segmented the
products in groups as per them. By using several research tools like questionnaire, survey and
interview etc. the firm can do investigation regarding particular to get information about it. By
using marketing mix analyse the venture can offer brief information about product, price, area of
availability and promotional tools. By using strategies for attitude change the venture can
develop a positive attitude of customer regarding goods and services of company.
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