AMB200 Consumer Behaviour Assessment Item 1: Consumer Behaviour Portfolio Semester, 2 2014 Student name: Jenny Chan Student number: n8738254 Tutorial time: Thursday, 12pm-1pm Tutorial Number: 15 Tutor: Hilary Neill
Introduction In the consumer behaviour portfolio, the topic that I chose is evaluating and selecting mobile plan. The ideal of evaluating and selecting mobile plan is that I can use my phone as my daily basis includes internet data and text. The philosophical assumption is discussed about my belief and how importance for advertising and marketing. I used extended problem solving and rational in the decision-making which I did many researches from online and brochures to find mobile plan. Lastly, dissatisfaction and complaint behaviour is when I found the mobile plan is not correct, I would complaint to them because I am type of person that I would speak up for what I can believe is correct. Page 1
Learning Objectives Worksheet 1 Philosophical assumptions Activity 1 - What are your philosophical assumptions about consumer behaviour? Upon successful completion of this tutorial, students should be able to: - compare and contrast the philosophical assumptions about consumer behaviour - use examples and theories to explain their own consumer behaviour Part A - Knowledge 1. Fill in the table below by circling the view that best reflects your opinion ACTING ON FREE WILL Freedom Consumers are basically in control of their behaviour and understand their motives A Nurture Forces in the environmental are the key influence on a consumer s behaviour A Uniqueness Consumers are unique and cannot be compared With other consumers A Proactive Consumers mainly act on their own initiative A Variation Consumer behaviour and attitudes change significantly through their lifetime A 2. Which view was dominant? HIGHLY INFLUENCED Determinism The behaviour of people is basically out of their control and determined by external forces Nature Consumers inherit characteristics that influence how they behave B Universality Consumers are basically similar Reactive Consumers mainly respond to stimulus from the outside world Stability Consumer behaviours and attitudes are relatively stable and unchanging over time B B B B i) How many As did you have? 4 ii) How many Bs did you have? 1 Page 2
In groups of three (see if you can include one person with an opposite dominant view), introduce yourself and discuss why you have different results. Two out of three people have the same result as me but one person has the different answer. It is show that everyone has their own beliefs of choosing acting free will in the As section and highly influenced on Bs. Are you surprised by your findings? No because acting on the free will is based on my own belief and that the result I got is mostly As. Part B Application 3. Using the Engler 2003 reading and consumer behaviour theory in your textbook, explain how your dominant view influences your perception of the relationship between marketing and consumers. The influence of perception in the relationship between marketing and consumers is based on personality because marketers are carefully defining customers segments and listening to people in their markets. The key success is build relationship between brands and customers. How do you think your dominant view influences: i) Your beliefs about the power of advertising Yes, advertising is a response to products is designed to meet existing needs. Advertising only help to communicate is the important source of consumer information by searching for products. ii) Your feelings that marketing makes people buy things they don t need Marketing is evaluating other based on the products that people don t need to buy. In many ways, at the mercy of marketers is rely on them to sell the products that are safe and perform as promised, by telling us the truth about what they are selling and the price and distribute these product fairly. Page 3
Learning Objectives Worksheet 2 Decision-making Upon successful completion of this tutorial, students should be able to: - categorise examples of their own consumer behaviour - compare and contrast limited and extended problem solving - explain their own consumer behaviour using the decision making process framework Part A - Knowledge 1. Choose a consumer behaviour that you have done in the last month from the following list: Buying a PC/laptop/high-technology item Evaluating and selecting a mobile phone plan Booking/arranging/going on an overseas Choosing to do volunteer work holiday Selecting a university Buying a fashion item Going to the movies Going to a concert Choosing a restaurant for a special occasion Changing a habit (stopping smoking, reducing alcohol consumption, taking more exercise, eating more healthily) 2. Think about how you made the decision to do that behaviour. Now circle the way you did information search, evaluation and purchase. Information search Alternative evaluation Limited problem solving Low risk and involvement Little search Information processed passively In-store decision likely Weakly held beliefs Only most prominent criteria used Alternatives perceived as basically similar Non-compensatory strategy used Extended problem solving High risk and involvement Extensive search Information processed actively Multiple sources consulted prior to store visits Strongly held beliefs Many criteria used Significant differences perceived between alternatives Compensatory strategy used Purchase Limited shopping time; may prefer selfservice Choice often influenced by store displays Many outlets shopped if needed Communication with store personnel often desirable 3. Now based on the table above, classify the behaviour into one of these two categories: [ 1 ] Limited problem solving [ 2 ] Extended problem solving Page 4
4. For this decision, what was your decision style? [ ] Rational [ ] Automated In groups of the same decision style (rational or automated) discuss: What feature of the behaviour you have in common that made the decision rational or automated? The rational decision is that I have been researching from online and brochures to find the right mobile plan for me as my daily basis lifestyle such as internet data and text. In what circumstances could your decision style have been opposite to the one you identified? If I choose automated as my decision style is the choice of my mobile plan is prepaid or mobile plan that I will pay phone bill per month. I would do is to research and compare it which mobile plan is right for me to use. What would make you change your decision style? The decision style is the cost. My mobile phone plan cost me $60 per month. After my mobile contract finish, I have decided to change my mobile plan into $30 prepaid plan because it has everything in the appendix 1. Part B Application 5. Using consumer behaviour theory from your textbook, explain why: i) you used limited or extended problem solving Problem recognition Information search Evaluation of alternatives Product choice Post-purchase process The idea of evaluating and selecting mobile plan is that I am changing my mobile plan. I did lots of research from online and brochures from phone stores to find the right mobile plan. I have to research for prepaid plan information and compare it with other mobile plan. I want to change into prepaid plan, I will keep searching to I find the right mobile plan or keep continue with my $60 mobile plan. I compare the value for my mobile plan. ii) your decision was rational or automated Page 5
Problem recognition I decide to change my mobile plan into prepaid plan until my phone contract finish. Information search I find the mobile plan right for me and I did look at the brochures. Evaluation of alternatives I find the right mobile plan at Optus because appendix 1 is right for me. Product choice The choice is to research in the appendix 1 and 2 for the right prepaid plan. Post-purchase process I compare the mobile plan in the appendix 1 and 2. I chose appendix 1. Page 6
Learning Objectives Worksheet 3 Dissatisfaction and complaint behaviour Activity 3 How do you respond when dissatisfied? Upon successful completion of this tutorial, students should be able to: - explain their own complaining style and show how it might affect complaint outcomes - demonstrate the importance of managing expectations to customer satisfaction - summarise the possible outcomes of dissatisfaction Part A Knowledge 1. Briefly describe a situation where a company has made you feel dissatisfied. (Examples may be: mistake on a bill/payment/charge, late delivery, incorrect item, product/service was faulty, rude service staff.) When I felt dissatisfied, it was back in 2012. I went to Optus to open a new mobile plan for Samsung Galaxy Note. A few months later, my bill arrives and my phone billed been overcharged. My phone bill is supposed to be $60 and I went and complain to Optus why they are charged me for $89.81. I went to Optus and complain to them that they overcharged me by 29.81.People at Optus told me to talk with customer services. I complain to customer services that they overcharged me $89.81. I told them that my phone bill supposed to be $60 per month not $89.81. He told me to give him the information and he said that bill is for $89.81. I will have to pay the bill. A year later after I complain, I received a letter from Optus that there was incorrect bill (appendix 3). I told my parent that I complain to Optus that they charged me $89.81 and Optus decided to fix my payment a year after I complain. I feel unsatisfied because Optus charged me for $89.81. I was angry with Optus decide to fix my payment for a year after I did complaint. I am happy that Optus will give me $89.81 credit on my next payment bill. Page 7
2. Your attitudes towards complaining. Circle the response that best describes your attitude, opinion or belief. COMPLAINT ATTITUDES Consumer Alienation Most companies care nothing at all about the customer. Personal Norms I often complain when I m dissatisfied with business or products because I feel it is my duty to do so. Social Benefits By making complaints about unsatisfactory products, in the long run the quality of products will improve. Expectancy Voice Assuming you complained about the situation in point 1 above, how likely is it that the organisation would solve your problem and give better service to you in the future? Expectancy Private Assuming you reported the situation in point 1 to your friends (who use the same organisation), how likely is it that your friends would stop using that organisation altogether? Expectancy Third Party Assuming you reported the situation in point 1 to a consumer agency such as the Australian Competition and Consumer Commission (ACCC), how likely is it that the ACCC would make the repair shop take care of your problem? Value Voice How likely is it that you would complain to the organisation in point 1 if you were pretty sure the organisation would solve your problem and give better service in the future? Value Private How likely is it that you would mention the situation to your friends if you were pretty sure that they would stop using that organisation altogether? Value Third Party How likely is it that you would report the incident in point 1 to a consumer agency such as the ACCC, if you were pretty sure the ACCC would make the organisation take care of your problem? Agree Agree Agree Likely Likely Likely Likely Likely Likely Disagree Disagree Disagree Unlikely Unlikely Unlikely Unlikely Unlikely Unlikely Page 8
3. Do you think your complaint behaviour is more influenced by your attitudes, beliefs and opinions in the table above or by the specific situation? Why? Yes, my consumer behaviour is more influenced by my attitudes, beliefs and opinion because I have my rights to complain when I feel dissatisfied with my mobile plan payment with Optus. 4. Think about how you reacted to that situation. Now circle the description in column A or B that best describes your reaction. YOUR RESPONSE A B Importance of the situation High Low Did you feel embarrassed? Yes No Have you ever complained previously to an organisation? Yes No Was it easy to complain to the provider this time? Yes No Was there a lot at stake (financial? Social? Health?) Yes No What type of person are you? Do you think the company should have handled things better Were you with family /friends who didn t want you to complain I speak up for what I believe is right Yes No I am not the type to complain No Yes Did you complain? Yes No If you circled mostly As then it is likely that you complained. If you circled mostly Bs then it is likely you did not complain. Look at the features of each column. What is similar in each column? Why do you think these features go together? The features in the column A shows the purchase decision on evaluating and selecting mobile plan is important to complaint to them when I feel dissatisfied with the decision. In the column B shows that the factor of specific decision Page 9
does not want to complaint too much with those features. Those features are similar because people do want to complain with their dissatisfied with their purchase decision and some people do not want to complaint because they might feel embarrassed. 5. Now compare your responses with a person who reacted differently to you. What features did they select in their table? Why are they different to you? That person did not complaint more than I do complaint because I have the right to complain when I feel dissatisfied with my mobile plan bill. That person did not complain because he feels satisfied with their decision without complain. Part B - Application 6. Read the article Singh (1990) A Typology of Consumer Dissatisfaction Response Styles, Journal of Retailing (66) 1 p. 57-99 [available on blackboard]. i) compare your responses in the COMPLAINT ATTITUDES table in point 2 above, to the cluster groupings on page 88 of the Singh article. In which cluster do you fall? Cluster one is based on passives is to classifying the sample, represents dissatisfied on the consumers with those intentions to complain to the sellers or providers with their dissatisfying services. Cluster two is the voicers to classifying the respondents, characterises dissatisfied consumers who are below the average on private and third party actions. Cluster three is the irates show that the respondents, represents angry consumers with a negative response of complain directly to seller/providers. Cluster four is activist classifying the three dimension complaint based on respondents and represent dissatisfied consumers. The cluster I fall is cluster 3. ii) did your response to the situation match with Singh s description of your cluster? Explain. The cluster 3 of irates is match with my situation because the cluster 3show my complaint to Optus that they overcharged my payment phone bill. 7. Using a consumer behaviour theory (from your text book or elsewhere), describe the role of expectations, satisfaction and complaints using your consumer behaviour identified from your Activity 2 Worksheet. Page 10
Role Expectations Satisfaction Complaint My consumer behaviour is identified on evaluating and selecting mobile plan. The mobile plan that I am changing into prepaid plan. The prepaid plan does not rollover and I was expected that prepaid will rollover. I am satisfied after I change my mobile plan into $30 prepaid plan even though my plan wills not rollover. I have nothing complain about my prepaid plan except my mobile plan overcharge me but I am happy with my prepaid plan. Page 11
Conclusion Overall of this consumer behaviour portfolio is using three worksheets is that I made a decision to choose evaluating and selecting mobile plan in the consumer behaviour. It has shown that evaluating and selecting mobile is that I analyse on mobile plan and to compare it with other mobile plan. With my dissatisfaction and complaint behaviour as in the consumer behaviour in the portfolio is that I compare with other person and showing the different complaint in the consumer behaviour. Page 12
References Engler, B. (2003). Personality theories: An introduction, 2-14. Retrieved from Queensland University of Technology Course Materials Database. Singh, J. (1990). A Typology Of consumer Dissatisfaction Response Styles, 66 (1), 57-99. Retrieved from Queensland Technology Course Material Database. Solomon, M. R., Russell-Bennett, R.,& Previte, J.(2013), Consumer Behaviour: Buying, having, being. Frenchs Forest, N.S.W: Pearson Australia. Page 13
Appendix Appendix 1 Page 14
Appendix 2 Page 15
Appendix 3 Page 16
AMB200 Consumer Behaviour: Assessment Item 1 - CB Portfolio Name & Student No.: Tutorial Time & Tutor: Topics: Knowledge (30 marks) Consumer behaviour theory and principles 7 6 5 4 3 2-1 You have completed the worksheets correctly with no errors and added original ideas and shown insight. You may have linked with other theories in the book. 25.5-30 You have completed the worksheets correctly with no errors and possibly added original ideas and shown insight. You may have linked with other theories in the book. You have completed the worksheets correctly with few errors. You have made a good attempt to complete the worksheet with some errors. You fail to correctly complete the worksheets. 22.5-25 19.5-22 15-19 0 14.5 Application of theory (50 marks) Analysis of behaviour You have demonstrated an application of complex consumer behaviour theories to analyse your own behaviour. This may involve synthesis of theories and development of new ideas. There is likely to be integration across all your responses in a worksheet and across worksheets. You have demonstrated an application of consumer behaviour theories to analyse your own behaviour. Theories used are likely to be complex and interrelated for a particular aspect of your behaviour, but not for all. You have demonstrated an application of consumer behaviour theories to analyse your own behaviour. You have demonstrated an application of consumer behaviour theories to describe your own behaviour. Theories used are likely to be basic. You fail to demonstrate application of consumer behaviour theories to describe your own behaviour. 42.5-50 37.5-42 32.5-37 25-32 0 24.5 Communication and interpersonal skills (20 marks) Written presentation The written portfolio is professionally structure and format presented with no technical errors. You have followed the structural requirements closely. The referencing style is consistent and correct with diversity and appropriate references. Original sources are cited. You organise content clearly and logically and make no technical errors. You have followed the structural requirements closely. The referencing style is consistent and correct with appropriate references. Original sources are cited. You organise content clearly and make very few technical errors. You have attempted to follow the structural requirements. The referencing style has minimal errors with appropriate references. Most of the citations are original sources. You attempt to organise content clearly and make some technical errors. You have attempted to follow the structural requirements. The referencing style has some errors and inconsistencies. Some of the citations are original sources. You present content in an incoherent way and make frequent technical errors through the paper. You do not reference your sources appropriately. 17-20 15 16.5 13 14.5 10 12.5 0 9.5 Total: / 100 Reweighted: / 25% Late Penalty (-10%/day = 2.5 marks): / 25% Comments: Page 17