Consumer behavior exercise

Nick Marinos

TABLE OF CONTENTS

Company                                                                        

Introduction……………………………………………………………………..2

Objectives ………………………………………………………………………3

Executive Summary……………………………………………………………4-6

Body of findings ………………………………………………………………6-11

Conclusions……………………………………………………………………12-14

Recommendations…………………….…………………………………….…15-16

Appendices

Questionnaires-Interview  ….…………………………………...……………17-25

INTRODUCTION

Vakoulis brothers, a small mini market, was established in 1985 in Maroussi, by 2 brothers, Markos & Costas. It was the only mini market in a 2km radius basically selling daily products, newspapers, cigarettes and a few products from very basic food categories. Business was going good and profits were increasing year on year.

 After 5 years of operation they expanded by buying the store exactly next to their mini market, including grocery and a larger variety of products. A few years after the expansion, a new era began in the supermarket business. Supermarkets were becoming hypermarkets!

This was a threat for the Vakoulis brothers since the competition was vast and the supermarkets advertised and had a larger variety of products with special offers. Their profits were declining. They declined so much that both brothers could not support their families with the declining income they were receiving. Costas couldn’t stand the pressure and opened a kiosk in Kifissia.

Markos that was left alone had to do something to turnaround the bad situation. He decided to hire Deree MBA graduate students (ABNP consulting group) to generate innovated ideas for the upturn of his mini market. ABNP is specialized in consulting companies with fast moving goods.

After discussing with Markos it was agreed to focus on introducing a new line of products. The final decision concerned a conduction of a research for the launching of a biological product line regarding agricultural and/or meat products.

The objectives for the proposed entry are:

Objectives

From our discussion that we have done with our client (Vakoulis-brothers mini market) we came in to the following objectives.

  1. Possible increase of sales from biological agricultural and or meat products.
  2. Collecting adequate information concerning the ecological awareness and receptiveness of the customer.
  3. Gathering of further more specific customer information for in store purchases concerning the consumption of biological products.
  4. Possible customer reaction to the entrance of the new biological agricultural and or meat products.
  5. Increase our market share (attracting more competitors clients*)
  6. Finding consumer purchasing patterns
  7. Specify demographic characteristics of our target segment.
  8. Try to discover some of the external or internal influences that affect the customer.
  9. Gather more information concerning the customers’ media usage generally and for product information.
  10.  Perform some information about customer’s standards of living.

Executive summary

The purpose of the research done was mainly, because of the observed increase in customer concern on environmental issues, therefore a proposal was made to introduce a line of biological vegetable and/or meat products. The research investigates the demographic characteristics of the target customer, the purchasing roles, attitudes towards biological products, reference groups and word of mouth, culture and subculture references, learning patterns as well as buying decision process. We also want to find out if there is a viable opportunity for the mini market to increase their market share profit and sales. We also want to see if there are possibilities of also the retaining the customer of the mini market.

The research was performed in a nuclear family consisting of father, mother and a child. The research included questioner and interviews. The findings from the previous research method were the following: First that the target customer household demographics correspond to a husband and wife to 45 years old with a child, being well educated, earning high income, belonging to middle-upper class.

An important conclusion is that the decision-maker concerning the food consumption is the wife. Furthermore she also has the influencer role and she is the main purchaser of food. Both husband and wife are in the trial stage of the adoption process since they have already purchased biological products in the past. They are also not brand conscious and in search of a particular brand.

They view biological products as expensive and the wife is price sensitive. Both of them think of biological products as of high quality.

Concerning the cultural element the husband is indifferent of ecological community while his wife (decision-maker) thinks of it in a positive manner and thus she shows an aspiration reference, having increasing possibilities of product loyalty.  

From the research results we also have concluded that there is word of mouth occurring because of the positive comments both husband and wife have taken into consideration.

Furthermore they belong to late majority adopter category and the wife’s ecological background is stronger.

There is evidence that biological products make them feel secure and good. Their degree of involvement is high on different products but low on ecological products. Is important to say that from the research conducted we came in the conclusion that both are not accurately or not well informed about production and specific characteristics of biological products, resulting to having an incomplete image about them.

Primary motivation for consuming biological products is health. Their food consumption concerns mainly meat, pasta and fewer vegetables. Finally the wife is more informed about biological meat line existence as well as is more prone for the consumption of those products.

Major element of distinction between regular and biological products is taste quality and health contribution.

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Our recommendation to the mini market is that could successfully introduce a series of biological vegetable and meat products according to the findings of the research.

A significant action from the part of the mini market is to create awareness for biological products actively through brochures and leaflets indicating the whole process of producing biological products from start to end-user signifying in the end the positive results of consuming biological products. The mini market should establish a more personal relationship with the wife, along the purchasing process, which is the influencer and decision-maker.

The mini market should focus on providing ...

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