Essays on Understanding Consumer Purchasing Pattern Case Study

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The paper "Understanding Consumer Purchasing Pattern" is a perfect example of a marketing case study. Buying behavior refers to an ultimate consumer’ s decision-making process in buying and use of products. It revolves around studying why consumers buy certain products, the factors that influence their purchases and the changing factors in society. This report explores consumer purchasing patterns. Further, it offers an insight into the “ influences and considerations” met by consumers before, during and after the purchase of a commodity takes place. For the purpose of this report, the findings are regarded as representative and present an expansive view of consumer behavior.

The generalist view is expected to enable the formulation of a marketing mix strategy aimed at ensuring customer satisfaction and added value to consumers. Nominated Product: The product of interest is a self-propelled Black & Decker SPCM1936 lawnmower. It is intended to replace the old Husqvarna lawnmower. The major influences contributing to the intention to purchase the product include the perception that the product offers some level of prestige in the neighborhood. Additionally, it will provide a range of communal and personal benefits, such as improvement of welfares and lifestyles.

Given its high price tag, the machine is considered a high-involvement product that carries a considerable degree of risks. Weekly purchase: The purchases (see Table 11) made by consumers between July 30, 2013, and August 5, 2013, are listed (see Table 11) to indicate the major influences on the decisions made by the consumers to purchase wares. The wares primarily constitute low-involvement commodities that are generally low-priced and pose minimal risk to buyers in case purchasing mistakes are made. The report concludes that on average, the consumers showed brand loyalty to Costco even and gave much consideration to normal purchases.

The time devoted to decision-making was generally low, indicating that consumers either have a predetermined list or were loyal to certain brands. Consumer Profiling The table below outlines some of the factors that may influence purchasing behavior. Table 1 Factors influencing consumer behavior Description Person A Person B Person C Person D Age 42 40 15 10 Sex Male Female Female Male Marital Status Divorced Married N/A N/A Nationality Australian Australian Australian Australian Employment Status Full Time Part-Time N/A N/A Employment Type Professional Professional N/A N/A Hours Per Week 40+ 40+ N/A N/A Primary Income Full-Time Employment Part-Time Employment N/A N/A Secondary Income Various Various N/A N/A Normal Purchasing Level Low High Low Low Language English English English English Education Type Public School Public School Public School Private School Education Level Undergraduate Under Graduate High School Primary School Residential Status Owner-Occupier Owner-Occupier Occupier Occupier Purchasing Behavior Both external and internal and external factors influence consumer behavior.

While external factors such as promotional activities guide and change the consumer’ s purchasing behavior in the present and future, internal factors (such as brand loyalty) helps trigger the change in perceptions over time. Person B (see Table 1) made purchases in the period July 30, 2013, to August 5, 2013, as analyzed below. Expenditures The seasonally adjusted average weekly earnings rose by around 2.2 percent from November 2012 to May 2013, to stand at $1105. Over the same period, the average weekly earnings rose by 4.9 percent. The average weekly ordinary time earnings increased by 5.3 percent to reach $1421 (Department of Treasury 2013).

The consumer spent an average of $603 during this particular period, representing 42.43 percent of the average weekly wage. Since some 37 percent and 17 percent of the $603 was spent on fuel and want items respectively, it indicates that the consumers have a disposable income. Supplier/Outlet The consumer (Person B) generally shows loyalty to a single outlet, Costco. Brand loyalty is triggered by customer satisfaction (see Table 2). This means that what could be regarded as perceived value is an element of consumer relationship with the brand.

This is indicated by the domination of a credit card program as a purchasing factor. Even though this is not the chief driver for purchasing, it is clearly a driver for the consumer’ s decision in considering where to make the purchases (Bordley and LiCalzi 2000). Indeed, loyalty schemes may add value to particular customers. This creates enhanced customer satisfaction as well as customer retention and repeats buying. Buying fuel at Coles is also a purchasing factor (see Table 11). This is an indicator that the consumer strongly believes that an added value and saving is created when in making persistent purchases from certain retailers.

References

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Bordley, R & LiCalzi, M 2000, "Decision analysis using targets instead of utility functions," Journal of Economic Literature Classification, DEF 23, 53 – 74

FCWA 2012, Statistics on Credit Cards, viewed 19 August 2013, http://www.financialcounsellors.org/select-a-fact-sheet/statistics-on-credit-cards/

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Mortimer, G 2011, “Australian Supermarket Consumers and Gender Differences Relating to their Perceived Importance Levels of Store Characteristics,” Journal of Retailing and Consumer Services, Elsevier

Reserve Bank of Australia 2012, Credit card and debit card statistics for Australia and the world, CreditCard.com, viewed 19 August 2013, http://australia.creditcards.com/credit-card-news/australia-credit-card-debit-card-statistics- international.php

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UDEL 2013, What is Consumer Buying Behavior?, viewed 19 August 2013, http://www.udel.edu/alex/chapt6.html

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Wen-feim, U 2004, Managing Marketing Risks, viewed 19 August 2013 http://hortmgt.dyson.cornell.edu/pdf/smart_marketing/uva4-04.pdf pg 1,2

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