Consumer Behaviour is therefore classified as a mechanism which incorporates all the activities inclusive of obtaining, consuming as well as disposing of products and services. In other words the term Consumer Behaviour can be explained as the study of how different consumers generate ideas/ thoughts on several factors such as what the consumers buy which can be a product or a service, why they buy which includes specific reasoning for the purchase, when the consumers buy the service or the product, from where the consumers buy it, how often the consumers buy the service or a product and also how often the consumers use the service or a product. It is also known as a product person situation. (In-Text Referencing, pg. 53) Consumer Behaviour is basically a discipline trading with how and why consumers purchase or do not purchase goods and services. (In-Text Referencing, pg. 52). It is ‘concerned with all activities directly involved in obtaining, consuming and disposing of products and services, including the decision processes that precede and follow these actions’ (Engel, Blackwell, & Miniard, 1995Engel, J. F., Blackwell, R. D., & Miniard, R. W.(1995).
An influential cooperation of affect, behaviour and also environmental events in which society or human beings administer the exchange aspects of their lives is defined as consumer behaviour. (Bennett, While, 1995, p. 59). The term consumer behaviour comprises of thoughts as well as emotions the consumers experience in the process of consumption. Consumer Behaviour is the study of processes that basically satisfy their needs, wants and desires when an individual or a group purchase, use, dispose the product. (Solomon, 2009, pg. 33).
As consumer behaviour reflects upon multiple theories while each theory trading with human behaviours from a different perspective. There are considered to be several factors affecting the behaviour of the consumers such as marketing campaigns, consumer’s personal preferences, external factors such as culture, social class, internal factors which involves the need, the reason behind purchasing, consumer’s emotions, social factors such as consumer behaviour which can be strongly persuaded by a family member, or an example can be seen where consumers are influenced by focus groups, personal as well as psychological factors which includes age, perception, an occupation of a consumer is seen having a strong impact on the consumer’s purchasing behaviour, and also consumer’s personal belief as well as attitude. When discussing about consumer behaviour the word consumer has two different meanings. One is an individual consumer or an individual buyer that purchases goods or services for their personal use which can be used in a day to day life, and the latter one is a consumer that originally exists in the market. Profit as well as non-profit organisations, government agencies are some examples of the latter type of consumers.
Why understanding consumer behaviour is important for organisations
It is considered very critical from an organisation’s perspective to understand the consumer behaviour. An example can be seen where if an organisation fails to forecast how consumers will respond to a particular product, the organisation can face losses. Consumer behaviour is very complex because each consumer has different mind and attitude towards purchase, consumption and disposal of product (Solomon, 2009). As consumers are the most important person for marketer or sales person, therefore it is important for them to consider the likes and dislikes the consumers so that they can provide them with the goods and services accordingly (Solomon, 2009). Organisations need to be very careful while understanding the consumer behaviour because the focal point on the consumers is the main subscriber to the marketing of any organisation’s practice. It is very evident that marketing teams of any organisation who genuinely understand the needs and wants of their consumers more effectively come up with reasonable products and services. Understanding a consumer behaviour has become a necessity these days if any organisation wants to avoid losses, business collapse and also bad reputation in the market especially before the launch of a product or a service. It is considered that the behaviour of each consumer varies as each of the consumer comprises of different attitudes while purchasing, using as well as disposing the product. Consumers purchase products based on different aspects such as values, situations, for some consumers it is a personal emotion and for some it could mean a particular goal.
Understanding consumer behaviour is very useful and very beneficial for organisations in several ways such as:
• Designing the most effective doable product or service that satisfies the needs, wants and demands of the consumers,
• In terms of deciding the worth of the product or a service consumers are willing to pay, and
• Also looking for the most effective methodology of promotion through which consumers can be persuaded to purchase a product. https://www.ukessays.com/essays/marketing/importance-of-consumer-behaviour-to-business-managers-marketing-essay.php#citethis
The needs and wants of the consumers are different. For example for some consumers that need is physical for some consumers the need is based on love, affection. Therefore understanding consumer behaviours help organisations to understand whether the consumers will purchase the product just on the basis that it is new in the market as well as more popular or the consumers will purchase the product because the product is something that the consumers are genuinely after. (Shethna, Jesal, 2017). If an organisation claims that there products will make consumers more competitive there are higher chances that consumers will be more willing to buy those type of products. https://www.educba.com/consumer-behavior/
In order for an organisation to make sure that there products and services are embraced as well as purchased they need to make sure that they are understanding the needs and wants of the consumers. Without actually understanding the consumer behaviour it will be very difficult for the organisations to assume that the consumers will like their product or service and the likelihood for an organisation being not successful will also increase. According to Parkinson (1982) consumer behaviour determines the organisation’s success as well as an organisation’s failure/collapse. Organisations such as Apple, Samsung, and YouTube have all understood the needs and wants of the consumers. Such organisations have created the needs and wants that consumers will purchase such as smartphones, laptops, tablets, portable music devices. Another example can be seen where a consumer purchases a product or downloads ITunes Apple has an access to knowledge the company leverages. Apple then uses such data to realise vital insight into the buyer and what drives purchase behaviour. (Zoller, Stephen, 2018).
Understanding ideas of client behaviour at a high-level involves a framework to realise unjust insight from market research. The wheel of client analysis provides a framework to check client behaviour that comprises of affect and knowledge, consumer behaviour and setting. Therefore, consumer behaviour is very important from an organisation’s perspective as products and services are made to meet the needs as well as wants of the consumers. The understanding of consumer behaviour helps organisation in analysing several factors that has an influence on the purchasing decision of the customers.
Another example can be seen where in YouTube for example a consumer has liked, disliked a video or has subscribed to a channel, YouTube keeps on sending notifications to the consumers to make sure that they don’t miss on anything, they have online surveys too where the consumers can answer how YouTube can get better and improve their services to meet the needs as well as wants of the consumers. Based on the likes, dislikes, or even subscriptions and sponsoring a channel YouTube has a function of trending which means based on consumer likes, dislikes they can view videos that are currently trending.
Organisation’s Name – Grand Hyatt, Melbourne
Primary Target Audience – Business/ Corporate Clients,
Secondary Target Market – Couples, Families, primary buyers of Grand Hyatt’s main competitors
In this particular hotel the primary target is business or corporate clients as they are always on the move. They are considered to be the primary target because of their eagerness to or their company’s willingness to pay higher room prices. Corporate Clients travel for a number of reasons such as to attend meetings, to give presentations, to attend conferences, Such primary targets are always looking for fast internet speed (complimentary wireless, wired), they get an access to all electronic devices such as printers, fax machines, scanners and they also get an access to the club lounge or to the hotel lounge. Such clients are entitled for an express check-in, express check-out and video review billing which means all the arrival and departure formalities take place through hotel’s mobile application, airport transfers.
48% of the guests in the hotel industry are considered to be business or corporate travellers. (Powers, Tom, 2012). Such type of clients get high class service such as quality bed, desk with internet access, access to the business centre, even their arrival and departure formalities are done through the hotel’s mobile application just to save time as these clients expect high quality service. Often during their stay in the hotel they are asked for whether they need their suits dry-cleaned or not and are also offered dry-cleaning services. It is followed by an email sent by the hotel to these clients regarding the list of highest rated restaurants or cafes within the area where the business travellers can take their clients. Such clients are often classified as VIP or VVIP’s and they receive unforgettable welcome as they arrive by helicopter (luxury arrival), they are entitled for services such as private butler
Couples are that kind of travellers who seek different places, restaurants as well as high quality bedding. Couples are seen going to markets, nearby attractions. As they go to a place to enjoy, a weekend getaway just to relax where they can spend some good time, enjoy the moment.
On the other hand when it comes to families they have specific needs as well as wants from the hotel as they are mostly after kid-friendly places, and inexpensive restaurants. Most of the families stay in the hotel but when it comes to dining options, majority of the families dine outside the hotel just in order to avoid inexpensive restaurant costs within the hotel. The families stay in a hotel for entertainment purposes where there kids can have an additional room, they have needs for example they are after nearby rooms or sometimes rooms that are next to each other, interconnecting rooms. Hotels are seen offering discounts to families with kids as promotional basis by offering them packages at a reduced price, sometimes the packages include tickets to an amusement park or to a kid-friendly attraction.
Another segment includes where Grand Hyatt can win the primary buyers of their competitors such as Intercontinental, Accor, Hilton etc by offering their primary buyers different types of accommodation packages at a lower price, and also valuing as well as acknowledging them by offering guest recognition programs, where they can come back again and again as it will develop loyalty among the guests.