Consumer Behavior of Subscription-Based Home Protection Alarms - Essay Example

? Market Research Proposal On Consumer Behavior Of Subscription Based Home Protection Alarms In Home- Owners In Kensington And Chelsea Areas In London, UK. Name: Instructor: Course: Date: Abstract Consumer products and the model or way of delivery of the products to the target market is important in every market segment, to analyze the behavior of the consumers on the various products that the suppliers provide. It is the role of the players in the market, more so the producers, to assess the behavior of the consumers regarding a certain product. In this research, the assessment is on the consumer behavior of subscription based home protection alarms in home owners in Chelsea and Kensington areas in London, UK. The research is entirely embedded on the alarm systems that have been designed to provide security to the consumers around this area. Various opportunities come with the introduction of new alarm systems that are designed to improve the consumer needs. Market responses from all the players in the market, right from the consumers, the government regulations and other factors that affect the market are very critical. The increase in the need for security solutions is growing in the area under research, and this has brought about market growth and introduction of highly developed alarms in the market. This research will try to analyze the various components of the consumer’s behaviors in this market segment of London, considering the alarm systems with new security solutions and unique alarm concepts. A close examination of the entire London market on the home based alarm as security solutions will be discussed, compared to the target population in the target area. Both qualitative and quantitative methods of data analysis will be employed in this research. Primary data collection conducted in a survey through questionnaires will be used and also the interviews done on the sample size. A sample size of 30 respondents will be used, which is an equal representation of the target population of Chelsea and Kensington areas in London, UK. The Data collected will be analyzed and interpreted accordingly. CHAPTER 1: THE INTRODUCTION 1.1 Rationalization for choice of Research Subject A validation or rationale for the research subject choice was driven by a close examination on the increasing use of the home based protection appliances around Chelsea and Kensington areas of London as special market segment. It is the growing concern on how the market, manufacture, design and purchase of the alarms that clicked a thought in my mind to do a research on the same, to determine the behaviors of the consumers on the alarms. This is a rapidly growing market and an inquiry to the way consumers behave towards the introduction of the devices in terms of compliance, the risks attached to the products and more interesting, the market response for the same is critical. 1.2 Research Questions, Aim and Objectives 1.2.1 General Research Questions The following general research questions will guide the research (i) What are the consumer behaviors of subscription based home protection alarms in home owners in Kensington and Chelsea areas of London? (ii) Which are the market and compliance issues that integrate home based protection alarms? (iii) What are the key drivers of increased consumer needs for the home based alarms? 1.2.2 Detailed Research Questions i) How does competition affect the consumer behavior of subscription on home based alarm systems? ii) In which way (s) do market responses affect the integration of the subscription of the home based protection alarms? iii) How has consumer needs been driven by the desire to use the home based protection alarms? 1.2.3 Research Aim The research intends to examine the customers’ behaviors on the subscription based home protection alarm devices and critically analyze the alarms market on developments made to foster the needs of the customers in the area under research. 1.2.4 Research Objectives i) To demonstrate the consumers’ behavior in subscription based home protection alarms. ii) To examine the compliance and market issues in integrating home protection alarms. iii) To explain the consumer buying habits and risks associated with subscription home based alarms within the market. 1.2.5 Justification of the Objectives A validation of the objectives stated is based on the research topic to demonstrate what affects the behaviors of the consumers on the subscription home based alarms. The behavior is a result of various factors that are in play as clearly outlined. 1.3 Limitations The scope of the research study will be limited by the following factors: i) Time allocated for research study ii) The unwillingness of some respondents not to answer questions. iii) Financial constrains in conducting the study. iv) The availability of the respondents during the day as the preferred time for research 1.4 Conclusions The research aims and objectives are purposely intended to help the researcher in developing the research methodology and develop an important literature review in understanding the topic to enhance the effectiveness of the study. CHAPTER 2: BACKGROUND The welfare of the consumers in continued subscription of the home based alarms has increasingly been noted to be able to improve their security in their homes. The growing concern to analyze the behavior of consumers on the way they respond to the subscription based alarms is due to the technicality of the alarms, and the sources bought, putting into consideration the various producers that manufacture them (Bishop, 2004). Consumers will tend to carefully compare the products and the choice they settle on depending on the viability of the alarms. Alarms equipped with latest digital signal technology that boost their security concerns and their choices change depending on a new alarm that has been manufactured, considering the cost benefit analysis serves their interests in security. Products that are developed in collaboration with the leading companies in this sector of electronics and alarms tend to be more considered. London dwellers in Chelsea and Kensington region have developed a high need for use of the subscription based home protection alarms. Competition derived from the companies offering various alarm products has shifted focus on the consumer’s behavior, coupled by the interplay of the compliance required to be fulfilled by the consumers, with many of them adhering to the letter (Blackwell, 2006). CHAPTER 3: LITERATURE REVIEW 3.1 Western Marketing and Multi-National Corporations Multinational corporations are enterprises that have operations in more than one country. Most of the Western corporations market their products in the international markets. They play an important role in globalization, where the western countries especially Europe, have become like a village in marketing. Corporations may make a foreign direct investment. Foreign direct investment strategies are used by the multinationals in Western countries to expand their operations. For instance, in the alarm market, various multinationals involve themselves with this market due to the impact of competition, resulting to improved advancements in the technology, hence improving the quality of alarms. 3.1.1 Marketing Mix Marketing mix involves using various marketing methods to ensure that the products are promoted in the market, so that the products are promoted well. The product element is the new product itself and getting the price right involves examining rival product’s consumer perceptions. Promotion involves engaging in a range of promotional activities such as competitions, product testing and using various channels of distribution. This marketing mix includes: i) The Price: It creates sales revenue in the market of alarms in London. Price is really determined by the discovery of what consumers perceive as the value of the item on sale. ii) The place: Involves the storage and delivery of the right products to consumers and getting the right method of distribution. iii) Promotion: This involves the communication or relay of information regarding a certain product. This helps the customers to make right decisions. In business, various promotional methods such as advertising and publicity among others are very important. 3.1.1.1 Transferability of Western Marketing to Central and Eastern European Countries i) Obstacles Associated with Transitional Economics Transitional Economies stress on the importance of policy in the analysis of present economic trends, the implementation of reform and policy choices in the post-communist economics, which requires theoretical concepts for both the analysis of phenomena and the suggestion of well-adapted and flexible measures of policy. Such obstacles include money laundering and weakening of the Euro in the international market. ii) Characteristics of Central and Eastern European Countries In terms of the economic scenarios in these countries, they are governed by economic laws and policies, where countries through their companies and multi-nationals, promote their products depending on their strategies. For example, the European Commission plays a big role in market control, in terms of price and setting policies that the countries follow when dealing with the economy (Harris, 2009). iv) Standardization vs. Local of Marketing Mix Standardization of the market mix involves use of similar methods of marketing, which have been tested and have proved important in the marketing scenarios where various promotional and marketing mix strategies are used. Localization involves restricting marketing on just defined mix that cannot be changed during marketing of the products such as the marketing of the alarms (Henry & Joseph, 2010). v) Main Marketing Strategies Regarding Marketing Mix The strategies include providing the best product that will suit the need of the consumers in the market. For example, in the case of the home based alarms, providing advanced alarms is very important. Another important thing is ensuring that the distribution choice is the one that serves the market that the business serves. Using the best promotional method is also an important issue in market strategizing. CHAPTER 4: RESEARCH METHODOLOGY 4.1 Form of Research This research study will be a qualitative and quantitative form of research, that will employ various tools of research to demonstrate and critically examine the consumers’ behavior and the conduct that they exhibit in subscription based home protection alarms. 4.2 Purpose of Study The principle behind this study is to try and scrutinize the consumers’ behavior in securing the alarms, and also the various concerns that they have regarding the alarms. It aims at understanding the overall consumer behaviors and the factors that play behind the same. 4.3 Research Design In ensuring that quality study is done, an integrated research design will be employed to gather the required information that will make the study ‘rich.’ Primary data collection by administering a survey questionnaire to the respondents to get first hand information will be done. The use of questionnaires and interviews will enhance the research plan. Secondary data sources will also be used, and will play an important role in enhancing the research (Kardes et al., 2011). 4.4 Methodological Paradigm The pattern of the research study will be employed at the same time and will go hand in hand. This methodological model will be used to help in sourcing important data for purposes of this research. 4.5 Data Collection 4.5.1: Structured Interview A structured interview will be used in the research to get the reactions of the consumers who will be sampled from the entire target population. Structured questions to be answered by the respondents will be developed. 4.5.2: Survey A survey will be developed and questions will be administered to the respondents with questions that will be both open ended and closed. 4.5.3: Sampling Method A representation of the target population will be simple random, where a sample size of 30 (thirty) respondents will be used. The method will help in acquiring important information in the study. 4.5.4: Sampling Instruments For purposes of this study, questionnaires and interviews will be used as instruments to gather information regarding the research study. 4.5.5: Reliability and Validity The data collection methods are dependable and strong, since first hand information as a reliable source will be acquired. This however will clearly demonstrate the consumers’ behavior because the respondents are the consumers (Laermer & Simmons, 2007). CHAPTER 5: FINDINGS AND DISCUSSION 5.1: Structured Interview For the purposes of this research, respondents argued that technological advancements would cause positive behavior change among the consumers of subscription based home protection alarms. They considered competition and other factors in the market, resulting to improvements in the manufacture of the alarms. 5.2 Consumer Survey The questionnaires administered showed that more than 50% of the respondents indicated that consumer behavior change is due to the various factors that affect the alarm market. The compliance roles, competition and the technological improvements, where most of them are considering shifting to manufacturers who have designed alarms well suit for their security concerns in London are also critical issues (Schwartz, 2004). CHAPTER 6: CONCLUSION AND RECOMMENDATIONS 6.1 Conclusion Consumer behavior is an important and a fundamental aspect of assessing the performance of the product in the market segment that the product is serving. The subscription based home protection alarms are influenced by the development of varying alarms with varying specifications. The designing of the alarms in the best way that improves the security of their homes is very important (Shell, 2009). 6.2 Recommendations Considering the important aspects of behavior change, positive behavior change is important, fueled by a healthy competition that will ensure that the alarms being provided in the market are of high quality. Developing a strategy that will ensure that the products give a clear outline on how the alarms will be operated, so that the consumers can have information on how to ensure that they achieve the best out of the services provided is also an important aspect. DATA INTERPRETATION: GRAPHICAL REPRESENTATIONS A graph showing data interpretation for Questions 1, 2, 3 and 5 A majority of consumers representing 93% of the respondents have opted for subscription protection alarms with the insurer. More than half of the respondents prefer alarms fitted at home, and slightly lower than half prefer those not fitted at home. Approximately 70 % of respondents preferred an insurance lower premium, with the rest indicating no information. Around 50% of the respondents argued that they could subscribe to monthly insurer protection fee and 23% of them did not prefer the protection, with others not sure about the same. A graphical representation on Home Insurance Plan The relationship between the preferred home insurance plans varied, with various consumers subscribing to insurance plans of their wish, varying with 30% preferring Aviva through bank plan, and the least preferring Allianz. Majority were interested in monthly alarm pay of between 10-20 Euros, where others either were interested in 20-30 Euros but representing a lower figure, with 16% responding that they don’t know, and 7% preferring not to respond. An approximate 53.3% of the respondents preferred their alarms connected to the police, where an approximately 46.7 preferred other connections. Both Fire alarm and Water leak alarms were highly preferred to smart phone and Yes to call. References Bishop, M., 2004. Essential Economics. London: Sage. Blackwell, M., 2006. Consumer Behavior. London: Thomson Learning. Harris, J. M., 2009. “Ecological Macroeconomics: Consumption, Investment.” Real-World Economics Review, 50, 34-48. Henry, C., & Joseph, E. S., 2010. “Intellectual Property, Dissemination of Innovation and Sustainable Development.” Global Policy, 1 (3), 237-251. Kardes, F. et al. 2011. Consumer Behavior. Mason, OH: Cengage Learning. Laermer, R., & Simmons, M., 2007. Punk Marketing. New York: Harper Collins. Schwartz, B., 2004. The Paradox of Choice: Why More Is Less. New York: Ecco. Shell, E. R., 2009. Cheap: The High Cost of Discount Culture. New York: Penguin Press. Appendices A. Sample of Questionnaires 1. Do you get alarm services from one company? Yes or No 2. Does the cost of the alarm system drain your economic strength? Yes or No 3. What problems have you faced in compliance in the alarm system?.................................................................................................................................................................................................................................................................................. 4. Do these alarms serve the purpose intended and at what level?................................................................................................................................................................................................................... 5. Have you ever had a scenario whereby the whole system fails? Yes or No 6. Do you find yourself in decision problems when choosing the company to get your alarm system from? Yes or No 7. For how long have you used alarm system and what problems have you noted?.......................................................................................................................................................................................................................... Read More