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Wm Morrison Supermarkets (Morrison) is UK's fourth largest supermarket chain and is primarily engaged in the operation and management of a chain of supermarkets across the UK. The company in early 2004 acquired one of its larger competitors, Safeways. The company operates primarily in the UK. It is headquartered in Bradford, UK and employs about 150,000 people.
However, this company faces a collapse in profits that will see it fall into the red for the first time in its 106 years history. Although, this company has many difficulties and continued problems relating to the integration Safeway, research shows that Morrison does not really understand consumer behaviour.
The purpose of this report is analyse the importance of consumer behaviour in marketing decision-making and recommend how Morrison can try to better understand its customers.
The importance of understanding consumer behaviour
“Consumer behaviour is the dynamic interaction of affect and cognition, behaviour and environmental events by which human beings conduct the exchange aspects of their lives.” (Olson & Peter, 1994, p.13) Companies are interested in consumer behaviour because they can develop marketing strategies to influence consumers to purchase their products based on consumer analysis. The success of a company’s marketing strategy will depend on how buyers react to it. To find out what satisfied customers, marketers must examine the main influences on what, where, when and how customers buy goods and services (Dibb, Simkin, Pride & Ferrell, 2001). By understanding these factors better, marketers are better able to predict how consumers will respond to marketing strategies. Ultimately, this information helps companies compete more effectively in the marketplace and leads to more satisfied customers.
Consumer decisions can be classified into three categories (1) routine response behaviour, (2) limited decision-making and (3) extensive decision-making. A consumer uses
routine response behaviour when buying frequently purchased, low cost, low risk items that require very little search and decision effort (Dibb at el, 2001). Customers for Morrisons and food retail industry are in this category.
Which elements of consumer behaviour do Morrison need to understand?
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This is a nice article.
I like the point stated that consumer’s behaviour are the basis of how to influence them to purchase. That is why we must really understand our market in order to really influence them the right way.
Thanks!