Differentiation Of Customers And Their Impact On Purchase Behaviour: A Case Study Of Unilever's Product Dove Essay.

1. Identify and analyse the types of customers and their buying behaviour towards FMCG products in the context of Singapore.
2. Critically evaluate the pros and cons of sustainability and recycling and its effect on Buyer ) behaviour.
3. Critically analyse the strength of motivation in consumers buying behaviour through appropriate academic underpinnings. 

Potential, new, impulsive, discount, and loyal customers

This assignment will be discussing about the aspect of differentiating amongst the types as well as classes of customers and the ways by which this will be affecting the purchase behaviour of the customers. The different types of customers are considered to be the potential customers, new customers, impulsive customers, discount customers as well as loyal customers. In this context, there is the requirement for taking into consideration the influence of sustainability as well as recycling on purchase behaviour. Moreover, there is also the requirement of reviewing the pertinent theories of motivation and their influence on the behaviour of the customers. The motivational theories that have been considered here are Freud’s theory as well as Herzberg’s theory. Freud’s theory of motivation is considered being the archetype in respect of potentially defining all features of intrapsychic as well as interpersonal occurrences. Herzberg’s two-factor theory will be distinguishing the dissatisfiers from the satisfiers. The satisfiers are those factors that are causing satisfaction whereas the dissatisfiers are those factors that are causing dissatisfaction.

Product – The driving point of Unilever’s effort is associated with meeting the demands and needs of a large section of customers by providing better products within Singapore. The product that has been selected is Dove and it is mainly targeting the women customers. The product needs to be managed by having the involvement of strategic development and tactical development that will be increasing the demand of Dove in respect of its life cycle. An effective process regarding product understanding is the Aspinwall Classification System. The classification and rating of Dove is done through five variables such as,

1. Replacement rate that is stating how frequently the repurchasing of Dove was done by the women customers in Singapore
2. Gross margin stating how much profit was actualized from a single product of Dove
3. The flexibility regarding the purchasing habits of the women customers is associated with the buyer goal adjustment regarding Dove
4. The duration regarding product satisfaction will be depicting how long Dove will be producing benefits for the women customers
5. Duration of buyer search behaviour will be explaining how long will the women consumers continue doing their shopping regarding Dove

Price – Price is considered having the most significant impact regarding product positioning and growth rate of Dove and therefore, having a direct influence on the product’s sales volume and market shares. Effective pricing will assist Unilever to earn a significant and sustained market share and will be influencing the behaviour of the women buyers in a positive manner.

Place – It is essential to do the positioning of Dove at the appropriate place and time. The structure of distribution comprises of Unilever producing as well as selling the products and the other layers comprise of the wholesalers, retailers, and other intermediaries of marketing. The physical element of distribution will be playing a major role regarding the marketing mix due to the requirement relating to the moving of Dove products from the production area to the consumption area and once the product reaches the place of consumption, it will start influencing the buyer behaviour in respect of the women customers.

Motivational theories and their impact on customer behaviour

Promotion – There are different promotional channels that can be selected depending upon the requirements, availability of resources, applicability of appropriate process to the domestic market and the availability of best promotional modes, which will be influencing the buyer behaviour of women customer in an effective manner. Promotional mix is referring to the utilization of singular or collective methods and quantity of various forms of promotion that Unilever will be using for conveying information as well as uses to the end buyers, regarding the products of the organization and product characteristics in terms of Dove. The different types of promotion that comprises of the promotional aspects are personal selling, advertising, publicity, sales promotion, as well as public relation.  

                                                                                                   Figure 1 4P's of Marketing Mix

                                                                                                       (Source: WordPress 2017)

The potential customer is someone who has still not become a customer. To change them into actual buyers, there is the requirement to nurture them prior to their decision to make a purchase. Since, the person has already shown certain amount of interest towards the company this curiousness can be utilized by the company for converting the person to a potential buyer. For dealing with these potential customers, there is the requirement for showing him value as well as revealing the objective of the company. In dealing with the new customers, there is the requirement for guiding them towards success as well as leaving a contact option open. In regard to the aspect of guiding the new customers to success, the company can earn a long-lasting customer by explaining to them about the functioning of the products and ensuring that the new customer is having adequate knowledge of using it. This can be done with the help of an appropriate process of onboarding. In respect of leaving a contact option open, although the company is offering an automated onboarding for the customers, there is also the requirement for having the availability of an option for live customer service (Alkilani 2013). Discount customers are the kind of customers that acknowledges the product value but will not be purchasing it at full price. Therefore, it is almost impossible for upselling the product to the discount customer. These kinds of customers are looking for certain additional information regarding the precise dealing situations or the discounts that are being offered. The customer can receive support by the deal getting explained as well as what the customer is required doing for using it. But after the deal gets finished, it is quite challenging to maintain them as customers (Rafiq 2014). These kinds of customers keep returning for more. In addition to having a major influence on the revenue, these kinds of customers can also become the brand ambassador of the company. These types of customers will assist in the organizational growth through the word-of-mouth aspect. These kinds of customers will be recommending the product or service of the company to his friends as well as families, and as a result will be sending an increasing number of new customers to the company. The company is required leveraging the experience of such customers and try learning the reason for his satisfaction with the products as well as services of the company.

• Complex Buying Behaviour – In these kinds of buying behaviour, customers are showing a high involvement level while making purchases as well as observing significant differences within the brands. These kind of buying behaviour will get noticed when the price of the product is high, risky, after sales service that is of low quality and many more. This buying behaviour is the best example towards purchasing a mobile or laptop. These two kind of products are considered being costly and since, there are different types of brands, the customers have a feeling of uneasiness in making decisions regarding a particular brand.
• Dissonance Reducing Buying Behaviour – In these kinds of buying behaviour, there is very high involvement of the customers because of increased price and occasional purchase having less important distinction within the brands. In this aspect, the customer is purchasing the product having easy availability. Post the purchasing of the products customers might be facing disagreement after the purchase behaviour (Hollensen 2015).
• Habitual Buying Behaviour – In this kind of buying behaviour, there is a low involvement of the customers as well as the significance regarding brands is also low. For instance, while purchasing a match-box, the customers are simply going for it as well as purchasing it and there is no loyalty for the brand. Customers are not requiring any information concerning the purchase of the brand. Regarding these brands, television commercials, newspapers as well as magazines will be building positive attitude of customers towards the brand.
• Variety Seeking Buying Behaviour – In these kinds of buying behaviour, there is very low involvement of the customers, having a major distinction within the brands. In this scenario, customers will perceive the aspect regarding the switching of brands (Armstrong 2014).

Product, price, place, and promotion in marketing mix

The social factors influencing buyer behaviour of the women customers are considered to be reference groups, immediate family members, relatives, role in the society and status in the society. In respect of the reference groups, it can be stated that all the women buyers are having certain individuals who are influencing them in some manner. Such groups comprise of the buyers who are comparing themselves with the other women customers. These groups comprise of friends, members of the family, relative and colleagues. Regarding the aspect of role in the society, every individual is playing a dual societal role that depends on the group to which the women buyer is belonging. The tendency for buying regarding a buyer is depending on the role she is playing within the society. Regarding the aspect of societal status, it can be stated that a buyer belonging to the upper middle class will be spending on expensive products since, their behaviour will get impacted by the expensive products. On the other hand, a buyer belonging to the middle or lower income group will be purchasing products meant for their survival since the purchasing behaviour will get influenced only through their mode of survival. It can be stated that, Dove is a costlier soap product and therefore, it’s purchase will not be done by lower income group customers.

The cultural factors are having a major impact on the buying decision of the women customer in Singapore. Every buyer is having various sets of habits, beliefs and principles that is developed by her depending on the status and background of their families.

The different psychological factors that are influencing the buyer behaviour are,

1. Motivation and Need – The aspect of need is motivating the behaviour regarding buying within the women customers. The more basic is the need, the more is the priority it is assuming in driving the customers for fulfilling it. Advertising assists is associating a product such as Dove with the fulfilment of needs regarding the women customers.
2. Perception, Attention, Distortion and Retention – The selective process regarding information to reach a women buyer will be forming the source of perception. For getting the attention of the women buyers, shock tactics can be used. For instance, the women customers need to be shown actual proof that Dove really helps in improving the skin texture within a very short time period. The duration should be so less that it will really be very shocking for the women customers to belief it at the first place. After getting the attention of the women customer, there is the requirement for inducing them towards remembering the message without sorting it via the field of distortion regarding their viewpoints. Repeating the message assists in sticking of the information regarding a product or service within the buyers.
3. Learning and Conditioning – The buying behaviour of the women customers will be getting influenced by the aspect of conditioning that is examining the ways by which messages regarding rewards will be influencing a customer in preferring a product of Dove within a particular segment over another one.
4. Beliefs and Attitudes – The beliefs of a women customer regarding seller, product or service will be influencing whether and what they will be buying. When Unilever seems to do the sharing of values of a buyer, it might be attracting the women customer for making the purchase.

Since customers are asking for sustainable as well as recycled products, it can be stated that there has been a clear growth in the demand regarding those products, thus improving the aspect regarding buyer behaviour. Businesses are taking into consideration the sustainable as well as recycling processes that generate the corporate environmental profiles, to monitor as well as evaluate the sustainable as well as recycling performance and therefore, undertaking the improvement of the corporate outlook. The increase in the goodwill of Unilever will be attracting more number of women customers in respect of its products and services, thus improving the aspect regarding buyer behaviour. The buying behaviour also get impacted through the sustainable products such as Dove that will be increasing the competition within businesses for the generation of products that are more environmentally friendly (Peck 2013). Also, Eco-labelling networks that are monitoring as well as evaluating the sustainable as well as recycling products have been developed in various countries including Singapore, thus improving the influence regarding buyer behaviour of the women customers. Such networks have done life-cycle evaluation for understanding the effect of the products as well as services. (Hollensen 2015).

Social, cultural, and psychological factors affecting buyer behaviour

The aspect of improving the awareness of the brand by functioning effectively is becoming one of the pillars regarding advertising campaigns. The awareness regarding the brand gets improved through the aspect of encouraging as well as practicing the conservation of resources. In addition, there is a deeper level penetration regarding the staffs as well as their families. The scope regarding the enhancement of the brand image will get lost when the company will not be performing as it is preaching (Kotler 2015). The aspect of developing sustainable business practices will be lending itself to effective functioning that will be streamlining the endeavours as well as conserving the resources that will be doing the enhancement of staff efficiency as well as reducing the costs. The reduction of cost will be encompassing the energy conservation strategic aspects, which can simply be associated with switching off the lights that are not necessary. Such efforts that will have greater overall influence will be more costly towards getting implemented, but the long-term outcomes will be justifying the investment (Rowley 2016). In respect of every discussion concerning climate change, declining energy resources as well as environmental influence, it is quite natural that the state as well as federal government agencies will enact regulations for safeguarding the environment. Integration of sustainability within the business will be positioning itself in meeting the changing directives in a timely way. This is considered being the most simple as well as apparent way for engaging sustainable practices. There has been a growing endeavour that will be encompassing the mitigation of wastes regarding paper, rework or development of new methods that will be using reduced raw materials in producing the products (Baker 2014).

There are certain factors associated with the impact of motivation on buyer behaviour that are mentioned as under,

• Safety – Women consumers are having the desire for knowing that the products that are purchased by them will be surely benefitting them and are safe to use. A specific percentage of women shoppers are motivated towards paying considerably more amount of money towards meeting such a criteria.
• Conscious and Unconscious choice – There are certain choices that women customers are making consciously and some of them unconsciously. The marketers try to motivate the buyers by taking advantage of their unconscious choices through the introduction of manipulative components into their buying experience of the Dove soap.
• Culture – The cultural aspect of a customer and also their background as well as upbringing is having a significant influence regarding the food, clothing and personal products that they are choosing to buy. For instance, a particular brand of soap from Unilever such as Dove will be motivating individuals from certain cultures more than the others.
• Marketing – Advertisements as well as marketing for Dove are ever-present throughout the society, and can be found on television, radio, billboards and so on. There is the existence of this multi-billion industry, since there is an effectiveness of its messages and are influencing the buying behaviour of large number of women customers in Singapore.

Freud’s theory – According to Freud, an individual is unable to have a complete understanding of his or her motivational aspect. His theory, as a result is considered being the archetype in respect of potentially defining all features of intrapsychic as well as interpersonal occurrence, that is ranging from the most elemental urges of unconscious desire to the most lofty dimensions of the mind (East 2016).

                                                                                                                                                                                                                                                                      Figure 2 Freud's Model of Motivation

Sustainability and recycling's impact on buyer behaviour

                                                                                                    (Source: HigherEd, 2017)

The Freudian Motivation Theory will be explaining the sales process in respect of customers doing the fulfilment of functional requirements, and the unconscious needs. A salesperson.

Herzberg’s Theory – The two-factor theory was developed by Herzberg, which will be distinguishing the dissatisfiers from the satisfiers. The lack of the dissatisfiers is not considered to be sufficient and therefore, satisfiers must be having an active presence in motivating a purchase (Christopher 2013).

                                                                                        Figure 3 Herzberg's Model of Motivation

                                                                                                 (Source: BusinessJargons, 2017)

In this regard, the motivators are considered being efficient when it will be providing for customer recognition, self-actualization, achievement, growth, sense of responsibility and personal development.

Conclusion 

To conclude it can be stated that there are five kinds of customers such as potential customers, new customers, impulsive customers, discount customers as well as loyal customers. The various purchase behaviours are considered to be complex buying behaviour, dissonance reducing buying behaviour, habitual buying behaviour and variety seeking buying behaviour. The beneficial aspects regarding sustainability will be including the aspect of improving the image of the brand and competitive advantage, increasing the efficiency as well as reduction of cost, increasing the ability of business for complying with regulation and so on. The tendency for buying regarding a buyer is depending on the role she is playing within the society. Regarding the aspect of societal status, it can be stated that a buyer belonging to the upper middle class will be spending on expensive products since, their behaviour will get impacted by the expensive products. On the other hand, a buyer belonging to the middle or lower income group will be purchasing products meant for their survival since the purchasing behaviour will get influenced only through their mode of survival

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