Consumer Buying Behaviour Analysis Report: Myer Marketing Issues

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This report delves into the consumer buying behaviour of customers in relation to the department store Myer, identifying key marketing problems such as lack of product quality, high prices, and insufficient customer value. The report proposes strategies to address these issues, including implementing the SERVQUAL model to improve service quality, adopting an economic pricing strategy to attract customers, and providing after-sales service to enhance customer loyalty. It also explores consumer buying theories, such as the utility approach and indifference consumer buying theory, to understand consumer preferences and decision-making processes. The report includes analysis of survey data, revealing insights into customer impressions of Myer, preferences for various factors like price and quality, and the impact of marketing campaigns.
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Running Head: CONSUEMR BUYING BEHAVIOUR
CONSUMER BUYING BEHAVIOUR
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CONSUEMR BUYING BEHAVIOUR 2
Table of Contents
Findings from the interview...................................................................................................................2
Marketing issues in Myer......................................................................................................................2
Strategies for eliminating the marketing issue.......................................................................................2
CONSUMER BUYING THEORY AND CONCEPT...........................................................................3
References.............................................................................................................................................5
Appendix...............................................................................................................................................6
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CONSUEMR BUYING BEHAVIOUR 3
Findings from the interview
From the analysis, it is founded that there are certain marketing problems which have been
addressed in Myer by the organization named as lack of product quality, higher product price,
and lack of customer value. It is illustrated that these problems could decline the opportunity
of the organization to have positive responses and sustain its position in the marketplace for
the long-term. It is founded that organization could get lower productivity due to such an
issue.
Marketing issues in Myer
It is founded that the lack of lack of product quality has forced the consumer to switch one
place to another brand that would decline to the overall productivity of an organization. In
addition, higher product process as compared to the competitors could also decline the loyalty
of consumers towards the particular brand which might be a negative impact on the
organizational performance. The customer value is another factor that affecting the buying
behaviour of the consumers. From the analysis, it is addressed that this organization does not
give the value to their consumers' that can create negative image of business among
consumers as it would be affected to the consumer buying behaviour.
Strategies for eliminating the marketing issue
For eliminating such issue the organization should use many strategies that were related to
the processing, quality, and customer value improvement. The following strategies should be
practiced by the firm to operate its business process:
SERVQUAL model
This organization should use the SERVQUAL model that is used to manage the quality of
products and services. This tool will be imperative for the organization due to assist the firm
to get higher competitive advantages. This model could also aid to the organization for
identifying the gap between expectation of the consumers and actual services that are
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CONSUEMR BUYING BEHAVIOUR 4
provided by the organization (Pappas, 2016). It will offer an opportunity for the organization
to get higher competitive advantages by meeting the expectation of consumers. This tool will
aid the organization in meeting the gap and sustain their organizational position in market.
The organization could consider elements by which the service quality of goods could be
measured named as tangibles, reliability, responsiveness, assurance, and empathy. It could be
vital for meeting the company’s task. It is examined that this tool is imperative in improving
the quality of goods as well as services (Solomon, et al., 2014).
Economic pricing strategy
This organization should use the economic pricing strategy that enables to offer their services
at a reasonable cost that a consumer was willing to pay. This strategy could support to
influence a large number of people in limited time and retail them for long term (Solomon, et
al., 2014). It would be vitalto enhance the demand for products and services. It is illustrated
that the economic pricing strategy will assist to determine the amount that a consumer wants
to pay in oppose to have the goods. This strategy will be imperative to get higher advantages
(Solomon, et al., 2014).
After-sales service
This company should provide after-sales service to their consumers due to offering the
customer value to the organization. Through this strategy, an organization could be capable to
increase customer loyalty and make higher competitive advantages. It is illustrated that this
approach could be imperative in increasing the growth of the firm (Pappas, 2016).
CONSUMER BUYING THEORY AND CONCEPT
The organization should also deeply evaluates the consumer as well as theories of the
consumer buying behaviour for increasing growth of the organization (Solomon, et al.,
2014). Consumer buying behaviour could facilitate organization to determine the preference,
intentions, and attitudes. It would facilitate to make a decision in favour of the organizational
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CONSUEMR BUYING BEHAVIOUR 5
image (Foxall, 2014). It is imperative for changing the behaviour of consumer towards goods
and services. It could enable to get a higher competitive advantage. On the basis of consumer
behaviour, different factors have been considered by the organization named as made
effective decision, routine reactions, and impulsive buying. It is examined that this tool was
imperative in the attainment of the company’s task (Ramya and Mohamed Ali, 2016).
Consumer buying behaviour theory
There are two kinds of consumer buying behaviour theories, which are effective for changing
the behaviour of a consumer. The consumer buying behaviour could consider certain
approaches named as utility approach as well as indifference consumer buying theory. These
theories will assist to get higher competitive advantages (Mihaela, 2015). These are
discussed below:
Utility consumer buying theory
The utility approach is effective to comprehend the price of goods are depending on demand
and supply. It is examined that person’s demand for goods is depending on the product price,
individual income, and the substitutes of goods. This theory also demonstrates that the
organization should be needed to deeply evaluate this approach caused by influencing the
huge number of consumers and make higher competitive advantages (Biswas and Roy, 2015).
Indifference consumer buying theory
Another approach that might be used by the organization is indifference consumer buying
behaviour. This theory aids to comprehend the consumer has select a product that gives them
higher satisfaction as it means they have to give value to their preference as it might be
changed on time. It might be associated with the quality, price, and other factors. It is also
stated that this theory could aid the organization to comprehend the preference of people and
make their products and services on the basis of it (Yan and Ke, 2018).
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CONSUEMR BUYING BEHAVIOUR 6
References
Biswas, A. and Roy, M., 2015. Green products: an exploratory study on consumer behaviour
in emerging economies of the East. Journal of Cleaner Production, 87, pp.463-468.
Foxall, G.R., 2014. Consumer Behaviour (RLE Consumer Behaviour): A Practical Guide.
Routledge.
Mihaela, O.O.E., 2015. The influence of integrated marketing communication on consumer
buying behaviour. Procedia Economics and Finance, 23, pp.1446-1450.
Pappas, N., 2016. Marketing strategies, perceived risks, and consumer trust in online buying
behaviour. Journal of Retailing and Consumer Services, 29, pp.92-103.
Ramya, N. and Mohamed Ali, S.A., 2016. Factors affecting consumer buying
behaviour. International journal of applied research, 2(10), pp.76-80.
Solomon, M.R., Dahl, D.W., White, K., Zaichkowsky, J.L. and Polegato, R.,
2014. Consumer behaviour: Buying, having and being (Vol. 10). Toronto, Canada: Pearson.
Yan, B. and Ke, C., 2018. Two strategies for dynamic perishable product pricing to consider
strategic consumer behaviour. International Journal of Production Research, 56(5), pp.1757-
1772.
1.
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CONSUEMR BUYING BEHAVIOUR 7
Appendix
Survey through questionnaire
What is your gender?
From the collected information, it is addressed that the investigator has selected both males as
well as female for conducting this study. In this, 3 out of 5 research candidates were male
while 2 out of 5 were female. The main cause of selecting both males as well as the female is
to get diverse responses in oppose to the research questions.
What is your age?
From the collected information, it is founded that most of the research candidates believed
that most of the consumers have comes in the age of 23-35.
3. How many years have you lived in Australia?
From the data, it is found that 2 out of 5 were lived in Australia from the last 10 years while 3
out of 5 have lived in this country for more than 15 years.
4. Do you live in an urban, suburban, or rural area?
Most of the participants were from the urban area as it was founded by this study. It is
examined that 4 out of 5 belongs to the urban area while only 1 out of 5 consumers belonged
to the suburban sector. The researcher has mainly focused on that consumer who belongs to
the urban area for getting depth information about their experience about the organization.
5. How often do you buy items from Australian department stores in person? Online?
From the data, it is founded that 2 out of 5 research participates believed that they have using
Australian department stores twice in 15 days while 3 out of 15 were going on offline stores
for having the products and services of this organization. Most of the people have using
online sources rather than offline to purchase the goods and services of the organization.
6. What is your overall impression of Myer in terms of product prices?
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CONSUEMR BUYING BEHAVIOUR 8
From the analysis, it is founded that 3 out of 5 research candidates believe that the product
prices of their organization are quite higher as compared to their competitors that could
increase the switching level of consumers. It might be affected by the demand for goods and
services of the firm. It is also founded that there 2 out of 5 believed that this organization
offers its goods at a reasonable cost.
7. What is your overall impression of Myer in terms of product quality?
From the analysis, it is also addressed that 4 out of 5 believed that this organization has not
offered higher quality to its consumers as it is major disadvantages for the organization. It is
believed that 1 out of 5 research candidates believed that the product quality of this product is
much better as compared to other organization. But, most of the research candidates believed
that the product quality of this organization not much better than the price.
8. Please rank Myer, David Jones, Kmart, Target, and Big W on each of the following
factors. Please comment on any obvious differences between these companies on each
factor. (The responses of this questions is measures by Likert scale (wherein, 1=Very
unlikely, 2=Unlikely, 3= Neither Unlikely nor Likely, 4= Likely, 5= Very likely)
Myer David
Jones
Kmart Target Big W
Value for money 2 5 1 3 4
Convenient
location
1 4 3 1 2
Convenient trading
hours
5 4 2 1 5
The range of
products available
4 5 2 1 3
Car parking
availability
5 4 3 5 4
Store personnel 1 3 4 5 2
The store
ambiance, layout,
1 5 4 3 2
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CONSUEMR BUYING BEHAVIOUR 9
and features
The loyalty reward
program
2 4 5 1 3
Returns policy 1 5 3 2 4
Delivery and
shipping
4 2 1 5 3
How good the
mobile
application/website
is
2 1 3 4 5
a. Value for money?
b. Convenient locations?
c. Convenient trading hours?
d. The range of products available?
e. Car parking availability?
f. Store personnel?
g. The store ambiance, layout, and features?
h. The loyalty reward program?
i. Returns policy?
j. Delivery and shipping?
k. How good the mobile application/website is?
From the analysis of data, it is founded that most of the participants believed that there are
different elements which might influence the consumers to have the services of Myer named
as convenient trading hours, range of products available, car parking availability, delivery as
well as shipping. These services are better than their competitors.
9. What did you think of Myer’ “My Store” campaign?
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CONSUEMR BUYING BEHAVIOUR 10
Most of the participants believe that research candidates believed that “My Store” Campaign
of this organization could effective in increasing awareness of products as well as services of
organization among the a large number of customers in limited time and cost.
10. Which factor is most imperative for you while shopping?
From the collected responses, it is founded that 4 out of 5 believed that price and quality are
major comments that might for us to have services of the firm while 1 out of 5 believed that
social media sources responses have attracted to have any products and services of the
particular organization.
11. Which reason influence you to choose Myer for shopping?
From the collected responses, it is founded that the out of consumers believed that the main
reasons that attract to the consumer for shopping of the products and services of this
organization are Myer for shopping is the availability of products and brand image. Apart
from this, 1 out of 5 believes that the quality of products has been influenced by them to have
the products and services of this organization.
12. Do you feel that this organization provide customer value?
With respect to the collected information, it is founded that the customer value is an
imperative tool for the organization as it assists them to have the services of the organization
in the long term. From the data, it is founded that 2 out of 5 believed that this organization
gives the customer value to their consumers while 3 out of 5 have disagreed with this
statement as they believed that this organization has not given the higher value to the
consumers which might be affected to their productivity growth.
13. From your opinion, which sales promotional tool has been more influenced to you
for purchasing goods and services of Myer?
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CONSUEMR BUYING BEHAVIOUR 11
From the data, it is addressed that 3 out of 5 believed that digital media marketing and social
media sources have been encouraged them to have the services of the Myer while 2 out of 5
believed that they influenced by a traditional promotional tool.
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