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Prague University of Economics and Business
Master’s Thesis
2021 Bc. Eva Kulhavá
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Prague University of Economics and Business
Faculty of Business Administration
CEMS Master in International Management
Title of the Master’s Thesis:
Consumer behavior in fast food restaurants
Author: Bc. Eva Kulhavá
Supervisor: doc. Ing. Jan Koudelka, CSc.
Declaration of Authenticity
I hereby declare that the Master’s Thesis presented herein is my own work, or fully and specifically acknowledged wherever adapted from other sources. This work has
not been published or submitted elsewhere for the requirement of a degree programme.
Prague, December 15, 2021 Signature
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I would like to thank doc. Ing. Jan Koudelka, CSc. for his time, consultations and advice he has given me during the process of this diploma thesis creation.
Additionally, I would like to thank my family and friends for their support throughout the study.
5 Title of the Master’s Thesis:
Consumer behavior in fast food restaurants Abstract:
The goal of this master’s thesis is segment and provide insight on the consumer behavior of fast-food restaurants visitors in Czech Republic. This analysis is conducted to identify consumer segments, which fast food truck Circus Burger should focus on.
Analysis and segmentation conducted and was based on both secondary and primary date. The source of secondary data was MML-TGI survey and source of primary data was questionnaire survey (N=254) conducted by the author. Segmentation based on secondary data uncovered five segments, while the segmentation based on primary data uncovered four segments. Subsequently the segments uncovered based on both data sources were synthesized. Two out of five segments were identified as most suitable for Circus Burger to focus on, taking account the market segmentation criteria and selected targeting strategy.
Key words:
Fast food restaurants, Food trucks, Market Segmentation, Consumer Behavior, MML- TGI
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Table of content
TABLE OF CONTENT ... 6
TABLE OF CHARTS ... 9
TABLE OF FIGURERS ... 10
TABLE OF APPENDICES ... 11
INTRODUCTION ... 12
1. CONSUMER BEHAVIOR ... 14
1.1.DEFINITION OF TERM CONSUMER BEHAVIOR & IMPORTANT FEATURES ... 14
1.2.MODELS OF CONSUMER BEHAVIOR ... 15
1.2.1. Traditional models ... 15
1.2.2. Contemporary models ... 17
1.3.THE BLACK BOX MODEL IN CONSUMER BEHAVIOR ... 20
1.3.1. Stimuli ... 22
1.3.2. Consumer’s black box ... 22
1.3.3. Responses ... 23
2. FACTORS INFLUENCING CONSUMER BEHAVIOR ... 25
2.1CULTURAL CHARACTERISTICS ... 26
2.1.1. Culture ... 26
2.1.2. Sub-culture & micro-culture ... 26
2.1.3. Social classes ... 27
2.2.SOCIAL CHARACTERISTICS ... 28
2.2.1. Reference groups ... 28
2.2.2. Roles & status ... 29
2.3.PERSONAL CHARACTERISTICS ... 30
2.3.1. Occupation & economic situation ... 30
2.3.2. Age & life stage ... 30
2.3.3. Lifestyle ... 31
2.3.4. Personality & self-concept ... 32
2.4.PSYCHOLOGICAL CHARACTERISTICS ... 32
2.4.1. Motivation ... 32
2.4.2. Perception ... 33
2.4.3. Learning, beliefs & attitudes ... 34
3. BUYER DECISION PROCESS ... 35
3.1.PHASES OF BUYER DECISION PROCESS ... 35
3.1.1. Problem recognition ... 35
3.1.2. Information search ... 36
3.1.3. Evaluation of alternatives ... 37
3.1.4. Purchase decision ... 38
3.1.5. Post-purchase behavior ... 38
3.2.TYPES OF BUYING BEHAVIOR ... 40
3.2.1. Complex buying behavior ... 41
3.2.2. Variety seeking behavior ... 41
3.2.3. Dissonance-reducing buying behavior ... 41
3.2.4. Habitual buying behavior ... 42
3.2.5 Impulse buying behavior ... 42
4. SPECIFIC OF CONSUMER BEHAVIOR IN FAST FOOD ... 44
4.1.DINNING HABITS IN CZECH REPUBLIC ... 44
4.1.1. Survey Naše společnost 2003 ... 44
4.1.2. FOOD survey ... 46
4.1.3 Impact of Covid-19 on dinning ... 46
4.2.CONSUMER BEHAVIOR IN FAST FOOD IN CZECH REPUBLIC ... 47
4.2.1. Nielsen Admosphere survey 2017 ... 47
4.2.2. Nielsen Admosphere survey 2020 ... 48
4.2.3. Ugo survey 2019 ... 49
5. MARKET SEGMENTATION, TARGETING, POSITIONING & DIFFERENTIATION ... 50
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5.1.MARKET SEGMENTATION ... 50
5. 1. 1. Market definition ... 51
5. 1. 2. Segmentation criteria ... 51
5. 1. 3. Segments identification & formulation ... 52
5. 1. 4. Further segments development ... 52
5. 1. 5. Concepts of market segmentation ... 52
5.2.TARGETING, DIFFERENTIATION & POSITIONING ... 53
5. 2. 1. Targeting ... 54
5. 2. 2. Differentiation ... 54
5. 2. 3. Positioning ... 55
6. METHODOLOGY ... 57
6.1.METHODOLOGY OF THE SECONDARY DATA RESEARCH ... 57
6.1.1. MML – TGI ... 57
6.1.2 Methodology of the segmentation process ... 57
6.3.METHODOLOGY OF THE PRIMARY DATA COLLECTION ... 58
7. CIRCUS BURGER & FAST-FOOD RESTAURANTS IN CZECH REPUBLIC ... 59
7.1.FAST FOOD OVERVIEW ... 59
7.1.1. Brief history of fast food ... 59
7.2.CIRCUS BURGER ... 59
7.2.1. History & concept of the company ... 60
7.2.2. Operations overview ... 60
7.2.3. Marketing communication channels and activities ... 62
7.3.COMPETITION OF CIRCUS BURGER ... 64
7.3.1. Global chains focusing on hamburgers ... 64
7.3.2. Local chain focusing on hamburgers ... 65
7.3.3. Local food trucks focusing on hamburgers ... 66
8. SEGMENTATION BASED ON SECONDARY DATA ... 67
8.1.SEGMENTATION PROCESS ... 67
8.1.1. Variables significant for the segmentation process ... 67
8.1.2. Factor analysis ... 67
8.1.3. Cluster analysis ... 69
8.2.FURTHER DEVELOPMENT OF SEGMENTS ... 71
8.2.1. Verification contingency analysis ... 72
8.2.2. Socio-demographic contingency analysis ... 73
8.2.3. Contingency analysis of relationship towards fast food and dinning ... 74
8.2.4. Media and marketing tools contingency analysis ... 74
8.2.5. Descriptive statistics ... 74
8.3.OVERVIEW OF SEGMENTS DEVELOPED BASED ON SECONDARY DATA ... 75
8.3.1. Superficial alternative eaters ... 75
8.3.2. Comfortable dinners ... 76
8.3.3. Enjoyers ... 77
8.3.4. Family conservatives ... 78
8.3.5. Discipled dieticians ... 79
9. PRIMARY DATA ANALYSIS ... 81
9.1.SEGMENTATION BASED ON PRIMARY DATA ... 81
9.1.1 Formulation of the segments based on primary data ... 82
9.2.SYNTHESIS OF SEGMENTATION BASED ON SECONDARY PRIMARY DATA ... 84
9.2.1. Young convenience seekers ... 84
9.2.2. Common men ... 85
9.2.3. Pleasure seekers ... 86
9.2.4. Family oriented carers ... 87
9.2.5. Disciplined dieticians ... 87
9.3. ADDITIONAL FINDINGS BASED ON PRIMARY DATA RESEARCH ... 87
9.3.1. Insight on eating habits of fast-food consumers ... 88
9.3.2. Insight on factors influencing the choice of fast-food outlet and meal ... 89
10. RECOMMENDATIONS FOR CIRCUS BURGER FOOD TRUCK ... 90
10.1SELECTION OF TARGETING STRATEGY & TARGET SEGMENTS ... 90
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10.2DIFFERENTIATION AND POSITIONING RECOMMENDATIONS FOR THE BRAND ... 91
CONCLUSION ... 93
BIBLIOGRAPHY ... 96
APPENDICES ... 99
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Table of Charts
Table 1 – Rotated factor matrix, Source: (MML-TGI, 2019)………...………68 Table 2 – Summary table, Source: (MML-TGI, 2019)………..…69 Table 3 – Distribution of respondents into clusters (secondary data), Source: (MML- TGI, 2019)……….70 Table 4 – Respondent’s summary table, Source: (MML-TGI, 2019)………..70 Table 5 – Factors & clusters matrix, Source: (MML-TGI, 2019)……….70 Table 6 – Distribution of respondents into clusters (primary data), Source: (Author)...82
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Table of Figurers
Figure 1 – Scheme of Nicosia Model, Source: (Khan, 2006, p. 184)………...…18 Figure 2 – Simplified scheme of Howarth-Seth model, Source: (Khan, 2006, p. 178)….19 Figure 3 – Scheme of Blac Box model, Source: (Koudelka, 2018, p. 9)…………...……...21 Figure 4 – Factors influencing consumer behaviour divided into four categories, Source: (Khan, 2006, p. 31)……….………...….25 Figure 5 – Consumption patterns of families in life cycle strategy, Source: (Khan, 2006, p. 74)……….31 Figure 6 – Five levels of Maslow's hierarchy of needs, Source: (Kotler & Keller, 2016, p.
229)………...33 Figure 7 – Forms of goods disposal, Source: (Koudelka, 2018, p. 228)……….40 Figure 8 – Types of buying behaviour based on level of involvement and difference, Source: (Kotler, Armstrong, Harris, & He, 2020, p. 158)………...……….41 Figure 9 – Overview of descriptive segmentation criteria, Source: (Koudelka, 2005, p.
60)……….52 Figure 10 – Overview of approaches to segmentation, Source: (Koudelka, Segmentujeme spotřební trhy, 2005, p. 109)………53 Figure 11 – Overview of followers on Facebook & Instagram, Source: (Meta, 2021)…..63
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Table of Appendices
Appendix 1 – Inputs used for factor analysis, Source: (MML-TGI, 2019)………99 Appendix 2 – Summary of sociodemographic characteristics of segments, Source:
(MML-TGI, 2019)………..100 Appendix 3 – Summary of dinning out frequency per segment, Source: (MML-TGI, 2019)………...101 Appendix 4 – Summary of dinning out expenditures per segment, Source: (MML-TGI, 2019)……….…..102 Appendix 5 – Summary eating habits per segment, Source: (MML-TGI, 2019)………103 Appendix 6 – Summary drinking habits per segment, Source: (MML-TGI, 2019)….104 Appendix 7 – Summary food choices per segment, Source: (MML-TGI, 2019)……..105 Appendix 8 – Summary attitude of segments towards media, Source: (MML-TGI, 2019)………..….106 Appendix 9 – Summary of the Factor analysis (primary data), Source (Author)…...107 Appendix 10 – Dendogram, Source (Author)………...………108 Appendix 11 – Summary of segment’s characteristics (primary data), Source:
(Author)……….…109 Appendix 12 – Questionnaire used for primary data collection, Source: (Author)..…110
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Introduction
Advice to put costumers first became a mantra over recent decades. Doing so is supposed to provide the company with a competitive edge over the competitors and being generally good for business. (Gomes, 2018) Nevertheless, to put the customer first, companies need to truly get to know and understand their current and potential customers. The study and understanding of consumer behavior become highly relevant if the goal of the company is to succeed in their consumer marketing activities in consumer markets. Knowledge of consumer’s needs, expectations, use of product and attitude towards product also serves as base for further strategic activities of the company. (Koudelka, Spotřebitelé a marketing, 2018)
Gaining competitive advantage is especially important for small new business, as one- fifth of them closes within first two years of operations, almost half within first five years and only one quatre will operate for fifteen or more years. (Deane, 2021) The reasons why companies fail vary. However, the most common reasons include lack of market research or its insufficiency, unrealistic business plan, insufficient capital, lack of marketing, but also rapid expansion. (Deane, 2021)
The author of this work is a co-owner of a small business herself. Company, where she owns a 35 % stake, is called Circus Burger. It is a food truck serving fast food, which has been quite successfully on the market for almost 4 years. Although Circus Burger has not yet encountered the above-mentioned problems, which are the most common reasons why new business fail, to large extent. As any other enterprise operating in the gastronomic industry, it was affected by COVID-19 pandemic. Prior to the pandemic, the main source of food truck’s revenue were festivals and events with the number of visitors in the thousands. Since the food truck never lacked customers at such events, an analysis of consumers was never performed.
However, number of such events has decreased rapidly due to anti-pandemic measures. For this reason, the food truck began to focus more on lunch sales in the vicinity of office buildings in Prague and the surrounding area. During this change in the main source of revenues of food truck, the owners also realized how little they knew about their customers and fast-food consumers in general. Reorientation towards lunch sales also made them realize, they cannot cater to all consumers as food truck offer is specific and limited. Understanding of Czech fast-food costumer, segmentation and right choice of target group of consumers should provide Circus Burger with basis for the company's marketing and strategic activities and potentially gain competitive advantage. Goal of this paper is to segment market of fast-food visitors in Czech Republic and subsequent identify and further develop segments Circus Burger food truck should focus on as their target customers.
This paper is divided into theoretical part and empirical part. Both parts consist of five chapters. The theoretical part of this work provides an overview of theories of consumer behavior and marketing concepts applied in the empirical part of the work.
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First chapter introduces consumers behavior as a study, lists key consumer behavior models, especially focusing on Black Box model. Second chapter describes four groups of factors – cultural, social, personal, psychological, which significantly influence consumer behavior. Third chapter deals with the buyer decision process. Specifically, it describes the five stages of the buyer decision-making process and compares the different types of buying behavior. Fourth chapter provides an overview of the research related to eating habits and fast-food consumption in Czech Republic. The last chapter of the theoretical part deals with the theory of segmentation, targeting, differentiation and positioning.
The empirical part of this work focuses on providing information on operations and marketing actives of Circus Burger and its competitors, performing segmentation and providing insight on consumers behavior at the market based on the questionnaire survey. Sixth chapter outlines the methodology of data collection, segmentation, further analysis and interpretation of both primary and secondary data. Seventh chapter provides brief genesis of fast food, introduces Circus Burger and its operation.
In closing of the chapter competition of Circus Burger operating on the Czech market is described. The eighth chapter describes the process of segmentation based on secondary data. This process involves factor and cluster analysis. Based on these two analysis market segments are uncovered. Subsequently segments are further developed based on a series of contingency analyzes. The ninth chapter deals with market segmentation based on data obtained through a questionnaire survey. Within the chapter, the segments obtained based on both data sources are then compared and a synthesis is performed. Additionally, chapter provides insight on fast-food consumer behavior of the respondents. The last chapter is devoted to the recommendations for Circus Burger food truck in terms of targeting strategy, target segments selection and possible differentiation and positioning.
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1. Consumer behavior
First chapter of this diploma thesis is dedicated to the topic of consumer behavior.
Firstly, the term consumer behavior will be defined, followed by discussion of both the traditional and contemporary consumer behavior models.
1. 1. Definition of term consumer behavior &
important features
The definition of the term consumer behavior is diverse and can vary based on the author of the formulation. To demonstrate that, key definitions are listed below:
“Consumer behavior is the study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires.” (Solomon M. , 1995, p. 11)
„ Consumer behavior refers to the study of how customers, both individual and organizations, satisfy their needs and wants by choosing, purchasing, using and disposing of goods, ideas and services. “ (American Marketing Association, 2021)
„Consumer behavior is a behavior of people, which related to acquiring, usage and disposal of the product.” (Koudelka, Spotřebitelé a marketing, 2018, p. 1)
As the above stated definitions prove, consumer behavior is highly complex ecosystem. While the definitions differ, there are certain similarities and characteristics of the definitions, that deserves further discussion provided in the paragraphs below.
Firstly, consumer behavior is not limed solely to purchase and usage of the good, but it also includes the phase of releasing the need for good and all further steps leading up to the purchase. Likewise, disposal of the product is important part of the consumer behavior. The initial phase leading up to the purchase is crucial. During this process the consumer makes the decision on how to satisfy his needs, which product is most suitable to satisfy his needs and which product features are the most important to him.
(Koudelka, Spotřebitelé a marketing, 2018) Uncovering the behavior of the consumer during this phase, even if partly, is without a doubt extremely valuable. Similarly, the disposal of the product becomes increasingly important as costumers are more and more environmentally conscious.
Secondly as the definition by Solomon or American Marketing Association explicitly states the consumer behavior and consumer decision-making is applicable for both tangible consumer goods and intangible consumer goods, represented mostly by services. Additionally, it is important to keep in mind, that not all the consumer goods
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used to satisfy consumer needs are commercial goods. (Koudelka, Spotřebitelé a marketing, 2018)
Lastly, often the terms consumer and customer are used interchangeably. In context of consumer behavior study and consumer marketing the consumer is the person, who demonstrates the consumer behavior. (Koudelka, Spotřebitelé a marketing, 2018) Meaning they identify the need, look for ways to satisfy the need by selecting, purchasing, using and disposing a good. For purposes of this thesis, we will only consider individuals as consumers, not the organizations. Consumers can be simultaneously also customers. In case the consumer already good from a particular company.
1.2. Models of consumer behavior
The consumer behaviour is highly complex, especially as throughout the whole consumer decision making process consumer is exposed to countless inputs and is influenced by various factors which is a reason why it is extremely difficult to uncover.
Over the decades various models attempting to explaining and simplify the consumer behaviour has been created. In this subchapter both selected traditional and contemporary consumer behaviour models will be described. While the traditional models attribute the decision making to individuals subconscious and emotions, the contemporary models focus primary on intentional decision-buying process of a consumer. The traditional models will be represented by the economic model, psychological models and sociological model. Out of the contemporary models, the following will be discussed: Howard Sheth model, Nicosia, Engel – Kollat – Mirand model.
1.2.1. Traditional models
Economic model
The economic model is sometimes also referred to as rational model. Because the model suggests that the behavior of the consumer behaves is utterly rational. The consumer selects the most suitable economic good, based on individual’s income, price of the good, individual’s budget constraints, marginal utility and individual’s indifference curves. This model does not take into take into consideration: emotions, social and psychological factors. Additionally, it is conditioned by consumer having complete information and being able to develop decision algorithm. While the consumer might be able to develop decision algorithm, individual rarely have complete information. (Koudelka, 2010) Lack of complete information and the fact, that emotions, psychological and social factors are not considered represent biggest weaknesses of this model. On the other hand, the economic model is yet relevant when examining consumer decision making process, especially if large monetary investment
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is involved. (Koudelka, 2018) An example could purchase of property, since such a decision involves large sum of money, decision of the individual during this process tends to be more rationally driven, than for example spur of the moment decision to buy a chocolate bar.
Psychological models
While the rational model did not consider the emotions or psychological factors when studying consumer behavior. Psychological models focus on psychological determination of consumer behavior, such as how the external stimulus is perceived by the consumer or individual’s unconscious motives. (Koudelka, 2006) Within the psychological models, we can observe two main directions: behavioristics model of consumer behavior and psychoanalytic model of the consumer behavior.
According to the behavioristic model the consumer behavior of the individual can’t be directly monitored and explained as it is unique inner mental process of the individual.
However, the model suggests the consumer behavior can be explained by monitoring observable responses to external stimulus of an individual. With observable response being for example the choice of a good. The external stimulus can be represented for example by distinct features of a good, or marketing communication. (Koudelka, 2010) Psychoanalytic models propose that the consumer behavior can be uncovered by decoding individual’s conscious and unconscious deep-rooted motives. As these deep-rooted motives are the key factors, driving individual’s consumer behavior.
(Koudelka, Spotřební chování, 2010) As the motives are both conscious and unconscious, individuals can lack explanation why they gravitated towards certain stimulus. This model is relevant especially if product has distinct image associated to it. (Needle, 2021) Example of such a good can be luxury sports cars. People associate such a product with wealth, power and success. If individual subconsciously long to achieve wealth, power or success he is likely to respond positively to external stimulus, such as image of image of luxury car. Due to the fact the external stimulus is representing his unconscious wants.
Sociological model
This model of consumer behavior suggests that the consumer buying-decision process and consumer behavior is determined by sense of belonging and identification with various social groups in individual’s life. Also, the importance of the particular social group to individual and individual’s role in given social group influences the individual’s consumer behavior. (Koudelka, 2010) The individual’s consumer behavior will be aligned with consumer behavior of social group the individual identifies with. (Needle, 2021) This model is highly relevant to majority of businesses as the social group doesn’t necessarily need to be determined only by age, education or income. The secondary social groups can be determined also by interest. Every businessowner should know, which interests their target group exhibit and create external stimulus that will appeal to the social group they wish to target.
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1.2.2. Contemporary models
The Engel Kollat Blackwell Model
Represents one of the most recognized models of consumer behavior. Throughout the time, the model was revised several time and current form of model is also known as Engel Blackwell Miniard model. The model suggest that the consumer decision- buying process consists of four or five components, based on the versions of the model.
Model also states that the decisions within the process are based on external and internal variables. The four components of the decision-buying process as proposed in Engel Kollat Blackwell model are:
Information input
Individual is exposed to numerous stimuluses, which might or might not capture his attention. These stimuluses, that initiate the need recognition and subsequently the consumer buying-decision process, can be of both marketing and non-marketing related nature. (Engel J. B., 1986) If the stimuluses aren’t sufficient for the individual to decide, he will start looking for further information. The search for further information can also occur if the alternative the individual arrived at based on the decision process is not satisfactory.
Information processing
Throughout this stage the consumer does process the initial stimulus into valuable and meaningful information. This is achieved by exposure, attention, comprehension, acceptance, and retention of the information provided by the stimulus. Additionally, during this stage, the information provided by stimulus is being retained in a long- term memory of the consumer. (Sahney)
Decision process stage
This stage can occur anytime since the moment when the consumer started the information processing. The decision process stage consists of five phases: recognition of the need, search for alternative, evaluation of found alternatives, purchase initiation and evaluation of the purchase.
Variables which influence the decision process
This component includes individual’s characteristics such as lifestyle, personality, values, social influences like culture and family and finally also situational influences, which can be represented by for example individual’s current financial condition. It is important to keep in mind, that all above-mentioned variables are ever present and influence all the stages of the consumer decision-buying process. Additionally, the Engel Kollat Blackwell model has been criticized for not explaining the influence of the variables sufficiently.
18 Nicosia Model
One of the first contemporary models, which aimed to explain customer behavior for marketing purposes is the Nicosia model published by Francesco M. Nicosia in 1966.
The model attempts to examine consumer behavior as a complex system. According to the Nicosia model the system can be broken down into four fields. Output of each field becomes an input for consecutive field.
Figure 1 – Scheme of Nicosia Model, Source: (Khan, 2006, p. 184)
Field One
First field consists of two subfields: firm’s attributes and customer’s attributes. Firm’s attributes also include attributes of the product. Individual is exposed to them and based on individual’s consumer attributes the attitude towards firm and product is formed. Model includes assumption, that all the attitudes towards firm and product are formed solely based on field one. Attitude is output of the firs field and input for the second field.
Field Two
Second field of the model deals with search related to the product and evaluation of its alternatives. Based on the information obtained, individual can either conclude he would like to buy the product or not. If the motivation to purchase persist, it becomes an input for third field.
Field Three
The third field described the act of product purchase, including decisions related to the purchase.
Field Four
The last field focuses on post-purchase behavior. Concretely product storage, consumption and experience individual formed based on the consumption. The experience is translated in form of feedback back to field one. (Khan, 2006) Individual’s consumer attributes do shift based on the consumption experience, which
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subsequently influences the attitude towards the firm in either positive or negative way.
Similarly as the Engel Kollat Blackwell Model, the Nicosia Model has been criticized for lack of focus on individual’s inner characteristics. Furthermore assumption, that all the attitudes towards firm are formed based on the field one and individual had none before does not seem realistic.
Howarth Seth Model
Third well know and recognized contemporary model of induvial consumer behavior is the Howarth Seth Model (Koudelka, Spotřební chování, 2010) The model showcases complexness of the consumer behavior process and can be viewed as slightly complicated. (Khan, 2006) Which demonstrates the scheme of the simplified model depicted in Figure 2 – Simplified scheme of Howarth-Seth model below.
Figure 2 – Simplified scheme of Howarth-Seth model, Source: (Khan, 2006, p. 178)
The model consists of four sets of variables:
• Inputs
• Perceptual and learning constructs
• Outputs
• Exogenous or external variables
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All four groups of the variables depend on each other and significantly influence consumer’s decision process. Despite its complicatedness, the Howarth Steth Model deals with the consumer behavior in exhaustive manner. (Khan, 2006)
1.3. The Black box model in consumer behavior
In previous subchapter various models of consumer behavior, trying to simplify this complex process has been introduced. Each of the discussed models represented slightly different point of view on the consumer behavior. Every model highlighted different distinct factors, that according to the given model are key to uncovering individual’s consumer behavior. Additionally, limitations of models were described.
Given the limitations of each model, question Which model should be used to uncover and analyze consumer behavior for marketing purposes? might arise. There is no easy answer to this question.
Certainly, the nature of the good or service, which will satisfy consumer needs will significantly influence individual’s consumer behavior and subsequently the choice of theoretical model used to explain the consumer behavior. (Koudelka, 2018) Following example demonstrate above stated.
Individual realizes a need for housing, evaluates all available alternatives and arrives to a conclusion, to either purchase a property or rent one. Regardless of if the individual chooses to purchase or to rent, housing is certainly one of the largest expenses of every consumer. Due to that Rational model of consumer behavior can be applied to examine consumer behavior. Since large monetary sums are being spend on housing, it can be assumed, the individual will act rationally and choose housing based on his income, price of the good, individual’s budget constraints, marginal utility, and individual’s indifference curves.
In contrast to above mentioned example, individual’s consumer behavior resulting in purchase of vacation could be examined through one of the Sociological models. The individual’s consumer behavior in such a scenario will be influenced by behavior of the social groups the individual belong to, aspires belong to and identifies with.
Based on these two examples we can conclude that it is important to consider nature of a good (or services) and its monetary value. Because those two characteristics will significantly influence the individual’s consumer behavior. But it would be shortsighted to select model only based on that. Because ultimately individual do not act solely rationally when making choice of his housing. Also, other factors:
sociological, psychological, cultural and other play part in the ultimate decision of individual and therefore consumer behavior should be examined taking all these factors into consideration. The contemporary consumer behavior models attempt to do so, however all the models has its limitation. But the model chosen to evaluate
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consumer behavior also depends on from which perspective the consumer behavior is being evaluated. (Koudelka, 2010). Hence psychologist will apply psychological models, economist Rational model etc.
The Black box model described in this subchapter also has its limitations, but it is one of the most suitable models to study consumer behavior for marketing purposes. It aims to uncover consumer behavior and help marketers understand it. The stimulus – Blackbox – response model draws on behavioral consumers models, but unlike the behavioral models, it suggests it is possible to at least partly uncover and the consumer black box based on determining factors. (Koudelka, 2018)
Figure 3 - Scheme of Blac Box model, Source: (Koudelka, 2018, p. 9)
The Blackbox model is depicted in the scheme above. This model of consumer behavior is composed of three primary components: stimuli, consumer’s black box and response. According to the model the individual is exposed to marketing and environmental stimuli, which are observable. These can trigger consumer decision buying process, which takes place in individual’s black box and unlike stimuli can’t be observed directly. Additionally, the buying decision process is heavily influenced by individual’s characteristics. Outcome of process taking place in individual’s Black box
Stimuli
Consumer Black Box
Responses
Purchase decisons type, brand, price, store, time….
Post-purchase behavior satisfied, dissatisfied including enviromental stimuli & marketing stimuli
(such as product features, price, promotion ….)
Problem recognition Information search Evaluation of alternatives
Consumer's predisposition cultural
social personal psychical
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are responses, which take form of buyer’s decision and post purchase behavior. Each of the model’s component is described in greater detail in following paragraphs.
1.3.1. Stimuli
First component of the models are stimuli. Every individual is exposed to large number of stimuli continuously. While majority of stimuli will not trigger individual’s reaction, others might initiate problem recognition. The problem recognition does not have to be initiated only by response to one stimulus, but it can be caused by certain combination of two or more stimuli. (Koudelka, 2018) Generally, the stimulus can be divided into marketing mix stimuli and environmental stimuli.
Marketing mix stimuli
Those include stimuli related to any of 4 Ps: product, price, place and promotion.
(Kotler, Armstrong, Harris, & He, 2020) The product related stimuli include but are not limited to appearance, features, attributes and packaging of the product. The price related stimuli are the cost of the product, its value and status associated with the product. Accessibility, convenience and location represent place related stimuli. The promotion related stimuli can be for example: sales promotion and any form of advertising of the product, such as direct marketing.
Environmental stimuli
These stimuli include any other stimuli individual is exposed to expect for the above- described marketing mix stimuli. Economic, technological, political, cultural and demographic stimuli are categories of environmental stimuli.
1.3.2. Consumer’s black box
The stimuli that captured individual’s attention leads to reaction within the consumer’s black box, which cannot be directly observed. Nevertheless, according to the model, processes taking place in the individual’s black box can be interfered based on observable stimuli and responses. The stimuli, that captured individual’s attention leads to individual’s realization of a need, that can be met by consumption of consumer good. To obtain the good and satisfy his consumption needs, individual proceeds with consumer buying decision process, which partly takes place within consumer’s black box. However, this process is strongly influenced by consumer characteristics, which represent equally important part of consumer’s black box.
Consumer’s buying decision process
Individual’s buying decision process consists of five steps: problem recognition, information search, evaluation of alternative, purchase decision and post purchase behavior. The three initial steps take place within the consumer’s black box.
23 1. Problem recognition
The first stage of the consumer decision buying process, when individual realizes, that his actual state is different to his desired state.
2. Information search
Once individual acknowledges the difference between actual and desired state, information search is initiated. Information obtained during the second stage of buying decision process should enable the individual to make informed buying decision.
3. Evaluation of alternatives
During third stage the individual evaluates all available options based on the information obtained during second stage of the process. Depth of evaluation process depends on type of product its purchase is being considered.
Consumer characteristics
Characteristics of every individual are unique. They significantly influence the first three stages of consumer decision buying process, that take place withing consumer’s black box. But consumer characteristics also influence the responses, third component of Black box model of consumer model. Unlike first three stages of consumer decision buying process, according to the model it is possible to observe consumer’s responses.
While consumer characteristics are unique to individual consumers, literature divides them into groups: cultural, social, personal and psychological. (Koudelka, 2006)As subsequent subchapter is dedicated solely to consumer characteristic, each group will now be only listed in following lines.
• Cultural characteristics
Consist of culture, sub-culture, social class individual belongs to.
• Social characteristics
Includes but it is not limited to individual’s family, friends, collages, reference groups individual compares himself to and roles he takes on in society.
• Personal characteristics
Compromises of age, occupation, economic situation, lifestyle, personal traits of the individual.
• Psychological characteristics
Consist of individual’s motivation, perception, learning and beliefs. (Kotler &
Keller, 2016)
1.3.3. Responses
Third component of the Black box model and out of consumer behavior are the responses. Identically, like the stages of buyer decision process taking place within the consumer’s black box, responses are influenced by customer characteristic which are
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unique to every individual. According to the model, the responses include the purchase decision, actual purchase act and post-purchase behavior.
4. Purchase decision
Includes the decision on whether to purchase or not. If consumer arrives to conclusion to purchase, the act of purchase is also part of fourth stage.
5. Post-purchase behavior
Final stage of the process, which includes the evaluation of the purchase decision, that results in implication for future purchase behavior of the individual.
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2. Factors influencing consumer behavior
Characteristics and variables do significantly influence consumer behavior as suggested by majority of consumer behavior models so far described in this thesis.
Factors influencing consumers behavior are usually divided into four broad categories:
• Cultural
• Social
• Personal
• Psychological
Furthermore, it is possible to divide the four above mentioned categories into two subgroups – external factors and internal factors. Culture and social characteristics belong to the external factor group, while personal and psychological characteristics are viewed as part of internal factor group. (Khan, 2006) There is a difference between external and internal factors. Internal factors influence customer buying decision process directly. External factors do not. External factors affect the internal factors and subsequently influence the customer’s buying decision. (Khan, 2006) All four groups of characteristics will be described in greater detail in following subchapters.
Figure 4 - Factors influencing consumer behavior divided into four categories, Source:
(Khan, 2006, p. 31)
Cultural
Social
Personal
Culture Reference Group Age and Life cycle stages Psychological
Sub-culture Family Role Occupation Motivation
Social class Status Economic Circumstances Perception
Life Style Learning
Personality Beliefs
Self concept Attitudes
Buying characteristics are influenced by the above
Culture is learned behaviour and pattern of living
Roles a person plays in a society, his status and affiliations with groups
Life cycle stage—
Bachelor, Married Full nest I, II, III Empty nest I, II Solitary Survivor
Buyer
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2.1 Cultural characteristics
Cultural factors are highly important and crucial because they enable marketers to gain deeper understanding of customers. Culture, sub-culture and social class are three most important factors within the cultural characteristics group, which are essential to be studied.
2.1.1. Culture
Given the fact, that majority of individual’s behavior is learned from members of society and institutions he is surnamed with, learning about culture is crucial. Culture significantly determines individual’s behavior and wants. (Kotler, Armstrong, Harris,
& He, 2020) It is important to keep in mind, that culture is ever evolving. Because it is passed from generation to generation and intergenerational differences become part of culture. Members of society not only share the culture, but they also co-create it, which lead to changes in culture. Marketers should look for such a change, since they provide opportunities. (Kotler, Armstrong, Harris, & He, 2020) To name an example shift towards lower meat consumption within a culture is an opportunity for marketers to communicate meat replacement products. Even though we live in globalized world, cultures differ, and it is important to observe the culture differences, as they can make or break any entrepreneurial efforts. Unsuccessful launch of Walmart stores in Germany is certainly one of the most famous examples of business failures, caused by lack of cultural awareness and consideration.
2.1.2. Sub-culture & micro-culture
As the name suggest, sub-culture is more homogenous group with a culture. (Khan, 2006) In other words, sub-culture is at least two people who share same value system based on based on common life experiences. Examples of sub-cultures include nationalities, religions, ethnic groups and interest-based groups, which are sometimes regarded as micro-cultures. Every individual is member of many sub-cultures; hence they are not mutually exclusive. (Kotler, Armstrong, Harris, & He, 2020) Both sub- cultures and micro-cultures often resent significant market segments. This confirms the example of gamers micro-culture, 25 % of European population are considered as its members and the worldwide gamers market is expected to have value of more than 11,6 billion EUR by 2022. (Kotler, Armstrong, Harris, & He, 2020). Importance of sub- cultures and micro-cultures also supports the facts, that they significantly contribute to individual’s self-concept and members of micro-cultures demonstrate high level to loyalty. (Solomon, Bamossy, Askegaard, & Hogg, 2013). Therefore, it is important to study them.
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2.1.3. Social classes
Concept of social class can be defined as social position of an individual within society.
The social classes are determined based on following variables: occupation, income, education, family background. (Solomon, Bamossy, Askegaard, & Hogg, 2013) Consequently, the members of same social class share similar behavior patterns, including buying behavior, values and interests. Unlike micro-cultures, social class of an individual is based on characteristics of his family. (Khan, 2006) Since all members of the family share same status, values, and common income.
One might argue, social class concept is relic in the 21st century. Contrary is the case.
Recent research shows that social class played a significant role in whether the individual was laid off due to pandemic related cause. Globally 41 % of workers, who belong to the bottom 20 % of their country’s income distribution were laid off due to pandemic related causes. In contrary only 23% of workers in the 20% richest group were laid off for the same reasons. (Rothwell, 2021)
Study of social classes is important from marketing perspective, because social class strongly influence the buying behavior of the individual and it is shared among all the members of same social class. (Khan, 2006) However, individuals can also exhibit purchase behavior characteristic of social class they aspire to become members of.
Over the time seven social classes has been determined. All the six classes are listed below:
• Upper upper class
Represents the richest social class with extensively large discretionary income.
Members of this class possess power is well connected. Usually, their members possess good taste and demand quality. They do not hesitate to spend on their hobbies and travel. Usually, this group is interested in art, philanthropy and culture. From marketing perspective upper upper class is target group of expensive luxury goods. (Khan, 2006) But it is important to keep in mind, that this social class is market segment of very limited size.
• Lower upper class
Members of this class aspire to become members of upper upper class which serves them as their reference group. This aspiration leads to imitation of habits, behaviors and lifestyle of the upper upper class, which leads to trickle-down effect.
(Investopedia, 2021) Meaning lower upper class consumers tend to adopt consumption of goods consumed by the upper upper class.
• Upper middle class
Consists of professors, layers, managers, professionals and medium-sized bossiness owners, who are successful in their field. They are ambitious, goal
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oriented, hard working. Hence, they often aspire to become upper class members.
(Khan, 2006)
• Lower middle class
Is represented by small business owner, well paid workers. Members of this class often might not have higher education. They strive to be respected and socially accepted, live in good neighborhood and own house. (Khan, 2006)
• Upper lower class
Members of upper lower class do not longer represent majority of the worldwide population as in 2018 for the first time 50 % of worldwide population was classified as middle class. (Aglionby, 2018) Cultures and subcultures influence buying behavior of this class and products they purchase are based on their social activities. (Khan, 2006)
• Lower lower class
Group of the poorest people whose primary concern is the satisfaction of primary needs such as food and shelter. Price is a decisive criterion for them. (Khan, 2006) As the description of each social class suggest, social groups do influence individual’s purchase behavior and income is variable based on which social class is being determined. The members of same social class are likely to have similar level of income, but it is not a case always. Especially since all family members are regarded as members of same social class. Based on type of product being purchased sense of belonging to social class can be better predictor of purchase behavior than income and vice versa. (Solomon, Bamossy, Askegaard, & Hogg, 2013) For high expenditure product purchases, which are not symbolic, income is better predictor of purchase behavior than social class. In contrary social class proved to be better predictor of buying behavior for low to moderate prices products, that possess symbolic aspects.
In case of symbolic high expenditure products, such as cars or luxury goods consumer buying behavior is best predicted based of both, the social class individual belongs to and his income level.
2.2. Social characteristics
Other group of factors with significant effect on customer behavior are social characteristic, such as reference groups, role and status of individual within society.
Selected social characteristics will be discussed in greater detail below.
2.2.1. Reference groups
Individual’s behavior is influenced by many small groups. (Kotler, Armstrong, Harris,
& He, 2020) These groups are called reference groups. Individuals have either direct
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or indirect contact with their reference groups. These groups influence individual’s behavior and attitude. Individual is exposed to for him new behaviors and lifestyle of reference groups. Reference groups also influence individual’s self-concept.
Additionally, individual might feel pressure to purchase product or brand, in order to conform with specific reference group. (Kotler & Keller, 2016) Reference groups can be further divided into:
• Membership groups
Groups of which the individual is a member and have direct contact with are called membership groups. Such groups have direct influence on individual’s behavior and attitudes. Membership groups can further be divided into primary and secondary. (Kotler & Keller, 2016) Family, friends and co-workers represent primary membership group, as individual is expected to have regular, continuous and informal interaction with these groups. Family effects individual’s consumer behavior significantly. Additionally, it represents the most importin consumer buying unit within society. (Kotler, Armstrong, Harris, & He, 2020) Secondary membership groups include interest-based, religious, or professional groups.
Interaction with secondary membership might be less frequent and informal. Due to that, they have lesser effect on individual’s behavior and attitudes.
• Aspirational groups
Are the groups individual is not member of, but he wishes to become one. Hence the influence of these groups, on individual’s behavior and attitudes is indirect.
(Kotler & Keller, 2016)
• Dissociative groups
Represents groups individual does not belong to and is opposed to their behavior, values and norms. (Kotler & Keller, 2016)
• Disclaimant groups
Are groups, that individual belong to, but is opposed their behavior, values and norms and wishes to avoid them. (Kotler & Keller, 2016)
2.2.2. Roles & status
As this subchapter proved, individuals are members of many formal and less formal groups. Within each of the groups an individual takes on a role. Role of an individual within a group can is define by set of the activities the individual is expected to perform within the group. (Kotler & Keller, 2016) Additionally, certain status is associated with each role. Status can be easily distinguished more formal institutions such as workplace. Role CEO within the company will certainly be associated with higher status, than role of associate consultant in the same company.
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2.3. Personal characteristics
In addition to cultural and social characteristics consumer behavior is also influence by persona factors. These factors include, but are not limited to age, life stage, economic situation, lifestyle, personality & self-concept.
2.3.1. Occupation & economic situation
Individual’s profession and income significantly affects his consumer behavior. Shop assistant working for large chain will most likely be provided with a uniform, which he must wear when on duty. While layer will have to purchase quality suit to make a great first impression. Hence, the consumer behavior in market for work appropriate attire will significantly differ for those two individuals. Therefore, it is crucial to find out which occupations demonstrates above-average interest in given product and advertise it to them adequately. (Kotler & Keller, 2016) Income and overall economic situation of individual also determines his disposable and discretionary income. The higher the discretionary income of individual is, the more likely he is to purchase non- essential products and services such as luxury goods and travel. (Kagan, 2021) In case of decrease in individual’s discretionary income, we can expect him to decree or eliminate consumption of luxury goods and travel. Alternatively, the individual might decide to fund his discretionary spending using credit card or other option of debt financing.
2.3.2. Age & life stage
The products and services individual seeks and aims purchase, change rapidly based on the age and life stage of the individual, as the table below shows.
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Figure 5 - Consumption patterns of families in life cycle strategy, Source: (Khan, 2006, p. 74)
This overview provides a guidance on the consumption patterns of individual given his life stage. Not every individual will go through all above-mentioned stages. List of above-described stages is not exhaustive. Some individuals might experience one of the stages multiple times. However, ability to recognize and predict different life stages of consumers provides company with distinct competitive advantage. (Kotler, Armstrong, Harris, & He, 2020)
2.3.3. Lifestyle
While individuals might be members of same social class or subculture, possess same personal characteristic such as income. Lifestyle is the characteristics, that enables the individual to set himself apart from the others. (Kotler & Keller, 2016) Term lifestyle can be defined as:
„A person’s pattern of living as expressed in his or her activities, interests and opinions.”
(Kotler, Armstrong, Harris, & He, 2020, p. 153)
As the definition suggest the individual’s lifestyle provides us with information on how the individual wants to be viewed by his surroundings. From marketing perspective, it is important to study the lifestyle of target group, to align brand image with the lifestyle of the target group.
Life stage Consumption patterns
Young single (Bachelor) Outdoor sporting goods, sports cars, fashion clothing, entertainment and recreation services.
Young married with no children Recreation and relaxation, insurance, home furnishings, travel, home appliances, high purchase rate of durables.
Young married with child Baby food, clothing, and furniture, invests in housing insurance, washer-dryers, medical services/supplies for children, toys for children.
Middle aged with children at home Children’s lessons, large food purchases, dental care, higher priced furniture, auto and housing, fast-food restaurants.
With no children at home Luxury products, travel, restaurants, condominiums, recreation, make gifts and contributions, high discretionary income, solid financial position.
Older (married or single) Health care, home security, specialised housing, food products, recreation geared to the retired, general cash poor
Solitary survivor Money-saving products, frozen foods, rental house, child care, time-saving appliances and food, cash poor.
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2.3.4. Personality & self-concept
Personality of every induvial is unique. It is set of psychological traits like sociability, dominance, self-confidence, autonomy, adaptability, defensiveness, aggressiveness, that sets individual apart. (Kotler, Armstrong, Harris, & He, 2020) Self-concept describes how individual view’s himself or in some cases would ideally see himself.
Personality and self-concept of an individual can influence product or brand choice as consumers tend to gravitate towards products that possess same personality features as them. Personality and self-concept do play greater role in consumer’s choices regarding publicly consumed goods. (Kotler & Keller, 2016) According to the research, not only humans, but also brands can possess personality. (Kotler & Keller, 2016) Brands can possess following traits: sincerity, competence, ruggedness, sophistication, excitement. (Kotler, Armstrong, Harris, & He, 2020)
2.4. Psychological characteristics
Fourth group of characteristics, that influence consumers behavior are the psychological characteristics, which include, but are not limited to motivation, perception, learning, believes and attitudes. Psychological characteristics study is highly important as enables us to uncover consumer’s black box at least partly. (Kotler
& Keller, 2016)
2.4.1. Motivation
Motivation plays a key role in consumers behavior. The consumer decision buying process is initiated once the individual recognizes a need. Motivation is a need, that is acute enough for the individual to seek its satisfaction. (Kotler, Armstrong, Harris, &
He, 2020) There are three key theories aiming to elucidate human’s motivation.
Freud’s theory
The theory developed by Sigmund Freud suggests that individual’s behavior, including consumer behavior is shaped primary by unconscious psychical forces. Due to that the individual is not able to fully understand his motivations. Similarly, if induvial is supposed to choose between two brands of same product, he will make the choice, but will not be able to fully explain the reason why he chose the given brand.
(Kotler & Keller, 2016) Maslow’s theory
This theory explains why individual is motived to satisfy concrete need in given time.
According to the Maslow all human needs can be ordered from most acute to the least acute. (Kotler & Keller, 2016) The hierarchy of needs is depicted bellow. The needs at bottom are the most pressing, while the one at top are the least pressing. As stated by
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the model, individual will prioritize satisfaction of needs, which are at the bottom of hierarchy and are most acute. Once the most pressing needs are met, the individual will try to satisfy the less pressing needs as per their order within the hierarchy.
Figure 6 - Five levels of Maslow's hierarchy of needs, Source: (Kotler & Keller, 2016, p.
229)
Herzberg ‘s theory
Herzberg theory is based on two factors. Satisfies, which causes satisfaction and dissatisfiers, which causes dissatisfaction. According to the theory the satisfier factor must be present, for individual to be motivated to purchase. Absence of the dissatisfiers isn’t sufficient for consumer to be motivated to purchase. Takeaway of this theory for marketers is to eliminate product dissatisfiers and identify and emphasize satisfiers. (Kotler & Keller, 2016)
2.4.2. Perception
May be defined as a process of information selection, organization and interpretation.
Individuals form their picture of the world based on perception. (Kotler, Armstrong, Harris, & He, 2020) Motivated individual is driven to take an action and the action individual will take depend on his perception. (Kotler & Keller, 2016) Due to three following perceptual processes:
Self-actualisation5 needs
(self-development, realisation)
Esteem needs4
(self-esteem, rocognition, status)
Social needs3 (sense of belonging, love)
Safety needs2 (security, protection)
Physiological needs1 (food, water, shelter)
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• Selective attention – individuals notice and process only limited number of stimuli, due to our limited mental capacity
• Selective distortion – interpretation of information based on individuals’
perception rather than facts provided, that might change the message of the information
• Selective retention – tendency to remember information that support individual’s attitudes and believes (Kotler & Keller, 2016)
Above mentioned perceptual processes are the cause why it is so challenging to reach consumers and protentional consumers with advertising messages. Consumers screen out majority of stimuli, interpretation of perceived information might differ from intended message and information retention significantly depends on individual’s believes and attitudes.
2.4.3. Learning, beliefs & attitudes
Learning
From perspective of consumers behavior learning is regarded as individual’s behavioral changes caused by experience. Learning is important aspect of consumer behavior, as it is believed, that majority of behavior is learned. (Kotler, Armstrong, Harris, & He, 2020)
Beliefs & attitudes
Along with attitudes, beliefs are acquired through processes of learning and doing.
Beliefs are though individual holds regarding something. (Kotler, Armstrong, Harris,
& He, 2020) These thoughts can be based on opinions, knowledge or faith.
Additionally, beliefs might also have emotional charge. Believes pose a threat if individual holds negative beliefs towards product category or brand. In such a case firm should try to change individual’s beliefs. Attitude is an invariable way of thinking about something. Consumers possess large number of attitudes, which are interdependent. Hence it is very difficult to change individual’s attitude towards something. Because change of one attitude would lead to adjustment of many other attitudes. Therefore, it is recommended to try to fit the product or brand into existing attitudes. (Kotler, Armstrong, Harris, & He, 2020)
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3. Buyer decision process
While the first chapter was devoted to consumer behavior as whole, including term definition, models of consumer behavior discussion and examination of factors influencing consumer behavior. Second chapter of this thesis will discuss the consumer buying decision process, which is important part of consumer behavior.
Firstly, the stages of the buyer decision process will be described, followed by discussion of buying decision types.
3.1. Phases of buyer decision process
The buyer decision process consists of five stages: problem recognition, information search, evaluation of alternatives, purchase decision and post – purchase behavior. As above-named stages suggest, the consumer buyer decision process starts long before the act of purchase and within the process the consumer can arrive to decision to not to purchase. The process is influenced by all the factors (social, cultural, personal and psychological), described in previous chapter of this thesis.
3.1.1. Problem recognition
The first stage of the consumer decision buying process, during which the individual realizes need or want, which he will naturally intend to satisfy. In other words, individual’s actual state is different to his desired state. This realization can be triggered by either internal or external stimuli. Individual’s needs such as hunger, thirst represents internal stimuli. (Kotler & Keller, 2016) Realization of the individual, that the actual state is different to desired state can be caused by two main causes.
The first cause is adverse change in the current situation, the second cause is called occurrence of a problem due to an increase in the level of the desired state. (Koudelka, 2018) Adverse change in current situation
This cause of problem recognition, relating to product consumption, can arise due to:
• Product damage or quality deterioration
This cause of adverse change in current situation is characteristic primary for durable goods. Yet fast moving consumer goods can also suffer quality determination. (Koudelka, Spotřebitelé a marketing, 2018)
• Stock depletion
This cause is highly relevant especially for fast moving consumer goods.
(Koudelka, Spotřebitelé a marketing, 2018) As these goods are meant to be consumed prior its deterioration.
