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Choose One of the Following Topics

The purpose of this consumer insight report is to apply consumer behaviour theories, concepts and frameworks to a current marketing problem/opportunity. Using scholarly and reputable sources, you will provide an in-depth report which proposes three theoretically supported marketing strategies

For the purposes of this assessment you can choose one of the following two topics:

  1. ‘Game of Clones’-The Dark Side of Consumer Behaviour
  2. Home is where the smart is…Encouraging Smart Home Technology Adoption.

Recommended Structure for Report:

  1. Introduction 
    1. Overview of Topic

-Explain why your topic is interesting and why it needs to be investigated.

  1. Target Market

-Explain and justify what target market you are selecting and why you are selecting that particular market segment for this report.

  1. Problem/Opportunity Statement

-Provide a statement which summarises the problem/opportunity which is the focus of this report.

  1. Literature Review & Framework 
    1. Overview of literature on topic

-Provide an overview as to what previous research and literature has investigated on your topic

-You may use to wish tables here to summarise common points across different sources

  1. Theory/framework/Concept

-State what theory/theories you will use to investigate your problem/opportunity (a maximum of two theories should be used however, one is sufficient)

-Provide an overview of the theory and justification for your selection

- Link this theory/framework/concept back to your topic

  1. Marketing Strategies 
    1. Marketing Strategy 1
    2. Marketing Strategy 2
    3. Marketing Strategy 3

Ensure you explain how each of your strategies relates to your chosen theory

Also discuss the advantages and disadvantages of your strategy

  1. Recommendation & Conclusion 
    1. Recommended marketing strategy (Pick one of your three suggested and provide justification)
  2. References

Topic 1: ‘Game of Clones’-The Dark Side of Consumer Behaviour

Where do consumers draw the line? And when is it acceptable/unacceptable to illegally download or pirate a movie or TV series? This is an interesting question and one that is becoming increasingly important to entertainment organisations. This is due to increasing pirating of digital entertainment content such as Dallas Buyers Club and Game of Thrones. What is difficult for entertainment organisations to understand is why consumers continue to choose to partake in this behaviour, even though they are aware of its illegality.

It appears the threats of penalties such as jail time and fines are not discouraging consumers from pirating entertainment. Therefore, online entertainment service providers are looking to you as a consumer behaviour specialist to understand how they can take a new approach to discouraging pirating behaviour and encourage the legal consumption of their products and services.

Topic 2: Home is where the smart is…Encouraging Smart Home Technology Adoption.

Recent forecasts suggest the market size for smart homes, modern homes, which have appliances or electronic devices that can be controlled remotely by the owner, will grow to an estimated $40.9 billion by 2020 with a household penetration of 19.5% by 2022. The projected opportunities but also problems smart homes offer households has been a popular discussion point. For example, research suggests smart home technologies will assist households in controlling their demand and use of energy, which benefits household financial well-being and subsequently the environment from reduced energy production pressures. However, there is also discussions of the potential for smart home technologies to bring about ‘dark side’ issues such as technology-facilitated abuse and privacy and information misuse. The projected opportunities but also problems smart homes offer households has been a popular discussion point. It is important to understand household’s readiness and willingness to engage with smart home technologies so that marketers can encourage greater levels of adoption.

Choose One of the Following Topics

Overview of Topic

The topic regarding the smart Home Technology adoption is important and needs to be investigates since the smart home services provide the families and the people with comfort, entertainment, security and also with the improved communication within the home environment.

The target market that would be selected for the smart home adoption, would include the enthusiastic adopters who are adventurous to try out new technical gadgets and experiments with technological innovations. The target customer would also include the people who would have a security system in their homes

The main problem statement that needs to be addressed in this report is the identification of the challenges which are associated with the market of the smart home technology in reaching out to a greater number of audience than those who are the early adopters of this services. There needs to be an increase in the customer base and young consumers should be increased.

Overview of literature on topic

According to Bao, (2014), the smart home technology has been originated specially for the people who are aged. It is often known as the home automation, which would help the people to adapt to an environment which is automatic and which provides the home owners to have a secured, a convenient , comfortable and energy efficient environment.  These people control the smart devices, either by the smart phone application or the smart home networked device. The smart home technology in the households is considered as one of the primary services of Internet facilities which can help the customers to manage their homes properly (Ehrenhard, Kijil & Nieuwenhuis, 2014). However, it has been seen that even if the companies are willing to launch the smart home products, there have been fewer sale of the same. It has been discussed by Kim, Park & Choi (2017), that there have been issues regarding the technological networks in the homes as well as the protection of the personal information in the household have been considered to be a severe issue. Thus as per the argument of Cosku, Kaner & Bostan, 2018),  there have been sales of the smart home products in the demographics where the customers have been the early adopters of the service. The older customers are more likely to purchase the smart home technological services than the newer or the young customers. Thus there needed to be a proper marketing strategy with the help of which the promotion as well as the sales of the Internet of Things could be increased. However here, it has also been argued by Bao,, (2014), that. There are several barriers to the adoption of this technological advanced smart devices in the household system. One of this barrier is associated with the technological fragmentation which can connect two or three homes together and there is a chance of loss of the private information this has prevented several customers to opt for the digitalized platforms. However, also there are several customers who are adventurous and enthusiastic, and they are willing to accept the technological concept and improve their personal performances. Coskun, Kaner & Bostan (2018) also discusses in this context that the perceived usefulness of the smart home technological services and products have also proven to be an important factor , playing in between the willingness of the people and their satisfaction.

Recommended Structure for Report

Yang, Lee & Zo (2017), the theoretical concept which can be associated with the purchase of the smart home technological service is the attitudinal theory. As per this theory, a consumer or a customer behaves in a manner which is dominated by this cognition, his attitude and his behavior. As per the psychological domain, he acts on the basis of his attitude which is judged possibly by the reasons that he has carved out of the product (Hollensen, 2019).

As per the discussion of Yang, Lee & Zo (2017), the market sales and adoption of the technological product is dependent upon the potential risk and the benefits of the products according to the conception of the customers. Most of the customers, who purchase this smart home technology in their homes, are believer of the fact that this product supports the management of the energy in respective homes. Moreover it has also been discussed by Hubert, (2018), that the other segment of the customers who abstain from adoption of the product believe that the smart services imply advanced technological control, ceding autonomy and also the loss of the privacy in their homes. Rauschnabel, He & Ro (2018) discusses that indeed there are several technological advancements even in the smart home networks, but there have been a common idea existing with the customer base, upon which they rely on , before taking a decision, the change in attitude should be dependent upon the issues and also on the new advancements if they are effectively communicated with the people. In particular, according to Rauschnabel, He & Ro (2018), instead of finding an immediate impact of security issues on technology adoption, customers were directed by the rational choice approach to question if security problems have an adverse affect on home automation technology adoption by affecting cognitive processes which have a more instantaneous or proximal impact on behavioral aspirations.

As per the discussion of Baker (2014), one of the marketing strategies that can be used by the manufacturers in order to increase the sales of the smart home technology services is to look beyond the original demographics , which used to purchase the products. There needs to be customer segmentation, as per the convenience seekers or the affluent. It has been seen as per the research that there have been increase in sales of the products because most of the people purchase the item not because of the technology but only because they prefer to manage their homes better. Thus there needs to be a proper analysis of the market demographics and the sale of the products must be dependent upon the same. The market should be focused on the real demands of the customers, because the customers associated with the markets are mainly based on the problems that they face. Key & Czaplewski (2017) states in their argument that this can be made feasible on the part of the manufacturing company if they get engaged with the strategic partners. These partners can help the company to expand their capabilities in the sector of the smart home technological adoption. The partnership in any company can help the origination to cover up the gaps that exist in the knowledge and capabilities of both the customer segments as well as the company itself. In accordance to this, there also needs to be a development in the communication standards of the company. Also as per the discussion of Park,, (2017), the need for the adoption of the smart home technology should be communicated to the audiences with the help of several tactics such as the advertisements or through the help of these strategic partnerships. Also the benefits of the product should be communicated to the target customers so that they can be attracted towards the product and the sales can be increased henceforth.

Topic 1: Game of Clones

Since it is difficult for the company to reach the product service to the low income group customers, these people can be reached with the added benefits. According to Aghazadeh (2015), most of the people who have less income, are least interested in the technological operations. Thus the most important strategy that the manufacturers can adopt  is the application of the green option, which would help them to understand the basic features of the product. Most of the families in today’s generation are concerned regarding the environment. These segments can be targeted and there can be advertisements regarding the current issue of global warming and climate change. Key & Czaplewski (2017) also discusses that the consumers need to be aware of the environmental issues so that they can opt for the better innovative products which are eco- friendly. Therefore the smart home technology products should concentrate on the promotion of the environmental benefits so that there can be increase in the target audience. The young customers need to be taught about the value of the green products and the benefits that it can bring to the human kind as well as the environment. Also, as per the discussion of Schmidt, Spann & Zeithammer (2015),  the upper middle class people are incredibly pleased to purchase products that help maintain the houses and are willing to embrace modern technological innovation but are not especially concerned about climate change. So marketing companies of the smart home technology should offer an alternative to attempting to reach this section of the population.

Galbraith (2014) discusses that another important strategy that the manufacturers can make use of the after sales service. What the customers look for is the service that they receive after purchasing the product in case of any discrepancies or any kind of problems with the technological aspects. Thus the channels to the market needs to be improved. Most of the product services are based upon the traditional retailers, which can cause a huge problem. Most of the smart home technological installation requires the specialized and modern methods, and since these machines still rely on the traditional retailers, the customers need to hire specialized people for the job (Key & Czaplewski, 2017). Thus the market strategy in this field needs to be improved where the market professionals would provide with all the services, including the installation as well as the after sales service so that the customers need not have to take additional burden by bringing in carpenters or security professionals for the job (Schmidt, Spann & Zeithammer, 2015).

Topic 2: Home is where the smart is…Encouraging Smart Home Technology Adoption

Recommendation & Conclusion

Thus it can be concluded from the above discussion that the new marketing strategies could help the company to achieve a greater customer base. The strategy that can be recommended to the manufacturing company is that there should be the opportunity of the people and the new customers to have installation facilities as well as the after sales service. This is a major issue which can be solved. There have been customers who would not prefer to avail and adopt the smart home technology because of the hassle that they have to face later. Thus there should be a facility of free after installation s well as after sales service.


Aghazadeh, H. (2015). Strategic marketing management: Achieving superior business performance through intelligent marketing strategy. Procedia-Social and Behavioral Sciences, 207, 125-134.

Baker, M. J. (2014). Marketing strategy and management. Macmillan International Higher Education.

Bao, H., Chong, A. Y. L., Ooi, K. B., & Lin, B. (2014). Are Chinese consumers ready to adopt mobile smart home? An empirical analysis. International Journal of Mobile Communications, 12(5), 496-511.

Coskun, A., Kaner, G., & Bostan, ?. (2018). Is smart home a necessity or a fantasy for the mainstream user? A study on users’ expectations of smart household appliances. International Journal of Design, 12(1).

Ehrenhard, M., Kijl, B., & Nieuwenhuis, L. (2014). Market adoption barriers of multi-stakeholder technology: Smart homes for the aging population. Technological forecasting and social change, 89, 306-315.

Galbraith, J. R. (2014). Designing organizations: Strategy, structure, and process at the business unit and enterprise levels. John Wiley & Sons.

Hollensen, S. (2019). Marketing management: A relationship approach. Pearson Education.

Hubert, M., Blut, M., Brock, C., Zhang, R. W., Koch, V., &Riedl, R. (2018). The influence of acceptance and adoption drivers on smart home usage. European Journal of Marketing.

Key, T. M., & Czaplewski, A. J. (2017). Upstream social marketing strategy: An integrated marketing communications approach. Business Horizons, 60(3), 325-333.

Kim, Y., Park, Y., & Choi, J. (2017). A study on the adoption of IoT smart home service: using Value-based Adoption Model. Total Quality Management & Business Excellence, 28(9-10), 1149-1165.

Park, E., Cho, Y., Han, J., & Kwon, S. J. (2017). Comprehensive approaches to user acceptance of Internet of Things in a smart home environment. IEEE Internet of Things Journal, 4(6), 2342-2350.

Rauschnabel, P. A., He, J., & Ro, Y. K. (2018). Antecedents to the adoption of augmented reality smart glasses: A closer look at privacy risks. Journal of Business Research, 92, 374-384.

Schmidt, K. M., Spann, M., & Zeithammer, R. (2015). Pay what you want as a marketing strategy in monopolistic and competitive markets. Management Science, 61(6), 1217-1236.

Yang, H., Lee, H., & Zo, H. (2017). User acceptance of smart home services: an extension of the theory of planned behavior. Industrial Management & Data Systems.

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