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The importance of analysing consumer behaviour

3669 words (15 pages) Essay in Marketing

5/12/16 Marketing Reference this

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Consumer behavior refers to the behaviour the consumers display in searching for purchasing, using, evaluating, and disposing of products and services that expected by the consumers which will satisfy customers’ needs and wants.

In next part of this assignment, we will discuss on detail about why people willing to pay more for coffee bean shop than a normal coffee shop and the important of finding out of consumers behaviour.

By doing this, we will do a set of questionnaires to carry out our survey. By the ways, the target audiences that we selected are random sample. It means that we pick without bias. At the end, the probability of error is lower.

Therefore, the sample size that we select is 30 people, where from our neighbourhood, friends, and Olympia college’ students. We carry out the survey by personal interview.

To investigate the behaviours of consumer groups, we do surveying of the investigation and survey, to understand why people willing to pay more for coffee bean shop than a normal coffee shop and the important of finding out of consumers behaviour.

The age group of our research is from age of 15 to the age of 65.In which the age group from 15 to 24 years old is accounted for 40 percentages. Additionally, there are 53% of male consist in our research while female are consist of 47%.

2) The study of consumer behaviour

2.1) Employment status:

Table 2.1 employment status analysis table refers to questionnaire number 3 on personal particular

total

education industry

20% 

services industry

10% 

automobile industry

6.75% 

hospitality industry

10% 

apparel industry

 6.75%

engineering industry

6.75% 

self-employed

6.75% 

unemployed

10% 

others

23% 

Therefore, we can see that 15-24 ages’ group consumers are more in the others industry and education industry. Education industry and others industry is accounted for the majority of customer base.

2.2) 请选择您的工作 ?Income group:

Table 2.2 income group analysis table refers to questionnaire number 4 on personal particular

total

RM700-RM1500

43% 

RM151-RM2500

23% 

RM2501-RM3500

 10%

RM3501-RM4500

 7%

RM4501-RM6000

 17%

RM6001-RM8000

 0%

more than RM8000

 0%

15 to 24 years are almost in college life, so, their living expenses and tuition free are mostly provided by their parents or family members. By the way, some of them are no need to bothers about the expenses. So, they maybe can more consume in the Coffee Bean shop compare to normal coffee shop.

In the others ways, some of them maybe have work at part time, so, they might have some income to consume in the coffee Bean. Therefore, they are consisting of higher percentages in our research.

For example, Coffee Bean is a high price for the coffee, the consumer like 15-24 ages group are more likely to pursue high-priced coffee taste. Therefore, they will feel better when hand holding a cup of Coffee Bean’ products will probably have a sense of superiority.

2.3) Do you like to go Coffee Bean

Table 2.3 like or unlike to go Coffee Bean analysis table refers to questionnaire number 1

yes

no

total

67% 

33% 

There are high percentages that show consumers are like to go Coffee Bean. So, there must have many reasons that attract the consumers who are willing to pay more in Coffee Bean.

2.4) How often visit Coffee Bean

Table 2.4 how often visit Coffee Bean analysis table refers to questionnaire number 2

everyday

1 to 2 days

3 to 4 days

5 to 6 days

weekly once

total

 10%

10% 

 7%

3%

70%

In this research show that majority of consumers are willing to visit Coffee Bean weekly once.

2.5) Reasons visit Coffee Bean

Table 2.5 reasons visit Coffee Bean analysis table refers to questionnaire number 3

brand popularity

decoration

reasonable price

services

quality

total

25%

7%

30%

8%

30%

Highly percentages show that reasonable price and quality of the Coffee Bean product is the main reasons that cause consumers visit to the Coffee Bean shop.

It show that the quality in Coffee Bean is the reason that cause majority consumers visit Coffee Bean and even the price of the Coffee Bean beverage is reasonable, which is not so expensive for some consumers. They are still affordable.

On the others hand, consumers are also think that the quality of Coffee Bean beverage are also good, so, it might cause the consumers visit to the Coffee Bean shop.

The price of Coffee Bean beverage is related to the quality of Coffee Bean beverage. Therefore, when plus trademark of Coffee Bean, it will cause the highly probability that cause people willing to buy and consumed more on it shop.

Although the percentage of Coffee Bean show that the reasonable price for the beverage of Coffee Bean is high, it show the wishes of consumers are willing to visit are quite high.

2.6) Reasons willing pay more for Coffee Bean refers to questionnaire number 4

Table 2.6 reasons willing pay more for coffee bean analysis table

strongly agree

agree

neutral/no opinion

disagree

strongly disagree

decor

3%

40%

17%

7%

33%

strongly agree

agree

neutral/no opinion

disagree

strongly disagree

safety

7%

33%

30%

23%

7%

strongly agree

agree

neutral/no opinion

disagree

strongly disagree

privacy

17.00%

27%

37%

17%

3%

strongly agree

agree

neutral/no opinion

disagree

strongly disagree

quality of services

20%

50%

20%

10%

33%

strongly agree

agree

neutral/no opinion

disagree

strongly disagree

prestige

37%

36.5%

20%

6.5%

10%

The analysis table shows that the decor and quality of services area factor that consumers agree to pay more for coffee Bean. Therefore, safety and privacy are neutral/no opinion for the consumers.

Prestige are choose highly percentages of strongly agree by the consumers because they are belief of beverage of Coffee Bean is good quality, facility, decoration and environment is nice which are suit for hem especially for the younger generation nowadays.

Most of the consumers which are younger generation feel that this kind of place is suit for them for meeting the people, dating and spend time when compare to the normal coffee shop.

When the prestige and privacy attributes are not good, even the décor is nice are also useless. Consumers are like prestige and privacy, so, it causes the reason that they willing pay more to Coffee Bean compare to the normal coffee shop.

2.7) Satisfaction level for Coffee Bean’s beverage

Table 2.7 Satisfaction level for Coffee Bean’s beverage analysis table refers to questionnaire number 5

poor

good

excellent

price of beverage

13%

84%

3%

poor

good

excellent

variety of beverage

0%

87%

13%

poor

good

excellent

healthy of food

10%

90%

0%

poor

good

excellent

quality of food

13%

67%

20%

Majority of the consumers feel that the prices of beverage in the Coffee Bean are good. This is because the consumers are still affordable. The price is related to the products higher prices that customers get must get higher quality products. Once the consumer’s purchase desire ignites, they will compare the prices of various coffee shops and the service attitude is good or bad, which is measured a more cost effective.

The variety of beverage can fulfill the needs and wants of the consumers. They have a lot of choices to choose the beverage in the Coffee Bean. The healthy for the food are good because some of the foods are low fats and low sugar.

Therefore, qualities of food are also good. When qualities are good, consumers are willing to pay more to enjoy the beverages.

2.8) Important attributes when going Coffee Bean

Table 2.8 important attributes when going Coffee Bean analysis table refers to questionnaire number 6

very important

important

neutral/no opinion

unimportant

very unimportant

price

33%

30%

27%

7%

3%

very important

important

neutral/no opinion

unimportant

very unimportant

quality

53.50%

27%

3%

14%

3%

very important

important

neutral/no opinion

unimportant

very unimportant

brand

27%

40%

13%

13%

7%

very important

important

neutral/no opinion

unimportant

very unimportant

decoration

7%

20%

23%

13%

37%

very important

important

neutral/no opinion

unimportant

very unimportant

services

27%

33%

17%

13%

10%

The attribute of price and quality is very important for the consumers. This is because the price is related to the products higher prices that customers get must get higher quality products. Some consumers are even willing to pay extra prices when the quality of the beverage is excellent.

Next attribute for the services is important for the consumers. This is because when the services are good, consumers are willing to pay more.

The decoration consists of higher percentages of very unimportant. The consumers are not bothers about the decoration of the Coffee Bean. They are just concern and pay more attention to the price and quality of the beverage in the Coffee bean.

2.9) Products not found in normal coffee shop

Table 2.9 products not found in normal coffee shop analysis table refers to questionnaire number 7

total

Latte

17%

Ice blended

21%

Cappuccino

4%

Mocha

12%

Cookies

14%

Muffin

10%

cheese cake

10%

Homemade pastry

12%

To be in terms of consumption habits, consumers are taking the drinks and other food or snacks together. From the above analysis table, there is a lot of beverage that does not found in the normal coffee shop.

For examples, ice blended is the beverage that consists higher percentages that would not found in normal coffee shop when compare with Coffee Bean shop. When compare with these 2 coffee shop, consumer are more saying for the ice blended.

Although consumers are more pointing at the ice blended, we think that ice blended are more popular because of hot weathers in our country, so, consumers are like to drink the beverage which are cool.

2.10) Products that would like to try when going Coffee Bean

Table 2.10 products that would like to try when going Coffee Bean analysis table refers to questionnaire number 8

ice blended

mocha

cappuccino

double chocolate

ice tea latte

vanilla latte

total

20%

17%

22%

24%

8.5%

8.5%

The double chocolate flavour drinks are consists of higher percentages which consumers would like to try when they are going to Coffee Bean. Double chocolate are attract more consumers. I think that are especially for female. This is because more female are like chocolate than tea.

In the others hand, the consumers are also will think that the coffee maybe might not so good and it will also affect the healthy. So, double chocolate flavour drinks is more welcome.

2.11) Factor influenced to go to Coffee Bean

Table 2.11 factor influenced to go to Coffee Bean analysis table refers to questionnaire number 9

family members

friends

internet

advertisement

total

12.5% 

 66%

 9%

12.5% 

Friends are the higher percentages that influences the consumers to go to the Coffee Bean when compare to the family members, advertisements and internet. This is because consumers are like to gathering and meet people in this kind of places.

So, a part of friends will suggest consuming in this kind of places when they haven try it before or already try it before. When the feedback is excellent, they will recommend to their friends. So, the influences power is highly.

In the others hand, when hang out with friends, they will like to try the new things when compare to the family members. This is because friends’ attitudes and behaviour are similar with them, then they will always support them and caused highly influenced at an individuals.

2.12) It is still willing purchase Coffee Bean products if price increased

Table 2.12 willing or unwilling purchase if price increasedanalysis table refers to questionnaire number 10

yes

no

total

40% 

60%

When price of Coffee Bean’ beverage are increased, majority of the consumers are not willing to purchase.Even the price of Coffee Bean is increased, the percentages show that the wishes of consumers are willing to visit are quite high.

Coffee Bean is a high consumer price. Consumers who are having higher economic capacity will buy the products. Nevertheless, consumers who are lower income and lower economic capacity are will not willing to purchase the products. They are not affordable.

Although if the Coffee Bean Coffee is increase high price, but the store’s layout and seating people feel relaxed and comfortable, so the financial capability of consumers may feel better with a higher price in exchange for a better quality of rest is possible.

Even the prices of coffee Bean are increased, there are still have a loyalty consumers to purchase. Some of the consumers think that they are still willing to consume because of the trademark of the Coffee Bean. There are no others trademark of Coffee Bean in the world. So, Coffee Bean has its own power, reason and value to increase the prices.

The consumers who are lower of economics capacity will choose the normal coffee shop as their choice. For example, one of the reasons is that when parents earning capacity lower, they cannot choose Coffee Bean as their choice. This is because they are incapable and not affordable for the products which are higher cost.

Parents are want take care and look after their children as well as possible. They have responsibility to feed their family members. For examples, they need to provide them education, eat, medical and others.

So, people who are lack of economic capacity are not able to consume in the higher price coffee shop. They will like to consume in the normal coffee shop which is more suitable and affordable for them.

2.13) Prefer Coffee Bean or normal coffee shop

Table 2.13 Prefer Coffee Bean or normal coffee shop analysis table refers to questionnaire number 11

Coffee Bean

Normal coffee shop

total

57%

43%

There are 57% of consumers who are like to choose and visit Coffee Bean nowadays. But, the consumers who are willing consume in normal coffee shop is 43%.

Consumers are preferred Coffee Bean are because the shop’s layout and seating people feel relaxed and comfortable when in the Coffee Bean. They are feeling better with a higher price in exchange for a better quality of rest is possible. They are like to enjoy well.

On the others hands, consumers choose Coffee Bean is because they will feel better when hand holding a cup of Coffee Bean’ products will probably have a sense of superiority. Some of the consumers will think that others will jealous at them.

Then, the overall atmosphere, decoration, environment of Coffee Bean is look like refined and luxurious.

Consumers enjoy there are having a feeling of relaxation. They no need to ignore others things and feel no stress and worries. They can just enjoy their beverage as well as.

Others reason is most consumers will go to spend some time, regardless of office work, chat or dating.

The consumers who choose for normal coffee shop is because of them are affordable. They feel the price is more cheap and reasonable when compare to the Coffee Bean and it will more likely to cause consumer motivation.

On the others hand, some consumers are also not rich. They might not have extra money to expend in the high consumed place. The causes can because of some of them are responsible to feed their family. The expenses for feed the family is higher, so, the higher consumed prices are not suitable for them.

However, whether Coffee Bean or normal coffee shop, the wishes of consumers are willing to visit are quite high. Based on the above argument, we can see that consumer spending habits vary, for example: people who worship at the top of the pyramid are the international symbol of the coffee shop, like Starbucks, Seattle, Coffee Bean and others. While the lower blue-collar, lower prices are preferred on the normal coffee shop.

2.14) Main purpose that go to Coffee Bean

Table 2.14 Main purposes that go to Coffee Bean analysis table refers to questionnaire number 12

gathering with fiends

business purpose

beverage of Coffee Bean

spend time

total

56%

15%

3%

26%

The main purpose that consumers visit the Coffee Bean is because of gathering with friends which consists of higher percentages.

Some of the consumers will choose the place which is refinement and luxury, higher standards, nice decoration, environment to gathering with their friends. People to visit here is a feeling of relaxation, most consumers will go spend some time over there.

Consumers will choose Coffee Bean as their choice when gathering with friends because the place is more safety and privacy. When they want to communicate or say something, they will feel more safety. Others will not tapping what they are saying. So, they feel more privacy, because only involved of them know the talks.

On the others hand, some of the consumers will think that normal coffee shop has a lot of older people, the communications of each others are cannot link together/match. For example this is especially for the younger generation between the old people.

CONCLUSION

Consumer behaviour is the study of consumers as they exchange something of value for a product that satisfies their needs. In the others and, it also study of how an individual’s make decisions to spend their available resources on consumption related items.

From ours research, we found that there is over 50% of consumers satisfied to the price of beverage, variety of beverage, healthy of food and quality of foods. A consumers are actually wanted to purchase or pursuit of a satisfaction of needs and wants.

So, from ours research, the satisfaction level of Coffee Bean is high will help Coffee Bean to build up the loyalty of consumers.

In the others hand, the research also show that the income level are RM700-RM1500 and which the age group from 15 to 24 years old is accounted for 40 percentages. Additionally, there are 53% of male consist in our research while female are consist of 47%. Employment statuses are mainly on education industry. From this information that we found, it will help Coffee Bean to do market segmentation.

Market segmentation is dividing the overall market is into several sub-markets with the same or similar needs or behavioural characteristics. The enterprise will know needs and wants, age group, income level, type of lifestyle and the type of personality of each customer by understanding the consumer behaviour. This will allows the Coffee Bean to focus on the target group of customers and satisfy their needs better.

As a conclusion, this is very important that to understand the consumer behaviour in order to help the enterprise to make strategic decisions to provide the appropriate products and services. The understanding of the consumer behaviour is very useful to develop a viable marketing strategy in order to create buying intention from elderly consumers. As a marketing practitioners need to be aware of the importance of consumer behaviour to run the marketing management effectively because the marketing heavily relies on a knowledge of consumer behaviour.

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