Real Conservatism is referring to a response pattern that are mostly offered by individuals that are having cautiousness regarding new things as well as viewpoints, a central concern in the category is the upholding of a disciplined, predictable as well as safe society. Conventional family life are associated with responses that are mostly offered with the help of the respondents that are representing the integral part of ‘middle Australia’ having values that are focusing on the major events within the personal and family lives of the customers. The first aspect concerning the overall insight regarding consumer shopping profile is associated with consumer goals, which includes shopping considerations as well as consumers considerations and is associated with savings, enjoyment, health as well as indulgence.
Description of the Consumer
The psychographic details of the consumer prior to the analysis of shopping are mentioned as under,
Age: 34 years
Marital Status: Married
Family: Wife and One Child
Education Level: Master’s
Income: A$ 80,000 per annum
Generational Cohort Value Segment:
- Real Conservatism – It is referring to a response pattern that are mostly offered by individuals that are having cautiousness regarding new things as well as viewpoints. In general, it is part of ‘the establishment’, a central concern in the category is the upholding of a disciplined, predictable as well as safe society. They are holding a very conservative values that are socially, morally as well as ethically acceptable and have a general feeling that things are not as effective as they were earlier. These customers are having the willingness towards paying more in respect of products that are guaranteeing steady worth as well as quality and are having particular attention towards brands that are older and having better establishment. These customers are also having a string belief in the benefits of saving that are driving them towards the accumulation of assets. This will normally be associated with materials such as property, antiques, art as well as gold, which will be holding their worth. On the other hand, while they are in general rich in assets, they are cash poor.
- Conventional Family Life – This pattern of customers are associated with responses that are mostly offered with the help of the respondents that are representing the integral part of ‘middle Australia’ having values that are focusing on the major events within the personal and family lives of the customers. They tend to be individuals who try to seek better financial security, making struggles for improving their basic standards of living as well as providing their families with improved scopes in comparison to which they experienced in their individual childhood. In the Conventional Family Life Segment, there is the existence of a great Australian dream to own one’s personal house in the suburbs as well as to drive a better solid car. This is associated with the aspect of worrying for mortgage, having safety at work so that jobs are not lost, having worry regarding children’s safety. Better, solid as well as trustworthy products are having significance with Conventional Family Life. In general, to seek monetary value in their purchases, to make a selection of branded as well as generic mixture or store brands for daily use.
The personality traits of the consumer is based on the aspect of loving people as well as society, being altruistic, having supports as well as cares. The consumer is having the feeling of tidiness as well as willingness for providing assistance. The consumer is having no problem for adapting to the majority as well as avoiding controversy. Moreover, the consumer is respecting authority, seeking contact with other individuals, having control over the environment, strong orientation to reality as well as presence and looking for activities that are considered being meaningful (Wagner, 2016).
Analysis of Overall Purchase Behaviour
Consumer Shopping Profile
The first aspect concerning the overall insight regarding consumer shopping profile is associated with consumer goals, which includes shopping considerations as well as consumers considerations and is associated with savings, enjoyment, health as well as indulgence. The second aspect is associated with the shopping profile of the customers regarding the ways by which the mind is working. In this context, it can be stated that there are two systems by which the mind is working viz. System 1 and System 2. System 1 is considered being fast, intuitive as well as effective and System 2 is considered being slow, analytical as well as cognitive. Moreover, the distinguishing modes of thoughts in respect of System 1 are associated with the aspect of intuition that is considered being automatic, fast, effortless, hard-wired as well as emotional and the distinguish modes of thoughts in respect of System 2 are associated with the aspect of reflection that is considered being controlled, slow, difficult, programmable as well as cognitive. System 2 stops functioning when a customer is multi-tasking. Resource depletion does the hindering of performance regarding System 2 methods as well as increasing the dependence on lower-level and more simplistic processing methods.
Integration of Marketing Theory with an Emphasis on Buyer Behaviour
Marketing theories take into consideration the Ansoff Matrix, Balanced Scorecard, The Marketing Mix, SWOT Analysis, Stakeholder Mapping, Porter’s 5 Forces, PESTEL Analysis and so on. In this context, buyer behaviour is considered being the methodical approach customers are following when they enter the purchase method and make decisions related to buying. There are certain steps that need to get followed in this regard such as,
- Need Recognition – This the point where a customer is having the awareness of an operational requirement. Concerning the strategy of marketing, it is common to take into consideration the aspect of emphasising on the stimulation of need awareness. In this context, it can be stated that strategies relating to direct marketing as well as personal selling are effective to reach consumers as well as drawing out need identification.
- Information search – After the customers did the realization of the existence of a requirement, they do the development of a set of consideration and start comparing options regarding significant criteria. Marketing plans does the inclusion of the aspect of formulating a positioning strategy. In markets that are considered being very much competitive, effective positioning as well as development of brand is regarded being essential to influence customers during the search methods.
- Purchase and Experience – Retention of the customers as well as loyalty are essential regarding strategies for marketing in respect of companies that are trying to achieve success in the long term.
- Modes of decision – Through the combination of the significance level as well as experience level regarding a situation of purchase, customers normally enter a decision from one of the four aspects such as extended problem solving, limited problem solving, habitual purchase or brand loyalty (Viio, 2014).
Factors Influencing the Purchase of Products
- Brand Name – The name of the brand is considered being huge and it is not just regarding brand equity. The manner in which the name of the brand is sounding as well as the images it is evoking both are influencing the decision regarding purchase. This the reason why it is necessary to come up with an effective name for an organization when a brand or product is getting launched (Sheth, 2015).
- Product Placement – In the physical retail environments, the placement of product is considered to be of huge significance. In respect of the ecommerce business, product placement is considered to be somewhat different. For instance, when a product is being sold on Amazon.com, then placement is concerned with receiving the company’s product listing on the first page or in the side bar.
- Packaging – A significant amount of time as well as effort is spend towards perfecting the aspect of packaging when there is the requirement for grabbing attention of the customers. Then, it is required encouraging a purchase through the conveying of a distinctive as well as pertinent value proposition. After that, it is required fitting the brand positioning of the company as well as remaining genuine the overall standpoint (Meffet, 2013).
- Reputation – Word-of-mouth marketing is the key to do the promotion as well as maintenance of a positive reputation. Therefore, it is required developing a positive reputation regarding the brand within the marketplace, which will be providing the capability towards influencing customer purchase decisions in a more frequent manner. Customers will be seeing the product, recalling what others say and select the chosen company over the competition. In majority of the cases, a positive reputation will do the offsetting of deficiencies in other areas.
- Pricing – This is associated with the aspect of making determinations about how price sensitive the target market of the company is. In certain industries, price is considered being the main non-product factor, while in others it is playing a very nominal role (Lindgreen, 2016).
The products that are being bought are considered being low-involvement purchases since, the customers in respect of purchasing these products are not required to think a lot prior to the purchasing of the product. There is also the involvement of less risk and therefore, the decision-making occurs very fast. Certain traits regarding low-involvement purchases are reduced price, low risk factor, switching of brands, availability as well as distribution and not much differentiation, repeat purchase as well as impulse purchase (Kotler, 2014).
Marketing Mix Regarding low-Involvement Purchases
Since, various customers are making the purchase of low-involvement products due to habitual loyalty, two specific product related aspects are considered to be very significant, which are the steadiness of the product as well as easy recognition with consistent packaging. In respect of low-involvement products, customers are generally not shopping around for new brands as well as product solutions (Iaccobucci, 2014). They are generally satisfied with one to three brands within the category of a product and will be making regular purchase of one of those brands regularly. As a result, steadiness regarding product design as well as packaging is considered being significant and the product changes might be leading to the dissatisfaction of the customers as well as packaging changes might be leading towards reduced levels of recognition (Gilmour, 2013). Due to the strong brand role regarding the purchase decision, low-involvement product provides the marketer essential scopes to increase sales as well as market share via simple product line extensions.
Pricing of low-involvement products is basically very low. In this context, it can be stated that many low-involvement products are items of lower cost that is having significance for the customers since they are making typical purchasing of these products frequently. Moreover, in respect of the lower price range, the steadiness regarding pricing is significant as customers are having an affinity regarding the offering of the product-price stability in respect of low-involvement products (Hutt, 2013). In general, products that are supported by stronger brands are having the ability for charging a premium price, due to the attraction of the customers for brands that are better known, being perceived to be lower risk decision of being purchased. Moreover, the occasional sales promotion is in general essential for defending against competitive actions, for rewarding the loyal customers as well as winning short-term brand switchers and encouraging the non-consumers in the category of product (House, 2013).
This is considered being a very significant element regarding the marketing mix. Intensive distribution requirements to be actualized, with the placing of the product in as many appropriate retailers as possible. Moreover, concerning the extent of retailer penetration, it is also very significant in having a better in-store position as well as supporting the product with visible point-of-purchase displays. Therefore, string retailer associations are significant in respect of achieving an increased stage of product visibility in-store (Hollensen, 2015). Since, low involvement products are often sold via hundreds or thousands of retail outlets, an effective logistics method is essential in avoiding product stock-outs. Logistics are even more significant in respect of highly perishable products like milk, bread, fruits as well as vegetables (Foxall, 2014). A highly effective logistics method will be working as well in keeping the cost of distribution low that is supportive of the low price that is generally a need regarding a low-involvement product.
The two major components regarding promotional mix for low-involvement products are image advertising as well as sales promotions. Low-involvement products will be benefitting from a strong brand built via long-term image advertising. Since, various purchases are made concerning a low-involvement basis, customers are often attached to a famous brand, since it is representing a low-risk consumer decision. Sales promotions are considered being another significant component regarding the promotional mix of the brand (Eastman, 2015). Sales promotions are even more significant in respect of weaker market place brands. Sales promotions also take into consideration trade promotions in this scenario. Trade promotions are considered being the incentives that are targeting the wholesalers as well as retailers for them towards purchasing a huge quantity of product in comparison to the normal quantity (Dickinson, 2014).
A high involvement product is considered being a product in which there is the involvement of an extensive thought method and the customer take into consideration numerous variables prior to the undertaking of a decision regarding purchase. A lot of times, high involvement purchases is having the involvement of multiple buyers or multiple influencers that are influencing an individual buyer (Bojanic, 2016).
An example of having the involvement of multiple individuals in purchasing a high involvement product is when a new car is being purchased. When someone is interested in buying a car, there will certainly occur the involvement of near and dear ones, and reviews will be taken from the friends and through the internet. A lot of information will get collected and then after receiving the right amount of confidence, the brand will get purchased that is being targeted. A high-involvement purchase will not be involving just the buyer and in addition, it will be having the involvement of the public perception regarding the product as well as the brand (Bejou, 2013).
Features of High-Involvement Product
- High Price – The primary characteristic regarding a high involvement purchase is that there is high product price. Due to the high price, the customer is thinking twice prior to the purchase. Price is considered being a subjective approach.
- Differentiation is essential – When the product involvement is considered being high, there is the requirement of more differentiation amongst the product or the brands. When the differentiation is poor, then a high-involvement product might be losing out to a competitor that is having an excellent distribution. Technological innovations, product level innovations or complete product features can assist the customer in taking a quick decision regarding a high involvement purchase (Banterle, 2014).
- Brand Recall and valuation – There can be a lot of influencers. For instance, it can be the customer’s friend who drives a luxury car and gives recommendation to the customer for buying from similar brand. It might also be the customer’s complete exposure to the brand over the years, and the customer’s affinity in buying the product. Generally, a brand having increased recall or valuation is having an increased scope to win over competitors whenever there is the involvement of high-involvement products (Baker, 2016). For instance, the speakers from Bose are regarded as high involvement products, majorly due to their premium price in a segment where there are also low priced speakers. However, the brand valuations of Bose as well as performance regarding the brand’s speakers over the years are sufficient in creating admiration within the customer. The exposure of the media for many years might be motivating the customer in purchasing the Bose speakers (Cherney, 2014).
- Customer perceived risk – Since, there is high product price and since the expectation of the customer is huge from a high involvement product, there is the involvement of a perceived risk regarding the product purchase.
- Available information – Another feature regarding the traits of high involvement products are the amount of information that are sought by the customers regarding the product prior to the purchase. Along with websites, also the e-brochures, printed brochures, landing pages, e-commerce pages will also assist the customers to collect product information (Baker, 2014). The additional information that the customer is having, the more likely he will make the purchasing related to the product. Therefore, it is the marketing manager’s job in a company for ensuring that marketing communications is effective and there is well-informed users.
- After Sales Service – A reason that a customer will be rejecting the idea to purchase a specific high-involvement product is due to the fact that the person will be getting information from reviewing the product that it has very poor after sales service. A customer won’t be buying cars that are not having spare parts. Therefore, the more improved the after sales service as well as satisfaction of the customers, the more is the opportunity of a high involvement product in getting repeatedly sold. Therefore, holistic marketing is an essential element regarding high-involvement purchases (Aremu, 2014).
In this assignment, the products that are being bought are considered being low-involvement purchases since, the customers in respect of purchasing these products are not required to think a lot prior to the purchasing of the product. There is also the involvement of less risk and therefore, the decision-making occurs very fast. Certain traits regarding low-involvement purchases are reduced price, low risk factor, switching of brands, availability as well as distribution and not much differentiation, repeat purchase as well as impulse purchase. Moreover, a high involvement product is considered being a product in which there is the involvement of an extensive thought method and the customer take into consideration numerous variables prior to the undertaking of a decision regarding purchase. Many times, high involvement purchases are having the involvement of multiple buyers or multiple influencers that are influencing an individual buyer. A lot of information will get collected and then after receiving the right amount of confidence, the brand will get purchased that is being targeted. A high-involvement purchase will not be involving just the buyer and in addition, it will be having the involvement of the public perception regarding the product as well as the brand.
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