BUYER BEHAVIOUR – BMM202
ASSIGNMENT NUMBER 1 – SEMESTER 1 2020
This assessment will focus on key influences on consumer buyer behaviour covered during weeks 1 to 3. The task is for a single student in class presentation - Assignment 1
Consumer Buying Behaviour defined: Consumer buying behaviour is the sum total of a consumer's attitudes, preferences, intentions, and decisions regarding the consumer's behaviour in the marketplace when purchasing a product or service.
Please highlight and explain a consumer's attitude, preferences and intentions that may precede the purchase of your [designated as above] product.
WORD LENGTH:1000 words [written report – used as the basis of a class presentation; submitted after the presentation]
The buying behaviour of consumers can be interpreted as an integration of attitudes, preferences, intentions and decisions while purchasing any product or service. This report highlights the influence of internal and external factors on the attitudes, interest and preferences of the customers of Winnebago Motorhomes. Also, undertaking simple and complex purchase decisions of domestic and business consumers are critically analyzed in this report.
Winnebago Motohomes (WM) is the market leader in Australia for offering luxurious and world-class motorhomes, caravans and campervans that fosters quality and innovation. This organisation is backed by Apollo Tourism & Leisure, a publicly listed company in the Australian Stock Exchange (Winnebago, 2020). Hence, providing quality service to global consumers through a committed approach is one of the major organisational objectives of this company.
WM offers a combination of comfort and style and a wide range of product portfolios assists this organisation to satisfy the needs of travelers. Winnebago Balmoral is one of the highest standards in Motorhomes offered by WM which is designed with significant features like entertainment area, reversing camera, led lighting and air-conditioning (Winnebago, 2020). Nevertheless, the attitudes, perceptions and preferences of the consumers may precede the purchase of Winnebago Balmoral.
Multiple factors can be identified responsible for impacting the buyer behavior in case of WM products.
3.1 Internal Factors
According to Szmigin & Piacentini (2018), internal factors, such as perception of the consumer, attitudes, learning and motivation influence the buying behaviour process of consumers. Hence, the impacts of these internal factors are discussed below by considering Winnebago Motorhomes.
Perception: Perception plays a significant role in influencing the buyer behavior of consumers. Nevertheless, consumers possess different perception regarding any product. Hence, perception can be defined as an integrated process of selecting and interpreting impressions into information (Sethna & Blythe, 2016). Therefore, to impact the perception of consumers, Winnebago has expressed multiple aspects of motorhomes in its website, such are:
Attitude: A positive attitude towards purchasing a product is influenced by beliefs and feelings towards the products (Shende, 2014). Thus, attitude can be influenced by effective endorsement strategy on the part of WM. However, WM has limited advertisement for Winnebago Balmoral that can negatively affect the attitude of the customers towards purchasing the product.
Motivation: As commented by Horner & Swarbrooke (2016), motivation is the process that drives the consumers’ behaviour significantly. In this case, the purchase of Winnebago Balmoral from WM can be influenced by two types of buying behavior:
3.2 External factors
Culture: Culture represents the norms, beliefs and behavioral pattern of consumers that influence the buying behaviour of consumers. It is found that in 2015, 12% of Australians above 14 years age went to camping in holidays (Roy Morgan, 2015). As, the motorhomes are effective vehicle for camping, hence, the products of Winnebago seems culturally appropriate to consumers, which in a way influence the buyer behaviour significantly.
Government: Multiple regulation and compliances related to the product influence the buyer behaviour of consumers effectively, as breach of regulation might create negative effect on the purchase behaviour of individuals. It is observed that non-compliant RVs are constantly imported to this country and consumers do not have appropriate knowledge regarding the legal and regulatory standards required to fulfil Governmental obligation (Brighthouse, 2014).
Price: It is found that pricing information regarding to a specific product influences the buying behaviour of consumers and it also reflects on the marketing activities of an organisation. Hence, WM has always relied on transparency while framing the pricing strategy. In case of Winnebago Balmoral, premium pricing strategy can influence the buyers creating impression of high standard, luxuriousness and branding (Permarupan et al. 2014).
Money Availability: Money availability of customers plays significant roles in influencing the purchase decision of consumers. According to Jan &Kashif (2018), purchasing power of consumers gets increased by money availability, which catalyzed the buyer behavior process for Winnebago Balmoral.
Time Availability: It is noticed that increase of time availability enhances the impulse buying activities of consumers. On another hand, Lorenz, Hartmann & Langen (2017) argued that time availability does not influence the purchase decision of buyer. Thus, WM needs to focus on maintaining transparency to make sure those customers gets adequate information within proper time to undertake the purchasing decision.
The simple and complex purchase decisions of domestic and business consumers generally depend on several stages of consumer buying behavior process (Prasad & Jha, 2014).
Problem recognition stage: In this stage, consumers recognize the need of purchasing any product or service. As discussed earlier, Australians love to camp on holidays, hence, the need of a specific motorhome might be cited in a consumer thereby affecting WM positively.
Information search stage: In this stage, consumers rely on their searches to eliminate the need or problem they realize regarding a product. As commented by Schütte & Ciarlante(2016), in this process a consumer focus on available information to avoid uncertainty in purchasing.
Evaluation of alternatives: Customers focus on the physical attributes of products and the value for money prior purchasing any product (Sethna & Blythe, 2016). Also, the consumer focus on alternative products to judge the selected product. Winnebago Motorhomes has lots of competitors in the Australian market. Therefore, consumers focus on attributes of competitors’ products or service prior making any decision.
Purchase decision: After the development of the positive attitude towards the Winnebago Balmoral, the consumers can undertake the purchasing decisions and pay for the product.
Post Purchase phase: It is observed that the loyalty and satisfaction of consumers play impeccable roles in influencing the post purchase phase (Szmigin & Piacentini, 2018). Hence, Winnebago provides 24*7 customer support to its consumers to maintain the positive image during this phase.
It is identified that internal factors like perception, attitudes and motivation play key roles in influencing consumer buying behaviour. Additionally, marketing activities, role of Government and culture are important external factors that influence purchase decision of a consumer. Finally, the application of five phase framework has identified five crucial stages that are necessary for consumers in making decisions in purchasing. It can also be said that organisations like Winnebago needs to meet the quality standard to satisfy its consumers effectively.