Factors Which Influence Consumer Decision Making Marketing Essay

The aim of this study is to be aware of the factors which influence consumer decision making process in relation to restaurant industry in Al Ain UAE. These restaurants will include fast food chain outlets like Mc Donald and Pizza Hut etc. Though there are other restaurants in Al Ain offering Local culture, Chinese, Indian Continental food etc. but the study has been limited to the fast food giants as there has been fast growth in this sector of food habits. The study is mainly related to the consumer behaviour approach which pertains to the study of behaviour of different individuals, groups or organizations. This will include the knowledge of the methodology and process of their selection, use, services, experiences and ideas to satisfy their needs of products. The impact of consumer behaviour on society is of great significance especially as regards to the study undertaken as it is linked to fat foods which can have serious adverse effect on the health of the consumers. The application of consumer behaviour differs with product and local culture of the people.

INTRODUCTION

The top management of all organizations give significant weight age to the marketing aspects. The senior marketing experts always look for the improved strategies and new methodology to attract the individual consumer. The strategies of all organizations are to reach the grass root level so that the product becomes habit of the consumer. In the marketing strategies, firstly mass marketing concept is introduced. This enables the producer to have that vast, undifferentiated body of consumers who received identical products and messages. The refining of the marketing strategy is the second point which is based on the market segmentation on the basis of demographics or psychographic characteristics.

The study was conducted to know the customers reaction to our discussion and the questionnaire. This was to know the behaviour of different consumers on the spot regarding their choice for as specific restaurant. The fast food eating places are chosen as most of the younger generations are visiting such restaurants rather than traditional ones. The consumer behaviour is found to be based on several factors. These have been explained in the text of the report.

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LITERATURE REVIEW

Consumer Behaviour

Consumer behaviour and consumer decision making are significant in the existing industry scenario (Fullerton 2005, Stern 2000, Anurit et al, 1999). Consumer behaviour is defined as the behaviour or activities that consumer engage in while selecting, purchasing and using products and services to satisfy the needs. Such activities involve mental and emotional processes in addition to physical actions. The importance of consumer behaviour is deeply rooted in marketing strategy. All decisions involved in developing an effective marketing mix for a product or service rely on thorough knowledge of the consumers who compose the target market (Mullen & Johnson 1990).

Understanding the behaviour is one of the more perplexing tasks confronting every business owner. The difficulty arises from the heterogeneity of buyers from their brand loyal or from groups of individuals who differ from one another. Brand loyalty is widely understood to be the ultimate goal a company set for branded product. Brand loyalty is key factor to make critically valuable contribution to organization. Brand loyalty is a function of both attitudes and behaviour. The studies have suggested that consumers who more involved with a particular brand are also more committed and therefore more loyal to the brand (Chung and Kim, 1997).

Customers are considered to be a significant part of a corporation rise to success especially due to their critical decisions of either using or declining the services that a particular company gives. Consumer behaviour has been often assessed by corporations to help predict their possible demands and therefore also change and improve their products and services Chung and Kim (1997), have stated that culture and beliefs are large influences with regard to the decisions of the consumers. This does not only refer to advertising but also with regard to actual brand itself and what it serves. By knowing the expectations of the majority of the people within culture that the product is being sold to, the company is also showing that they have enough ties with particular group that they already know what they want and therefore have managed to offer it to them.

Factors affecting consumer behaviour

The consumer perception of a product highly affects its decision on what product to buy. The decision process is influenced by the information available to the consumer and the way in which the consumer processes the information. The decision process is influenced by consumer beliefs, attitudes and intensions as well many other individual characteristics. According to Kotler & Armstrong 2001, consumer buying behaviour refers to buying behaviour of individuals and households who buy the goods and services for their personal consumption.

Consumer behaviour and brand loyalty are highly accredited to each other. The consumer perception of a product highly affects its decision on what product to buy. The decision process is influenced by the information available to the consumer and the way the consumer processes this information.

Perception

Consumer may perceive and interpret the information in different way than it was intended by the source. Perception can be therefore terms as selective process both in terms of exposure, attention, comprehension, acceptance and retention of available market information. There is aspect of taste as in real life when the food is taken, the pleasure and displeasure associated with this will impact consumer behaviour (Herbert & McFie, 1996).

Based on the different research studies, there are number of factors affecting consumer choices.  In some cases, consumers are more motivated due to the company in which they move.  There are people more motivated to comparison shop for the best prices, while some are more convenience oriented.  There is another aspect i.e Personality which also impacts decisions.  There are people who will like to taste variety of products as these persons are more receptive to stimulation and excitement in trying new stores.  Individual perception and psychology also impact the consumer behaviour regarding the products and the brands. There are consumers who can taste the difference between generic and name brand foods while others cannot.  In the recent times the fast food consumers are also looking into the perceived risk and avoid the products. This is true as the fast food habits cause number of diseases and people are trying to avoid the food with heavy content of fat. Some of the consumers avoid the crowded places and can sacrifice even the brands which meet their taste.

The consumer behaviour is also influenced by the environment which includes culture, family, signs and media. The limitations in consumer knowledge and processing abilities influence the decision making. The strategy of the consumer differs with products and in the case of fast food most of the people prefer variety and fat free items. The impact of consumer behaviour on society is of great significance. The studies indicate that aggressive marketing of high fat foods may have serious repercussions for the national health and economy.

Advantages

The awareness of the consumer behaviour benefits the firms and organizations improve their marketing strategies by understanding the referred issues. The consumers are more receptive to food advertising and the fast food giants advertise more during late afternoon. The new products are introduced are well financed before these products become commercial success. The initial customers are given benefit of both pricing and service as they influence the subsequent customers. The social marketing is getting ideas across different consumers rather than selling something. The survey conducted by these fast food giants created promoted and encouraged their products especially burgers, pizzas and French fries. These names are now most common with students and university students. The study of consumer behaviour makes the people better consumers. People will be aware of the benefits of getting benefit of schemes by purchasing larger pizzas and getting discount vouchers for the next purchases.

External Factors

Culture is one of the main external factors which influence the consumer. It is a challenging issue for the marketers since it is vague and often difficult to understand.  The marketing may violate the cultural norms of another country and people from different cultures may feel uncomfortable in each other’s presence. Culture of the local country will get priority and while advertising products, it does not prove to be controversial. The culture of certain countries observes greater levels of formality than others. Gert Hofstede (2001), during one of his studies opined that cultural differences tended to centre around four key dimensions suggested by him.

The marketing also depends upon the segmentation which differentiates between different kinds of people with different needs. In the fast food products, the younger generation is market segment for the pizza, burgers and French fries. There are number of variables which are used to differentiate consumers of the fast food. These variables include the taste, preference of low fat versus taste, price sensitivity and healthy light consumers.

AIMS & OBJECTIVE

The objectives of the study are to understand the consumer behaviour approach, processes and applications. It will also include the review of roles of personal, social and situational factors in the consumer behaviour.

METHODOLOGY

The study has been undertaken with both primary and secondary methods of research methodology. In the primary methodology, the survey [1] has been done at different eating giants. The secondary method of information has been collected from various books, journals and media reports.

As a primary research methodology, the group has selected the three fast food centres and three main products from it (Burger, Pizza and French Fries). These products have been selected as currently most of the consumers are working, college going or school children Apart from this in present modernization the family heads both husbands and wife’s are working and they don’t have enough time to spent on their daily activities in home.

In this part of project our team has selected three major Fast food centres in Al Ain for the better understanding of the Consumer behaviour. Next this research tries to study the various factor or variables which tend the individual towards buying a product, the atmosphere in these Fast food centres. Generally it is seen that the atmosphere in these centres is marvellous with effective services, there won’t be a chance not getting any good, to study and gather information this research has selected Pizza Corner, KFC and Mc Donald these have very goodwill in the costumer.

ANALYSIS & INTERPRETATION OF THE DATA COLLECTED

There are 120 people selected for the sample for the case study. However, only 90 people responded and contributed the data collection. The study relates to these 90 people from different profession and different age group. The mixed sample is thought to be better to be aware of the consumer and market behaviour in UAE for the restaurants especially fast food.

Which of the following you prefer

Sr. No

Item

Population

Percentage

1

KFC

13

14.44

2

PIZZA HUT

27

30

3

Mc Donald

45

50

4

Others

5

5.56

The data shows that amongst the three top fast food giants, major share was with McDonald with 50% share and 30% to Pizzahut. The reason is due to variety of products with McDonald and Pizzahut. KFC offers mainly non vegetarian food and are having more fat content.

Major aspects you look for selecting these centers

Sr. No

Particulars

Population

Percentage

1

Price

43

47.78

2

Easy Availability

19

21.11

3

Services provided

28

31.11

Most of the consumers feel that price (48%) is major criteria and next aspect is the customer service offered (31%). McDonald offers different schemes and has offered burgers at very competitive rates and Pizzahut is mainly known for its Pizza and burgers are specialty of the McDonald. French fries are very common with McDonald and famous for their quality. Quality of customer service is good in all cases and as such the major competition depends upon the pricing.

When you decide to choose a meal which of the following you consider

(Rank the selected in the way it affect your buying)

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

Price

48

19

12

11

10

Service

46

24

16

11

03

Taste

57

17

13

03

10

Quality

53

22

07

13

05

Quantity

26

14

23

18

19

Freshness

72

24

03

01

nil

Cleanliness

63

27

09

01

nil

Presentation

52

28

08

08

04

Proximity

37

24

13

19

07

Parking availability

54

19

13

04

10

Door to door service

42

27

11

15

05

Time taken for delivery

63

22

03

06

06

The factors mentioned in the table above, are key points and in the degree of their preference, in the pricing 48% of the people selected for the study strongly agree that price is first criteria, 19% people agreed that price is main criteria, 10% strongly disagree and 11% disagree with the statement.

PRICE

SERVICE

The customer service is also main focus in such cases as the presentation of the food and serving the food is specific in each case. The respondents agree with the statement which indicate that total of 70% including 46% strongly agree that service is main criteria. Only 3% strongly disagree and 11% disagree to the statement.

TASTE

Taste of the fast food becomes famous with the consumers. Even with same type of food item, taste differs amongst the different fast food providers. Taste becomes habit and McDonald have their own sociality and ingredients. The taste though includes perception of the individual mainly but also depends upon other factors. The taste is developed by the people after having it first time, if it really suits them. The respondents agree and strongly agree to the taste aspect and 74% people voted for the taste which include 47% strongly agree with the statement.

Only 13% disagree with the statement. There were 13% people who had no opinion on this issue. However, as per theories of consumer behavior the taste is one of the major aspect.

QUALITY

The quality makes the product more famous with consumers. Majority (73%) of the people selected for survey strongly agrees (53%) and agrees (22%) that quality is important while selection of the food items. Only 18% of the people strongly disagree and disagree with the statement.

QUANTITY

Quantity is point of reference for selection of the food items but the preference of quantity is wide spread as seen from the analysis. Only 40% of the people voted for the statement as strongly agree and agree. There are 23% people giving neutral opinion. There are 23% people giving their neutral opinion.

FRESHNESS

Freshness is strongly desired in the fast food. There are 96% people confirmed that freshness is one of the major criteria for selection of the fast food items. This includes the 72% with strongly agree to the statement and 24% agree to the same.

Only 4% people did not agree with the statement.

CLEANLINESS

Cleanliness for the fast food is again strongly desired. There are 63% people strongly agree and 27% agree to the statement in favor of cleanliness. The respondents 1% disagree while 9% are neutral in their opinion.

PRESENTATION

The presentation of the food items in any restaurants make the service provider as unique selling point (USP). The majority of the people give their opinion as strongly agree and agree with the preference to the presentation of the food items. There are only 12% people who are under the disagree and strongly disagree with the statement. Majority of the consumer’s i.e 55% strongly agree and 26% agree to the query. It shows the importance of the presentation in the fast food items.

PROXIMITY

The proximity of the service provider i.e eating place is also important. This is the reason that all the three fast food giants have their franchises at college and university campuses. The familiarity of place of eating in normally depends upon proximity to the main markets, on highways and educational institutions to cater to the different category of people.

The proximity is important and is agreed upon by 51%(37% strongly agree) and this is the main reason that all such eating places are easily approachable and in proximity to the consumers. Only 19% disagree to the statement as they felt that brand is important and the consumer may not look into the proximity issue.

PARKING

People try to take fast foods where can just drive in and do not have hassles of parking their vehicles. There are 54% strongly agree and 19% agree to the preference of the parking. Only 14% disagree to the statement.

DOOR TO DOOR SERVICE

The majority (69%) of the people under the survey confirmed that door to door service is equally important for the fast food providers. Out of which 42% preferred the strongly agree for the customized service. There are 11% people giving the neutral opinion.

TIME TAKEN FOR DELIVERY

The time taken for delivery of the food items whether at restaurant or at homes or working place also indicator of the consumer behavior. If there is delay in getting the items after placing the order the supplier becomes infamous. The food items are such a product that people will dislike waiting time after placing the order. The same opinion is being given by the majority of the people under survey. Out of 85% giving their preference as strongly agree and agree there are 63% people stating it as strongly agree. The 3% respondents give neutral opinion while 6% disagree and another 6% strongly disagree to the statement. The balance of 22% agree to the statement.

Do you consider the product, quality or price differentiation before buying it?

Price is one of the major considerations

Sr. No

Particulars

Population

Percentage

1

Yes

42

46.66

2

Sometimes

22

24.44

3

No

26

28.90

PRICING

The fast food items gain their brand loyalty only due to products, quality and price. All these three aspects make the product branded. The pricing is amongst the most preferred choice between the top three aspects. There are 47% people giving their opinion as affirmative and only 29% give the opinion as no. There are 24% people furnishing the opinion as sometimes.

Does the quality and quantity is going to show change in your buying behavior or opinion?

Sr. No

Particulars

Population

Percentage

1

Yes

47

52.22

2

No

13

14.45

3

Depending upon specification

30

33.33

BEHAVIOUR OR OPINION

The majority of the people i.e 52% are of the opinion that quality and quantity impact the consumer behaviour. Only 33% of the people give opinion as that consumer behaviour depend on quality and quantity based on specifications. Balance of the people under survey were negative in their opinion.

Is there any change in buying these products in accordance with the age and gender?

AGE & GENDER

Sr. No

Particulars

Population

Percentage

1

Yes

46

51.11

2

Sometimes

29

32.22

3

No

15

16.67

The consumer behavior depends upon the age and gender. As the age is growing the people try to avoid food from outside due to the different reasons. The culture also impacts the age going for outside eating in restaurants. There are 51% people who gave their opinion in affirmative and 17% in negative. There are 32% people who feel it can be due to other reasons and nothing concrete can be concluded.

Are these products meant for all levels of people?

LEVEL OF PEOPLE

Sr. No

Particulars

Population

Percentage

1

Yes

42

46.66

2

Sometimes

24

26.67

3

No

24

26.67

The fast food items have been of various varieties now and these items are for eating for all levels of the people. The same trend is shown under the survey. There are 46% people who are of the opinion that the food items provided by these suppliers are for all levels. This is in line with the market trend as people are now visiting these restaurants with families. 27% respondents are of the opinion that the choice is sometimes and not always.

Is the Advertising and promotion of product is moving you towards these centers?

IMPACT OF ADVERTISEMENT

Sr. No

Particulars

Population

Percentage

1

Yes

41

45.55

2

Sometimes

26

28.90

3

No

23

25.55

The advertisement persuades the consumers to be aware of the supplier providing the products. There is positive impact of the advertisement. It is true that application of marketing and its associate strategies can gain the consumers trust and loyalty and can enjoy the benefit of its market share. The timing of advertisement is also important and the referred companies in the survey are already on television and media reports. Their advertisements through brochures sent in daily newspapers add to their marketing. The opinion of the 45% of the people is in line with the market trend. Only 29% people feel that it helps sometimes.

Do the families members make you buy these products? Who is the decision maker

IMPACT OF FAMILY

The family members also have impact on the persons regarding their consumer behavior but to the extent of only 8%. There are 49% people taking self decisions. The friends and relatives have influence and 20% of the people are of this opinion. There is another segment 23% who feel that consumer behavior also depends upon situation.

Sr. No

Particulars

Population

Percentage

1

Self decision

44

48.88

2

Friends and relatives

18

20

3

Family members

7

7.79

4

Depends on situation

21

23.33

Is your buying behavior going to change when you go with your friends or other family members?

IMPACT OF FRIENDS

Sr. No

Particulars

Population

Percentage

1

Yes

43

47.77

2

Sometimes

32

35.56

3

No

15

16.67

There are 48% of the people who are of the opinion that consumer behavior is influenced by friends and relatives. Another good percentage i.e 35% feel it depends upon situation and state it as sometimes. Only 17% feel that it is not impacted.

Personal Information

Name (optional): _________________________________________________________

Nationality: ______________________________________

Sr. No

Particulars

Population

Percentage

1

UAE Local

48

53.33

2

Other Arab countries

18

20

3

Others

24

26.67

In the survey participants there are 48% local UAE people and 35% others arabs. The balance of 17% is from the other Arab countries. It shows that sample selected was mostly from local people to know the impact of culture also.

Age group

Sr. No

Particulars

Population

Percentage

1

18-25 years

48

53.33

2

26-35 years

17

18.89

3

36-45 years

14

15.56

4

46 years and above

11

12.22

Fast food is very common with young generations as such the sample selected included 53% are from 18-25 years and another 19% are in age range of 26-35 years. Only 12% in the sample are from 46 years and above.

Gender

Sr. No

Particulars

Population

Percentage

1

Male

54

60

2

Female

36

40

The people selected are with 60:40% ratios between men and women. The variation is satisfactory as local women in UAE will try to avoid the interview with outsiders.

Occupation

Sr. No

Particulars

Population

Percentage

1

Student

49

54.44

2

University graduate

22

24.44

3

Employee

13

14.44

4

Others

06

06.68

Out of the sample selected 78% are from school, colleges and university with 54% from student category. Only 7% are form others category. 14% of the sample are form employee category and taking the fast food from these suppliers. The consumer behavior depends upon the profession.

Income category you belong to

Sr. No

Particulars

Population

Percentage

1

Lower income group

14

15.55

2

Medium income group

50

55.56

3

Medium to high income group

16

17.78

4

Higher income group

10

11.11

Most of the people belong to the category of medium income group. The majority i.e 56% belong this category. Only 11% belong to higher income group. Similarly 15% are form lower income group. It means that consumer behaviour depends upon the income. This is in line with trend as price can be afforded by medium to higher income group.

FINDINGS AND CONCLUSION

The market is characterised by highly competitive organizations. The peer group i.e McDonald, Pizzahut, Subway, Burger king and Dominos all are well established and are having their own specialty. These fast food giants are struggling for consumer’s loyalty. The companies are facing challenge to maintain their competitive edge to be able to survive and be successful. All of these companies are planning and implementing strategies to get maximum growth. There are external and internal factors affecting the direction of these companies.

During the survey of three fast food outlets in the city it has been observed that the location of the outlets was one of the factors of the consumer behaviour. This was the main reason that these outlets are established in shopping malls, on the highways near to the cities, near the educational institutions and at places of entertainment. The physical factors also include the cleanliness and interior decoration of the outlets. The facilities like offering wi fi internet service and smooth music for entertainment also impact the consumer behaviour. The lightening, temperature and even the fragrance attract the clients for sitting for longer time and order number of products during the stay. It was also observed that consumers preferred less crowded atmosphere. Younger generations always preferred the less crowd to have solace. In our study people never preferred herd behaviour.

Culture and social factors also affect the consumer behaviour. The culture of the UAE encourages home and local food. The social situations made the local population less willing to buy the fast food items. However, with the increase in literacy rate the trend of eating at fast food giants has become common. The time factor is linked to the timings of the outlet, whether the products are more common during breakfast, lunch or dinner. In all the three organizations, the products are commonly consumed during lunch, evening snacks and dinner timings. The level of customer service depends upon not only for the on the counter service but also for adding new products with competitive rates.

The buyers choose amongst the three fast food giants based on the referred factors and also the brand they have created in their minds. The choice of the food also depends upon habits of the consumers. Habit may be due to the influence of family, friends and relatives. The choice also depends upon the budget. The consumers were mostly from the younger generations including mostly students. The students have limited budgets and they will try to search for the competitive pricing.

Product range was another major factor in the choice of the consumers. This is the main reason that each organization is introducing new products at different times. The products were related to cultural food and with less fat taking into consideration the health problems due to fried and fatty products. The taste developed by the consumers was also other major factor.

Convenience was also the factor, the parking for the vehicles and choice for particular shopping event. As regards to the convenience, the main issues are accessibility and amount of time available for taking food. The choice also was linked to the company with whom the consumers were visiting. At times family has influence and the choice is different if the consumers are alone or with others.

The media reports especially the adverse reports for any food consumption items also impact the consumer behaviour. In the recent