StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Social Influences on Buying Behavior - Assignment Example

Cite this document
Summary
This assignment "Social Influences on Buying Behavior" focuses on Nestle that can be considered as a high to medium involvement brand since its product range comprises mainly of food products. The chocolate and milk products are high involvement products since it serves children…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER94.2% of users find it useful
Social Influences on Buying Behavior
Read Text Preview

Extract of sample "Social Influences on Buying Behavior"

Situation Analysis Nestle can be considered as a high to medium involvement brand since its product range comprises mainly of food products. Thechocolate and milk products are high involvement products since it serves majorly the children and it also produces pet foods which are considered by the consumers as medium involvement purchase. The Market Situation Analysis implies the various factors that affect the growth & development of a business, these factors also helps in planning & strategy making. The Market Situation Analysis basically consists of the firm’s internal, external & customer environment (Ferell & Hartline, 2010, p. 87) the market situation analysis of Nestle shows: Sales- It holds the first position in selling foods. It makes major profits from the sales of food products alone, this year sales rose to 67.6 billion swiss francs which were only 60.9 billion francs last year. Also it’s the world leader in manufacturing coffee. The first three months of 2013 shows that the company’s sales rose to 21.9 billion Swiss francs from the last year but it failed to meet the expected sales which are 22.5 billion Swiss francs. Competitors-Nestle give good competition to most of the fmcg brands like Kraft Foods Inc., Unilever plc. , P & G, PepsiCo, Coca-Cola, Heinz etc. Its huge range of diversified products makes it a strong contender in the fmcg & food sector (Express, 2012). Market Share- It’s the market leader in the coffee & mineral water segment. The table below displays the sales & market shares in the year 1992, of different companies- (Source: Pagell and Halperin 1999, p. 195) Product Range- The product range includes bottled waters, chocolates, cereals, dairy, coffee, drinks, food, ice-creams purina pet care etc. It puts more emphasis on the taste & nutrition content of the product & therefore it ends up fixing slightly higher prices than its competitors. Creating pet foods makes it a unique brand which not only cares for humans but also it shows significant care to the pets. Its delicious range of hot chocolate & sausage makes it the number one brand in the food & drink sector. Also the beverage systems offered by the company is used widely throughout the world. (Gilbert, 2013) Markets- It has its presence in the continents of Africa, America, Asia, Australia & Europe, in almost over 80 countries. It customizes its product according to the place where it’s being sold. More or less every household contains a product of this brand. 2. Target Market Customer base of Nestle ranges from middle income groups to higher income groups, from kids to adults, from the health conscious to the junk food eaters because Nestle’s products serve various day to day needs of a person. 3. Social Influences on Buying Behaviour PERSONAL FACTORS Age serves as an important factor for the products and services of the firm. Nestle’s consumer range includes adults, aged people, teenagers as well as kids below 12 years. Due to the brands all over presence across the world, its customer base includes people from various race, religion and ethnicity. These things affect the consumer’s food habit to a great extent. The climate, food habits, language, religion, dressing style, income status, etc. falls basically within the wide gamut of geography. For example let’s think about the approach adapted by McDonalds. The well-known fast food chain has got diverse menu for diverse sites across the world. When the firm was asked to state the cause behind the broad range of menus, the firm replied, “We try to adapt our menu to reflect different tastes and local traditions for every country in which we have restaurants. We're keen to respect cultural differences and so every country has its own policy of developing menu items”. Moreover consumer behavior depends to a large extent on the education and knowledge of the people, for instance people who are well educated are more concerned about the adverse effects of calorie consumption and thus they would prefer to choose the sugar free chocolate prepared by Nestle (Principles Mandatory February 2011, 2011). SOCIAL FACTORS Family, friends, and peer groups create a large influence on the purchase behavior of the consumers. This process is known as “Word of Mouth”. Culture, social class, and social roles are known to be dominant factors in managing the approaches of the human being. It includes a universal set of attitudinal designs which are sustained and transmitted by the members of a definite society by the means of various modes. For example the people belonging to the similar culture would have a general dialect, patterns of doing things and recreations as well as they are anticipated to share like values. 4. Psychological Influences Consumers’ motivation in purchasing decision might proffer the marketers with more unqualified understanding of the customer’s expectations and their reaction to the diverse marketing policy and strategies developed by the marketer. A marketer applies several techniques for drawing the customers and the consumers get diversely motivated by the various tactics of the marketer. Consumer personality talks about the thinking and the behavior of the person which differs from one another. Consumer perception is the process by which a consumer identifies, organizes and interprets information to create a meaning. Attitude is his or her thinking or outlook towards the particular product or service. Learning is a psychological factor that affects the buying behavior of the consumer. Awareness regarding the consumer’s perception and attitude are essential to understand for the marketer to assume and determine consumer actions and needs as these are significantly impacted by point-of-purchase stimulus, service experiences, the facets of marketing communications techniques, and the framework within which these interactions take place (Hawkins, 2010). 5) A Questionnaire/Survey 1. Does price affect the consumer’s purchase decision? 2. Which chocolate brand of nestle is most sold? 3. “Good food, Good life” presents what kind of image in the consumer’s mind? 4. Why the consumers prefer the breakfast cereals presented by nestle? 5. The calorie less ice cream by the firm is preferred by most health conscious people- why? 6. How the controversies related to the firm might affect the firm’s profits? 7. How the emergence of online portal of the company does help it to increase sales? 8. When a customer reports a product to be defective, how does the executives of the firm response? 9. Maggie noodles form a vital part of children’s food, which flavour of Maggie is sold the most? 10. What does the logo (bird’s nest) of nestle imply? 6) Conclusion Thus from the study it is evident that food products form a major part of the daily life of every human being and they put greater focus toward the selection of the food and beverage specially when it is bought for children, aged people or pets. Moreover the consumer’s purchase decision can get influenced by several factors discussed earlier and it is a vital job for the marketer to know his target market and the factors influencing their purchase drive. References Principles Mandatory February 2011. (2011). Nestle Consumer Communication Principles. Retrieved from http://www.nestle.com/asset-library/documents/library/documents/about_us/communication-principles.pdf Ferell, O.C. and Hartline, M.D. (2010). Marketing Strategy. 5 Ed. USA: Cengage learning Gilbert, H. (2013). R & R Ice Cream ‘completes the jigsaw’ to create dream team of confectionary brands. Retrieved from http://www.thegrocer.co.uk/fmcg/ambient/confectionery/rr-completes-the-jigsaw-to-create-ice-cream-dream-team/238351.article Express. (2012). Emerging Markets Boost Nestle Sales Retrieved from http://www.express.co.uk/news/world/352809/Emerging-markets-boost-Nestle-sales Hawkins. (2010). Consumer Behavior. India: Tata McGraw-Hill Education Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Consumer Behaviour Assignment Example | Topics and Well Written Essays - 1000 words”, n.d.)
Retrieved from https://studentshare.org/marketing/1497830-consumer-behaviour
(Consumer Behaviour Assignment Example | Topics and Well Written Essays - 1000 Words)
https://studentshare.org/marketing/1497830-consumer-behaviour.
“Consumer Behaviour Assignment Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.org/marketing/1497830-consumer-behaviour.
  • Cited: 1 times

CHECK THESE SAMPLES OF Social Influences on Buying Behavior

The Influence of Children on The Buying Decisions of Their Parents

Children that are the initiators, tend to exert to greater influence on their parents as regards decision-making on buying household products, than their non-initiator counterparts.... A family as a consumer base unit 'Family as a consuming and decision making unit is a central phenomenon in marketing and consumer behavior' (Commuri and Gentry, 2000, 1).... A study of the literature on this issue also revealed that the older children tend to exert more power and greater influence on their parents, than their younger ones, but the child gender does not form a significant factor in influencing the parents buying decisions....
60 Pages (15000 words) Dissertation

Buying Decisions of the Parents, the Family as a Consumer Base Unit

hildren that were considered to be the initiators that exerted greater influence on their parents in decisions on buying household products than their non-initiator counterparts....  Researchers have suggested that, the “family as a consuming and decision making unit is a central phenomenon in marketing and consumer behavior” (Commuri& Gentry, 2000, p.... Commuri&Gentry Many researchers had focused their studies “on family consumer behavior and a majority of the literature has been on decision role — who makes what decisions” (Commuri&Gentry, 2000, pp....
72 Pages (18000 words) Essay

Peer Influence on Individuals Behavior

Peer influence can be described as the process through which children nurture each other's attitudes and behavior, resulting into conformity within the group.... These disparities generate opportunities for adolescents to influence the behavior of each other.... eer groups regularly institute unspecified standards for their members behavior that differentiate them from other peer groups.... nfluence from peers and peer choice are corresponding processes that collaborate to generate the adolescent's social framework....
8 Pages (2000 words) Essay

Exploring the influence of Corporate Social Responsibility on customer buying behavior

Over the years, research has shown that identify and, if possible, predicting customer behavior is critical to meeting their needs Exploring the Influence of Corporate Social Responsibility on Buying Behaviour Research Question and Aims Aims The aim of this paper is to examine the influence of corporate social responsibility on customer buying behavior.... Research Question Is there a correlation between corporate social responsibility and customer buying behavior?...
2 Pages (500 words) Research Proposal

The Behavioral Intentions of Consumers

This work called "Consumer behavior" describes the various factors that influence consumers' behavioral actions.... The author outlines theories that help to comprehend the whole concept of consumer behavior.... Consumer behavior refers to the processes that consumers use to identify, select, and buy products, services, ideas, and experiences from different sellers.... Consumer behavior brings together the elements of economics, psychology, and sociology as it attempts to explore the decision making processes of consumers in buying products, either as groups or as individuals....
7 Pages (1750 words) Essay

Internal Influences on Consumer Behavior: Motivation

The buying behavior of a consumer is affected by whether they are more active in the evening, afternoon, or morning.... Accordingly, people will also seek variety in their buying behavior, which may account for impulse buying and brand switching.... For people who are undergoing a period of rapid change, buying behavior reflects striving for stability, while consumers who are in a stable period of life will seek change in their buying behavior (Wänke, 2010: p81)....
8 Pages (2000 words) Assignment

Consumer Behaviour

In analyzing the factors that affect the consumer decision making in the country, several factors such as social, psychological, and other factors are analyzed.... This work called "Consumer Behaviour" describes the automobile market in Malaysia and the various factors that have an effect on the consumer psyche....
8 Pages (2000 words) Report

Factors that Affect Consumer Behaviour

Social factors that influence the consumers' buying behavior include reference groups, social roles, social status, and family.... For a consumer to purchase any commodities they need to make a selection of the commodities that have a greater utility and they evaluate the amount to spend on buying the commodities.... This work called "Factors that Affect Consumer Behaviour" focuses on factors that influence consumer purchasing behavior such as social, cultural, and personal factors....
7 Pages (1750 words) Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us