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Consumer behavior

Executive summary

Considering the necessities of the customer notwithstanding outer variables affecting the retail client's official choice for purchasing can help in figuring procedures. These techniques help in basic comprehension of buyers' conduct for future development and improvement. The Australian clients frame the column for supporting the smooth working and running of the economy. The report has covered the explanations for client direct and the outer segments that influence individual decisions to burn through cash on item and administrations offered by retail organizations.

Table of Contents


Critical analysis of identified issues 

Cultural influences 

Social class and group influence 

Family influence 

Proposed solutions 

Industry examples 




The consumer presence is a very important part for the retailer industry in Australia. The buying behaviour and conduct of the retail outlet customer are subject of the investigation over the regions across Australia. The adequate understanding behind shoppers picking behaviour in a store is essential for the Australian retail market segment. Considering the requirements of the shopper in addition to external factors influencing the retail customer’s final decision for buying can help in formulating strategies. These strategies help in the critical understanding of consumers’ behaviour for future growth and development. The Australian customers form the pillar for supporting the smooth functioning and running of the economy. The report is encircling reasons behind customer conduct and the external components that affect personal choices to spend money on product and services offered by retail businesses. Consumers buying decisions and measures taken by marketers are also covered in the report that highlight the fact regarding the strategies to generate sales. 

Critical analysis of identified issues

Australian retail industry is mainly based on the individual and personal-level interactions of the customers with service providing employees (Zabkar and Hosta 2013, p. 261). Due to digitization, retail businesses are able to reach out to a large number of target customers. In recent years, Australia faced economic slowdown that reduced the sales volume of the businesses. Characteristics of consumer buying behaviour can be altered by strategically analysing the factors affecting buying behaviour (Pérez et al. 2013, p. 25). Reviews about products and the review of seller over the social networking platforms shape the minds of consumers for making final purchase decisions. The online presence of the retail store and the feedback from previous shoppers' experience play a crucial role in final buying decisions. Australia has a number of retail chains in which major players are like Aldi and Coles. The secured transaction, tracking options and on-time delivery form the base of final decisions of customers. Product details and photo form the next step for evaluation done at a personal level.   

Cultural influences

People in Australia descend from various cultures. Individuals have different values, beliefs and practices across Australia. Many people are regular visitors to stores on frequent basis. Some individuals prefer online shopping and home delivery due to a busy lifestyle. Culture plays an important role in trying, buying and using the products and services in Australia (Wikström et al. 2014, p. 103). The people coming from northern regions in Australia are more laid back but prefer visiting to store only once in a month. On the other hand, people living in metropolitan areas prefer regular online shopping or visiting stores on holidays and weekends (Polonsky et al. 2014, p. 613). Natives tend to spend huge sums of money, whereas the non-native population and the foreign students tend to save the earnings. 

Social class and group influence  

Social factors like income, job and educational background shape the interest and mentality of individuals (Fröhlich et al 2013, p. 450). Regular interaction and communication between the individuals belonging to same group help in forming decisions. Opinion and feedback through interactions in these relationships are taken more seriously (do Paço et al. 2013, p. 419). Even though the relationships are formal but have been taken more seriously. Formal groups like study groups, work teams and political influencers also influence the buying behaviour of individuals. Celebrities and social influencers are widely followed by the population across Australia. These influencers are also exerting influences on the buying behaviour to a certain extent. Within the same groups, people share common practices and interests. Sometimes, this reveals that individuals from the same group have the same thoughts and opinion while buying products at retail outlets. Individuals buy products to match the social status of others belonging to the same group (Ramnarain and Govender 2013, p. 1887). This makes it difficult for retail businesses to identify the expectations and desires of target customers.

Family influence

Consumers in Australia are very sensitive towards buying new products and services, if the family is involved (Javornik 2016, p. 259). Interpersonal relationships, monthly budgets, common interests and attitudes can drift the buying decision towards or away from the action of buying. Retail outlets convey regular discounts and offer to attract consumers. This helps in retaining the existing customers along with attracting new clients. The overall opinion is developed by the member of the group (Fall Diallo et al. 2013, p. 438). An individual can be part of several numbers of groups ranging from friends, colleagues, relatives to family members. All these groups shape the final opinion of buying through online services or visiting a retail outlet in Australia. 

Proposed solutions

Psychology based marketing strategies can be appointed by retail businesses in Australia to motivate and pursue consumers to buy the products. This way, retail businesses can appeal at a personal level to change the outlook of consumer and final buying behaviour. Understanding the cultural beliefs can help in realising the expectations that can be molded into the strategy to pursue consumers for buying products at retail outlets. Cultural heritage and lifestyle can be used as a tool to deliver the message that buying from retail outlets or from online platforms will give many advantages. Social reference groups and roles must be highlighted in the advertisements to reach to target customers. Emotional appeal can be done in marketing, to divert consumer buying behaviour. Social influencers can be appointed to brand the product and services offered by retail businesses in Australia. Cost effective products can be used as a marketing strategy to change consumer buying behaviour. Monthly offers, bargaining festivals and discounts must be provided to change the opinion driven out from family influence.

Industry examples

Aldi distinguishes itself from the competitors by delivering competitive pricing to target consumers. Aldi targets to amend decisions made by buyers that are based on family influences. Budget-friendly and cheap products available on the outlets and online platforms have helped Aldi in retaining the market presence even during the economic crisis (Aldi history n.d.). Moreover, Aldi gives regular discounts and combo deals to buyers to appeal to Australians that retail business knows the importance of running the family by providing the product at pocket-friendly prices. 

Kogan is known for providing high-quality products that satisfy the social needs of individuals in Australia. Kogan has benchmarked the level of giving high-end products with premium quality. Australians buying to satisfy the social needs get the best quality of services as well (Kogan n.d.). Kogan identified that today's consumers do a lot of research before buying products and take feedbacks and opinions from other members of social groups. This research helped in making the retail businesses one of the major players of the Australian retail market.

JB Hi-Fi understood the importance of culture on consumer buying behaviour. In order to reach to its target consumers, the retail business focussed on the cultural aspect (JB Hi-Fi n.d.). Electrical home appliances were used as a tool to take advantage of the cultural influence on buying behaviour. 


The proper understanding of consumer behaviour is necessary for retail businesses in Australia. Generating profit is the primary objective of the business, but in addition to this, retail businesses thrive to build long-term relations with the consumers. Marketing strategy can be considered as successful if the message delivered is converted into sales of products. It helps in generating loyalty towards the brand. Family, social and cultural influences shape the buying behaviour of buyers. Retail businesses use these influences for generating sales. Strategies helped businesses in overcoming limitations and barriers for interacting with customers at an individual and personal level.   


Aldi History, n.d., Aldi us, Aldi, viewed 15 January 2019. 

do Paço, A, Alves, H, Shiel, C and Filho, WL 2013, ‘Development of a green consumer behaviour model’, International Journal of Consumer Studies, vol. 37, no.4, pp.414-421.

Fall Diallo, M, Chandon, JL, Cliquet, G and Philippe, J 2013, ‘Factors influencing consumer behaviour towards store brands: Evidence from the French market’, International Journal of Retail & Distribution Management, vol. 41, no.6, pp.422-441.

Fröhlich, G, Sellmann, D and Bogner, FX 2013, ‘The influence of situational emotions on the intention for sustainable consumer behaviour in a student-centred intervention’, Environmental Education Research, vol. 19, no. 6, pp.747-764.

Javornik, A 2016, ‘Augmented reality: Research agenda for studying the impact of its media characteristics on consumer behaviour’, Journal of Retailing and Consumer Services, vol. 30, no. 4, pp.252-261.

JB Hi-Fi n.d., About us, viewed 15 January 2019. 

Kogan n.d., About us, viewed 15 January 2019. 

Pérez, A, del Mar García de los Salmones, M and Rodríguez del Bosque, I, 2013, ‘The effect of corporate associations on consumer behaviour’, European Journal of Marketing, vol. 47, no.2, pp.218-238.

Polonsky, MJ, Vocino, A, Grimmer, M and Miles, MP 2014, ‘The interrelationship between temporal and environmental orientation and pro‐environmental consumer behaviour’, International Journal of Consumer Studies, vol. 38, no. 6, pp.612-619.

Ramnarain, Y and Govender, KK, 2013, ‘Social media browsing and consumer behaviour: Exploring the youth market’, African Journal of Business Management, vol. 7, no. 18, pp.1885-1893.

Wikström, F, Williams, H, Verghese, K and Clune, S 2014, ‘The influence of packaging attributes on consumer behaviour in food-packaging life cycle assessment studies-a neglected topic’, Journal of Cleaner Production, vol. 73, no. 1, pp.100-108.

Zabkar, V and Hosta, M 2013, ‘Willingness to act and environmentally conscious consumer behaviour: Can prosocial status perceptions help overcome the gap?’, International Journal of Consumer Studies, vol. 37, no. 3, pp.257-264.

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