Consumer Behaviour

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Aspire2 International

Diploma in Technology Management Level 7

DTM605 Consumer Behaviour

Assessment 1 Individual Report

Term 3 2017 Intake

Student Name: John Derick Chingkaw

Student ID# YIB00000AT

Lecturer: Ms. Natasha Martin

Date of Submission: 2nd Mar 2018

Executive Summary

The following is a report on the analysis of how Pak n’ Save, the selected organisation apply and maximise the consumer behaviour theories and recommend , if necessary better or alternative ways and provide solution if there are existing issues.

        Introduction

        Pak n’ Save is one of New Zealand’s cheapest supermarket. It is part of the Foodstuffs group along with New World supermarket. The group was founded by the Auckland Master Grocers Association in 1922. (Pak'nSave, 2018) The company’s mission is to be able to provide lowest food prices by avoiding unnecessary costs through having fancy stores, advertisements, flooring, lighting, etc. Pak n’ Save is operating across the north and south island of the country.

        Findings

Pak n’ Save have a good consumption process. They have a good standing in the industry wherein they are part of the consumer’s choice when thinking of groceries. They are also able to retain their customers by keeping them satisfied and be pleased with the products they purchase

They have a very diverse market aside from their geographic segment since at the moment their market is only New Zealand. They have a very good approach on sensation and perception since the theories they are using are Empiricism and Gibsonian which are very effective for them. They also apply a behavioural learning – classical method in their ads because of what they are known for, the vibrant color yellow and the stickman image.

        Conclusion

In brief, the organisation has a good status in the industry together with their target market. They are able to bring in customers and at the same time maintain good relation with them. Having a very diverse market, they are able to provide good sensation and perception for their consumers. The organisation has already let their consumers now what their brand is and able to show them clear and functional ads.

        Future Trends in Consumer Behavior

Most of the consumers now live a digital life wherein they browsing through the internet all the time which means organisations must now keep up by also having their brand online. People now unlike before are not confined at home, they very much like to explore and do new things, experiencing new things. As a brand, giving the consumers new kind of experience and thrill is what needs to be done.

Table of Contents

1.0        Introduction        5

1.1        Background of the Organisation        5

2.0        Consumer in the Marketplace        6

2.1        The field of consumer behaviour        6

2.2        Stages in consumption process        6

2.2.1        Pre-consumption        6

2.2.2        Consumption        7

2.2.3        Post-Consumption        7

2.3        Impact of consumer behaviour to marketing strategy        7

2.3.1        Dimensions of market segmentation        7

3.0        Consumers as Individuals        9

3.1        Theoretical approaches to sensation and perception        9

3.2        Consumer Learning        10

3.3        Consumer attitude formation and change        10

4.0        Conclusion        11

5.0        Future trends in Consumer Behaviour        12

References        13

1. Introduction

1. Background of the Organisation

History

In 1922, a co-operative buying group called Foodstuffs was founded by the Auckland Master Grocers Association. Pak N’ Save was the last major store to be created in 1986, whilst its predecessors were in 1963, New World and Four Square since they began. (Pak'nSave, 2018)

Vision / Mission Statement

Pak n’ Save has a slogan of “our policy: NZ’s lowest food prices”. “So, we never stop looking for ways we can keep costs down in order to pass those savings on to you”. (Pak'nSave, 2018)

Values / Beliefs

Taking advantage of opportunities on getting the best deals is what the company take pride on. They believe the best way of cutting cost without losing the quality of the products offered is by being practical and functional by having no expensive lighting, or extravagant shelving and fancy flooring.  (Pak'nSave, 2018)

Product Portfolio

New Zealand supermarket that follows a unique kind of food warehouse format is what Pak n’ Save is. A variety of imported and commercial goods and products whilst having their own house brand is what they offer to their customers. (Pak'n Save, 2018) Food and household products is what they provide in a self-service manner. A form of loyalty card called Shop’n Go is one of the amenities they provide for customers which have perks and benefits for purchasing items. (Pak'n Save, 2018)

1. Consumer in the Marketplace

1. The field of consumer behaviour

Evaluation of the concepts and process of consumer behavior for Pak n’ Save are as follows:

First off, in the field of consumer behavior, there is a theory called role theory where in the consumer’s behaviour are like the actions in a play which makes the consumers the “actors” in the marketplace stage. Pak n’ Save being a supermarket can cater to all kinds of “actors” to any kind of play; from the nerds who choose to purchase a lot of energy drinks and junk food to sustain a whole night of playing games to the health enthusiasts who choose to purchase fruits & vegetables and any other 5-star health rating products.