Introduction

In this report i shall cover the Black Box Model Theory in consumer behaviour, applying this theory to my own findings in order to better understand the consumer decision making process, and whether or not external influences do have an effect on this process.

In groups we had to conduct an investigation into consumer behaviour using Supermarkets as the basis for our research. The members of my group were Adriana, Hazel, Emma, Amina, Cat, Lily, Chloe and myself. Within our group we divided into pairs so that we could cover a wide variety of Supermarkets, using a flock and follow technique. This involved following consumers around the stores we visited and noting what items they bought.

After we had gathered our data our next step was to research key theories in consumer behaviour and apply them to our findings. I looked at the Black Box Model theory which has been applied to various subject matters in the past due to its broad scope for explaining the unknown. Although this is not a new theory, it explains best the consumer decision making process and what influences can have an effect on the consumer before a response can be generated.

I was partnered with Chloe and we first chose to conduct a census at the Tesco’s store in Chepstow, tallying the people who were shopping there whilst assessing which demographic age group they belonged in. To get some comparative information, I also got tallying data from another Tesco store from another geographical region.

Our second test was a brand recognition and taste test in which we asked consumers which brand of ketchup they bought and why. Customers also sampled a selection of ketchup portions, not knowing which brand it was they were trying, in order to determine which one tasted best. The results for both of these tests are featured in my report findings.

Results

Tesco

Chepstow, Wales vs Newbury, England

I visited both of these Tesco stores in order to tally the number of people who bought food there (see Fig.1). I sat outside the entrance and divided the people walking in and out into approximate age ranges. I remained out of sight so that I would not come into any contact with the customers.

Chepstow

The Tesco store in Chepstow is situated on the outskirts of the town centre. Its only competition is a small Somerfields in the town centre and is surrounded by many housing estates, car parks, retail stores and a school. It is easily accessible by car, train and foot.

During the day, the majority of people visiting this Tesco store were people over the age of 40. The majority of customers arrived by car while some walked. There was a private taxi service that ran, dropping off and picking up elderly customers who can no longer drive or walk.

The 20-40 age group were mostly women with young children or young families. Many of these women arrived together in a group often sharing trolleys and helping each other to look after their young children. At 3 o’clock, groups of 10-20 year olds went into the shop on their way home from school.

Late at night, the number of people going into the shop had decreased dramatically with only a handful of over 40’s shopping there. The 20-40 year olds arrived alone or in pairs, shopping late after work, buying only a couple of bags worth of shopping. The 10-20 years olds arrived in groups by car and were often seen racing up and down the car park, and beeping their car horns trying to wake up lorry drivers who had parked for the night in the car park.

They only bought bottles of soft drinks and snacks to eat then and there.

Newbury

The Tesco store in Newbury is situated about a half mile from the town centre and is considerably larger than the store in Chepstow. Its nearest competition is a Sainsbury’s store in the town centre and is surrounded by a retail park and an industrial estate. It is only accessible by car as there are no stations or housing estates near by.

Again, during the day, the majority of customers visiting the store were over the age of 40. In Newbury, the customers coming to Tesco were arriving by car as there are no houses close by to the store. Some had walked to the shop but they were walking over from the retail park which is across the road from Tesco. There were fewer 10-20 year olds coming to this store during the day which is due to the fact that there are no schools close by and very few school children needed to pass through Tesco’s to get home.

At night, the 10-20 year olds arrived in groups by car but did not stay long in the car park or race up and down. Many stayed to buy soft drinks and snacks before leaving. This could be due to the fact that there were more customers shopping late at night at this store and that this Tesco shop employs security to patrol the car park.

NO. OF PEOPLE

AGE GROUP Newbury Chepstow

11:13am-12:13pm

10 - 20 12 16

20 - 40 205 131

40+ 286 274

2:17pm-3:17pm

10 - 20 23 34

20 - 40 201 183

40+ 324 282

10:34pm-11:34pm

10 - 20 27 23

20 - 40 45 26

40+ 7 8 Fig. 1

Brand Recognition and Taste Test

My group and I conducted taste tests using a products that most customers would buy in order to understand whether brand, price or taste influenced the consumers decision in buying that particular product. Ketchup was the product that Chloe and I chose to use in the experiment as it is a product that most consumers have at home.

Before conducting the taste test we first asked customers what brand of Ketchup they usually purchased at Tesco’s (see Fig. 2).

Almost all of the people we asked said that they bought Heinz Tomato ketchup as it was a well known brand that they had been given as children and they had grown up using this brand. No one bought the Daddies’s brand ketchup as they did not know that that particular brand made ketchup. Many associated Daddie’s with brown sauce.

The remaining people answered that they bought Tesco’s own brand as they felt it was just as good as Heinz but that the cheaper price influenced their decision to buy Tesco’s rather than Heinz.

Fig. 2

For the taste test, customers sampled each of the three brands unaware of what brand it was that they were testing. They were then asked which of the three samples they preferred the taste of (see Fig. 3).

Customers unanimously agreed that the Daddie’s ketchup was the worst tasting as it was described as being salty and disgusting. The surprising results were that of the Heinz and Tesco’s own brands. Very few people liked the Heinz ketchup with some even saying it was their least favourite out of all the samples. The winner in the taste test was Tesco’s own brand of ketchup with the majority agreeing that it tasted best.

Fig. 3

Many of the customers that said the Tesco brand tasted best thought that it was the Heinz ketchup they were eating. This is because of the Heinz brands association with being the best tasting ketchup.

Discussion

The Black Box Model Theory

Fig. 4

The black box model is a theory that has been universally used to understand many unknown factors. In relation to consumer behaviour, the black box represents the buyers decision making process (see Fig. 4).

The theory behind the black box model tell us that the consumers decision making process and characteristics are influenced by stimuli or external factors generating a response from the buyer (WWW, 2009). The stimuli are often represented by the four p’s of marketing (price, place, promotion and product) and environmental factors such as demographics, politics and geography. The buyers response is considered as a result of a conscious decision process in which it is assumed the consumer has recognised an opportunity that would benefit them.

Belch and Belch (2008) define consumer behaviour as:

the process and activities people engage in when searching for, selecting, purchasing, using, evaluating and disposing of products and services so as to satisfy their needs and desires (Belch and Belch 2008, p.105).

Can the decision making process be influenced and controlled by external factors?

My tallying results suggest that environmental external influences do have an impact on consumers, with geographical stimuli being a prominent factor in the choice of supermarket people shop at. For example, the Tesco’s at Newbury is considerably further from suburban areas than the Chepstow store yet the number of customers shopping there is greater. Because of the Newbury stores location outside of a limited space area, Tesco’s were able to build a bigger shop with more room for parking, offering to the consumer a wider range of products and services.

The idea of multiple products and services is a key marketing strategy by Tesco’s as the consumer is able to shop for their needs and wants in one place rather than having to visit multiple shops.

Another stimuli that I recognised as having an impact on consumer behaviour was the need for consumers to shop with other people within their own demographic, with many shoppers arriving in pairs or small groups. For example, many mothers that had young children with them would shop together often helping one another with trolleys and looking after their babies.

Although this data has helped us to understand where and how people shop, it has so far not yielded any positive results as to whether or not the consumer can be influenced by stimuli to purchase a product or service.

The brand recognition and taste test showed that brand power has had a significant influence on decision making. Many consumers will buy a well known brand rather than a lesser known one as they make a connection between brand name and excellence. Chloe and I conducted a brand recognition test with Heinz Tomato Ketchup, a brand that has been established since 1876, and asked consumers whether or not they bought the brand name or a lesser known brand such as Tesco’s own brand of ketchup. It was a unanimous decision that consumers bought the Heinz Ketchup as it was a brand they had known since being a small child, they were familiar with that brand and they trusted that brand to be the best product.

Mark Earls (2009) mexican wave theory suggests that as individuals we are heavily influenced by others around us and that as a race we tend to move in herds, mimicking one another’s actions and responses. This applies to our need for familiar brands as we tend to adopt the rituals and thought processes our parents have used when making our decisions, just as our test subjects have done when choosing to buy Heinz rather than Tesco’s ketchup.

The surprising result came from the taste test when our test subjects preferred the taste of the Tesco’s brand rather than the Heinz. We did not reveal to the consumer what brand they were tasting until after they had tasted it removing the influence that brand power had on them. After this result Chloe and I asked our consumers if this taste result had any affect on their decision making process. Many were still influenced by the Heinz brand but others were beginning to think that they would be persuaded to change ketchup products because of the taste.

Conclusions

The main conclusions I can draw from my results is that the decision making process is a complex tool that we as consumers use when making a purchasing decision. Despite its complexity, it is a fast process that goes unnoticed by the consumer as it is considered part of the human psyche passed down from parent to child. Many marketers and theorists have tried to explain why we make the decisions we do but in an environment that is constantly changing and adapting it is, I feel, impossible to fully understand consumer behaviour. I feel that consumer behaviour can never be fully predictable just as the future is never fully predictable. As Alan Fletcher (2001, p.6) says, ‘ Are we pawns of destiny or wildly improbable flukes?’.

It is, however, possible to influence behaviour as the Black Box Model demonstrates, through various stimuli set up to persuade the consumer where, when and what to buy. Many consumers do recognise these opportunities and will make a purchasing decision as a direct result of these stimuli. Some consumers though, make decisions that are not aware of the external stimuli but based on their own wants.