Individual Research Report: Consumer Behaviour in Myer (24202)

This individual research report examines consumer behavior at Myer, a major Australian department store. It begins with primary research, including interviews with five Myer customers, focusing on their perceptions of Myer's strengths (value, product quality, promotional campaigns) and weaknesses (product range, store personnel, loyalty programs, and return policies). The report then links these marketing problems to consumer theories, such as the theory of reasoned action and motivation need theory. Secondary research explores an article on the impact of denied product returns on consumer behavior. The report connects the article's conclusions to Myer's marketing problems, emphasizing the importance of return policies and skilled store personnel. The research suggests improvements in return policies, store personnel training, and loyalty programs to enhance customer satisfaction and address the identified marketing challenges. The report concludes with the relevancy of the research paper findings to the marketing issues faced by Myer.

24202 CONSUMER BEHAVIOUR
INDIVIDUAL RESEARCH REPORT
Student Name:
Student ID:

Table of Contents
Primary research.........................................................................................................................3
Secondary research.....................................................................................................................4
Reference list..............................................................................................................................6
Appendix....................................................................................................................................7
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Primary research
Information about interviewees
In this interview, 5 consumers of Myer have been interviewed. Among these consumers,
majority are aged between 20 to 30 years. In addition, majority of the respondents are female.
3 consumers live in Australia for less than 10 years while the majority of respondents live in
urban areas. It can be seen that 4 of 5 respondents lives in urban regions of the country.
Description of brand strengths or competitive advantages of Myer
There are different strengths of Myer that are identified from the interview process. Among
which, provision of value to consumers is their greatest strength that helps them to gain
competitive advantage. As stated by Menon et al. (2016), provision of value to customers
helps to increase satisfaction level of customers. Moreover, the majority of interviewees have
rated product quality of Myer as good, which is another brand strength. Paul et al. (2016)
stated that good quality products help to gain consumer loyalty and reduce the risk of product
replacement. A promotional campaign like My Store is another essential factor that has
helped Myer to gain competitive advantage. Message to customers can be provided through
the help of this promotional campaign. Hence, brand image and awareness can be improved.
Core marketing problems faced by Myer
From the interview, different core marketing problems can be identified. Range of products
is a major problem as the majority of consumers have ranked this firm average concerning
these criteria. In comparison to other competitors like Kmart has achieved a higher ranking
during wide variation in products. Another essential marketing problem is behavior and
knowledge of store personnel. As said by Hussain and Ali (2015), skilled and
knowledgeable store personnel can help to describe products well and increase buying
experience of consumers. Recruitment of unskilled workers and lack of training has increased
this problem for Myer. In comparison, respondents are satisfied with behavior and knowledge
level of personnel in Kmart. Myer is also behind in loyalty reward program as compared to
competitors like Kmart and BigW. These competitors provide rewards that make consumers
feel special and important. Return policy is another problem that can be identified. This is an
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essential marketing policy that helps to increase satisfaction of customers. While other
competitors like Kmart provide transparent and helpful return policy, Myer has failed to
provide this convenience to their customers.
Links between marketing problems and consumer theories
Different theories like the theory of reasoned action can be linked with the identified
problems. According to this theory, a consumer can make decisions regarding purchasing a
product if specific results are expected (Montano and Kasprzyk, 2015). Return policy, loyalty
rewards can motivate consumers to make positive decision because they can expect positive
outcomes by purchasing the products. Moreover, motivation need theory can also be linked
with the identified problems. According to this theory, decision-making process of consumers
are based on few factors like physiological and safety needs. Marketers can create artificial
needs by providing a wide range of attractive products and an appropriate description of
products by trained personnel. These marketing techniques can help to insist or motivate
consumers to make purchase of products.
Secondary research
Name of article
Retailers beware: On denied product returns and consumer behavior
Overall goals of article
Goal of this article is to aware retailers about the impact of their deny of product returns on
consumer behavior.
Method of research
In this research project, two hypotheses have been developed. These two hypotheses were for
understanding the effect of retailer’s return policy on consumers. Two factorial designs
including Low vs High Situational involvement and Low Vs High expectation in controlling
return have been considered. 120 students of undergraduate and part-time MBA have been
selected as a sample in this case. This sample has been selected as these people often shop
and return. A voluntary survey has been done with near about 40% of the full-time
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professionals, who are doing MBA in evening. Statistical analysis has been done with the
gathered data from survey.
Links between conclusion and identified marketing problems
At the end of the chosen article, it has been concluded that less control over return policy has
a great impact on the consumers. It has been found that Myer does not mention about product
return in their advertisements. It means that consumers of these organizations are not getting
information about return facility of this retail firm through their promotional method. As
mentioned by Dailey and Ülkü (2018), customers want to have control over the return
process and projecting this process through advertisement may draw the attention of many
potential customers. From the conclusion, it can be understood that return policy can also be
considered while developing a marketing plan to gain trust of customers. If customers can
return disputed products easily, it may help them to be loyal to the concerned firm. As Myer
is not including return process as an offer in their promotions, they are losing many potential
customers. On the other hand, Nickson et al. (2017) have stated that, if rivals promote their
products by showcasing their return policy, there is a high chance of losing current customers
to rivals. Due to lack of knowledge and skills in-store representatives, customers of Myer
may face trouble in returning products and it can negatively impact on the consumer
behavior. Hence, there is a link between the conclusion of the chosen article and the
identified marketing problems.
Relevancy of conclusion of the article to address identified marketing problems
The selected research paper has discussed the theory of psychological reactance and this
discussion is potential to help in addressing identified marketing problems of Myer.
Conclusion part of this paper has mentioned that less control on product return process has a
negative impact on consumer behavior. This theoretical approach and the conclusion is
helping in understanding identified marketing problems. It is clear that Myer is not using
return process for improving marketing. Lack of knowledge and skills in-store personnel is
creating trouble to customers while returning products. On the other hand, lack of loyalty
reward programs is preventing this firm to please angry customers. These areas can be
improved as per changing behavior of consumers.
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Reference list
Dailey, L.C. and Ülkü, M.A., 2018. Retailers beware: On denied product returns and
consumer behavior. Journal of Business Research, 86, pp.202-209.
Hussain, R. and Ali, M., 2015. Effect of store atmosphere on consumer purchase intention.
International Journal of Marketing Studies, 7(2).
Menon, R.V., Sigurdsson, V., Larsen, N.M., Fagerstrøm, A., and Foxall, G.R., 2016.
Consumer attention to price in social commerce: Eye-tracking patterns in retail clothing.
Journal of Business Research, 69(11), pp.5008-5013.
Montano, D.E. and Kasprzyk, D., 2015. Theory of reasoned action, theory of planned
behavior, and the integrated behavioral model. Health behavior: Theory, research, and
practice, 70(4), p.231.
Nickson, D., Price, R., Baxter-Reid, H. and Hurrell, S.A., 2017. Skill requirements in retail
work: the case of high-end fashion retailing. Work, employment and society, 31(4), pp.692-
708.
Paul, J., Sankaranarayanan, K.G. and Mekoth, N., 2016. Consumer satisfaction in retail
stores: theory and implications. International Journal of Consumer Studies, 40(6), pp.635-
642.
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Appendix
Appendix 1
Common questions asked to interviewees
1. What is your gender?
1st consumer 2nd consumer 3rd consumer 4th consumer 5th consumer
Male Male Female Female Female
2. What is your age?
1st consumer 2nd consumer 3rd consumer 4th consumer 5th consumer
21 27 45 22 36
3. How many years you are living in Australia?
1st consumer 2nd consumer 3rd consumer 4th consumer 5th consumer
5 10 22 4 8
4. Do you live in an urban, suburban or rural area?
1st consumer 2nd consumer 3rd consumer 4th consumer 5th consumer
Urban Urban Rural Urban Urban
5. How often do you buy items from Australian department stores in person? Online?
1st consumer 2nd consumer 3rd consumer 4th consumer 5th consumer
2-3 times a
month,
1-2 times in a
month,
3-4 times in a
month, online
3-4 times in a
month,
3-4 times in a
month, online
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departmental
stores
departmental
stores
1-2 times in a
month,
departmental
stores
department
store
1-2 times a
month,
departmental
store
1. Interview with consumer 1
1. What is your overall impression of Myer in terms of product prices?
The prices of products in Myer are reasonable as compared to other companies. Moreover,
they provide different coupons and discounts upon purchasing from online sites.
2. What is your overall impression of Myer in terms of product quality?
I really love the product quality of Myer in terms of men’s wear. But I think, they must
improve the product quality of kid’s shoe, it is not satisfactory as per my experience.
3. 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.
Factors Rank Comments
Value for money 1. Myer
2. Kmart
3. David
Jones
4. Big W
5. Target
I think Myer offer affordable price as
they know the value of money
Convenient locations 1. Kmart
2. Myer
3. Big W
4. Target
5. David
Jones
I think Kmart has more stores in Western
Australia than others
Convenient trading hours 1. Kmart
2. David
Kmart allows trading in convenient hours
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Jones
3. Myer
4. Target
5. Big W
The range of products available 1. Myer
2. Kmart
3. David
Jones
4. Big W
5. Target
Myer is the best option for purchasing
innovative fashion products
Car parking availability 1. Myer
2. Kmart
3. Target
4. David
Jones
5. Big W
Myer has the best car parking facility
Store personnel 1. Kmart
2. Myer
3. David
Jones
4. Target
5. Big W
Kmart employees are very frank and well
behaved
The store ambiance, layout,
and features
1. Myer
2. Kmart
3. David
Jones
4. Target
5. Big W
Store ambiance of Myer is remarkable
The loyalty reward program 1. David
Jones
This kind of programs of David jones
makes it different from all
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2. Myer
3. Kmart
4. Big W
5. Target
Returns policy? 1. David
Jones
2. Kmart
3. Myer
4. Big W
5. Target
Return policy of David Jones is more
clear and simpler than others
Delivery and shipping? 1. David
Jones
2. Myer
3. Kmart
4. Target
5. Big W
David Jones has the best delivery and
shipping service I think
How good the mobile
application/website is?
1. Myer
2. Kmart
3. Big W
4. Target
5. David
Jones
Website of Myer is user-friendly and
well-designed compared to others
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4. What did you think of Myer’ “My Store” campaign?
This campaign helps me to get detailed knowledge about Myer and their services. I think it
can help them to regain their goodwill in the market.
5. Do you prefer to maintain regular communication with this firm?
Yes
6. Why do you think it is essential to maintain regular communication and what is your
preferred mode?
It is essential because it can help me to gain regular information about different offers and
new products. My preferred mode is through email.
2. Interview with consumer 2
1. What is your overall impression of Myer in terms of product prices?
I prefer to buy from Myer, but they offer a minimum discount at departmental stores that
dissatisfied me
2. What is your overall impression of Myer in terms of product quality?
Their product quality is average and I feel that they must work on it to make it up to mark.
3. 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.
Factors Rank Comments
Value for money 1. Kmart
2.Myer
3.Target
4.David
Jones
5.Big W
Kmart’s product quality is much better than
others
Convenient locations 1.Myer
2.Kmart
Myer stores are located in convenient places
like that are easy to reach.
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3.Big W
4.David
Jones
5.Target
Convenient trading hours 1.Myer
2.David
Jones
3.Kmart
4.Target
5.Big W
Trading hours of Myer suit my timing
The range of products
available
1.Kmart
2.Myer
3.Big W
4.Target
5.David
Jones
Kmart provides me with a wide range of
products, which is much greater than
others.
Car parking availability 1.David
Jones
2.Kmart
3.Myer
4.Target
5.Big W
David Jones has a large parking lot that
facilitates shopping.
Store personnel 1.Kmart
2.Myer
3.David
Jones
4.Big W
5.Target
Store personnel of Kmart os well-trained
and well-behaved.
The store ambiance, layout,
and features
1.David
Jones
Ambiance of David jones’s stores are great
and increases my satisfaction rate.
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