Consumer Behaviour Report: Health Drink Market in Australia Analysis

This report examines consumer behaviour within the Australian health drink market, focusing on factors influencing purchase decisions. It begins with an introduction to consumer behaviour and its importance in business marketing, specifically within the context of the increasing health consciousness in Australia. The report then describes the product and target market, highlighting the high involvement of consumers in this sector. It analyses factors such as pricing structure, income levels, and knowledge gaps that influence consumer behaviour. The study concludes that while the market has significant potential, high pricing acts as a barrier. The report recommends strategies such as transparent brand promotion and pricing adjustments to align with consumer income levels. The report uses secondary data from various sources like books, journals, and websites to support its arguments. The primary focus is to understand the decision-making process of consumers in this specific market segment and provide actionable insights for marketers.

Running head: CONSUMER BEHAVIOUR REPORT
Consumer Behaviour Report
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CONSUMER BEHAVIOUR REPORT
Table of Contents
1. Introduction..................................................................................................................................2
2. Purchase Situation and Target.....................................................................................................2
2.1 Description of the product or service and the justification of the high involvement............2
2.2 Factor influencing the Consumer Purchase Behaviour.........................................................3
3. Conclusion...................................................................................................................................4
4. Recommendation.........................................................................................................................4
References........................................................................................................................................5

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1. Introduction
Understanding the consumer behaviour towards purchasing any product or service is an
integral part of the business marketing. Liu et al., (2016) defined consumer behaviour as the
study of identifying the reaction and perceptions of the consumer towards any good or service
that satisfies their demands. It generally concentrates on the consumer actions in the marketplace
while selecting the product. The business marketers need to work on many specific factors that
create the significant influence on consumer decision making aspect. The study is thus observing
the factors that are influencing the consumer decision making process in terms of consuming
health drink. The description of the industry and the product background along with the
influencing factors would be discussed in this report. The data would be gathered from the
secondary sources, such as books, journals, and website articles. The time limitation can create
the obstacle in gathering the relevant data. The description of these segments would be analyzed
more precisely.
2. Purchase Situation and Target
2.1 Description of the product or service and the justification of the high involvement
The current market trends in Australia indicate that the people are more inclined towards
consuming the healthy foods and beverages. The increasing rate of the obesity in Australia is
now a major concern for the young, adolescents, and old age populations (Karimi, Papamichail
& Holland, 2015). Therefore, they like to consume healthier foods and health drinks to stay
healthy. The exploration of the ABS data identifies that almost 16% of the children are drinking
the sweetened beverages more than the adults (Pettigrew et al., 2015). In fact, the young
generations are mostly health conscious due to which they demand for the health beverages.
However, the report describes that the growth in this sector is much limited. The health
conscious customers good thus opt for more food and healthy drinks that would contribute to
their health aspects. Therefore it can be stated that the health drink or healthy beverage market in
Australia involve more number of customers.
This marketing process of health drink is does targeting both the young and adults as well
as the old age people, between the age group from 18 to 65. It has been observed that the health

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CONSUMER BEHAVIOUR REPORT
conscious people will opt for an opportunity, which can contribute to the healthier lives. Hence,
it can be assumed that targeting these customers range would probably ensure high profit return
from the sales of health drink. Customers have the positive perception towards the health drinks
scenes there quite conscious about a healthy living (Oke et al., 2016). They try to identify the
possible solutions that can prevent the obesity level. The different flavored health drinks would
be tasty as well as healthy. Hence, the acceptance level based on their behaviour and psycho
graphic parameter would b expected to be much profitable.
2.2 Factor influencing the Consumer Purchase Behaviour
One of the most significant factors that influence the customers’ perception of purchasing
any product is the pricing structure. It is noticeable that people belong to the middle class or
lower class orphan become much price sensitive (Rani, 2014). Hence, if they identify that the
price of the product is too much higher, they simply try to ignore. The income rate decides the
affordability of the product, which is newly launched to the market. This factor create a
psychological barrier which prevents them for the future purchase (Previte, Russell‐Bennett &
Parkinson, 2015). This might turn out to be non profitable for the company that is launching the
new product. However, it is noticed that in spite of the high demand of health drinks, this
industry could not develop the profitability level (Gifford & Nilsson, 2014). One of the most
significant problems behind search limitation is the high pricing structure. The beverage
companies try to maintain the high quality ingredients while manufacturing these health drinks.
In addition to this, with the higher demand of the suppliers they need to invest more on supply
chain management. The price of the product automatically increases in such manner. It could be
the possible reasons that people would be interested in preparing the health drinks at their home
instead of purchasing them from the shop (Nikolova & Inman, 2015). Moreover, the insufficient
knowledge about the front or the inadequate knowledge regarding the ingredients used in the
health drinks can also influence the customer behaviour in a significant way. It is therefore
necessary to adopt the most relevant strategic decisions, which can attract the customers towards
the plan and ensure the repeat purchases. Identifying the market needs and the business
potentiality would be helpful to mitigate such issue.

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3. Conclusion
The study evaluates the idea about the consumer perception while purchasing any product
or service from the market. The report is based on launching a new health drink in the Australian
market. Identifying the increasing obesity rate, it has been observed that the people have become
more health-conscious nowadays. Therefore, it can be predicted that the health drink beverage
market might developed the high profitability range by gathering the support from the target
customers. However, it is noticed that the high pricing strategy creates a psychological barrier in
terms of shaping the consumer purchase decision making aspect. The high pricing structure may
affect the consumer perception in purchasing the health drink. It is thus necessary to develop the
appropriate strategic direction that can attract a higher number of customers as well as secure the
future prospects.
4. Recommendation
The major issue identified in the consumer purchase decision making aspects is the high
pricing strategy. The business marketers always need to identify the market opportunity by
ensuring the demands and requirements of the target customers. Building the transparent
relationship with the high level of brand promotion might help in generating the attention of the
customers. Moreover, establishing the pricing structure according to the income level of the
people would also be much beneficial in such regards. The high level of customer relationship
management would also be helpful in influencing the customer purchase behaviour in a positive
way.

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References
Gifford, R., & Nilsson, A. (2014). Personal and social factors that influence pro‐environmental
concern and behaviour: A review. International Journal of Psychology, 49(3), 141-157.
Karimi, S., Papamichail, K. N., & Holland, C. P. (2015). The effect of prior knowledge and
decision-making style on the online purchase decision-making process: A typology of
consumer shopping behaviour. Decision Support Systems, 77, 137-147.
Liu, J., Dai, R., Wei, X. D., & Li, Y. (2016). Information revelation and customer decision-
making process of repeat-bidding name-your-own-price auction. Decision Support
Systems, 90, 46-55.
Nikolova, H. D., & Inman, J. J. (2015). Healthy choice: the effect of simplified point-of-sale
nutritional information on consumer food choice behavior. Journal of Marketing
Research, 52(6), 817-835.
Oke, A. O., Kamolshotiros, P., Popoola, O. Y., Ajagbe, M. A., & Olujobi, O. J. (2016).
Consumer behavior towards decision making and loyalty to particular
brands. International Review of Management and Marketing, 6(4S).
Pettigrew, S., Biagioni, N., Jones, S. C., Daube, M., Kirby, G., Stafford, J., & Chikritzhs, T.
(2015). Sales promotion strategies and youth drinking in Australia. Social Science &
Medicine, 141, 115-122.
Previte, J., Russell‐Bennett, R., & Parkinson, J. (2015). Shaping safe drinking cultures: Evoking
positive emotion to promote moderate‐drinking behaviour. International Journal of
Consumer Studies, 39(1), 12-24.
Rani, P. (2014). Factors influencing consumer behaviour. International journal of current
research and academic review, 2(9), 52-61.