Lecture notes
Consumers
- Module
- Business And Management
- Institution
- The University Of Kent (UKC)
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ConsumersSOSTAC Reference
Real Example Exemplifying the Importance of Studying Consumer
Behaviour
Background
Back in 1981, Cadbury Flake competed in the confectionery count line market, and it was one of the
most popular chocolate bar products (with affordable price) in the UK.
In 1983, the company (Cadbury) conducted a marketing survey, which indicated that most of the
consumers buy the product because they liked the taste of it, and they also liked to eat Cadbury
Flake with other products such as ice creams and cakes etc. Therefore, Cadbury designed and
promoted more products that used Flake, and these products were very successful in the market.
Cadbury Flake sales had grown steadily throughout the year.
However, in 1982, more chocolate makers / producers joined the market. Flake sales declined at
twice the market rate (compared to 1981).
Another attitudinal consumer study was therefore undertaken; the findings showed:
• Consumers still very like the flavour / taste of Cadbury Flake.
• A high proportion of customers found the product too messy / crumbly (the main reason
that they would consider not to buy). They tend to buy other chocolate bar products from
other brands with good taste but can be less messy while eating.
Note:
• Confectionery: Foodstuffs that taste very sweet, taken as a group; candies, sweetmeats and
confections collectively.
• Count line: A consumer product (especially confectionery) that is supplied to retailers in
packages of multiple items and sold individually to customers.
,What would you do?
If you’re the marketing manager who is in charge of the sales of Cadbury Flake – what would you
do?
• start a new product (with a different product name or design) which has a new design but
uses the same recipe? (promoting a new product is not easy / cheap!) In this case, should
Cadbury stop selling the Flake?; or
• should Cadbury just simply ignore what consumers say but focus more on other chocolate
products that they have?
What Cadbury Flake did?
Cadbury decided to listen to what consumers said about the product but emphasised on the flake
feature.
A message was developed emphasising
‘every little piece of Flake is sheer enjoyment’ and making an art out of eating a Flake (various
techniques / methods were shown for getting the last crumbs e.g. tipping back the chair, using a
paper plate and sucking the last crumbs through a straw).
Result
Using syndicated sources and commissioned surveys it was established that in the 18 months of the
test unit, sales had increased by 16 per cent over and above what would have expected. Both initial
purchase and repeat purchase rates were shown to have increased.
Note:
Syndicated Research: a research study which is conducted and funded by a market research firm but
not for any specific client is called a syndicated research. The result of such research is often
provided in the form of reports, presentations, raw data etc. and is made available in open market
for anyone to purchase.
Test Marketing: a marketing method that aims to explore consumer response to a product or
marketing campaign by making it available to a small part (usually geographic) of the target market
before a wider release.
The Importance of Consumer Behaviour Studies
Knowing what the consumers really care about and why they would buy or not buy the business’s
product / service is essential. This is purpose / reason a business conducts consumer behaviour
studies.
A successful marketing strategy will take into account consumer views and use / employ creativity.
Consumer Behaviour
What is Consumer Behaviour
The American Marketing Association (AMA 2015) defines consumer behaviour as "the dynamic
interaction of affect and cognition, behaviour, and the environment by which human beings conduct
the exchange aspects of their lives".
, (Source: Jebril A. Alhelalat ‘Consumer Behaviour Analysis of Hospitality Students' Evaluation And
Satisfaction With Their Universities’)
Consumer behaviour is dynamic because actions of consumers are changing. Secondly, it involves
interactions among people’s feelings, thinking and acting and the environment. Thirdly, consumer
behaviour involves exchange between human beings something of value.
(Source: C.L. Tyagi, Arun Kumar ‘Consumer Behaviour‘)
An overview of Consumer Behaviour
Consumer Behaviour (in terms of consumer research): the study of the processes involved when
individuals or groups select, purchase, use or dispose of products, services, ideas or experiences to
satisfy needs and desires.
(Source: Michael Solomon, Gary Bamossy, Søren Askegaard, Margaret K. Hogg ‘Consumer
Behaviour’)
Consumer Decision Making Process
The Consumer or Buyer Decision Making Process is the method used by marketers to identify and
track the decision-making process of a customer journey from start to finish. It is broken down into 5
individual stages: Problem/need recognition, information search, evaluation of alternatives to meet
this need, purchase decision and post-purchase behaviour.
Engel, Blackwell and Kollat developed this model in 1968.
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