Consumer Behavior In McDonalds Australia: Perception, Price, And Benefit - An Essay.

Discuss about the Behaviour Of Consumers In Mcdonalds Australia.

Company

McDonald is identified as a famous fast food restaurant chain that has 970 outlets across Australia. It can be argued that the restaurant is considered to be one of the oldest restaurants and fast food centre existed in the region since 1971 (Our Journey, 2018). In that year, McDonalds opened up the first outlets in the Sydney suburb of Yagoona and gradually expanded its market orientation where 100,000 people are working in that specific restaurant and management offices (Our Story, 2018). The dynamic exposure of McDonalds leads it towards occupying 80% of the Australian food and restaurant industry with an enormous amount of employees irrespective of their gender. However, the restaurant had started its business in USA in the year 1954 and the very first store was inaugurated in Des Plaines, Illinois. In course of time the McDonalds brothers witnessed a growing demand of the McDonalds food items and during the year of 1961 yielded a share of $3 million that drove them to turn the company into a corporation.

Product and location

The McDonalds Corporation has 970 outlets spread all over the Australian main cities such as Brisbane, Sydney, Victoria, Melbourne and Adelaide (Locate Your Local McDonald's, 2018). It can be identified that most of the cafeteria and restaurants are encircled in the south eastern part of the country. The reason behind this cluster is the geo-economic advantages of the locations. These cities are the heart of business nexus in Australia that attracts maximum number of people and as a result of that it is considered to be beneficial for the McDonalds authorities to set up a bunch of outlets in those strategic locations.

McDonalds is famous for its burgers and happy meals. Besides this, there a number of other items in terms of preparations of Chicken, fish or beef, cafeterias and deserts and drinks are also popular among the customers (Menu, 2018). Recently, the McDonalds Corporation is going to put focus on the vegan products that is parallel to the growing demand of the Australian market.

Consumer

The market segmentation of the McDonalds Australia is categorised into a number of factors like geography, demography, behaviour and psychographic elements. In the geographic approach there are domestic or international customers in addition to urban and rural sectors with an age between 8 and 45 (Our Story, 2018). Moreover, irrespective of gender and income most of the McDonalds customers are students, employees and families because of the cheap pricing strategy of the restaurant chains.

Consumer

Perception

Consumer behaviour is so imperative for the business organisations to understand the demand and factors of influencing the need of the customers. In this regards, perception is considered to be an important factor that can influence the needs and demands of the consumers. As a result of that there are three major categorisations that reflect the shifting needs of the consumers (Solomon et al., 2014). In fact, understanding the concept of perception, it can be argued that the individual opinion about the company and products can lead the purchaser to make a decision to buy or not to buy the product. Hence, business organisations use this theory as a useful tool to analyse the market segmentation and implement a marketing theory based on this.

In this regards, the first point is related to the self perception theory of consumer behaviour. It is encapsulated with the idea of values and motivations behind the behaviour of the buyer himself (Rödiger, M., & Hamm, 2015). There are a number of factors interconnected with this theory that have an impact on the demand of the consumers. The environmental concerns are very pivotal and relevant in this regards that brings about a great deal of influence on the customer behaviour (Foxall, 2014).

Price Perception

In the discussion, it can be articulated that price perception strongly influenced the customer satisfaction in order to make them dedicated to buy the product and in future the possibility of repurchasing the item (Rani, 2014). In this context, there are two determinant factors that shape the perception are the quality of the product provided by the merchandise and the price comparison with the merchants offering similar merchandise or services (Stevens, 2017).

Benefit Perception

It can be seen in the food sectors where the customers are arguably put focuses on the benefits of purchasing the product. The empirical studies have been developed with the idea that customers are generally reluctant to take any kind of foods that can affect the nutrition value of the product (Akil et al. 2018). It can be argued that the less nutrition value leads to adverse impact on the human body and getting information about the harmful impacts the customers are not willing to take products with lack of nutritional values (Gunter & Furnham, 2014).

Weber’s Law

In this regards, the Weber’s law on consumer behaviour is very relevant and significant to understand the course of the consumer behaviour. Propounded in the year 1860 the Weber’s Law is primarily focuses on the human response to the physical stimulus in a quantitative fashion. According to the theory, the human behaviour is shaped by the Just Noticeable Difference (JND) (Kay & Heer, 2016). The Just Noticeable Difference also known as the Difference Threshold is defined as the minimum amount that stimulates the intensity in order to produce a noticeable variation in the sensory experience.

Discussion

Based on this theory, it is argued by the experts that the theory of Weber’s law can be implemented in the course of marketing of a business organisation. Developing the packing, product and promotion the law is very effective (Soni et al., 2018). The core idea of this law is that the first stimuli or perception is highly valuable to the customers and the future of the product very often depends on the first perception of the consumers (Wilkes, 2015). In this regards, the business organisation should possess a clear idea about the perception of the customers that is analysed by the Weber’s law.

In the context of McDonalds, it can be argued that perception is a very important factor. As far as the benefit perception is concerned, it can be argued that the taking foods that have lack of nutrition and detrimental for health cannot be happened in case of sensible and concerned customers. In the Australian society, obesity is growing with a rapid pace that can have a great deal of impact on the customer behaviour in purchasing food products, as a result of that this tendency of the consumers affects the market orientation of McDonalds and puts obstacle in the business activities of the restaurant company (Our Story, 2018). As a result of that, in order to resolve all the business related obstacles the McDonalds Corporation is interested to incorporate vegan food items in the existing menu of the outlets. In addition to this, it fosters diversity in the food menu of the company and the satisfied the customer needs.

Motivation

The theory of motivation is considered to be one of the major factors that can affect the behaviour of the customers positively or negatively. As a matter of fact, people have a number of urges and demands in life that are influenced by the factors of motivation. Hence, motivation can be defined as an activation or energetic factor the pushes the buyers to fulfil his or her needs by purchasing the specific product or items (Finney, 2014). It can be stated that the root of motivation lies in the basic needs to minimise physical pain and maximize pleasure. In this regards, it can be argued that there are a number intrinsic and extrinsic elements that can be beneficial for the customers to decide their interest in specific products or not (Hamari, Sjöklint & Ukkonen, 2016). Therefore, the motivational framework is categorised in several determinants such as,

Needs

Needs is a basic concept that guides the manufacturer to prepare that product or renders a new service or products according to the needs. In this context, the idea of needs is encompassed with the need of the customers. Need is something that is identified necessary for the humans to live a healthy and happy life. Needs are distinguished in the form of objective and physical or subjective and psychological categories (Bolderdijk, J. W., & Steg, 2015). Therefore, in general the needs are divided into two types that are, innate types where the psychological needs are considered to be the primary needs and the acquired needs where needs is majorly rely upon the learning responses to our culture and environment.

Goals

The major objective of the goals is personified with the specific plans and affairs of an individual one. The motive of goals is related to the assumed development that are also categorised into two types, generic goals and product-specific goals. The generic goals put emphasis on the consumers needs and designed to fulfil their needs where as the product-specific goals are encircled the idea of specific brands or services (Jiang, Scott & Ding, 2015).

Positivism and negativism

Positive motivation theory reflects the optimism while purchasing a product. It incorporates people in a best possible manner and to improve their performances. Achieving rewards can be possible in this part in terms of financial and non-financial. On the contrary, the negative motivational approach ushers a negative impact on the motivation that fosters fear and insecurity among the customers in order to buy a product (Jiang, Scott, & Ding, 2015). In this context, it can be argued that positive and negative impacts are very essential in making a decision while purchasing a product. In fact, a customer resembles both the two type of elements in order to assess his decision positively or negatively.

Maslow’s hierarchy of needs

The hierarchy of needs theory propounded by Maslow is based on the motivational theory with psychological underpinnings. According to this theory, people are motivated to achieve certain needs that are primarily comprised of the basic needs for physical survival (Bishop, 2016). Once the lower level is fulfilled then the motivation will put focus on the next level of needs. This is primarily a five stage model that indicates the first four needs as the deficiency needs and the apex level as the being needs.

Psychological needs

It contains the biological requirements for human survival in the form of food, drink, shelter, clothing, sex and warmth (Bassett, 2016).

Safety needs

It can be identified as the protection from elements, security, law and order and stability (Datta, 2014).

Love and belonging needs

This level encapsulates the elements of physiological and a safety need that has been fulfilled and subsequently leads towards the third level of human needs that are the social and involves feelings of belongings in the form of affection and love (Shahrawat & Shahrawat, 2017).

Esteem needs

According to Maslow, there are two categories su7ch as esteem for oneself that is dealing with dignity, achievement, mastery and independence and the second one is focusing on the reputation or respect from others in the form of status and prestige. The importance of creating such criteria put emphasis on the reputation and self esteem for the adults and the children (Datta, 2014).

Self actualisation needs

Personal potential and the self fulfilment in order to achieve personal growth and peak experience are the key aspects of this level. In fact, this level is considered to be highest level in the pyramid structure of needs (Shahrawat & Shahrawat, 2017).

In course of the discussion it can be argued that human beings are highly motivated by the hierarchy needs and it provides a plan to get the required needs. Moreover, there are ample of evidence that prove the excellence of this theoretical model and at the same time determines the major needs of a person (Kiruja & Mukuru, 2018). However, there is no rigidity in the structural framework of Maslow’s hierarchy in needs. It depends on the individual aspirations to prioritise the needs according to his or her demand.

Product

Products are associated with the notion of goods and services that an organisation sells to the customers in order to satisfy the needs and demands of the consumers (Luo, Roach & Jiratchot, 2015). In this regards, the McDonald’s corporation has a variety of products that are provided with the growing demand of the consumers. For an instance, burgers, sandwiches, drinks and desserts are considered to be the main products that the McDonald’s Australia has served to the customers (Menu, 2018). However, currently, the restaurant giants are going to introduce vegan products that are coincided with the growing market demands in Australia. In this context, it can be argued that the Australian society is suffering with obesity and other health related issues. Therefore, a precaution has been erected among the consumers to choose their foods carefully. Keeping in mind about this issue, the McDonald’s corporation also alters its market orientation by introducing vegan products. It also helps the company to keep pace with the changing customers and taste and quality are the main concern for the McDonald’s Australia nowadays.

Price

It can be argued that price is an important element for any business organisation to sustain in the competitive market for a long time (Harrington, Ottenbacher & Fauser, 2017). Hence, as a giant restaurant chain, the pricing strategy is considered to a strategic element for the McDonald’s company. Due to selling primarily foods and snacks which are related to leisure and pleasure, the customer recall value is supposed to be the prime concern of McDonald’s Australia. Affordable price intertwines to the customer segmentation of McDonald’s Australia helps the company to yields more profit from the market.

Promotion

In this regards, promotion is referred as an effective tool to maximize customers. A good promotional strategy with attractive colours and creativity usher more profit for any company (Abdul-Hamid, 2017). Hence, the McDonald’s Australia implements a number of campaigns and also sponsors many big events like football and rugby in Australia. As a result of that people have a good knowledge about the brand value and image of McDonald’s Australia. Moreover, verbal promotion is also a key factor that is followed by the company. The verbal promotional strategy does not need any expenses and because of its cost redeeming nature the McDonald’s Corporation also utilises this as a key marketing tool. Besides this, tele-advertises and flayers are the traditional way to promote the brand image of McDonald’s Australia. In fact, the company introduces new promotional strategies by implementing games and lucky draws that are also attract customers to visit the outlets. Recently, the vegan foods are using as a promotional strategy for the organisation that will consider to have a futuristic approach for the sustainability of the company in the growing competitiveness in the Australian food and restaurant market.

Place

A wide range of McDonald’s outlets are stretched over the entire Australian region. In this regards, the company is very particular in maintaining a clear strategy to open its outlets (Miši? & Podnar, 2017). Most of the McDonald’s outlets are located in the urban business districts of Australia. For an instance, Melbourne, Sydney and Adelaide are considered to be the target locations for McDonald’s Australia. In addition to this, there are a series of small McDonald’s restaurants spreading all over the country. As a matter of fact, the company puts emphasis on the densely populated areas where the local people can easily visit and buy McDonald’s products of their choice. In this regards, after becoming a restaurant giant it has become a great concern for McDonald’s Australia to continue the visit of customers in a daily basis because it will help the organisation to generate more profit that can be utilised in maintaining good service and quality.

Process

Process is the practice that a company wants to develop in the form of services to a client or customer (Abidemi, Halim & Alshuaibi, 2017). In this regards, the McDonald’s encompasses a number of services from the preparation process to the delivery services to the customers. In this regards, it can be argued that McDonald’s is bound to formulate a completely transparent process so that the whole process is visible to the customers. Furthermore, the food giant is always depended upon its customers to analyse and judge the hygiene standards at McDonald’s by allowing them to enter the location where the process generates. In addition to this, customers are also invited to check the ingredients used in the food.

Physical Evidence

In this regards, the physical evidence encapsulate the concept of store ambience and appearance (Abdul-Hamid, 2017). McDonald’s Australia focuses on clean and hygienic interiors of the outlets and at the same time the interiors are attractive and the fast food joint maintains a proper decorum at its joints. With McDonald’s one would relate the ambience which is comfortable, fun lving and lively.

Perception and motivations are considered to be the key components for determining the decisions taken the authorities in a business organisation. As a matter of fact, both these factors influence the business orientation of a company in different ways. For instance, the perception is primarily highlighted the pricing and the benefits of the specific products that a company is going to be provided. In case of the McDonald’s Australia, the perception of the customers is very imperative for the future sustainability of the company. It can be argued that the organisation is very concerned about its pricing strategy because the customer segmentation of the company is based on their lower and middle earning people. Moreover, most of the consumers are considered to be students and young people. As a result of that it will not be an effective strategy to set the price high of products. In addition to this, the benefits of the consumers are also taking into consideration. It can be argued that the McDonald’s Australia is completely focuses on the benefits and satisfaction of its consumers. Based on this theory, the company prepares its menu for the best possible satisfaction of its customers. As a matter of fact, due to the location in the business districts McDonald’s Australia prepares food that is easy to eat, digest, time consuming and parcel. Therefore, customers are defined as the key factor for the market orientation of the company.

In addition to this, there is the motivational factors of the consumer behaviour that drive the McDonald’s Australia to maintain a good customer relationship. As the consumer motivational factor is focused on the basic needs of the customers therefore the company also keeps emphasis on the basic requirements of the customers. In response to this it can be argued that the McDonald’s Australia is also procuring the same model by keeping emphasis on the customer requirements and based on this it can be asserted that introducing the vegan and organic food products reflects the correlation between the market orientation of the company and the growing demand of the consumers. The reason behind the growing demand of vegan and organic food products is because the Australian society is suffering with the acute obesity and health care diseases. Most of the empirical studies prove that the primary cause of this growing trend is having lots of fast foods. However, fast foods and smackers are the core products that McDonald’s is delivered and this fatal health condition is posing a threat to the business activities of the company in Australia. Therefore, as a alternative product to keep the business orientation intact, the McDonald’s Australia shifts their strategy to preparing foods that are good to health. In fact, the Australian people are also pushed the company to make the decision of preparing organic foods. As a result of that it helps the McDonald’s Australia to save its image and values for sustain in the market.

In order to create the marketing plan sound proof and effective it can be argued that there are some recommendations that the McDonald’s Australia has to maintain. Therefore, the recommendations are as follows

• In order to continue the business the company has to analyse the customer segmentation in a more intense manner.
• To get a proper idea about the competitors the company has to implement its marketing planning more effectively.
• Pricing is a key strategy that helps the company to sustain in the long run. Therefore, the McDonald’s Australia has to formulate budget.
• The vegan and organic products are new preparations for the company. Therefore, it is important for the company to identify the healthy food preparations based on organic ingredients.
• A nutritionist must be appointed to analyse the nutrition values of the foods.

Conclusion 

The consumer behaviour is identified as a key factor that makes a marketing plan successful. In this regards, the customer segmentation of McDonald’s Australia is considered to be highly significant for the company. Keeping pace with the growing demand of the customer needs it can be argued that the new strategies are seemed to be very effective and efficient for the company. However, there are some flaws that the company has to be resolved and thus keeps the company sustain in the competitive market of Australia

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