Researching Consumer Buying Behavior (Research Paper Sample)

Researching Consumer Buying Behavior
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Executive Summary
This report analyzes the buying behavior of ACME consumers as the company wants to introduce a new automatic washing machine to its consumers in three markets that include the United States, the United Kingdom, and the German markets. For each of the three main markets, the report presents information regarding the preferable features that the customers prefer when purchasing their washing machines, their decision-making processes, their reason for buying the washing machines, the various locations where the washing machines are sold, as well as how often the washing machines are purchased. Besides, for ACME to be successful in the identified markets, it will need to undertake a value proposition that concentrates on each market’s uniqueness. For example, research indicates that consumers from North America use huge top-loading washing machines, while European consumers use smaller, ten-pound automatic front-loading washing machines. Moreover, research information shows that ACME might experience competition from established brands while operating in the three identified markets. Therefore, ACME's success will depend on the company's pricing strategy, particularly in the US market. On the other hand, penetration pricing will be an effective strategy in the UK markets. Finally, the company will need to be keen when dealing with German consumers as they are expected to focus more on prices than prices.
Researching Consumer Buying Behavior
Introduction
The most crucial and significant function that businesses undertake in marketing is the analysis of consumers’ behavior. The consumer decision-making process involves five steps, including information search, need recognition, alternatives evaluation, post-purchase, and purchase behavior (Consumer Buying Behavior, n.d.). The analysis of consumers’ behavior helps businesses understand the consumers and predict the buying trend and behaviors in the market. This report focuses on ACME's washing machine customers in the United States, Germany, and the United Kingdom. For these three markets, the report delves into establishing the features that customers prefer in their washing machines. Thus, the report encompasses what customers purchase, why they buy it, where they buy it, and how they purchase it.
Washing machines are among the most purchased products by a large market population globally. Washing machines are often used for commercial purposes and in households. However, for ACME to be successful, it will need to undertake a value proposition that focuses on each market’s uniqueness. For example, studies show that consumers from Western Europe use small automatic front-loading washers while those from North America usually use huge top-loading automatic washing machines. Due to the wide range of established brands, ACME is likely to face competition from companies such as Whirlpool, Electrolux, and Haier, which develop innovative and efficient washing machines (ACME Meeting, n.d.). The washing machines from these competitors also use less power and electricity, have attractive designs colors, and are durable. However, marketers can help in reducing the competition, although they face challenges. The toughest challenge that marketers face is the challenge of differentiation and compiling the diverse demographic data that includes geography, occupation, age, gender, race, culture, sex, marital status, level of education, level of income, and lifestyles as a strategy to understand these consumers’ purchasing behavior as one of the most important factors that marketers differentiate.
Consumer Buyer Behavior
Typically, consumer behavior circumnavigates the studying and analyzing consumers’ decision-making approach or process. Consumer buying behavior blends basics, such as cultural, social, and personal factors. These are the key elements and influencers to customers buying behaviors (Consumer Buying Behavior, n.d.). However, various sub-cultures include other factors such as gender, economic status, age, and consumer’s personality, psychological, and educational factors. The customers’ personal, social, and cultural factors are necessary since the company can produce products that align with the customers’ preferences.
Personal
The personal factors involve the unique aspects and factors that affect and influence a customer’s preference. These factors include age, sex, occupation, education, attitude, race, and salary. Additionally, the person who monitors a consumer’s spending rate can influence what the customer purchases. For instance, the younger generation purchase laundry pods since its compact, simple, and their design is convenient. Therefore, it is easier for manufacturers to produce suitable products for different ages and different people’s lifestyles when the consumers’ attributes are well understood.
Social
Typically, the prevalent factors in consumers’ lives are social factors. These factors include the place where the customer resides, how the customer is living, the work, plays, and the people that the consumer interacts with. Such factors can affect attitude and consumers’ buying behavior. Additionally, the association that pertains to the consumer’s economic well-being is a social factor that influences the buying behavior. Generally, family, social class, leaders, and culture influence the consumer’s wants, learning, and character. The buying behaviors affect the customers’ preferences when deciding on the products to purchase. Considering the factors above enables marketers to know customers’ needs for the products and services.
Cultural
Culture could be described as the beliefs, values, behaviors, experiences, and attributes developed and accepted in society. These attributes drive our actions and influence consumers’ decisions, and hence, they affect consumers purchasing behavior. For instance, a consumer can purchase a laundry machine not because it is a must but because they have been raised in families using the machine.
Automatic Washing Machine Market
Numerous types and brands of washing machines have been developed, and competition in the market is concentrated due to the various competitors who develop competitive products. Fortunately, an untapped source of new customers still exists and can be utilized by the industry. This part will delve into three washing machine markets that include the United States, the United Kingdom, and Germany.
The US Market
Needs/Benefits
Typically, the reload function is among the essential new washing machine features that are intended to trigger American consumers or buyers. American customers would prefer buying a machine that can be easily operated. Introducing a machine that can be operated by pressing a button and automatically pause or commence the cleaning process will have addressed the American market's needs. Moreover, American consumers need to invest in purchasing washing machines that allow users to add more clothes without waiting or one that has air drying features. Therefore, for ACME to capture the US market, it has to introduce a washing machine that can remove as much moisture from the clothes as possible. This is because when excess moisture is removed, the users will require minimal drying after laundry. Another essential need that ACME should seek to address in the American market is the incorporation of the smart rinse feature. With this feature, the user has more control over the washing cycle.
Purchasing
The consumers from the US market anticipate purchasing a product that saves their time as well as resources. Typically, spending hours doing laundry is considered a wastage of time. However, the primary consideration is how quickly and efficiently the machine performs, and the time it saves. The purchasing decisions of US consumers are highly influenced by various motives that prompt them to buy a product. In this case, the psychological motives are considered essential since they inter-linked with the satisfaction that a consumer gets due to the product's performance and service. A consumer is usually prompted to purchase a product if it satisfies his or her laundry needs adequately (Panitapu, 2015). If the automatic washing machine is satisfactory, the primary buying motives of the US customers will be provoked. Therefore, ACME should strive to introduce a washing machine that meets these motives diversely.
Where Sold
Typically, a vast number of US citizens would prefer purchasing home appliances such as washing machines from local stores and organized outlets such as Home Depot. Moreover, due to technological advancements that have facilitated the establishment of online stores, most consumers in the United States can also purchase appliances from online stores such as Amazon and Walmart.
Seasonality/Rate of Purchasing
Like other electronic gadgets that consumers purchase, users of washing machines expect that if they purchase a washing machine, it will serve them for a reasonable time and give back the value of their capital (Tangel, 2017). Therefore, customers in the US market are expecting to use the washing machine for some years before purchasing another. Therefore, the company should expect seasonality since if customers buy the product, the frequency of purchasing will reduce until the need to purchase another washing machine arises. However, it is also expected that new buyers...