Consumer Behavior: Decision-Making for Healthy Snack Bars, UOW

Verified

Added on  2022/11/28

|9
|2815
|252
Essay
AI Summary
This essay delves into consumer behavior concerning healthy snack bars, examining the decision-making process from product attribute evaluation to the influence of trust and emotional factors. It explores various levels of decision-making, including extensive, limited, and habitual, and identifies relevant perceived risks and risk-reduction strategies. The analysis covers awareness sets, evoked-set strategies, and dominant decision-making rules. The essay provides recommendations for a healthy snack bar brand planning to introduce a new eco-food label, suggesting strategies for marketing mix, eco-label design, and transparency to build consumer trust and drive sales. The importance of factors like price, placement and advertising are also discussed.
tabler-icon-diamond-filled.svg

Contribute Materials

Your contribution can guide someone’s learning journey. Share your documents today.
Document Page
Running head: CONSUMER BEHAVIOR
Consumer decision making for healthy snack bar
Name of the student:
Name of the university:
Author note:
tabler-icon-diamond-filled.svg

Secure Best Marks with AI Grader

Need help grading? Try our AI Grader for instant feedback on your assignments.
Document Page
1
CONSUMER BEHAVIOR
When a product is launched in the market by a company, the customers commence
their decision-making process. In this, the first stage is that of the product attributes and their
utility value. For this, the customers consider the ingredients used for making the products
like that of the healthy snack bar. As per the arguments of Nuttavuthisit and Thøgersen
(2015), trust of the customers is a vital aspect for attaching proper placement of the goods in
the market. This trust adversely influences the decision-making of the customers regarding
purchasing the products like that of the healthy snack bar. On the contrary, Hoek et al. (2017)
states that if there is no trust towards the products, it acts as an obstacle towards proper
marketing of the snack bar. The more the trust, the more is the consumption. The more the
consumption, the more is the demand for which the supply needs to be balanced properly.
Decisions undertaken by the customers are of two types- rational and emotional. In
this case, choices act assistance in terms of selecting the preferred products from the available
options. Mention can be made of forced choice, which contradicts the decision making
power. In this perspective, Solomon (1999) opines that the factors affecting the pre-purchase
search is neglected, as there is no choice available on which the decisions can be taken.
Usually, these factors pertain to the product, situation and personal. In the process of
excavating these factors, the consumers venture through the different levels of decision-
making, which are, extensive problem solving, limited problem solving and routinized
response behaviour. In this, the cognitive model can be related, as the customers learns about
the ways and means of dealing with the issues revolving around purchasing the healthy snack
bar. These aspects relate to the rational decision making, as it acted upon by synthesizing on
the collected information about the snack bar.
On the other hand, Johnstone and Tan (2015) is of the view that emotional decision
making is the situation when the customers decide to buy the product upon the positive word
of mouth advertising from the peers and others. In this, research on the product or the service
Document Page
2
CONSUMER BEHAVIOR
is missing, as there is reliance regarding not being deceived. In this case of decision-making,
need recognition attains an important position. As a matter of specification, there are two
concepts in this case- perceived risks and the evoked set of factors, contributing to the
decision-making.
Problem identification is the primary stage in decision-making process. This is
followed by information search with consideration of the alternatives, which can affect the
choice for purchasing the healthy snack bar. Recognition of the problems when the
demarcation is broadened in case of current state and the ideal state. When the customers
realize that their need is to possess the healthy snack bar from recognized brands. In this case,
Mooij (2019) argues that the actual state declines. Response to the offers, schemes and
discounts levied would rise the ideal state. The following stage includes information search
about the snack bar. In this, statistical data regarding the snack bar is considered by the
customers for making the decisions. External research from the websites is assistance in
terms of enriching the preconceived information about the snack bars and their marketing
strategies.
The sequential stage is seeking the alternatives, which can be applied for undertaking
the decisions regarding purchasing the products like that of the snack bar. In this case,
reflection is the carried out by the customers regarding the exposed choice and the considered
alternatives. The final decision is the synthesis of the choice and the selected alternative.
According to the arguments of Zhang and Benyoucef (2016), in the process of selecting the
final decisions, biases are an inevitable issue. These biases are mental accounting, sunk cost
fallacy, loss aversion and prospect theory.
As per the arguments of Solomon (1999), there are many factors influencing the pre-
purchase and post purchase activities of the customers. These factors are situation, shopping
Document Page
3
CONSUMER BEHAVIOR
experience and satisfaction. All these factors are interconnected between each other. One of
the other factors is the temporal factors, which consists of the psychological time, where the
main focus is on the orientation towards making the response to the activities of the brands.
Emotional decision making relates to the desire for possessing branded products. In this
situation, the thrill from hunt for the quality snack bar is at high level, affecting the purchase
decisions of the customers. In case of the limited decision-making, the choices are also
limited. According to Hoek et al. (2017), providing sustainable food choices to the customers
is assistance in terms of generating the responses towards point of purchase actions. These
actions pertains to the aspects of price variations and sustainable alternatives. These aspects
can be contradicted through the arguments of Kumar and Kapoor (2017), where labels and
packaging are considered to be the main agents influencing the purchasing decisions of the
customers. Labels can be considered as an agent for enhancing the brand awareness.
Moreover, it is a means for addressing the concerns of the customers regarding the nutrient
and utility value of the products, which they can get. Within this, Lantos (2015) stress on the
safety of the customers upon availing the purchase of the products like that of the healthy
snack bar.
Extensive decision making depends on the extensive research about the product and
the strategies generated for marketing them. As authentic data is considered, the chances of
errors is low. This type of decision-making is assistance in terms of identifying the risks,
which they can encounter upon buying the products.
As per the arguments of Zeugner-Roth et al. (2015), risks are an inevitable aspect in
the marketing process. The marketers need to be aware of the fact that some of the customers
are sensitive towards the risks. In such a situation, false promises and deceives can adversely
affect their purchasing decision and power. Mainly, the risks are strategic, compliance,
operational, financial and reputational. As stated by Adams (1974), risks and decision making
tabler-icon-diamond-filled.svg

Secure Best Marks with AI Grader

Need help grading? Try our AI Grader for instant feedback on your assignments.
Document Page
4
CONSUMER BEHAVIOR
process are interlinked with each other. Balance between the technological competency and
judicious use of the resources is needed for averting the resource inadequacies. Tactful
advertising of the products is an agent for the brands in terms of achieving high scale
customer satisfaction. Risks generate uncertainty in the minds of the customers, aggravating
the complexities in the process of undertaking the decisions. Consciousness and rationality is
needed in terms of reducing the risks. Herein lays the appropriateness of the risk mitigation
strategies. The primary stage of this strategy is identification of the threat, which is posing as
a risk in making purchase of the product. In this identification, the focus is mainly on the
operational perspective.
Mandel et al. (2017) argues that the second step is on making estimates regarding the
extent to which risk can affect the purchasing power of the customers and the operations of
the brand. Here, the main agents are the probability of the event and its cost. As a sequential
step, ‘what if’ analysis is conducted for assessing the effectiveness and feasibility of the
alternatives in the context. In this, the approach of the customers is explorative, as they
conduct extensive research on the marketing trends of the brands (Warren et al. 2018).
Every brands have two sets- evoked and inert. In case of the evoked set, the customers
consider a particular product category for undertaking the decisions. On the contrary,
Stephen, (2016) is of the view that in the inert set, the customers are indifferent towards the
advantages offered by the brand. Mention can also be made of the inept set, which caters to
the brands serving the consumers, who are excluded from the purchase intention. There is a
pattern, which is followed by the brands for the strategizing the decision-making process
based on the information search. High maintenance is needed in the habitual decision
making, which assumes the shape of capturing innovative ideas in case of the limited
decision making. However, Murphy and Dweck (2016) states that in case of extended
Document Page
5
CONSUMER BEHAVIOR
decision-making, preferences are considered by the customers for making the strategies
regarding the decisions to be undertaken.
The curvilinear relationship between amount of information and product knowledge is
also accounted as an important aspect in the decision making process. In this, the factors
regarding price, risks and situational characteristics generates variation in the undertaken
decisions (Juster 2015).
Recommendations
Galarraga (2002) is of the view that eco-food labels would be an innovative step
towards reducing the environmental pollution. This step is needed in the current ambience,
when plastic labels are adding to the sources of pollution. However, prior to the launch of
these labels, the companies producing the healthy snack bar needs to get it certified from the
environmental agencies, regarding its feasibility towards reducing the pollution. This
approach would make the customers aware of the environmental impacts upon buying the
healthy snack bar. This would reflect the utility value of the bar, which the customer can
avail.
The marketing strategies needs to be proper for attracting more and more customers.
Herein, mention can be made of the marketing mix, which is an effective tool for measuring
the feasibility of the labels in the current market scenario. Experimentation can be done with
making the colour of the packet “green’. Advertising the packets on the social media would
be fruitful for gaining an insight into the approaches of the customers. Feedbacks and ratings
would be one of the means for reaching to the specific needs, demands and requirements of
the customers. The label designers can indulge in meetings with the research and
development team for coming up with innovative eco labelling for the healthy snack bar. The
design considered, needs to be uploaded on the social media and websites for gaining the
feedbacks from the clients and the customers. If one design is negated, back up designs needs
Document Page
6
CONSUMER BEHAVIOR
to be kept ready for averting delays in the marketing of the healthy snack bar. This
spontaneity is vital for gaining trust, loyalty and dependence from the customers. Consistency
in this approach is the key towards upgrading the packaging services for the healthy snack
bar.
Transparency in the marketing of the eco labels for the healthy snack bar is one of the
key ways to attract the customers. This transparency can be improved by attaching conscious
approach towards upgrading the standards and protocols of the customer relationship
management. Communication through social media and websites would be one of the ways in
which approaches of the customers can be gained. Security policies can be installed for
securing the responses of the customers regarding the packaging of the healthy snack bar.
This would be one of the other means for gaining trust, loyalty and dependence from the
customers.
Green stickers, demarcating the use of the natural ingredients, would be necessary in
terms of informing the customers about the nutrient value in the healthy snack bar.
Price factor is one of an important issue, which the food and beverage industry
personnel needs to keep in mind. In this, strategic alliance with the trade union members is
useful in terms of dealing with the financial instabilities in an efficient and effective manner.
Instabilities like inflation, high exchange rates and high prices of the raw materials can affect
the purchasing decision if the customers. Therefore, effective back up measures like supply
demand graph can be handy in terms of handling the transactions efficiently.
The place for advertising the healthy snack bars, packed in eco labels needs to be
proper. This is in terms of strengthening the customer base. Conducting the promotional
activities in the close proximity to the customers like offices, parks, schools would be helpful
in increasing the sales revenue. Tie-ups with the supermarkets would be convenient for the
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
7
CONSUMER BEHAVIOR
customers to get all of the preferred products under one roof. If offers are levied regarding
distribution of other products along with the snack bar would enable the supermarket chains
and the snack bar companies to achieve higher profit margin. Evaluation of the achieved
targets would help in measuring the feasibility of the considered packaging design in terms of
achieving higher customer satisfaction.
References
Adams, J. R. (1974). Risk taking and the decision making process. Project Management
Quarterly, 5(4), 20–25.
De Mooij, M., 2019. Consumer behavior and culture: Consequences for global marketing and
advertising. SAGE Publications Limited.
Galarraga Gallastegui, I., 2002. The use of ecolabels: a review of the literature. European
Environment, 12(6), pp.316-331.
Hoek, A.C., Pearson, D., James, S.W., Lawrence, M.A. and Friel, S., 2017. Healthy and
environmentally sustainable food choices: Consumer responses to point-of-purchase actions.
Food Quality and Preference, 58, pp.94-106.
Johnstone, ML and Tan, L 2015, ‘Exploring the Gap Between Consumers’ Green Rhetoric
and Purchasing Behaviour’, Journal of Business Ethics, vol. 132, no. 2, pp.311-328.
Juster, F.T., 2015. Anticipations and purchases: An analysis of consumer behavior. Princeton
University Press.
Kumar, N. and Kapoor, S., 2017. Do labels influence purchase decisions of food products?
Study of young consumers of an emerging market. British Food Journal, 119(2), pp.218-229.
Lantos, G.P., 2015. Consumer behavior in action: Real-life applications for marketing
managers. Routledge.
Document Page
8
CONSUMER BEHAVIOR
Mandel, N., Rucker, D.D., Levav, J. and Galinsky, A.D., 2017. The compensatory consumer
behavior model: How self-discrepancies drive consumer behavior. Journal of Consumer
Psychology, 27(1), pp.133-146.
Murphy, M.C. and Dweck, C.S., 2016. Mindsets shape consumer behavior. Journal of
Consumer Psychology, 26(1), pp.127-136.
Nuttavuthisit, K. and Thøgersen, J., 2015, January. The Importance of Consumer Trust for
the Emergence of a Market for Organic Food: The Case of Thailand. In XIV International
Business and Economy Conference (IBEC) Bangkok, Thailand.
Solomon, MR, 1999. Consumer Behavior, 6. Aufl. Upper Saddle River (NJ)
Stephen, A.T., 2016. The role of digital and social media marketing in consumer behavior.
Current Opinion in Psychology, 10, pp.17-21.
Warren, C., Barsky, A. and Mcgraw, A.P., 2018. Humor, comedy, and consumer behavior.
Journal of Consumer Research, 45(3), pp.529-552.
Zeugner-Roth, K.P., Žabkar, V. and Diamantopoulos, A., 2015. Consumer ethnocentrism,
national identity, and consumer cosmopolitanism as drivers of consumer behavior: A social
identity theory perspective. Journal of international marketing, 23(2), pp.25-54.
Zhang, K.Z. and Benyoucef, M., 2016. Consumer behavior in social commerce: A literature
review. Decision Support Systems, 86, pp.95-108.
chevron_up_icon
1 out of 9
circle_padding
hide_on_mobile
zoom_out_icon
logo.png

Your All-in-One AI-Powered Toolkit for Academic Success.

Available 24*7 on WhatsApp / Email

[object Object]