Consumer Behavior Analysis: Philips Coffee Machine Marketing Report

This report analyzes consumer behavior in the context of Philips coffee machines, focusing on the factors influencing consumer decision-making. It begins with an introduction to the importance of understanding consumer behavior for marketing success and the report's objectives. The purchase situation and target market profile are then examined, including product and service analysis, consumer decision-making processes, and segmentation based on demographics, psychographics, and behavior. The report identifies the target market as individuals aged 18-50, with a preference for female consumers, medium to high income, and an interest in baking, cooking, and coffee. It also investigates factors influencing consumer decision-making, such as personal preferences, economic conditions, and marketing campaigns, and discusses the five stages of the consumer behavior process: problem recognition, information search, evaluation and selection, output selection and purchase, and post-purchase processes. The report concludes with recommendations for corporate social responsibility and customer relationship management to enhance consumer engagement and satisfaction. It emphasizes the importance of understanding consumer behavior for effective marketing strategies and sustained business growth.

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Marketing consumer behavior
[Type the document subtitle]
9/19/2019
student name

Marketing consumer behavior 1
Contents
1. Introduction..................................................................................................................................2
2. Purchase situation and target market profile...............................................................................3
2.1 Product Service and Consumer Decision Making.................................................................3
2.2 Target Market Profile............................................................................................................4
3. Factors Influencing the Consumer Decision Making Process.....................................................5
personal preferences................................................................................................................6
Economic conditions...............................................................................................................6
Marketing campaigns...............................................................................................................7
3.1 Problem Recognition.............................................................................................................7
3.2 Information Search................................................................................................................8
3.3 Evaluation and Selection Process..........................................................................................8
3.4 Output Selection and Purchase..............................................................................................9
3.5 Post-purchase Processes........................................................................................................9
4. Conclusion.................................................................................................................................10
5. Recommendation.......................................................................................................................11
5.1 Corporate social responsibility............................................................................................11
5.2 Customer relationship management....................................................................................11
References......................................................................................................................................13

Marketing consumer behavior 2
1. Introduction
Consumers are the major stakeholders for an organization and are considered as a key element
by most of the organization while planning the marketing activities or any business strategy. It is
important for the organization to understand the behavior of the consumer so as to depict what
are the major needs and expectation of consumer from a company or a particular product (Chari
& Feng, 2018). Purpose of this report is to analyze consumer behavior and factors that are
influencing the decision making process of a consumer, for this the target market will be
analyses initially so as to understand the behavior of consumers better. These behaviors are
important to study so asked to understand be expected response of the consumers considering the
product or cheese in present and in future (Adam & Kotler, 2014). Therefore be pattern of
behavior of consumer reflect the marketing strategy of the company.
The report will include studying the consumer behavior for Philips coffee machine which is one
of the kitchen appliance, and considered to be an innovative product for which the consumer
behavior will be studied. Phillips is multinational conglomerate company based in Dutch and
headquartered in Amsterdam. It is considered to be one of the highly focused companies in the
area of lightning and healthcare and one of the largest globally recognized electronic companies.
The company was founded in the Netherlands in 1891. The company has been working to words
innovation and technology in order to improve consumer’s life and improve standard of living.
The company has been serving across the globe, which reflects it is a global company with
offering standard products and appliances across the world (philips, coffee/filter-coffee-machine,
2019).

Marketing consumer behavior 3
2. Purchase situation and target market profile
2.1 Product Service and Consumer Decision Making
Philip’s coffee machines are use of it must technology in order to prepare hot coffee. The
company has been introduced with two types or variety of coffee machines that this super
automatic espresso machine and Philips filter coffee machine. Espresso machine provide
customers coffee constantly from coffee beans which reflect preparation of coffee with touch of
a button. The customer so prefer to have latte or cappuccino with frothed milk they would prefer
to buy this category of machines. The key technical advancement and specifications of this
product include ceramic Grinder which reflects grinding of maximum flavor to be offered to the
customer along with full bodied espresso by fine grinding order course on Grinder for light
coffee taste (philips, coffee/saeco-automatic-espresso-machine, 2019). Therefore this reflect
better taste of coffee by reducing the risk of board coffee be used as per the traditional method
used. The health and hygiene has also been considered by the company as hygienic steam
cleaning Carafate has been used as it’s one of the unique features which help to maintain Hyatt
hygiene by automatic espresso machine. This reflects That the milk father will be cleaned
automatically that will reflect removal of residues from milk automatically. Moreover a clean
water filter have been that the milk from there will be cleaned automatically that will reflect
removal of residues from milk automatically. Moreover Aqua clean water filter have been added
to the machine that help the consumer making more than 5000 cops based on eight filter
replacement without descaling and it’s filter prevent contaminating water and help removing
calcium from water as one of the inquiry didn’t before preparation of the coffee. Phillips filter
machine is responsible for preparation of filter coffee as per the original way that is by
occupying the paper filter with the brewing or ground coffee along with the aromatic coffee in

Marketing consumer behavior 4
the quantity of a jug that can be consumed for an individual or with family or friends considering
the minimum fuss (philips, c-m-ho/coffee, 2019).
The purchase situation of coffee machines by Philips is medium across the globe as there are still
various traditional ways to prepare coffee in most of the nations, specially underdeveloped and
developing nations. The risk involved through this product service is the financial risk as the
lower demand for this product could lead to financial disadvantage for the company. Medium to
high involvement purchases can be reflected through this product and this may require a careful
consideration by the company regarding the consumer purchase as more information will be
required for understanding the consumer decision-making (philips, coffee/filter-coffee-machine,
2019).
2.2 Target Market Profile
The target market consider for analyzing the homogeneous customers that are the common
features required by the consumers will reflect by the customer segmentation. This will help the
researcher to analyses the customer segment for whom the product will be developed and
suitable as for the features of the segmented customers (Bakir & Rose, 2015). The segmentation
could be on the basis of demographic basis, this include age for which the target segment will be
18 to 50 years. The reason being most of the destinations are coffee lovers like in case of
Singapore since young age. And since the individuals of age above 17 or 18 year individuals
initiate to live independently which increase the need for such kitchen appliances for every
individual. Considering the gender, female consumers are targeted for the product. Considering
income level, medium to high income group would be targeted for Philip coffee machines as the
pricing strategy for the company reflect middle to premium pricing strategy (iprice, 2019).

Marketing consumer behavior 5
Psychographic segmentation basis reflect characters like interest which will include baking,
cooking and coffee drinking population in Singapore and across the globe. The reason being
Phillips coffee machine is part of kitchen appliances which reflect the customers using this
appliances or interested in purchasing This appliance must be interested in baking or cooking.
Social class to be targeted will be middle to upper-class as the target market as for the income
was medium to high income (Evans, 2011). Since the technology used by the company is high
and modern base has been offered to the customer this applies must be interested in baking and
cooking. Social class to be targeted will be middle to upper class as the target market as for the
income was medium to high income. Since the technology used by the company is high and
modern base has been offered to the customer to prepare coffee, the social class to be targeted
would include upper middle class (Chung & Fiore, 2017).
Considering the behavioral segmentation basis, use a status that will be target will be regular
buyers, first-time buyers. The key reason is that the Coffee is generally part of everyday life of
every individual, especially in Western nations therefore the regular buyers would be the
potential target customers for the machine (Chu & Liu, 2017). Considering the benefits, long-
lasting experience and convenience are the key features that would be targeted for the consumers
as if they are willing to put cheese coffee machine with higher technology they must be looking
for convenient option is to prepare coffee with better taste And for Long run (Calboli, 2015).
3. Factors Influencing the Consumer Decision Making Process
There are various internal and external factors that are impacting the consumer behavior
influences regarding a particular product or brand purchasing. There are various reasons that a
consumer or attracted and increase the intention to purchase a particular product (Chung T. ,

Marketing consumer behavior 6
2015). Some of the factors that are influencing the purchase behavior or consumer behavior
include
personal preferences
These are the internal factors of the consumers that is the personal interest of the consumers like
dear priorities, likes, dislikes, values and morals. Moreover the colour, personality, fashion are
some of the features that are attracted to particular consumers ask for their own preferences. This
may include impacting industries which are related to personal care, food and fashion (Hudson &
Roth, 2016). This factor can be opportunity for Phillips to increase the attraction for the
consumer by offering large number of products with variant varieties that will include different
designing of the product, elegant colors that maybe preferable by the consumers moreover the
consumer’s likes and dislikes are more influenced by the company by advertising those products.
Moreover it has been identified that Philips has been working to words better designing and
innovative designing which could be one of the positive aspect while offering products (Kaplan,
2015).
Economic conditions
The purchasing power is one of the major external factors that will reflect the consumer
purchasing decision as if they are not able to spend large amount of money in luxurious products
or convenience they will be making lower purchases. However positive economic environment
can be an opportunity for the company to provide luxurious products and increase the standard of
living for the customers by smart appliances like coffee makers. The company has also
introduced most modern design coffee makers that will not make noises, automatic coffee maker
that will provide accurate taste of the coffee that is preferred by the customer witty touch of
button that will also be affected in the busy lifestyle of the customers (Petersen, 2015).

Marketing consumer behavior 7
Marketing campaigns
It has been identified that one of the key activity that fast play major role in influencing the
consumer behavior regarding a particular product is the advertisement and marketing activities of
the company. It has been identified party marketing activities of Phillips is found to have
attractive tagline for the product is innovation in you that reflect the brand positioning of the
company that is increasing the standard of living and convenience for the customers by
enhancing appliances within the household (Mohd & Sasmita, 2015).
Consumer behavior process that is influenced by these factors include five major stages as
following
3.1 Problem Recognition
First stage includes the problem recognition as the name suggests the problem will be identified
in this stage for Phillips coffee machines specific to Singapore market and across the globe. This
will reflect the recognition of the need of the consumers that will determine the consumer want
sunny. The existing product in the market and customer expectations are analyze and the gaps or
identify to address the problem with the consumers are facing from the current product I’m
looking forward to what’s the future features available in the product (Mills, 2015). This reflects
an ideal opportunity for Philips to consider the marketing strategy on business strategy like new
product development or product innovation what advertisement of the products in a particular
brand positioning form. For instance the consumers using coffee machines would have basic
need of coffee preparation. Other than this the consumer miss search for burials opportunities to
purchase that particular product as they must be looking for specific features, design, availability
of the product and price of the product and most importantly quality of the product while
purchasing a particular Product from various brands (Pappas, 2016).

Marketing consumer behavior 8
3.2 Information Search
The second stage comes to words the information search that reflect the information collected
and analyses by the consumers as changing trends is one of the common element analyze in
today’s market due to dynamic city and increase in technological change. The consumer could
search relevant information about the product that are able to satisfy their wants and needs from
that produc (Russell, J.D & Hull, 2017). The information sources one of the major event which is
affecting the reference of the consumers in decision making process like the social group, if the
information is collected from people that are already using that particular product may have hired
influence for the consumers in the purchase decision process. Therefore it is important for
Phillips to provide consumer reviews and comments as this reflects high quality product and
highly satisfied customers that have previously experienced Phillips coffee machine. Moreover
consumers collect the information of the products among all the brands which are available for
that product in order to compare and rationally decide which brand is providing better product
and service along with effective pricing of the product. This is major aspect as the competition
has been increased in household and kitchen appliances for example Nescafe, Nesspresso, Krups
are some of the top brands of coffee machines specifically in Singapore market (netmera, 2019).
3.3 Evaluation and Selection Process
The third stage includes evaluating and the selection which include is valuating various
alternatives by the customers ask at this stage the customers are all to be known their needs and
how to satisfy that me on behalf stop seeking out for searching for the available options and
searching for the best quality products and comparing various factors that are relevant to the
customers that this price quality design color physical appearance. Phillips has been able to
provide high-quality products along with competitive prices that could be worth for the quality,

Marketing consumer behavior 9
design and innovation that is offered by the brand. The company provides various variety of
products with differentiated pricing strategy that will include various ranges of product ask for
their quality and price (Zielke, 2014).
3.4 Output Selection and Purchase
The next stage is purchase decision that is selection of tea output and meeting the actual purchase
decision by the consumer. This is one of the crucial speed as the customer our meeting be
purchased decision at this page after evaluating all the features comparison with the all brands
and arrive to a rational decision (Tuten & Ashley, 2015). The purchase decision from not only
bass on the features of the product but also be brand image, additional services offered by the
brand and marketing campaign done by the brand which are impacting the personal experience
or emotional connection with the customers or may reflect a combination of both factors. The
company has been able to create emotional connection with the customers. The company found
to be provide collection of data created work by Phillips through advertising, videos and
marketing campaigns. Four examples, Dutch master juices by Phillips which was introduced in
2018 is one of the campaigns connecting with customers (Song, 2017).
3.5 Post-purchase Processes
The last stage comes the post purchase behavior which reflects the evaluation and identifies this
satisfaction from the product after the purchase and use of the product. This includes to analyze
if the customer expectations are matched with the customer purchase and bulldoze customers be
responsible for the recommendation of the product to other potential customers. This is the
crucial state as the customer loyalty and customer retention of the consumers. The customer
retention of the consumers as this will reflect if the customer is been people to use the product or
service, as they may had experience positive or negative experience through the product. And

Marketing consumer behavior 10
provide feedback by the consumers towards the product on the journey of the potential customers
is also reflected through this stage. Phillips looks forward to words the feedback by the customer
which may be done online or to the retailers from which the customer must have purchase the
product. For example retailing companies like Amazon, eBay could get the feedback by the
customer.

Marketing consumer behavior 11
4. Conclusion
From the report the key highlighting points include that consumer behavior includes the decision
that are made by the consumer is related to be product this may include buying intention, want,
perception regarding the product, psychological behavior, social behavior and personal behavior.
Phillips is multinational conglomerate company based in Dutch and headquartered in
Amsterdam. The company has been working to words innovation and technology in order to
improve consumer’s life and improve standard of living. Philip’s coffee machines are use of it
must technology in order to prepare hot coffee. The company has been introduced with two types
or variety of coffee machines that this super automatic espresso machine and Philips filter coffee
machine.
The purchase situation of coffee machines by Philips is medium across the globe. The risk
involved through this product service is the financial risk as the lower demand for this product
could lead to financial disadvantage for the company. The segmentation could be on the basis of
demographic basis, this include age for which the target segment will be 18 to 50 years.
Considering the gender, female consumers are targeted for the product. Considering income
level, medium to high income are targeted. Psychographic segmentation basis reflect characters
like interest which will include baking, cooking and coffee drinking population in Singapore and
across the globe.
Social class to be targeted will be middle to upper class as the target market as for the income
was medium to high income. Considering the behavioral segmentation basis, use a status that
will be target will be regular buyers, first-time buyers. Some of the factors that are influencing

Marketing consumer behavior 12
the purchase behavior or consumer behavior include personal preferences, Economic conditions,
and Marketing campaigns.
5. Recommendation
The key recommendation for the company that is Philipp coffee maker include
5.1 Corporate social responsibility
Since the consumer behavior also depend on the social responsibility imposed by the company to
watch the society and environment. The good feel of the company can be maintained and the
company can be environmentally sustained through corporate social responsibility adopted by
the company. Therefore it would be beneficial for the company to increase the speed of
consumer purchase decision making process because of companies ethics, values and while
considering social norms and business ethics (Wel, 2012).
5.2 Customer relationship management
In order to understand the customer needs, feedback and changing preferences of the consumers
the best way for Phillips for coffee machine would be maintaining relationship with the
customers so as to increase the customer loyalty and retain the existing customers. This may
include customer data analysis, customer feedback, email marketing, telemarketing and
newsletter (Zhang, 2015).

Marketing consumer behavior 13
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