Consumer Behaviour of Provenance Restaurant - Case Study Example

Consumer Behavior   Name: Tutor: Course: Date:   Table of Contents Consumer behavior 3 Introduction 3 Literature Review 4 Attitudes 4 Learning 5 Social class 6 Culture 7 Results 9 Analysis of socio-cultural and psychographic issues 10 Thematic Report 12 Recommendations and Conclusions 14 Recommendations 14 Conclusions 15 Works cited 16 Appendices 18 Consumer Behavior Introduction Provenance Restaurant was built in 1856 during the gold rush in the old bank of Australasia. It is located in 86 Ford St, Beechworth, Victoria. The hotel dining rooms are 6m grandiose ceilings, original arched windows and ornate rosettes. The wine cellars are made of thick granite rocks. Food provided originates from quality regional produce focusing on seasonal awareness. The restaurant with 112 employees offers food, wine, accommodation, gallery and events. Dinner is served from 6.30pm up to late night from Wednesdays to Sundays and 12.00pm to 3.00 pm on Sundays. Accommodation is available all year round, 7 days a week. Customers visiting the hotel are mainly families with desire to get the original touch of local and seasoned produce (Schiffman, 82). In 2012, Provenance was ranked 12 in the Top 100 restaurants of Australia Gourmet Traveller. Customers are treated with desserts, degustation, vegetarian degustation and provenance menus. Common visitors to the hotel are business professionals who prefer iconic wines and smaller boutique wines. In 2011, the restaurant’s Jeannette list was awarded Country Wine List of the year. The hotel does not offer Spa and relaxation facilities despite a growing demand in Australia. Men and women desire sensational organic products with design elements that provide a lasting pampering experience. Current professionals and business executives are into results-driven, scientific practices which maximize their need for organic and natural products enhancements (Ruvio & Belk, 56). The hotel has all along left out a segment of the target market that cherishes the hot stone treatment and massage. This target market is mainly business professionals and executives who have busy schedules throughout the year. However, they have paid holiday and relaxation benefits. They are men and women aged between 30 and 49 years earning AUD$4500-$8500 per month. They have one to three children and could be in a nuclear family or single parent. They usually have time in the events to drink and drive home before mid-night. The professionals are bachelor degree holders while executives are master or doctorate degrees. This group is aware of leisure and is conscious on their health. They eat and drink selectively to avoid lifestyle diseases. They are avid spenders on books, lifestyle magazines and always receive updates on twitter and Facebook regarding new clothing fashions and shoes (Ruvio & Belk, 114). Their children are in boarding schools giving them humble time to visit relaxation spots or go on holiday during their annual leave. They like adventure especially nature walks and visiting zoos or parks. The justification on the choice of spa is based on the fact that most middle aged Australians with middle income tend to mix leisure and work well. They have a tendency to visit massage parlors for hot stone treatment and massage services including sauna and hot bath pools. The government has also reduced taxes on domestic tourism as way of promoting local eco-tourism. People are also changing to traditional food and original wines as a way of connecting to the settler times. There is growing appreciation on work-life balance to increase productivity and attention at the Australian workplace. Literature Review Consumer issues considered as facilitators Attitudes Attitudes are a reflection of predispositions in which individuals perceive other persons, objects, events, product or services. The key characteristics are endurance, learning, indifference and ease of evaluation. According to Walters et al. (2009), attitudes come before behavior and are likely to impact on the relationship of an individual to his or her environment. Attitudes are enduring in the sense that they are subject to change over time despite being plausibly stable in the short to medium term. Secondly, they are learned from what individuals read, own experiences or what they read. Schiff man et al. (2013) observes that individuals can be constructively predisposed towards an object, indifferent or unfavorably towards the object. Consequently, he or she fails to display any behavioral pattern with respect to the object since they are generalizations; the key role of attitudes is to ease the evaluation of objects. Individual does not need to undergo the evaluation process tailored to each object. For example, hotel management or procurement may not need to be pre-disposed unfavorably towards locally processed Australian poultry products owing to a bad previous experience. The experience may be due the short shelf-life and quality (Parsons & Maclaran, 118). It should not be taken lightly, the consumer can assume a dissatisfaction in the consumer world since it relates to the very specific products that may be readily transferred to all other poultry products. On the contrary, the hotel may prefer import quality products. A common marketing tactic is seen in the layers and broiler meat processors have been noted to promote certain products. This has always seen in an environment that is unfavorable for locally manufactured merchandise (Schiffman et al. 95). Hotels procurement or management find themselves insisting on good quality, implying that the local market is ready to assert a level of quality control. Marketing department and procurement dealing with product or service have to work hand in hand to create positive attitudes towards the business function they represent. This also affects their intermediaries and their services or products distributed through the channel. Extra effort is need to change negative attitudes. For example, the experience of Australians to seafood hinders consumption hence the restaurant may either raise their appetite improve their love for Prawns, Tuna or shrimps. The continued practice of harvesting immature fish destroys the reputation of seafood products (Schiffman et al. 103). It is difficult and expensive to change a negative attitude once it endears but it is easier to cultivate a positive attitude in hospitality industry. Existing buyer’s attitudes are more or less similar easier to maintain than in seeking to change firmly ingrained attitudes in case the image and/or product cues are meant to fit. Learning Learning is interactions between cues, responses, drives, and reinforcement. It governs the greater proportion of human behavior given that the experience of an individual or a group is shaped specific stimuli that emanates from learning. For instance, a business professional may have a strong drive towards organizational productivity if he or she motivates her or his employees. Parsons and Maclaran (2009) argue that learning results from a drive that has a strong internal stimulus and a motive which originates from a stimulus specific to drive-lowering. On the other hand, a sheep farmer realizes that productivity of the pasture is based to a greater magnitude if there are lessons arising from an innovative pasture rotation and disease control.  The need for disease control and pasture rotation emanates from the surrounding cues and influence in which the farmer’s response to act (Ruvio & Belk, 84). The ultimate response of the farmer is determined by a greater stimulus which is a cue. Martins and Terblanche (2003) observe that groups or individuals dictate on how they respond through learning and further action. A hotel manager could be encouraged by the actions of a neighboring hotel or restaurant in the sense that they upscale customer service by providing fresh food and maintain a mix of price, promotion and marketing. To learn and reflect, the management relies on experience, articles and literature successfully drawn within the hospitality sector as well as act to keep abreast with the dynamic tastes and needs of customers. Schiffman et al. (2013) observes that individuals or groups can easily maintain a consistent set of attitudes related to cognitive consistency theories. There are challenges regarding product or service given the direct result of beliefs and attitudes inclined to be falling short of expectations. It goes on to note that the buyer experiences present a sore psychological challenge though he or she becomes motivated to remedy the behavioral interlink expectations and experience. Social class Social and cultural class or social status is a powerful consumer behavior implementation tool. It defines people inhabiting the various neighborhoods, housing, lifestyles, and relates to consumption of similar products from the several outlets. Myers (2006) argues that people with similar social values and dispositions tend to have similar opportunities despite the significant differences in consumption behavior between their incomes. The social classes comprise education, age, income, and occupation variables factoring a population into social group. They exhibit similarities in social categories with close family ties (Belk et al. 76). Sometimes, an individual feels that he/she is acting out to claim a social role defined by wealth and asset ownership. For example, the Aboriginal peoples of Australia learn that the leadership role from a person who the group entrust to make judgment regarding some cultural issues is divine (Loudon et al. 66). The leader, as demanded by the role will behave and act in accordance with the unity befitting the leader’s status and in other occasions will behave as a capitalist who pursues his own personal interests. The local leader as a commander of the local community will shape his understanding to conform to the expectations of him. Sappleton (2000) argues a marketer needs to understand the expectation of that individual by the range of roles a person played in a given purchase situation with respect to that profile of the customer The running strategy employed is significantly privy to such an understanding. The social class has a means of conferring the status upon him or her. Culture Culture constitutes artifacts, ideas, and behavioral patterns, social and economic activities done by people within a given lineage or a social group. It is the most fundamental and expansive on a person’s behavior and external influence with regard to his or her purchase intentions. People are known to create culture. According to Kotler (2002), just like attitudes, culture changes over time and is the most enduring of consumer thematic facilitators. It is largely intact and passed from one generation to another, stable in the mid and short term. Besides, influences of culture agree with intangible and tangible components in a way that they remain enduring. For example, objects and products of culture are patterns of speech and language while basic beliefs and values are drawn from environmental outcomes surrounding the lives and practices of locals. Kotler (2002) also learns that the subtle outcomes are mental phenomena in the way that evolves into a culture transmitted through generations hence a mechanism depicting active behavioral values and patterns. There is a likelihood of missed opportunities connected to the lack of cultural knowledge regarding the specific product or service. When launching herbal tea, Austral Herbs portrayed the powders, teas and herbs in which became an instant sensation in the state of Victoria.  Emerging differently were the challenges of the day where herbal tea has always conformed with the the prevailing values and beliefs regulating the usage and consumption of beverages. Schiffman et al. (2013) notes that shortcuts in the food and beverage industry are likely reflect the laziness on the part of the chefs. Besides, the apparent increased use within the household may see the herbal tea may win a significant proportion of the aged target market. In Australia, natural herbs notably cost less than convenience foods. The reasons why Austral Herbs could have passed an initial rejection is due to undeterred attitude of the consumers to try a new product highlighting the culture of the day. Over the past fifteen years, residents of South East Asia and Malaysia have witnessed people becoming increasingly cognizant on amount of fat in their diet having adverse health effects of high cholesterol and fat (Kotler, 90). Creative marketers lacking knowledge on cultural values and norms can benefit from the description of product characteristics. Australians loathe high fat content and fast foods which are no longer culturally acceptable. Advertisement and promotional messages have been widely accepted of attempts to lower the fat content of meals. Coupled with demands by food processors to provide healthy foods, some have taken to individual's family tastes especially mothers have disapproved their children to consume high fat foods in excess of modest quantities. In Australia, individuals who continually consume high fat diet receive disapproval from colleagues, neighbors, and other personal acquaintances. The producers of low fat meats provide the opportunity for consumers to get their desired marketing opportunity similar to those of Western Europe and North America. The general trend is that of official grading of meat to penalize meat with a high fat content and sell white meat (Schiffman et al. 87). To continue consuming meat, many households are demanding fish, chicken and other seafood with low cholesterol levels and almost fat free diet consistent with people’s habit and tastes to measure. On the same vein, ostrich farming has boomed in South Africa and Zimbabwe have augmented the increased demand for this type of meat than previous practice of growing fast foods in Australia. Results Responses: Consumer Profile CUSTOMER PROFILE: PROVENANCE RESTAURANT, BEECHWORTH, VICTORIA Target Market Profile Respondents 1 2 3 4 Type: Business professionals and executives who have busy schedules throughout the year. Benefits: They have paycheck that guarantees holidays and relaxation benefits. Gender: Men and women Age: Between 30 and 49 years Earnings: AUD$4500-7500 per month. Family: They have one to three children and could be in a nuclear family or single family. Education: The professionals are bachelor degree holders while executives have master degrees. Psychographic descriptions: They have time in their events to drink and indulge before mid-night. This group is aware and quite conscious on their health. They study and read books, lifestyle magazines. They also receive updates on twitter and Face book regarding new clothing fashions and shoes. Occupation: Marketing manager Age: 34years Sex: Female Marital status: Single mother Household composition: two children Education: College Income: $4500 Residence: Suburban areas Psychographic descriptions: She enjoys fresh food with wine while with lady friends. She loves fast food especially chocolate, chicken and ice cream. She also likes partying and drinking. She is open to new diet especially if it has sweet tasty sugar and chocolate. She visits hot stone treatment and massage parlor. Their children are in boarding schools giving them humble time to visit such spots. Occupation: Business Development Manager Age: 37 years Sex: Male Marital status: Married Household composition: Wife and one Children Residence: Suburbs Psychographic descriptions: Like joining colleagues for a meal and lots of drink especially wine. He is open to sea-food; seafood, fast food and drinks. Prefer parties and group talks. They eat outside home most the time and prefer going from mountain climbing and skiing later settling for a drink. They like adventure and amateur gaming especially nature walks and visiting parks. They go on holiday during their annual leave. Occupation: Events executive Age: 32 years Gender: Female Marital status: Married Household Composition: Husband and two children Education: Bachelor degree: Earnings: $5300 per month Residence: Inner city Physiographic descriptions: She usually takes the family for dinner and social parties. Her favorite meal is roasted meat and seafood. She also likes wine and partying in the evening. When not on official engagements, she prefers visiting spa and beauty salons. She is busy during weekdays and prefers taking packed lunch to the office. Type: CEO Age: 42 years Sex: Female Marital status: Married Household composition: Single with two children Education: University postgraduate Income: $ 7200 per month Residence: Suburban areas Psychographic descriptions: She likes going out with my family for dinners and functions. She spends most of her evening drinking and dining while socializing with other organizational managers. She loathes fast food and prefers white meat with low cholesterol levels. Likes visiting massage parlors and spa occasionally. She prefers visiting high-end restaurants serving traditional dishes. Sometimes she likes a lot by joking and cycling. They eat selectively to avoid lifestyle diseases. Analysis of socio-cultural and psychographic issues Profile Data Item Initial Codes 1 I enjoy fresh food with wine while with talking with friends. I love fast food especially burgers and skewers. I also like partying and skiing. I prefer fat diet especially if it has a little sugar and chocolate. I visit my favorite massage parlors and spa. The children are in boarding schools giving me the time to visit relaxation spots. Social class Hobbies Active Choices Friends 2 I like joining colleagues for a meal and lots of drink especially wine. I am open to sea-food; seafood, fast food and drinks. Prefer parties and group talks. We eat outside home most the time and prefer going from mountain climbing and skiing later settling for a drink. My family likes adventure and amateur gaming especially nature walks and visiting parks. I go on holiday during their annual leave. Learning and adventure Daily program Choices 3 I usually take the family for dinner and social parties. My favorite meal is roasted meat and seafood. I also like wine and partying in the evening. When not on official engagements, I prefer visiting spa and beauty salons. I am busy during weekdays and prefer taking packed lunch to the office. Leisure Decision making Choices 4 I like going out with my family for dinners and functions. I spend most of her evening drinking and dining while socializing with other organizational managers. I loathe fast food and prefer white meat with low cholesterol levels. I like visiting massage parlors and spa occasionally. I prefer visiting high-end restaurants serving traditional dishes. Sometimes I like a lot by joking and cycling. We eat selectively to avoid lifestyle diseases. Friends Attitude and consciousness Choices Social class Quality Thematic Report The major themes are; Social class Decision making Healthy living Learning From the first respondent, there is evidence show how social class influences the choice of leisure points and attitude towards certain entertainment points. Most of the respondents prefer the company of their friends meaning that they have the capability to influence their purchase behavior. Friends also place one on a given social class depending on the level education and work disposition. It also shows that their love for a leisure point goes beyond the mere seeking of food to environment, food and wine. Besides, the amount of money to be spent depends on their availability of the specific product or services meeting their quest for original state. The respondent is not price sensitive but concerned on the quality and quality of the service. The second respondent is very active but open to new experiences which augment the quest for adventure. The respondent has the desire to conquer and learn the secrets of healthy living. The culture of being open to new experiences compels the customer to try on new products and services without prior knowledge from friends and family members (Sappleton, 68). The leisure consideration is one great aspect mentioned by the respondent which budget and choices are aligned their desire for adventure. The respondent talks of income and the willingness to spend openly. The attitude informed by personal perception and environmental cues are derived from the environment in which family and friends. They have always been going on annual leave, hence the desire for the love for grooming. The fact that they have good disposable income to finance food, housing and education allows the respondent to budget spa and body rejuvenating activities. The spa and massage is imminent given the nature and cost of paying for the service. The consumers are also keen on diet and exercise given the schedule that involves relaxation and entertainment. The aspect of decision making in the family concerning certain expenditures and places more decisive roles on the male member of the family. This is seen to influence the choice and attitude to beauty parlors, massage and Spa. The research learns that attitude is one aspect of consumer behavior that is mentioned by the third respondent. Environmental cues are important for positive learning (Sappleton, 67). For example, if the Provenance hotel invests in employee training, service delivery and better work environment and cohesive organization, he or she will realize a huge improved productivity and profitability. The fourth respondent mentions that they also go out for dinners and outings since they have disposable income and variety of places to spend their evenings. She has the urge to visit relaxation joints such as massage parlors. The desire for this activity is informed by the nature of work and income. Hotel Provenance notes that any event that provides lasting experiences and delights the expectations of customer likely builds their cognitive resonance. As a company CEO, the customer has various benefits including paid holidays, travels and other accoutrements. It is clear that the respondents are selective to the food they eat owing to prevalence of lifestyle diseases. The social class including education, lifestyle, income, and other variables stratifies a population to exist within similar social categories under close scrutiny. The need for a choice of purchase is driven by the desire to fit into the higher social class and show greater attention to new status. Consumers also have the ability to make decisions depending on family position, given their influence. On the choice of places to spend also rest on the leader irrespective of being male or female. Sometimes, an intrinsic behavior which he/she is acting out will depend on the social role defined by wealth and as well as middle class. The pricing is favorable and the plays a vital role. Proper marketing mix comes from interconnection between product, price and marketing promotions. The resolution to improve its products or services forces Provenance to fit with pricing and engage itself through advertising, customer referrals and testimonies. Their Spa prices should range between AUD$125-$160 to include massage and sauna. They should also enjoy fruit juice relaxers and sauna for $45-$55 such as Cabernet Sauvignon, Shiraz and Sauvignon blanc. The mode of advertising and promotion will be posters, personal selling and customer referrals and testimonials. Provenance restaurant needs to change the seats and interior by changing the conservative mindset among its shareholders. Professionals will not likely deal with specific cue towards traditional settings as they are not likely to adapt to dynamic patterns of behavioral and lifestyle change. Respondent 1 has a potential to change his attitude towards white meat and spa while new service is factored in during the development of the marketing mix. Recommendations and Conclusion Recommendations Introduction of Spa and massage in Provenance Restaurant: Hot stone treatment and spa results from making massage came out loud. From the respondents interviewed, three of them were of confident that Spa and massage sections be introduced. Provenance restaurant is positioned and segmented to target a business professionals and executives with undying love of original food and cuisines. Service improvement: The restaurant with high windows and terrazzo walls has the capabilities of improving its services and attracting a new talent. The new target market business provides additional income and openness to lifestyle activities. Lifestyle of a generation of professionals and business executives between the ages of 30-49 are likely to drive the profitability and pricing. The fairer prices in massage and spa section include AUD $125-$210 for sauna and stone treatment spa at $200. This will make a new source of income for the specific niche and offer a chance to increase customer base while meeting the needs of this segment. Service segmentation: The market should be differentiated to reflect a new product and service lines.  It is generalization is making it convenient for business setups to actualize the services that have been differentiated. The spa and massage parlors should be individualized for the service to create value for money. Diversity: The Australian students ordinarily use forks and knifes while eating. This culture is also important to differentiate the service with other hotels in Beechworth using the niche marketing. People from the same social grouping according to some empirical research tend to have similar opportunities. Product Segmentation: The feeling within the Beechworth society constitutes a set of sub-cultures predominantly controlled by various Australian ethnic groups. Some do not subscribe to Spa and massage due to religious differences. Understanding the customer profile is crucial in segmenting the ordinary massage, special hot stone treatment and those offered by five star hotels like Hilton hotel. Service training and enhancement results emerges from patterns of behavior and values that have been established. The mix between the external and internal influence of the organization and its representation is largely delivered by employees who love commitment to their work. Conclusion The research has provided Provenance restaurant with empirical findings on the need for the restaurant repositioning. This includes adoption of a new service a new service line as massage and spa. This will require a change in practice, attitudes and provide an environment for adoption of new ways. Upgrading and change of internal culture, beliefs and practices are inevitable given the potential of creating a new segment made of professionals (Hawkins 92). The restaurant is recommended to target the family of high-end and up-market customers not only interested in food and wine but also body massage. Service differentiation and better employee training and remuneration and customer service as well as segmentation have established that a product mix of spa and massage is appropriate. Social status is attributed to income and education since an economic unit shares similar purchase behavior and lifestyle (Dibb and Simkin, 88). Professionals and business executives are on a higher social class compared to students or lower level employees seen from their pattern of spending. Culture influences patterns of behavior, attitudes and values learned and established through time. The love of their favorite dishes has been interlinked with a point where it identifies with a special attraction. The variables for stratifying a population into social groups or classes generally consist of lifestyle, income, and occupation. 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Cengage Learning. 2013.   Appendices Appendix 1: Customer interviews RESPONSES FROM THE INTERVIEWS ACTUAL CUSTOMER INTERVIEWS Questions Respondents 1 2 3 4 Age (years) 34 37 32 42 Occupation Marketing manager Business development manager Events executive Company CEO Marital status Single Married Married Married Monthly Income AUD$4300 AUD$4500 AUD$5300 AUD$7200 Why do you prefer taking your meals at Provenance Restaurant? I enjoy fresh food with wine while enjoying the company of lady friends. I am open to new diet especially with a little of sugar and chocolate. I prefer a company of colleagues for a meal and a sweet drinks and wine. I prefer parties and group talks and occasionally take my family out for dinner and parties. I am busy during week days and prefer taking packed lunch to the office. I prefer taking my family for dinners and family parties where they are contended with the level of service. Were you contended with the quality of service and wine served at the restaurant? I love fast foods especially burgers and ice cream. I am open to any type of food, fast food and drinks. My family likes taking meat and seafood. I also like drinking and partying in the evening. I spend most of my time drinking and socializing with other professional managers. What do you like doing during your leisure time or holiday? I visit spa and massage parlor. We eat outside home and sometimes prefer going from mountain climbing and later settling for a drink When I am not on official engagements, my husband suggests we go for a massage, spa and beauty salons. I like visiting massage and Spa occasionally. What is your opinion of a new product or service to be adopted by Provenance Restaurant?  Massage parlor and spa must not just be good enough for 100 years of being conservative. The restaurant should provide value for our money on leisure activities. Their services though they need improvement in waiter service round time. Most of the services are outdated and requires a new face. Do you think you will enjoy the golden opportunity in which Provenance provides? Children are in boarding schools giving me the chance to visit relaxation spots. Definitely I like adventure especially nature walks and visit to parks. We go on holiday during term breaks and annual leave. Yes. The joint has outstanding in terms of food and wine to accompany. Yes. I do like going to high-end restaurants serving traditional dishes. Will Provenance restaurant stand up to the task? Yes. Of course Definitely Yes Yes. I believe so Yes. I will have to regulate what I eat and drink selectively to avoid lifestyle diseases. Read More