Analysis of Consumer Behaviour at Woolworths: A Report

This report examines consumer behavior, defining it as the actions and underlying motives of consumers in the marketplace. It highlights the importance of understanding consumer behavior for organizations, emphasizing how it helps businesses determine consumer needs, target markets, and tailor marketing strategies. The report then focuses on Woolworths, analyzing its consumer segments based on demographic, economic, geographic, and behavioral characteristics, differentiating between primary and secondary target consumers. Finally, it identifies issues that can be resolved using consumer behavior data, such as low product demand, and emphasizes the opportunities for businesses to improve marketing effectiveness and customer loyalty. The report concludes by reiterating the significance of consumer behavior analysis for businesses to capitalize on market opportunities and address marketing challenges.

Running head: CONSUMER BEHAVIOUR
CONSUMER BEHAVIOUR
Student’s Name
University Name
Author note

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Introduction
Consumer behavior is the way in which individual consumers or group of consumers
behave during the process of buying or purchasing products or services to satisfy their needs and
demands. In other words it is the action of the consumers in the marketplace as well as the
underlying motives for the actions. The marketers of the business organizations or the sales
analyze the behavior of the consumers in the market, this helps the marketers, and sellers to
determine the price at which the products and services can be offered to the consumers (Alversia,
Michaelidou & Moraes, 2016). The purpose of this assignment is to describe consumer behavior
in the market and its importance for the organizations. Further, it determines the consumer
segments of the chosen business organization Woolworths and its primary and secondary
consumers in the market. Lastly, it determines the issue that can be solved in the organizations
with consumer behavior data and information. The report summarizes the main points of the
report and concludes the report.
Definition and description of consumer behavior
Consumer behavior can be defined as the study and examination of consumer behavior in
the market. The consumer behavior study involves the process of studying the behavior of the
consumers and the methods or processes they implement to consume or purchase a particular
product or services. The study generally includes the emotions, mental and behavior responses of
the consumers or the customers in the market (Solomon, 2010). It incorporates the ideas from
psychology, chemistry, as well as economics. It refers to the study of consumer actions and
behavior in the marketplace as well as the motives behind their actions. The marketers analyze
the behavior and motives of the consumers behind their actions to determine which products or

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services are required by the consumers and provide them products or services as per their choice
and preferences (Alvino et al., 2019). This enables the marketers or the organizations to provide
products and services as per their requirements and preferences. There are various factors which
influences the behavior and choice of the consumers in the market including design, price,
packaging, promoting, and pacing of the product. The other factors which determine consumer
behavior are age, gender, income level, and education (Aslam & Srivastav, 2018). The
psychological factors include the perceptions of the product or services in the minds of the
consumers, the buying motives and the personal attitudes of the consumers towards the products
or services offered to them (Ballesteros García & Carrero Bosch, 2019). The social factors and
situations factors also influence consumer behavior such as the social status of the consumers,
social class, caste, or religion. The consumer behavior is not static; it keeps changing with time
and period. The consumer behavior changes due to several other factors such as the marketing
factors, increase, or decrease in the income level of the consumers and the education level
(Bamossy & Solomon, 2016). Different consumers in the market behave it different manner. In
other words, different consumers in the market behave in a different manner. Moreover, the
consumer behavior varies from place to place. For instance, the consumers of the urban will
behave differently from the rural consumers in the market. The consumers from the rural side are
highly conservative while purchasing (Bray, 2018). Positive consumer behaviors in the market
lead to purchase of different products. This boosts the sales of the marketers and influences
consumer behavior to increase their purchases.
Importance of consumer behavior for organizations
Analyzing and determining consumer behavior in the market is highly essential for the
sellers or the markets as it provides information regarding the factors which influences the

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purchasing behavior of the consumers. The marketers or the sellers of the organizations are able
to determine the needs and preferences of the consumers and fill the gap in the market. It
identifies the products or services that are demanded by the consumers so that they can provide
the same products and services which are demanded by the consumers (Doe & Kutu-Adu, 2017).
The products are services are presented in the market or distributed in a way that creates positive
impact on the consumers. This helps to boost the sales of the business organizations. Therefore,
it can be said, that consumer buying behavior is the way to reach and engage with the customers
and positively influence them to purchase the product or service from the organizations (East et
al., 2016).
As mentioned above, the consumer behavior is often influenced by several factors. It
involves the study and analysis of the consumer purchasing patterns and determines the trends
prevailing among the likeminded consumers in the market. For instance, branded products and
goods are preferred by rich consumers (Doe & Kutu-Adu, 2017). By analyzing the buying trends
and patterns of the consumers, the marketers can provide and distribute branded products in the
markets. For example Woolworths compels its consumers to spend more than their actual
budgets though various tactics and marketing policies. Therefore, it is important for the
consumers to understand the factors which influence the buying decisions of the consumers.
Consumer behavior helps the sellers and the marketers to investigate and determine the ways in
which consumers behave so that they can position their products and services among the targeted
consumers (East et al., 2016). In today’s business scenario, the consumers are more aware about
the information of the products and services. Therefore, consumer behavior is highly essential
for the sales personnel’s or the marketers to convince the consumers to purchase the products
(Haugtvedt et al., 2018). It helps the marketers and the sales personnel’s to recognize the

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consumer demands and forecast the purchasing behavior of the consumers while purchasing the
product.
Consumer profile for primary and secondary markets
The consumers of Woolworths are segmented under demographic, economic,
geographical, and social characteristics of the consumers as well as the interests of the
consumers. The consumers are segmented by Woolworths in order to make the products and
markets more effective for the customer base (Bray, 2018). Every consumer in the market has
different needs and demands therefore segmenting the huge customer base provide the business
organization to gain more insights into specific groupings within the customer base. Customer
segmentation helps the business organization to meet the expectations of the customers and
reflect them in the company offerings in a more accurate manner (Doe & Kutu-Adu, 2017). The
marketers collect relevant information about the consumers and groups the consumers into
segments so as to better provide them with services. The business organization targets customers
of all age groups through effective marketing strategies and communications (East et al., 2016).
Demographic segmentation- It targets both males and female consumers. It targets all types of
consumers depending on the type of products and services offered. It targets all age groups
consumers starting from 18- 55 years (Haugtvedt et al., 2018). It targets middle and higher
income group consumers.
Geographic segmentation- It mainly targets the Australian native consumers and the other
countries to which the company provides its services. The customers of Woolworths are groups
concerning their country, state, climate, and religion. The marketing messages formulated by the
organization considering their geographic segmentation. The product mix of the business

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organization is based on geographic region (Haugtvedt et al., 2018). They modify their offerings
as per the geographic segmentation.
Behavioral segmentation – The business organization offers wide range of products for wide
customer base. They create segment for customers on specific festivals and occasions such as
Christmas, Halloween or weddings. Customers are also segmented on the frequency of their
purchases.
Psychographic segmentation- Woolworths segments their customers by understanding the
customer’s particular preferences and interests (Haugtvedt et al., 2018). This provides powerful
approach to target the consumers.
Primary target consumers- The primary target customers are the customers who are greatest
opportunity to convert. They are the early adopters, loyal customers of Woolworths and repeated
customers. The primary target audiences are the consumers which are pursued by the company
primary. They marketing policies and tactics are aimed to attract the primary customers first.
They are the first priority to the company (Nguyen et al., 2018).. The business organizations
provide high time, money and energy for the primary target customers.
Secondary target audience – The secondary target audiences are the customers who appeal the
most to the company after the primary target audience for its potential and promise. Young
customers are the secondary target audience, the lower income earners. It targets the customers
who desire for lower priced products and customers having lower disposable income (Kaur &
Singh, 2017). The low priced products and services are targeted towards the secondary target
audience.

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Issue or opportunity that can be solved through consumer behavior information -400
As mentioned earlier in the report, consumer behavior is of great importance to the
marketers and the sellers of the business organization. If the business organizations lack proper
understanding of consumer patterns and purchasing behavior, the company might face losses.
Issues such as low demand for certain products, low sales of the products and other losses of the
company can be avoided with consumer behavior knowledge and information (Solomon et al.,
2019). Further, by analyzing and understanding the needs and purchasing patterns of the
consumers, the business organization can provide new products in the markets. Before releasing
new and innovative products in the markets, it will be beneficial for the business organizations, if
surveys and research about consumer buying motives and purchasing patterns information are
attained (Szmigin & Piacentini, 2018). The marketers and sellers of the business organizations
can make more profit and be successful in accomplishing the purpose. Moreover, in the highly
competitive business environment, consumer behavior research and analysis will provide
additional benefits and opportunity to gain new customers and retain loyal customers in the
business organizations. The marketers and the sellers of the business organizations will be able
to market the products in a more convincible manner, which will boost the reputation and good
will of the company (Alvino et al., 2019). Therefore by providing attention to the consumer
purchasing behavior and understanding their buying motives the marketers will be able to retain
loyal customers and boost the reputation of the company. Understanding the factors that
influence the purchasing behavior of the customers, the marketers will be able to market and sale
the products on the right time to right customers (Nguyen et al., 2018). The information about
the consumer behavior will also help the business organization to formulate effective marketing
strategies directed towards the targeted customers (Javornik, 2016). This can be an opportunity

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for the company as the marketers will know which aspects of the product or the service is to be
focused on. Therefore, it can be said that understanding consumer behavior is highly essential for
the business organization to take advantage of market opportunity and overcome issues and
challenges of marketing.
Conclusion
Therefore, from the above analysis it can be concluded that consumer behavior is highly
essential for the business organizations as it helps to take advantage of the market opportunities
and target the customers as per their product needs and preferences. The marketers of the
business organization analyze and research about the behavior of the customers and undertake
marketing decisions as per the information. There are various factors which influence their
behavior and choice of buying a product or service such as design, price, packaging, and place of
distribution. From the above analysis, the important of consumer behavior and its analysis has
been determined. The primary and secondary target audience of Woolworths has been identified
in the report. The consumers in the market has different needs and demands of the consumers,
therefore Woolworths segments the customer base to gain more insights about the customer base.
Segmentation helps to marketers to collect relevant information and reflect them in company
offerings. The primary customers are the people who are loyal to the company and who purchase
high price and high value products offered by the company. On the other hand, the secondary
target audiences are the customer who buys low priced products from the company and the low
income earners. They are not regular buyers of Woolworths. Further, the report has determined
the ways in which the company can use consumer behavior analysis and results to overcome
issues and take advantage of the prevailing opportunities in the market.

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