Sustainable Brands: Global Customer Behavior and Marketing Strategies

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This report examines global customer behavior with a focus on sustainable products, employing the Theory of Reasoned Action (TRA), the Theory of Planned Behavior (TPB), and various consumer behavior models. It highlights the gap between consumers' intentions to purchase sustainable products and their actual behavior in stores, influenced by factors like price, convenience, and perceived performance trade-offs. The report analyzes how economic models, emphasizing maximum utility, and psychological factors, such as attitudes and subjective norms, shape consumer choices. Case studies, including examples from PepsiCo and Unilever, illustrate the challenges and opportunities in marketing sustainable brands. Ultimately, the report recommends that FMCG companies prioritize competitive analysis and refine their marketing strategies to effectively promote sustainable products and bridge the intention-behavior gap among global consumers.
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Understanding the Global
Customer
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Using the theory of reasoned action, planned behaviour and consumer behaviour models,
examine the arguments in context with the case study. .........................................................3
RECOMMENDATION..........................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
Global customers are involved with those customer groups who live in diverse countries
and regions who have similar needs and seek same kind of benefits from all products and
services. It is very important to do expansion and look at all the necessary factors which create
an influence on the success of business organisation. It is very significant for the company to
determine the global target market and understanding about audiences. Almost all the consumers
are indulged in developing competitive strategies in order to remain at sustainable position and
become competitive in the market place (Hu and et.al, 2020). The report is based on the
development of brands for the marketing of sustainable products. The report involves TRA and
TPB models, arguments and recommendations to all FMCG companies (Amankwah-Amoah,
2021).
MAIN BODY
Using the theory of reasoned action, planned behaviour and consumer behaviour models,
examine the arguments in context with the case study.
TRA
In context with theory of reasoned action, the main aim is to explain about the
relationship between both behaviour as well as attitude within the human action. The theory is
used in order to do predictions regarding how individuals will behave in terms of both their pre-
existing attitudes and entire behavioural intentions. It is mainly defined as behavioural intention
= Attitude + subjective norms. It has been examined that at the initial stage, all consumer always
want to purchase sustainable products only but while reaching at the store, they doesn't buy it.
Both attitude and behaviour are interrelated with each other. In context with the case study, it has
been evaluated that the behaviour of employees is always intended to buy sustainable goods only
but as they reach to stores, their attitude gets completely changed and they don't purchases those
respective product (Azer, 2020). It has been evaluated that the goods and services which needs
higher level of efficiency had low sustainability (Azer and Alexander, 2020). On the basis of
this, all marketers applies this method in order to make predictions about the behaviour which is
entirely based on attitudes and their intentions. While analysing the case study, it has been
evaluated that all the people wants to purchase sustainable products only but their behaviour gets
completely changed when they reach at the store. The products which were sustainable enough
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were having low share of efficiency as all customers mainly focus on just their trade-offs. By
taking the example of Pepsi Co, all consumers voted against unsustainable products only rather
than focusing on sustainable brands (Borg, 2020). It has been argued that, the taste of consumers
regarding the specific product are continuously getting changed so on the basis of this, company
should make sure that they implements new products in order to fulfil their strategies and meet
up the relation between both attitude and behaviour of consumers. In context with behaviour
dynamics, it refers to the field in relation with analytic description of behaviour change. By
examining the case study, it was determined that the behaviour of consumers was getting
changed at each point of time (Amankwah-Amoah, Khan, Z Osabutey, 2021). It has been
argued that products like sanitary napkins and laundry care has higher degree of efficiency and is
a sustainable product but at the same point of time, the attitude of consumers get changed and
determine those products as non-sustainable (Cheah, 2020).
Economic model of consumer behaviour
For a business organisation, it is very crucial to analyse the behaviour of consumers in
order to efficiently survive in the market and dealing with all the competitors. In context with the
economic model, they always follow the principle of maximum utility which is based on the law
of decreasing marginal utility. On the basis of this model, the customer always want to spend
their minimum amount in order to enhance entire gains. This model is based on three things
which are price effect, substitution effect and the effect of income. In relation with the effect of
price, it is argued that if the price of product would be less then more products would be
purchased. In terms of substitution effect, it means that if the price of substitute product would be
less, then the usage of original item would also be less (Grover, Kar and Dwivedi, 2020).
Besides this, in relation with income effect, it means that if income of customers would be more
then products could also be purchased more. By examining the given case scenario, it has been
argued that in the year 2013, products which were sustainable accounted for 14.3% and while
comparing with the year 2018, it was 16.6% (Chuah, 2021). It has also been evaluated that the
biggest share of sustainability was the products like facial tissues, milk, juices and many more
but due to the changes in their behaviour and their attitude, these products faced less share of
sustainability and the reason behind this was mainly that all customers preferred their
performance trade-offs.
Theory of planned behaviour (TPB)
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This refers to psychological theory which is linked to behaviour. This is a human social
behaviour that reflects individual thought. This theory depends on three components like attitude,
subjective norms along with perceived behavioural control. These are the components which
together provides shape on individual's intention and behaviour. This is the one where individual
or consumer thinks to utilize the product which are beneficial for the social, economic and
environment and also helps in protecting public health environment form initial stage to end
stage that is from raw material to final disposal (Fleșeriu, 2020).
In present time due to getting global there are many product which are not sustainable in
nature and are creating various harm to the environment. To avoid this, it is highly required to
focus on the sustainable products which can allow to use those product in high quality instead of
unsustainable products. This can allow to focus on better environment by influencing the
perception regarding maximum utilisation of sustainable products. This can allow to focus on the
using the product that can have better and improved result towards consumer behaviour and
influence them to buy or purchase such type of sustainable products.
This model emphasizes individual to utilise the sustainable product and enhance the
behaviour towards utilisation of sustainable product which are available in market at lower cost.
There is a human behaviour that they talk about the use of sustainable product but when its time
to purchase or use such products they are having focus toward their overall benefits which is
regarding products price their reuse, quality and its durability. These are some of the behaviour
of individual which are observed during making purchase (Gilal, 2020).
This theory also focuses on the behavioural intention which is regarding perform some
specific behaviour. In this, consumer are attracted towards the importance and their interest to
utilising these products which can impact the business and maximum use of sustainable products.
This theory addressed the concept of social influence which is elaborative thoughts and includes
the perception which is regarding expectation of friends, family and society to perform particular
behaviour. Subjective norms when all the family member are using the sustainable products so it
is normal to adopt the behaviour to use sustainable product rather than unsustainable products or
should not use sustainable products. There is also subjective norms like when any individual
peers uses the sustainable product, in such case that individual should use the sustainable
products or should use the unsustainable which are being used form over time. Theory of
planned behaviour considers social behaviour that is regarding normative beliefs or social norms.
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There are many product like facial tissue, toilet tissue, milk, coffee are some of the sustainable
products towards large consumer are attracted. Whereas, some of the products like laundry care
and floor cleaner are having less share in the sustainability (Gorjão, 2020).
Consumer behaviour models- Input, process, output model
Input, process, output model focuses on product which are being marketed,
environmental forces along with family background of consumer. Here, products are sustainable
products. In this consumer behaviour are influenced by the input process and output of the
sustainable products. There is need to focus on the some marketing efforts in terms like price,
place, products and promotion that are highly applicable to deliver such type of product which
can allow consumer to buy their products. There is also need to make products which should be
sustainable in nature. This can allow to focus on the delivery of sustainable products. Product,
price, promotion plays an important role where consumer have the focus to get attract towards
the sustainable products which are associated with useable products. This allow to focus on the
delivery of products which are influenced by organisation and the environmental forces through
culture, social class and many more. These are some of the factor which influence to purchase
the sustainable products which can be there due to decision making. This is theory which is
regarding consumer intention towards using sustainable products. There are large number of
consumer base who have the intention to use sustainable products instead of unsustainable
products (Grover, 2020).
Process is regarding purchase process. In this, theory emphasises about the various steps
through which any consumers goes which includes awareness, recognition, evaluation and
purchase which is regarding buying decision. Company like PepsiCo and Unilever lime to sell
sustainable products that have high demand in present and are going to be increase in future.
There are various brand ambassador who are influencing consumer on large level regarding
utilising their products which can help in more sales of sustainable products. In this, satisfied
customer have the intention to purchase sustainable product by every consumer. Whereas,
unsatisfied consumers acts as negative references by spoiling marketing effort of promoting
sustainable products (Hu, 2020).
Outputs refers to response of consumer which is regarding marketing efforts where
PepsiCo and Unilever are tiring to sell their sustainable products which is an initiative to save the
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environment and make better place. This is regarding buying decision, choice of brand, purchase
timing, choice of products, choice of dealer or store.
These are the part of model where every factor have their importance in making better
product and influence consumer behaviour to focus on purchase of sustainable products. There
are various influence of company with different techniques that push their effort to influence
consumer to use sustainable products. Company like PepsiCo and Unilever are trying their well
to influence their consumer behaviour regarding using of sustainable products. This can help to
change in behaviour of consumer that can lead to impact the behaviour and initiative them to
purchase of sustainable product that can lead to make better environment and help to save the
resources (Khan, M.S., and et.al, 2020).
RECOMMENDATION
In context with all upcoming FMCG companies, it is crucial for them to develop their
products and assure success in the marketplace. With respect to this, it has been
recommended that the first thing which upcoming company should do is to study about
their competition (Chuah, Aw and Cheng, 2021). The reason behind this is that in
today's market, there are large number of competitors who are already present and offer
same kind of products and services. So, it is essential that a company should study about
their competition in an effective way so that they can produce their products in a more
unique way.
FMCG companies should also define their marketing strategies in a more better way as
whether they should do their sales online or through dealers. It has been recommended
that they should use efficient and the most famous marketing channel so that maximum
number of customers can get attracted. It could become very easy for them to maximise
their products efficiency and besides this, it is also recommended that they should make
the usage of direct marketing tactics so that direct response from the consumers can be
achieved (Reddipalli, 2020).
All new and upcoming FMCG companies must focus on their pricing strategy because by
examining the present scenario, pricing of products is the most important thing on which
every company should focus (Gilal and et.al, 2020). The prices should be set up as per
the target consumers concerned with what prices the will be willing to pay. In the
marketplace, there are already many competitors present who are providing their products
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at effective prices so on the basis of this, it has become more important for them to set up
proper pricing strategies.
Unique value proposition: - It is recommended to upcoming companies that they should
have a clear understanding of what type of products they need to offer in order to stand
apart from all the competitors so that other companies doesn't take any advantage in
relation to that. It is highly recommended to upcoming companies that they should offer
those products which could be beneficial for all consumers and must be unique in
comparison with other company products (Sánchez-Sánchez, 2021).
Promotion: - One of the most important thing for a business organisation is to promote all
products and services till its maximum level of efficiency. In the marketplace, there are
many other businesses who invests in best promotional techniques so on the basis of this,
it is very much necessary for the business organisation to make the usage of best
promotional ways in order to attract maximum number of consumers.
Marketing strategies: - Before taking place into the market, FMCG companies should set
up proper marketing strategies so that no further consequences get arise. At the initial
stage only, it becomes essential for the companies to make certain strategies in order to
achieve success (Shahab, Ghazali and Mohtar, 2021). At the same point of time, it is
also recommended that organisation should be patient as it is not possible for any
business organisation to reach at the top position at the first step only. So, on the basis of
this, strategies should be set up in the form of both prices and uniqueness of products.
Pre-marketing campaign: - For FMCG companies, it is recommended that they should set
up a pre-marketing campaign also and reach out to bloggers and industry influencers who
could help in create an efficient content (Cheah and et.al, 2020). In present scenario, it is
very important that proper campaign is being established in order to attract maximum
number of customers (Shahab, 2021).
It is recommended to upcoming FMCG companies to focus on changing behaviour of
their target consumer and create awareness through different mode of advertisement and
providing information about the benefits of consuming sustainable products. This can
influence their behaviour towards the use of sustainable products which will product high
financial benefits to the FMCG companies. This will enhance their marketing and sales
on large scales and will also help to maintain better environment. It is also recommended
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to focus on the reusable products which are associated with the use of sustainable
products. Theory of planned behaviour is influenced through utilising some products
which are highly applicable to provide better sustainability regarding other products that
are unsustainable in nature.
It is recommended to upcoming FMCG companies which should focus on the product
promotion which is one of the highly effective in creating awareness about the product.
This can have high impact over the recognition of the product and due to effective pricing
this allows and influence individual to focus on the purchase of sustainable products. It is
also recommended that there is need to focus on the decision-making process which have
high impact on the delivery of better sustainable products. This is regarding creating
satisfaction within consumer regarding sustainable products. Brand ambassador of the
product plays an important role in influencing consumer regarding using of sustainable
products. It is also recommended that there is need to focus on the consumer response
which can be positive when consumer gets satisfactory product that can fulfil their
demand that are able to influence them to get better sustainable products (Shiel, 2020).
CONCLUSION
From above discussion, it can be concluded that there are different consumer behaviour
which have the impact on the sales of sustainable products. There are various consumer
behaviour that can have impact on the purchase of sustainable products. There is need to
understand the global customer which can have impact on the purchase of sustainable products.
There are various theories like Theory of Reasoned Action (TRA), Theory of Planned Behaviour
(TPB) and others which includes economic model and input, process, output model which can
have their influence over the consumer behaviour that is regarding towards sustainable products.
In this report, there is discussion about various theories which can help to understand the global
consumer behaviour that can influence them to purchase sustainable product. There is also some
recommendation which can help upcoming FMCG companies to help regarding type of product
that can influence consume regarding purchasing of sustainable products.
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REFERENCES
Books and Journals
Amankwah-Amoah, 2021. COVID-19 and business renewal: Lessons and insights from the
global airline industry. International Business Review, 30(3), p.101802.
Azer, 2020. Negative customer engagement behaviour: the interplay of intensity and valence in
online networks. Journal of Marketing Management, 36(3-4), pp.361-383.
Borg, 2020. Social norms and plastic avoidance: Testing the theory of normative social
behaviour on an environmental behaviour. Journal of Consumer Behaviour, 19(6),
pp.594-607.
Cheah, 2020. Are privacy concerns still relevant? Revisiting consumer behaviour in
omnichannel retailing. Journal of Retailing and Consumer Services, p.102242.
Chuah, 2021. A silver lining in the COVID-19 cloud: examining customers’ value perceptions,
willingness to use and pay more for robotic restaurants. Journal of Hospitality Marketing
& Management, pp.1-28.
Fleșeriu, 2020. Values and planned behaviour of the romanian organic food consumer.
Sustainability, 12(5), p.1722.
Gilal, 2020. Towards a new model for green consumer behaviour: A self‐determination theory
perspective. Sustainable Development, 28(4), pp.711-722.
Gorjão, 2020. Data-driven model of the power-grid frequency dynamics. IEEE access, 8,
pp.43082-43097.
Grover, 2020. Understanding artificial intelligence adoption in operations management: insights
from the review of academic literature and social media discussions. Annals of
Operations Research, pp.1-37.
Hu, 2020. Understanding followers’ stickiness to digital influencers: The effect of psychological
responses. International Journal of Information Management, 54, p.102169.
Khan, M.S., and et.al, 2020. Consumer green behaviour: An approach towards environmental
sustainability. Sustainable Development, 28(5), pp.1168-1180.
Reddipalli, 2020. Howard Sheth Model of Consumer Behaviour on Buying a Smartphone.
Available at SSRN 3658496.
Sánchez-Sánchez, 2021. A behaviour model for cultural tourism: loyalty to destination.
Economic Research-Ekonomska Istraživanja, 34(1), pp.2729-2746.
Shahab, 2021. The role of elaboration likelihood model in consumer behaviour research and its
extension to new technologies: A review and future research agenda. International
Journal of Consumer Studies.
Shiel, 2020. Generativity, sustainable development and green consumer behaviour. Journal of
Cleaner Production, 245, p.118865.
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