Consumer behaviour 2 PDF

Preview

Summary

CONSUMER BEHAVIOUR...

Description

24202 CONSUMER BEHAVIOR INDVIDUAL RESEARCH REPORT

SHAILEEN KUMAR(13371947) Tutor: Kay Naumann – Tuesday 11:30AM Word Count: 1, 2 04

TABLE OF CONTENTS 1.0 Introduction ...................................................................................... 2 2.0 Interview Analyse ................................................................................2 2.1 Brand Strengths and Competitive Advantage Uncovered ...................................2 2.2 Core Marketing Problem Faced by Myer …..........................................................2 2.3 Marketing Problem Linked to Consumer theories and concepts …….....................2 3.0 Marketing Research Journal ........................................................................3 3.1 Title of Chosen Secondary Article………………………………………………........3 3.2 Overall Goal of Article and how Research was carried out .....................3 3.3 Links between Theory and Conclusion of Article to Proposed Marketing Problems and Solutions .....................3-4 4.0 Reference list .......................................................................................4 Appendix A – Interview 1 ............................................................................5-6 Appendix B – Interview 2 ...........................................................................7-8 Appendix C- Interview 3 ..........................................................................9-10 Appendix D – Interview 4 .........................................................................11-12 Appendix E- interview 5...........................................................................13-15 Appendix F – interview 6 ........................................................................16-17 Appendix G – Interview 7 .........................................................................18-19

1

1.0 INTRODUCTION During the interview process, gaining a diverse insight was imperative. Interviewing a total of 7 interviewees varying in a range of age groups from 19-43 to obtain information on how Australian department stores, in particular, Myers is performing. Results have found that the older consumers are more likely to shop at stores like David Jones and Myers than younger consumers who are more likely to purchase at shops such as Kmart, Big w, and Target. According to living in urban, suburban, and rural areas. Majority people interviewed came from suburban regions, which influenced their final results as a convenience and nearby locations of shops became a contributing factor. As Target, Big W, and Kmart were deemed the most convenient for suburban regions opposed to urban areas which found Myers, and David Jones most convenient. Lastly, on gender bases, to gain a diverse range with three males and four females, to gain insight on the different genders shopping preferences.

2.0 INTERVIEW ANALYSE 2.1 BRAND STRENGTHS AND COMPETITIVE ADVANATAGES UNCOVERED Clear brand strengths uncovered during the interview process, is that David Jones has a more extensive brand lists than Myer this can act as a significant competitive advantage, as David Jones is meeting consumer demands opposed to Myer. Furthermore, the majority of the younger interviewees tend to rank Kmart higher than Myer, this is a significant brand strength as Kmart is seen to be meeting consumer demands in the younger age group opposed to Myer. Both examples pose a threat to Myer portraying a clear competitive advantage over the store.

2.3 CORE MARKETING PROBLEMS FACED BY MYER Myers predominant marketing problem according to the interviews conducted is the failure to hit changing consumer demands, by lacking in selling a wide range of brands, not fulfilling the younger generations expectations and failing to set up a campaign that consumers will retain. Meeting consumer demand is essential to satisfy consumers’ needs and wants. During the interview process, there was a number of questions asked including “What changes can you think of that would change your outlook of Myer and make you want to shop there more often?” a total of 4/7 responses included to introduce more brands to the store, this was also compared with David Jones in the question “How does Myer differentiate from other stores such as David jones?” in which interviewees seemed clueless on which indicated that Myers lacks any stand out features which distinguish them from competing stores. Similarly, the Myers “My Store” campaign a total of 5/7 interviewees did not recall the campaign, which results in a significant brand awareness downfall for Myers. Furthermore, the younger age group interviewees were more subjected to ranking Myers a low score resulting in Myers continuous failure to hit consumer demands in even the younger generations, compared to higher ranking department stores such as Kmart and Target. These three following marketing problems are a result of what Myer is facing on the interviews conducted.

2.4 MARKETING PROBLEM LINKED TO CONSUMER THEORIES AND CONCEPTS In relation to previously learned consumer behaviour theories and concepts, Myer’s marketing problems such as producing a campaign consumer retain is linked towards the long-term memory enhancing marketing concept. According to the interviews conducted, the majority of the interviewees did not recall the Myer “My Store” campaign, to overcome this marketing flaw. Myers can incorporate the long-term memory enhancing marketing concept, which involves increasing the campaigns exposure through the rehearsal step; this includes producing new enticing slogans and catchy jingles associated with the campaign to encourage consumers to shop at Myers. Furthermore, the recirculation step consists of the repetition of marketing communications to not only intrigue consumers but make consumers retain the Myers campaign fulfilling the overall objective of the long-term memory concept.

2

3.0 MARKET RESEARCH JOURNAL 3.1 TITLE OF CHOSEN SECONDARY ARTICLE “The Influence of Purchase Motivation on Perceived Preference Uniqueness and Assortment Size Choice”

3.2 OVERALL GOAL OF ARTICLE AND HOW RESEARCH WAS CARRIED OUT The overall goal of the chosen article is the how hedonic purchase behaviour of purchasing something based on personal pleasurer differentiates between utilitarian purchase behaviour of purchasing something that is a functional need to the consumer. Also, how these two theories influence consumers assortment size choices and their preference uniqueness. With a total of six studies undertaken in the article, the goal was reached by delegating specific experiments over a large number of random participants and then analysing the findings by complying statistics and graphs to portray the conclusion of the experiment. A summary of each experiment includes studies 1A which gives the participants scenarios of hedonic and utilitarian book purchase to research assortment sizes, studies 1B follows experiment 1A and furthers the findings by asking participants to specify their perceived assortment size. Study 2 is the research of post satisfaction by researching participants to pick a song and evaluate in hedonic or utilitarian condition. Study 3 makes participants choose a car paint colour based on either a hedonic or utilitarian scenario. Study 4 researches the retailer’s knowledge by giving participants customer-tailored assortment size based on personal preference compared to an assortment of unknown preferences and lastly study 6 manipulates participants unique perceptions by using comparative social cues by researching participants book purchases among others.

3.3 LINKS BETWEEN THEORY AND CONCLUSION OF ARTICLE TO PROPOSED MARKETING PROBLEMS AND SOLUTIONS The theories discussed in the article is based on the different motivation’s consumers face when purchasing a product, the two leading theories follow a hedonic purchase behaviour the desire to purchase something out of personal pleasure and utilitarian purchase behaviour the need to purchase functional products. These two theories correlate with the three identified marketing problems that Myer faces according to the interviews conducted. Firstly, interviewees had noted that Myer needed to include a more extensive brand lists to make them shop at Myers more often, this became a marketing problem as the majority of interviewees compared Myer brands with David Jones larger brand list which resulted in David Jones having a competitive advantage. The article investigated whether consumers are attracted to a large versus a small product of assortments. It was found in experiment 1A, that consumers “predominantly prefer larger assortments” following a hedonic purchase behaviour. Therefore, Myer’s aim to combat this marketing problem is to include a more extensive brand list to gain that competitive advantage over David Jones brands. An example is to expand its clothing line. Secondly, the majority of the interviewees were from a young age group, and results indicated that younger consumers were not attracted to shops like Myers and preferred other department stores such as Kmart. This linked to the article as it derived the concept of uniqueness and how “hedonic purchase conditions are perceived to be more unique than utilitarian purchase motivations” having a unique preference leads to consumers having a more difficult time in finding their preferred product which was found in experiment 3. Myer’s aim to undertake this issue is to study the unique preference of the younger generation and manipulate the younger consumers motivation in purchasing from Myer. For example, to hit the younger consumers unique preference could be to add products directed to the younger generations such as vintage clothing items, expansion of brands such as Nike and Adidas, and broader expansion of sneakers. Thirdly according to the interviewees, only 2/7 could recall the Myers “My Store” campaign. Which places the campaign as a drastic downfall as brand awareness becomes a marketing problem for Myer. This links towards the article as it presents research on both hedonic and utilitarian purchase motivations and their effects on consumers. Myer sells both hedonic products such as leisure clothing items and also utilitarian products such

3

as homeware necessities this concludes as Myer having a multipurpose store which can attract both consumer motivations types. Further, when asked interviewees of what department sections they shop the most, the majority concluded in hedonic products. Myer’s lead in undertaking the campaign downfall is to bring up a campaign that incorporates both motivations. For example, instead of Myer marketing, just clothing brands, Myer could market their homeware products more often. This leads to more consumers being aware of the campaign and what Myers has to offer.

4.0 REFERNCES Whitley, Trudel, Kurt. 2018 ‘The Influence of Purchase Motivation on Perceived Preference Uniqueness and Assortment Size Choice’, The Journal of Consumer Research, vol. 45, pp. 710-723 Niroshan Samuel, ‘Long Term Memory’ Marketing: How to Stop Wasting your Advertising Budget, 16 August 2019

4

APPENDIX A – INTERVIEW 1 1. Name: • Roneeta Lal 2. Age: • 43 years old 3. Gender: • Female 4. How many years have you lived in Australia? • 20 years, moved from Fiji 5. Do you live in an urban, suburban, or rural area? • Suburban area 6. How often do you buy items from Australian department stores whether in person or Online? • Shop frequently, every weekend 7. Roughly in a month how many times would you purchase something from Australian department stores? • Every week tend to go shopping on weekends and shop online when I like something 8. Please rank Myer, David Jones, Kmart, Target, and Big W on each of the following factors. And why you listed it from highest to lowest a. Value for money? • David Jones - expensive but product and quality is good, Myer – expensive but product and quality is good, Kmart – Really cheap, sometimes products are not up to standard, Target and Big W – Don’t usually shop b. Convenient locations? • Myers - Frequently in most Westfields, Kmart – close location, Big W and Target – Frequently in most Westfields and David Jones furthest away c. Convenient trading hours? • Kmart is 24/7 which is good, and the rest is reasonable hours could open past 5 for David Jones and Myers d. The range of products available? • David Jones - Range of big brands, Kmart – good range for necessities, Myer – Range of brands, Target and Big W – Hardly shop e. Car parking availability? • Kmart – unlimited time limit, All the rest is often in Westfield with three-hour limit of parking and a difficulty in finding spots f. Store personnel? • David Jones – Nice feeling going in and friendly staff, Myers – Quite good, Kmart, Big W and Target doesn’t really have store personnel, hardly any staff around g. The store ambiance, layout, and features? • David Jones – Good lighting and sophisticated, Myer- Bit dim lights in some areas, too much light in other areas, layout is good, Kmart – Layout is good and find it easy to find things, Target and Big W – Quite good h. The loyalty reward program?

5

Only have David Jones and Myers cards – Rarely got any deals from David Jones and Myers get birthday deals. On both I get catalogues sent to home i. Returns policy? • David Jones - Fantastic return, accepted returns even with tags off, Kmart – Returned opened vacuum, Myers – good return policy, Target and Big W – haven’t returned anything j. Delivery and shipping? • David Jones, Myers and Kmart - Usually have to pay for shipping and takes about a week, Big W and Target – haven’t brought anything online k. How good the mobile application/website is? • Only have Myers app – makes it easier to purchase l. How convenient is the website compared to the store / Online store seems more convenient? • Websites are more convenient, then going in store – don’t like busy environments •

Myer specific questions 9. Why have you listed Myer the way you have? • Myer is good store 10. What did you think of Myer “My Store” campaign? • Think I’ve heard It before, not sure 11. How often do you see Myer advertisement, and does it entice you to shop there? • Yes, on TV 12. What is your overall impression of Myer in terms of product prices? • Sometimes it is unnecessary priced, but good on sales 13. In relation to the price does it meet your expectations when it comes to product quality? • The quality is good, only buy when on sales seasons 14. What section of the Myer store, do you shop the most? • Womenswear and Homeware 15. How convenient is the website compared to the store / Does the Online store seems more convenient? • Very convenient tend to go in store to look and buy online 16. On a scale of 1-10, how is the customer service representative at Myer? • 6/10 – Sometimes feels like they don’t want to help 17. How does Myer differentiate from other stores such as David jones? • Has more sales than David Jones 18. Are there any things you specifically do not like about Myer? • Prices are too expensive 19. What changes can you think of that would change your outlook of Myer and make you want to shop there more often? • Cheaper prices 20. Would you recommend this store to others and which type of people would you recommend this to? • Yes, to my friends and work colleagues

6

APPENDIX B – INTERVIEW 2 1.Name: • Stephanie Kumar 2.Age: • 19 years old 3. Gender: • Female 4.How many years have you lived in Australia? • 19 – was born here 5. Do you live in an urban, suburban, or rural area? • Suburban area in Liverpool 6. How often do you buy items from Australian department stores whether in person or Online? • Fortnightly I go online shopping, rarely go in stores 7. Roughly in a month how many times would you purchase something from Australian department stores? • About twice a month 8.Please rank Myer, David Jones, Kmart, Target, and Big W on each of the following factors. And give an explanation of why you ranked it that way? a. Value for money? • Kmart, Big W, Target, David Jones, Myer - Affordability at the expense of the quality that’s why Kmart is top for me b. Convenient locations? • Big W, Target, Myer, Kmart, David Jones - Number near residency, Big W is closest to me therefore most convenient c. Convenient trading hours? • Kmart, Big W, Target, David Jones, Myer- The Casula Mall Kmart is 24 hours which makes it something to do rather than just shopping d. The range of products available? • Kmart, Big W, Target, David Jones, Myer – Kmart is sectioned appropriately and easy to find items however Myer is usually multi-levelled which is confusing and annoying to me e. Car parking availability? • Same for all f. Store personnel? • Kmart, Target, Big W, David Jones, Myer - Myer people are smugg, hate their jobs and judge usually g. The store ambiance, layout, and features? • Kmart, David Jones, Myer, Target, Big W - Fancy and relatable h. The loyalty reward program? • Big W, Target, David Jones, Myer, Kmart - not familiar with all programs available i. Returns policy? • David Jones, Big W, Target, Kmart, Myer - not familiar with all store policies j. Delivery and shipping? • Don’t know much about delivery and shipping of these stores

7

k. How good is the mobile application/website is? • Don’t have any store apps downloaded h. how convenient is the website compared to the store / Online store seems more convenient? • Only shopped from Kmart online but never brought anything Myer specific questions 9. Why have you listed Myer the way you have? • Never go to the store too expensive and is not targeted well towards the new generation 10. What did you think of Myer “My Store” campaign? • Didn't know of its existence which means poor marketing 11. How often do you see Myer advertisement, and does it entice you to shop there? • Never, I do see mannequin stands with Myer products, it doesn't entice me 12. What is your overall impression of Myer in terms of product prices? • Seems too Expensive 13. In relation to the price does it meet your expectations when it comes to product quality? • The quality is decent on what I have purchased such as some tops and bedroom sheets 14. What section of the Myer store, do you shop the most? • Perfume section 15. How convenient is the website compared to the store / Does the Online store seems more convenient? • Haven’t shopped at Myers Online 16. On a scale of 1-10, how is the customer service representative at Myer? • 2/10 - customer service representatives have a smug I’m better than you kind of attitude which is unpleasant 17. How does Myer differentiate from other stores such as David jones? • Not a stand out store 18. Are there any things you specifically do not like about Myer? • Store layout, product selection mainly in terms of apparel, and price 19. What changes can you think of that would change your outlook of Myer and make you want to shop there more often? • Affordability and changes in staff 20. Would you recommend this store to others and which type of people would you recommend this to? • Not really, don’t really shop there

8

APPENDIX C – INTERVIEW 3 1.Name: • Emily Hunyh 2.Age: • 20 3. Gender: • Female 4.How many years have you lived in Australia? • 20 – born here 5. Do you live in an urban, suburban, or rural area? • Suburban 6. How often do you buy items from Australian department stores whether in person or Online? • Not often, I go in person usually. 7. Roughly in a month how many times would you purchase something from Australian department stores? • Once a month, very rarely 8.Please rank Myer, David Jones, Kmart, Target, and Big W on each of the following factors. a. Value for money? • Kmart, Big W, Target, Myers, David Jones - Cheapest is Kmart, don’t really know much about Myers/David Jones b. Convenient locations? • Big W, Kmart, Target, Myers, David Jones - Closest to home to furthest away c. Convenient trading hours? • unsure of trading hours d. The range of products available? • Kmart, Big W, Target, David Jones, Myers – Kmart has a Wider varity of things I’m looking for opposed to David Jones/Myers e. Car parking availab...