Services Marketing – Australian Bottled Water Industry Essay Example

like Torquay, Arquilla and San Benedetto are also available, along with cheaper options like Peats Ridge and Mount Franklin. Consumer decision making varies depending on the type of buying decision.

Assael (1987, pp. 57-64) categorized consumer buying behavior into four types based on differences among brands and buyer involvement levels. Two of these categories are applicable to the purchasing of bottled water.

When it comes to purchasing water, many consumers have a habitual buying behavior. They tend to buy water without much thought or brand loyalty, instead reaching for the brand they recognize out of habit. This kind of purchasing behavior is prevalent in situations where there are no significant brand differences or when consumers have little involvement. To entice these consumers to try new products, marketers could use price and sales promotions effectively.

On the other hand, some consumers exhibit variety-seeking buying behavior when it comes to bottled water. These consumers also exhibit low involvement in the purchase process but are more likely to consider the brand differences.

It is common for consumers to switch to different brands of bottled water for the sake of variety during consumption. Market leading brands aim to foster habitual buying behavior, while challenger firms encourage variety seeking behavior. Yau (1994) notes that product choice and brand preference are influenced by a range of complex factors.

Consumers' values, shaped by social influences and environment, impact their purchase and consumption decisions, ultimately affecting consumption behaviour. The primary factors influencing the buying behaviour of bottled water include cultural factors, particularly social class, which plays a significant role in the decision-making process. Social classes are divisions within a society that are ordered hierarchically and share

similar values, interests, and behaviour. Distinct product and brand preferences in buying behaviour are evident among members of different social classes (Kotler, 2000, pp. 161).

Bottled water brands cater to various social classes, with Peats Ridge being an affordable option found in popular retail stores like Woolworths or Coles, while Perrier is often served in high-end restaurants. Social factors like reference groups, family, social roles, and status can greatly influence a consumer's behavior.

According to Kotler (2000, pp. 163), a person's reference group comprises all the groups that exert a direct or indirect influence on their attitudes or behavior. Such reference groups create pressures for conformity that can impact actual product and brand choices. The MiZone and Aqua Blue bottled water ranges target individuals who engage in significant exercise and prioritize their fitness and wellbeing. Members of this group are likely to take note when their peers consume MiZone or Aqua Blue and may subsequently choose to purchase the products themselves.

Personal values can affect behaviour and consumption decisions, creating desires and influencing the selection of products to satisfy specific needs. According to Carman (1977, pp. 403-7), attitudes mediated by personal values have this effect, while Gutman (1982, pp. 60-72) suggests that fulfilling needs drives consumers to choose certain products. Bottled water fulfils the fundamental need for thirst quenching, as well as more specific needs related to lifestyle and self-concept. Dissatisfaction with mains or town water for drinking may prompt consumers to resort to bottled water.

Branding Product symbolism encompasses the meaning and emotional responses of consumers when purchasing and using a product, including arousal, excitement, and pleasure (Cass ; Frost, 2002, pp. 67-88). It also pertains to the

image associated with a specific item in the minds of consumers. According to Leiss et al. (1986), products are symbols that connote particular values for consumers. For some consumers, buying bottled water is not solely about quenching thirst but also reflects their social status and surroundings.

Recognizing the needs of consumers, Evian targeted their product to the female market early on. MiZone commercials feature athletes competing and always show the win going to the consumer of that brand. Brands generate value for consumers through potential benefits such as recognition by significant others, positive feelings, aiding self-expression, and an overall sense of having good taste in brand choice (Langer, 1997, pp. 206-19). Status brands have a higher perceived quality, luxury or prestige attributed to them and their consumption. The use of status enhancing brands may act as a means to an end, such as making a desired impression on others through the symbolism of the brand.

Both Perrier and Glacier have become synonymous with their unique bottle designs and higher prices, which are often used as a symbol of status among consumers. The practice of market segmentation seeks to identify patterns of consumption by dividing a market into homogeneous sub-markets, allowing marketers to create tailored product strategies to meet the needs and demands of these sub-groups (Lin, 2002, p. 249).

Predefined segmentation variables define homogeneous sub-markets. Classic demographic variables, including gender, age, income, and education, can clarify sub-market traits as well as sort market segments by crucial factors. Nevertheless, these variables are not comprehensive enough to determine all characteristics of sub-markets due to the vast range of psychographic differences among consumers within the demographic group (Kotler, 2000, p.

256). One of the most widely used classifications utilizing psychographic measurements is the VALS 2 Framework.

In Mitchell's 1996 study, VALS 2 categorizes American adults into 8 distinct groups using psychological characteristics. The classification system utilizes answers from a survey that includes 5 demographic questions, 42 attitudinal questions, and queries about internet usage and websites.

According to VALS, there are eight segments among adult consumers that demonstrate unique behaviors and decision making patterns. These segments are shown in Figure 1 of the VALS 2 Framework (25-31). Bottled water brands target consumers from each of these eight segments. Actualizers, one of these segments, tend to purchase products that reflect their refined taste for specialized and high-end items.

Actualizers would choose brands such as Glacier or Perrier, which indicates higher earning power. Fulfilleds prioritize durability, functionality, and value in their products, and would opt for items like MiZone if they were athletic or Torquay if they sought added flavor. Achievers prefer established, prestigious products that showcase success to their peers, including Evian, Glacier or Perrier.

Experiencers tend to be impulsive and rebellious when it comes to trying different products. They strive to stand out from the group, and often choose brands that aren't easily accessible or popular. On the other hand, Believers typically prefer familiar and established brands such as Mount Franklin or Peats Ridge.

The Strivers are consumers who aim to emulate those with material wealth by buying fashionable items and opting for brands like Glacier or Perrier. Meanwhile, the Makers prioritize practicality and functionality when purchasing goods. For instance, they opt for the most affordable bottled water to simply satisfy their thirst.

Strugglers refer to cautious customers who remain loyal

to their preferred brands and tend to stick to trustworthy products. Due to their limited income, they often opt for local supermarket brands or affordable alternatives like Peat Ridge. For marketers, understanding the connection between consumer brand preferences and sub-market characteristics is crucial for developing effective sub-marketing tactics. The rapid changes in consumer behavior demand a forward-looking approach to avoid future-blindness as stated by Osbourne ; Gaebler (1993). Lifestyle, as demonstrated through activities, interests, and opinions, defines an individual's way of living in this society.

According to Kotler (2000, p. 168), lifestyle involves how a person interacts with their surroundings and the rise in bottled water consumption can be tied to lifestyle changes. These changes were influenced by social and economic alterations and issues with the local infrastructure. In July of 1998, residents of Sydney were cautioned against drinking tap water that had not been boiled for at least one minute.

Residents were advised of a health hazard caused by parasitic contamination from Giardia and Cryptosporidium in Sydney Water's supply, resulting in a surge in bottled water purchases. Suppliers couldn't keep up with demand, leading consumers to question the safety of tap water without treatment. The buying trend for bottled water has remained high since then, causing retail outlets to stock it more readily over recent years.

The availability of bottled water has risen with its presence in take away shops, service stations, cafes, and restaurants, resulting in heightened consumer awareness and accessibility. Alongside this trend, the consumption of carbonated beverages has decreased due to a growing emphasis on health and balanced eating habits. Coca-Cola Enterprises has observed an annual sales volume reduction of 2-3 percent since

1999 (Atlanta Business Chronicle).

Consumers are opting for bottled water as it is equally refreshing and lower in calories and sugar. The government and health organizations promote the consumption of 8 glasses of water daily for maintaining good health. This, coupled with the easy availability of bottled water, has increased its demand and consumption. The varying socio-economic and cultural differences among consumer markets affect the fulfillment of consumer needs through products or brands. Additionally, changing consumption situations and surroundings lead to changes in consumers' product preferences over time. The report also emphasizes the importance of brand values as a basis for discrimination in all levels of consumer/business interaction.

The consumer's interpretation of a brand includes the product's performance and associated symbolic values represented by its personality. Bibliography: Assael, H. (1987), "Consumer Behaviour and Marketing Action," Boston: Kent. Belk, R. W.

(1975), Carman J.'s "Situational Variables and consumer Behaviour" article in the Journal of Consumer Research, Vol., December, pp. 157-164.

The article titled "Values and consumption patterns: a closed loop" was written by M. in 1977 and published in Volume 5 of Advances in Consumer Research. The article spans pages 403-7.The article titled "Status brands: examining the effects of non-product-related brand associations on status and conspicuous consumption," by Cass, A. and Frost, H. (2002) can be found in the Journal of Product and Brand Management, Volume 11, Issue 2, pages 67-88.The article "A means-end chain model based on consumer categorization processes" was written by Gutman in 1982 and published in the Journal of Marketing, Volume 46, pages 60-72.

In the Journal of Consumer Marketing, Volume, Kim, J., Forsythe, S., Gu, Q., and Moon, S.K. (2002) explored cross-cultural consumer values, needs,

and purchase behavior.

The citation "Kotler, P. 19, No. 6, pp. 481-502" is enclosed in a paragraph tag.The citation for Marketing Management: The Millennium Edition, published in 2000 by Prentice Hall, and an article titled "What consumers wish brand managers knew" by J. Langer, found in the Journal of Advertising Research, Volume 37, Number 6, 1997.

206-19. The authors of the text are Leiss, W., Kline, S., and Jhally, S.

(1986) - Social Communication in Advertising by Methuen, Toronto and (2002) - "Segmenting Customer Brand Preference: Demographic or Psychographic" by Lin, C. F. in the Journal of Product and Brand Management, Vol.

The reference citation for "The Nine American Lifestyles" by A. Mitchell (1996) is as follows: New York: Warner Books, 11(No.), pp. 249-268.The book "Reinventing government: how the entrepreneurial spirit is transforming the public sector" by Osbourne and Gaebler was released in 1993 through Plume.

The book "Consumer Behaviour: Customer Satisfaction and Cultural Values" was authored by Yau, O. H. M. (1994) and published in New York by Routledge. More details can be found on www.atlantabusinesschronicle.com.

Both bixjournals.com and the Australian Bureau of Statistics (www.abs.gov.au) are mentioned.