Problems Facing Consumer in Accepting or Using New Products and Services at Emas Restaurant - Example

Consumer Behavior Research Report Name: Tutor: Course: Date: Executive Summary The report introduces Emas restaurant as the chosen organization. The new product not currently offered at the restaurant is discussed and justified. A customer profile is also provided for the target market using consumer specific and rooted segmentation In the second section, the report discusses the issues facing consumer in adopting or using the new product/service at Emas restaurant. The issues are identified as learning, attitude, culture and social status. The third section provides consumer responses in the form of a table while the last section recommends and concludes the findings at Emas restaurant. An appendix on customer interviews is provided at the end Table of Contents 2.0 New Consumer Product/Service 5 2.1 Learning 5 2.2 Attitudes 6 2.3 Culture 7 2.4 Social Status 9 3.0 Consumer Responses 10 3.1 Consumer profile 10 4.0 Implications on socio-cultural and psychographic factors 12 4.1 Learning 12 4.2 Attitudes 12 4.3 Culture 13 4.4 Social status 13 5. 0 Recommendations and Conclusion 14 5.1 Recommendations 14 5.2 Conclusion 16 Appendices 20 Appendix 1: Consumer interviews 20 1.0 Introduction: New Consumer Service Emas Restaurant is located in Burwood Highway, Burwood in Victoria. The restaurant specializes in seafood and is attributed to Malaysian dishes and cuisines. Many visitors prefer visiting this restaurant because it is accessible, great place to take a breath, tasty food and favorable prices. Customers are welcomed with gluten free menu and lunch specials. Besides seafood, the restaurant offers Satay Chicken curry, Beef Rendang, Roti Chanai Beef and Curry Laksa. The seafood is a combination of Chinese, Indian and Malay dishes. The common types are the free pawn crackers, curries, mixed entrée, rainbow steaks and Nasi Lemak. The restaurant has old tables and linens but meals are great. The restaurant does not currently offer fast foods. They are held to traditional menu which has been in practice for the last three decades. It is rigid and cannot try new combinations such as burgers, fries and takeaways. Majority of its customers are Asian students who are trendy and would love to experiment with fast food (Lamb et al. 2011). Customized orders will allow the hotel to have a differentiated appeal and uniqueness. Fast food is easier to prepare and is loved by young customers. Introducing this element into the hotel is likely to compliment the chicken curry and prawns. For example, French fries can be eaten alongside chicken or fish. Other hotels within Burwood are making big time profits from sale of fast food to it economy class segment. This will be a win situation for Emas if it introduces to its restaurant. The restaurant is frequented by couples and families because of the large sizes of tables’ ideal for groups of 20 to 12. It is generally quiet making it convenient for family setting. Asian students also prefer taking their meals in the restaurant. The students have equal male and female attendees. The prices of food range between $20 and $50. The ages of students are in the range of 18-35 years while families and couples range in 5-60 years. The waiters serve their customers seated in the expansive tables. The restaurant has online presence which can advertise its services or receive compliments and complaints (Hawkins et al. 2006). Majority of the customers; families and couples have combined earnings of $120,000 per annum. Students receive an average $20,000 annually from parental support and part time work. The target customers live in the suburban areas and inner city. Students like staying out together, hosting lunch parties and holidaying. Couples and families prefer candle dinners and cocktails. They are trendy and prefer taking heavy meals outside their homes. They also like family gatherings outside the home where they can enjoy fresh and flavored ingredients. Emas restaurant is positioned and segmented to target a part of the population in love of seafood. The pricing is favorable and the place is accessible. The food remains traditional and so is the menu. It remains unclear whether customer service will be a factor requiring improvement (Schiffman, 2010). Being a family run restaurant, it has the capability of improving its services and attracting a new target market. 2.0 New Consumer Product/Service 2.1 Learning Learning governs much of human behavior. Individuals’ behavior as a result of experience is evidenced by a change resulting from learning. Learning as suggested in theory is the product of interactions between stimuli, drives, reinforcement, cues, and responses. For example, a carpenter could have a strong drive towards increasing his/her productivity. As observed by Parsons & Maclaran (2009), action is impelled by a drive which is a strong internal stimulus. Motive arises from the drive when it focuses on a specific drive-lowering stimulus object. Likewise a farmer may see the way of increasing productivity to the magnitude needed by adoption of a newly obtainable two-wheeled tractor. The surrounding cues influence the response of a farmer to the notion of buying a two-wheeled tractor. Whether an individual responds is determined by a cue which is a lesser stimulus. If so, it finds out how he/she responds (Martins & Terblanche, 2003). Encouraged by neighbors to the farmer, same type of tractor operating successfully, reading promotion literature and receiving visits from salesmen, the village headman on a neighboring farm, impinges on the farmer to buy the two-wheeled tractor. These are environmental cues. Learning is positively reinforced if the farmer purchases the two-wheeled tractor and if it works well and improves to the level required, farm productivity. The buyer is likely to suffer cognitive dissonance if he or his experience does not match expectations. Individuals according to cognitive consistency theories, strive to maintain a consistent set of beliefs and attitudes (Schiffman et al. 2013). A challenge about a product or service result from beliefs and attitudes perceiving that performance was short of expectations. The buyer becomes motivated to remedy the balance between experience and expectations and experiences a sore psychological state. 2.2 Attitudes Attitudes have fundamental characteristics. First, it is enduring which means that even though they tend to be plausibly stable in the short to medium term, they are subject to change over time. Second, attitudes are learned from what individuals hear from others or what they read and/or their own experience. Walters et al. (2009) agrees that attitudes impact and come before behavior. They reflect predispositions of individual towards other object, another person, product or an event. An individual could be indifferent towards that object, unfavorably or constructively predisposed towards an object. Therefore, he or she with respect to the object fails to display any behavioral pattern. Fourth, the key role of attitudes is to ease the evaluation of objects since they are generalizations. During the process of evaluation tailored to each object, the individual need not to go through. For example, a consumer does not need to be unfavorably predisposed towards locally processed poultry products simply due to a bad previous experience regarding the quality of some type of chicken and its shelf-life (Parsons & Maclaran, 2009). The dissatisfaction of consumer is readily transferred to all other poultry products because it relates to the very specific products. Instead, he or she will prefer imported poultry products. In an environment unfavorable to locally manufactured merchandise, a common marketing tactic of enterprises has been developed to promote certain products. Firms find themselves operating it as “Export Quality”, meaning that it is above that applied to local market products. This exercise infers a level of quality control. To create positive attitudes towards the organization, marketers have to work hard. This specifically relates to any intermediaries and its services or products it may channel them through. Even more effort is required to change negative attitudes. For example, in Northern Nigeria, the Kano Tomato Growers Association in the 1980s carefully charted a reputation for delivering superior produce. However, the practice of unscrupulous members destroyed the reputation of the product by deliberately concealing bad tomatoes underneath top quality produce (Schiffman et al. 2013). The Association found it difficult to fully restore its reputation of its tomatoes to past levels. It is usually easier to cultivate a positive attitude at the outset but expensive and difficult to change a negative attitude once it endears. Certainly, image and/or product characteristics can be made to fit the existing buyers’ attitudes more productively than seeking to change firmly ingrained attitudes. 2.3 Culture Culture is possibly the most pervasive external influence and most fundamental on a person’s behavior, with his/her purchase behavior. Brought out by this definition are three key aspects of culture. First, people create culture. The ideas, behavioral patterns, artifacts, social and economic activities of a people’s lineage shape today are culture. Kotler (2002) argues that like attitudes, culture is enduring by evolving over time. It is stable in the medium and short term, largely intact and passed from one generation to another. Above all, societal values tend to be enduring. Besides, influences of culture have both intangible and tangible components. For example, patterns of speech and language are observable products of culture. Basic values and beliefs are cultural environment outcomes within which individuals’ lives. However, these intangible outcomes are mental phenomena (Kotler 2002). Each society evolves in a culture hence a mechanism depicting a distinctive behavioral values and patterns transmitted to successive generations. Lack of cultural knowledge in which a product is being marketed is likely to engender missed opportunities and mistakes. A case in point is during the launch of Nescafé instant coffee by Nestlé. Rather different were the cultural norms of the day. Good coffee as dictated by the prevailing values took time to prepare. Any shortcuts in the beverages and foods preparation reflected carelessness with the household budget and laziness on the part of the user (Schiffman et al. 2013). This was drawn from the fact that ‘natural’ foods invariably cost less than convenience foods. It is probable that Nestlé could have averted an initial rejection through a better understanding of the culture of the day. The coffee could have won a significant proportion of the target market. By aligning product characteristics and benefits with social standards, creative marketers lacking knowledge of cultural values and norms can benefit. North America and Western Europe over the past ten to fifteen years have witnessed people become increasingly cognizant on adverse health effects of high cholesterol levels and amount of fat in their diet (Kotler, 2002). The message has been widely accepted of attempts to lower the fat content of meals. A high fat diet is no longer acceptable culturally to maintain. This is loathed by the employers who provide health schemes, individual's family doctor, ‘good mothers’ disapprove their children consuming high fat foods in excess of modest amounts. Communicating this disapproval are friends, colleagues, neighbors, and other personal acquaintances it is established that the individual continues with a high fat diet. Low fat meats producers have created a marketing opportunity. Western Europe and North America, official grading systems for meats penalizes meat with a high fat content. Premium price in retail stores are attributed to meat of low fat content. Ostrich producers in South Africa, Australia, Namibia, Zimbabwe, and Swaziland have exploited this cultural change by opening up market opportunities (Walters et al. 2009). Ostrich meat has low cholesterol levels and almost fat free enabling those who in their diet are fond of meat to continue consuming meat without adding weight. Ostrich farming in the USA and the United Kingdom were barely known. The increase in demand for this type of meat than previously thought is growing fast. The culture within any particular society will constitute a number of subcultures predominantly various racial, religious and ethnic groups. To some degree, each will have distinct values and beliefs (Samli, 2012). Marketers are interested in subcultures because it is a useful variable in market segmentation. 2.4 Social Status Social status or social class is a powerful markets segmentation tool. According to Myers (2006) people from the same social group from some empirical research tend to have similar opportunities. They inhabit same areas, live in similar types of housing, conform to similar styles of living, and generally consume similar products from the same types of outlets. In the same vein, there are typically significant differences in behavior of consumption between social groups though they exist within similar social category exhibiting close similarities. The variables for stratifying a population into groups social or classes generally comprise education, lifestyle, income, and occupation. On a given occasion, the individual behavior which he/she is acting out will relate to the social role. For example, rural peoples ascribe a role of leadership to a person who they sometimes defer to the judgment of the leading landowner in the area. The landowner will behave and act in accordance with the community leader’s status as demanded by the occasion. The same individual on other occasions will behave as a landowner and pursue his own interests. Moreover, with the norms established by the group each of the roles assumed by the landowner is played accordingly to confer and sustain his leadership office. The landowner will shape his behavior to conform to the expectations of him as a community leader of the local community. Kotler (2000) notes that the marketer will need to understand the roles a person played in a given status and the expectation of that individual by the group. The group is the one conferring the status upon her or him. The marketing strategy employed is significantly affected by such an understanding with respect to that profile of the customer. 3.0 Consumer Responses 3.1 Consumer profile Customer profile: Emas Restaurant, Burwood, Victoria Target segment Respondent 1 Respondent 2 Respondent 3 Respondent 4 Type: Couples and families Gender: Male and female Age: 5-60 years House hold composition: two parents with one or two children/ singles with one or two children/ couples only Education: Basic/college Occupation: Working professionals and their schooling children Income: $120,000 per year Residence: Inner city and suburban areas Psychographics: They are conservative to fast food preferring seafood. Are health conscious due to fat, they are outgoing and fun loving, interactive and social. They love seafood and spices as they attribute to longer lifespan. The like partying and outings with members who are closely related. Age: 33 years Sex: Female Marital status: Married Household composition: A husband and two children Education: University graduate Occupation: Accountant Income: $ 2000 per month Residence: Inner city Psychographics: I like going out with my family for dinners and family parties. I spend most of our evenings drinking and socializing. I do not like fast food but prefer white meat with less cholesterol. I abhor fat people. I like going to restaurants serving traditional dishes. I exercise a lot by joking and cycling. Age: 27 years Sex: Male Marital status: Single Household composition: Single parent has 2 siblings Occupation: Student Income: $1100 from parents and part time work Residence: Suburbs Psychographics: I like joining friends for a meal and a sweet drink especially wine. I love parties and group talks. I eat outside home most of the time. I prefer going from mountain climbing and later settling for a drink. I am open to any type of food; seafood, fast food and drinks Age: 42 years Sex: Female Marital status: Married Household composition: Husband and three children Education: College Occupation: Public service employee Income: $2300 per month Residence: Inner city Psychographics: I usually take my family out for dinner and social parties. My family loves roasted meat and seafood. I also like drinking wine and partying in the evening. I am busy during week days and prefer taking packed lunch to the office. Age: 30 years Sex: Female Marital status: Single mother Household composition: Two children Education: College Occupation: Marketer of FMCG Income: $2500 per month Residence: Suburbs Psychographics: I like enjoying fresh seafood with my two boys. We love fast food especially burgers and ice cream. I like partying and skiing. I am open to new diet especially if it has a little of sugar and chocolate. 4.0 Implications on socio-cultural and psychographic factors 4.1 Learning Learning emanates from the previous experience a customer finds while receiving the service. The learning mode is triggered once a response has been provided. For instance, most of the respondents while regularly taking meals at the hotel have learned about the culture of the Malay people and appreciate diversity. The environmental cues or stimuli drive the customer to make a repeat visit to the restaurant. This can be regarded as a positive experience. Learning can also emanate from negative experience. For instance, Respondent 2 in question 4 says that the chicken was stale. This is a negative experience because of cognitive dissonance that did not meet expectations. Lessons are taken in which will help in evaluation and drawing comparisons (Samli, 2012). Respondent 1 in question 3 notes that the dishes were well cooked and staff served it as expected. This draws the element of satisfaction where the actual experience resonated with the expectations. The respondent may not be comfortable with introduction of fast food in the hotel but is happy with the current state of service. 4.2 Attitudes Emas restaurant by not changing the seats and interior décor has created a conservative mindset among its customers. They have developed a specific cue towards traditional settings and food hence not likely to adapt to dynamic patterns of behavior and lifestyles. Respondent 1 has a predisposed attitude towards white meat and fast food. The behavior is learned from the fact that she may have been a victim of hospitalized obesity. The past experience brought about learning that white meat is preferable than red meat. The individual is driven by circumstances to buy food based on health grounds. Respondent 3 is also likely to have driven stimuli into her two children into liking fast food. She must have bought them the snacks and observed their reaction. Once the children like the food, she develops a liking attitude towards fast food (Myers, 2006). Respondent 2 having eaten stale chicken and paid $18 recognizes that it was a raw deal. He will develop a negative attitude towards the hotel and dissuade others not to visit the hotel. His testimonials will not yield any referrals and customer loyalty. The restaurant by working to create a positive impression or ideal self makes the customers to link their actual self through an ingrained positive attitude. 4.3 Culture Culture emerges from patterns of behavior, attitudes and values that have been established through time. Respondent 4 notes that Emas food is more traditional and refined. The food has spices and a broad range of vegetable diet. The presence of beef and chicken curry reminds the customers of the Indian, Chinese and Malay culture. The people and their favorite dishes have been intertwined to a point where it identifies with a specific culture (Loudon et al. 2011). The appreciation and integration among cultures has enabled people to interact with language, food, clothing and values exhibited in particular ethnic and racial groups. People in Burwood who would like to experience the Malay culture will attempt on their traditional food associated with the ethnic group. These dishes are; Satay Chicken curry, Beef Rendang, Roti Chanai Beef, Nasi Lemak and curry Laksa. Some unique Chinese food like dogs and snakes may not be favorable among other cultures which makes them to loath the food. 4.4 Social status Social status is attributed to belonging to an economic unit sharing similar purchase patterns and lifestyle. Students may be on a different social scale to a working professional hence their pattern of spending. Students would love watching movies and sightseeing while a professional banker may need a nap in his or her office to complete the day. For example, Respondent 4 who is single may not be fond of partying in places where straight couples frequent. She will therefore prefer eating and social places of mixed grouping to feel in place (Huitt, 2011). Income is the key factor creating the social strata given that someone with disposable income can access facilities and accoutrements not available to low income earners. The business class may find Emas restaurant way below their social placement and may opt to visit other four or five star hotels. 5. 0 Recommendations and Conclusion 5.1 Recommendations i) Targeting the fast food at Emas Restaurant: Of the four customers interviewed, three of them were of the opinion the fast food be introduced. Emas restaurant is positioned and segmented to target a part of the population in love of seafood. The pricing is favorable and the place is accessible. The food remains traditional and so is the menu. Customer service should be a factor required in service improvement. Being a family run restaurant, it has the capability of improving its services and attracting a new target market. The new target market is the Asian students who are open to trendy food. This target population is huge as those going to take seafood can prefer a diet change and take fast food. Fast food is a lifestyle of a generation of students and customers between the ages of 12-30 years. The prices will also be fairer to this segment at $5-$10 having found the traditional seafood segment expensive at $20-$50 not favorable to students depending on their parents for upkeep. ii) Service differentiation: The market should be differentiated along product and service lines. The restaurant is frequented by couples and families because of the large sizes of tables’ ideal for groups of 20 to 12. It is generally quiet making it convenient for family setting. Individual service should be differentiated from group service. The tables in the restaurant are suitable for groups who would like to have social talks and meetings. Their food should include diversity of menus such as buffets which still characterize the Malay, Chinese and Indian cuisines and dishes. The Asian students love using sticks while eating. This cultural norm is also important to differentiate the service from other hotels in Burwood using the ordinary cutlery. Social status or social class is a powerful markets differentiation tool. The needs of respondents 3 must be differentiated from those of respondent 2 because of difference in income and marital status. People from the same social group according to some empirical research tend to have similar opportunities. They inhabit same areas, live in similar types of housing, conform to similar styles of living, and generally consume similar products from the same types of outlets. iii) Segmentation: Understanding the customer profile is essential in segmenting the Asian dishes and fast food. This will be based on incomes since fast food will be available for the low income segment mainly students and the premium food segment of seafood going for families and working professionals. The culture within the Burwood society constitutes a number of sub-cultures predominantly various racial, religious and ethnic groups found in the Australian cities. To some degree, each will have distinct values and beliefs. The Emas will be interested in subcultures because it is a useful variable in market segmentation. iv) Customer Service: The dissatisfaction of consumer is readily transferred to all other restaurant products because it relates to the very specific services. The respondent 2 preferred fast food instead the traditional seafood offered by Emas. In an environment unfavorable to the student segment, a common marketing tactic of enterprises has been developed to promote certain products. This will include packaging and delivery of the food to this segment. The staff should be quick, responsive and empathically respond to customer issues (Hawkins, 2007). This is a negative experience because of cognitive dissonance that did not meet expectations. Lessons are taken in which will help in evaluation and drawing comparisons. Excellent customer service provides vital lessons of loyalty, testimonials and retention. The element of satisfaction should be based on the actual experience resonated with the expectations. The respondent may not be comfortable with introduction of fast food in the hotel but is happy with the current state of service. v) Proper marketing mix: This comes from understanding the marketing environment. The restaurant needs to improve its products or services, segment the market to fit with pricing and engage in aggressive advertising through customer referrals and testimonies. The products are seafood; Free Pawn Crackers, Curries, Mixed Entrée, Rainbow Steaks and Nasi Lemak. The prices of these foods should range between $20-$40 with great customer service like serving in traditional banana leaves and pots. Special dishes are; Satay Chicken curry, Beef Rendang, Roti Chanai Beef and Curry Laksa. Their prices should range between $25$-$60 to include buffets and self-service. The final segments include the fast food segment of burgers and fries going for $5-$15. The mode of advertising and promotion will be posters, personal selling and customer referrals and testimonials. Emas restaurant should change the seats and interior décor to ease a conservative mindset among its trendy population. Students will not likely develop a specific cue towards traditional settings and food hence likely to adapt to dynamic patterns of behavior and lifestyles. Respondent 1 has a predisposed attitude towards white meat and fast food which should be factored in while developing the marketing mix. vi) Better employee training and remuneration: Culture emerges from patterns of behavior, attitudes and values that have been established through time. Employees exhibit the culture and philosophy of the organization through attitudes, beliefs, values and norms. The dishes and cuisines at Emas are traditional Malayian depicting their cultures and practices. The mix between the external and internal culture of the organization and its representation is only delivered by employees who love team work and commitment to their work. Meeting customer requirements requires understanding of employee cultures and taking the employee from the perspectives of customers. Satisfied employees make satisfied customers. They will understand how to treat customers based on different income and cultural backgrounds. 5.2 Conclusion This report has established that Emas restaurant located in Burwood requires upgrading and change of its work culture. It has established that introduction of fast food is potential in drawing a new segment largely students who are many but with lower incomes (Hawkins, 2007). The report has recommended targeting the fast food restaurant to the student segment, service differentiation, better employee training and remuneration, customer service, and segmentation. The marketing mix has established that a product mix of seafood, special dishes and fast food is appropriate with corresponding prices. Social status is attributed to belonging to an economic unit sharing similar purchase patterns and lifestyle. Students may be on a different social scale to a working professional hence their pattern of spending. Culture emerges from patterns of behavior, attitudes and values that have been established through time. The people and their favorite dishes have been intertwined to a point where it identifies with a specific culture (Dibb & Simkin, 2013). The appreciation and integration among cultures has enabled people to interact with language, food, clothing and values exhibited in particular ethnic and racial groups. There are typically significant differences in behavior of consumption between social groups though they exist within similar social category exhibiting close similarities. The variables for stratifying a population into groups social or classes generally comprise education, lifestyle, income, and occupation. Reference list Dibb, S. & Simkin, L 2013, Market Segmentation Success: Making It Happen!. Routledge. Hawkins D I 2007, Consumer Behavior, McGraw-Hill Education (India) Pvt Limited. 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Samli, A C 2012, International Consumer Behavior in the 21st Century: Impact on Marketing Strategy Development. Springer. Schiffman L 2010, Consumer Behavior, Pearson Education. Schiffman, L., O'Cass, A., Paladino, A., Carlson, J. (2013). Consumer Behaviour (6th ed.). Sydney: Pearson Australia. Walters, C Glenn E & Bergiel, V J 2009, Consumer Behaviour a Decision Making Approach, South Western Pub.Co. Weinstein, A. (2013). Handbook of Market Segmentation: Strategic Targeting for Business and Technology Firms, Third Edition. Routledge. Appendices Appendix 1: Consumer interviews Responses from the interviews Question Respondent 1 Respondent 2 Respondent 3 Respondent 4 1. Why do you like taking your meals at Emas Restaurant? I love Malay people and by extension their food The restaurant has good food and amble space for socializing with friends The joint has unique seafood and wine to accompany I find them quite refined and traditional. I like taking traditional Chinese, Indian or Malay dishes 2. Are you happy if fast food like burgers and ice creams are introduced in their menu? I am interested in cutting weight and avoiding lifestyle diseases. I like white meat which is found in seafood. Yes. I will be glad if the restaurant begins to serve fast food. I crave for cheese and hamburgers since I have not found an opportunity to experience them My children love fast food but I have no reservations either. I usually buy them when I am travelling. I would love if Emas serve fast food. Yes. Emas should serve fast food. They are very much conservative to traditional dishes 3 What is your take on the seafood that is traditionally served in the hotel? Seafood is tasty and well cooked. The dishes are also served by quick and attentive staff as I expected The seafood is oily and small. Moreover, the lady serving is slow and not happy. It just ruined my appetite I love Roti Channai and Roti Laksa which are spiced to the Malaysian and Indian dishes Their mixed entrée and prawn crackers are sweet and I loved their wine too 4 What is your opinion on the quality of service and pricing at the restaurant? Awesome. Though their prices are a bit high, their food is fresh and tasty I paid $18 for a stale chicken. It is just not good enough. The restaurant should consider value for our money I am Okay with their pricing though they need to improve on the décor and seats. They are too old. Quality if food is good, I would rate 85% and the pricing is also favorable. 5. Did you like the combination of various dishes and cuisines? I think the menu of traditional seafood is great. I come to Emas because of this combination. I would consider going elsewhere if they change The dishes are fine they only need to improve the service to the customer. Remember it is value for our money The dishes are unique in Burwood and I believe many people come here to experience this combination I love the spicing and presentation of the dishes. Their cuisine is also awesome. Read More