Services Marketing - Australian Bottled Water Industry

Topics: Marketing, Brand, Bottled water Pages: 9 (2349 words) Published: October 31, 2008
Introduction

The Australian bottled water industry has been growing rapidly over the past decade. Many Australians drink bottled water on a regular basis, and on average consumed 21.2 litres per person (Australian Bureau of Statistics) in 2001. The boom in consumption of bottled water has moved the product beyond the niche market and into the mainstream as it has become a staple to many Australians. Many people drink bottled water today simply because they prefer the taste to that of tap water or perceive it to have more purity. Other reasons behind the explosion in bottled water consumption are: consumers' passion for fitness which guides them to fewer caloric beverages; increased accessibility of bottled water via convenience stores, supermarkets, food service outlets etc; and marketing designed to convince the public of the purity and safety of bottled water.

This report will aim to discuss the various consumer behaviour issues facing marketers of bottled water. This report will also discuss the influences that affect the purchase of bottled water as well as the importance of brands and product symbolism.

Meeting Consumer Needs

Meeting changing customer needs by providing the right products or services has been an ongoing marketing challenge for retailing in competitive global markets (Kim et al, 2002, pp. 481-502). Consumers may choose particular products or brands not only because these products provide the functional or performance benefits expected, but also because products can be used to express consumer's personality, social status or affiliation (symbolic purposes) or to fulfil their internal psychological needs, such as the need for change or newness (emotional purposes).

The bottled water industry recognises this difference in consumer needs and have a wide variety of products which cater for all consumers. Products like MiZone, Aqua Blue and H2O are aimed at the sporty public, while Evian, Glacier and Perrier cater for the high-end market. There are also flavoured water like Torquay, Arquilla and San Benedetto as well as the cheap and widely available Peats Ridge and Mount Franklin.

Buying Behaviour

Consumer decision making varies with the type of buying decision. Assael (1987, pp.157-64) distinguished four types of consumer buying behaviour based on the degree of buyer involvement and the degree of differences among brands. Of these, the following two are used for the purchase of bottled water.

1.Habitual Buying Behaviour: Many consumers purchase water under conditions of low involvement and the absence of significant brand differences. Consumers have little involvement and just go to the store and reach for the brand they know and recognise. If they keep reaching for the same brand, it is out of habit and not strong brand loyalty. Marketers for new products would find it effective to use price and sales promotions to stimulate product trial in their brand.

2.Variety Seeking Buying Behaviour: For some consumers the purchase of bottled water is characterised by low involvement but significant brand differences. The evaluation of the product happens during consumption and the next time, the consumer may reach for a different brand purely for the sake of variety. The market leader and the minor brands of bottled water have different strategies. The market leader tries to encourage habitual buying behaviour while the challenger firms will encourage variety seeking behaviour.

Influences

According to Yau (1994), consumers' product choice and preference for a particular product or brand are generally affected by very complex influences. Thus, consumers' values, which reflect social influences and environment, would affect needs to be fulfilled through purchase and consumption decisions, and therefore consumption behaviour. The main factors affecting the buying behaviour of bottled water are

1.Cultural Factors: Of the cultural factors, social class would play a major role in...

Bibliography: Assael, H. (1987), Consumer Behaviour and Marketing Action, Boston: Kent. Belk, R. W. (1975), "Situational Variables and consumer Behaviour", Journal of Consumer Research, Vol.2, December, pp.157-164.
Carman, J. M. (1977), "Values and consumption patterns: a closed loop", Advances in Consumer Research, Vol. 5, pp. 403-7.
Cass, A. & Frost, H. (2002), "Status brands: examining the effects of non-product-related brand associations on status and conspicuous consumption", Journal of Product and Brand Management, Vol. 11, No. 2, pp. 67-88.
Gutman, J. (1982), "A means-end chain model based on consumer categorization processes", Journal of Marketing, Vol. 46, pp. 60-72.
Kim, J., Forsythe, S., Gu, Q. & Moon, S. K. (2002), "Cross-cultural consumer values, needs and purchase behaviour", Journal of Consumer Marketing, Vol. 19, No. 6, pp.481-502.
Kotler, P. (2000), Marketing Management: The Millennium Edition, New Jersey: Prentice Hall.
Langer, J. (1997), "What consumers wish brand managers knew", Journal of Advertising Research, Vol. 37, No. 6, pp. 206-19.
Leiss, W., Kline, S. & Jhally, S. (1986), Social Communication in Advertising, Toronto: Methuen.
Lin, C. F. (2002), "Segmenting Customer Brand Preference: Demographic or Psychographic", Journal of Product and Brand Management, Vol. 11, No. 4, pp.249-268.
Mitchell, A. (1996), The Nine American Lifestyles, New York: Warner Books.
Osbourne, D. & Gaebler, T. (1993), Reinventing government: how the entrepreneurial spirit is transforming the public sector, New York: Plume.
Osbourne, D. & Gaebler, T. (1993), Reinventing government: how the entrepreneurial spirit is transforming the public sector, New York: Plume.
Yau, O. H. M. (1994), Consumer Behaviour: Customer Satisfaction and Cultural Values, New York: Routledge.
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Bottled Water Industry Essay
  • Essay on Bottled Water Industry Analysis
  • Competition in the Bottled Water Industry Essay
  • Essay about Competition in the Bottled Water Industry in 2006
  • Bottled Water Industry Analysis Essay
  • Essay on Competition in Bottled Water Industry
  • Bottled Water and Its Industry Research Paper
  • Marketing Strategy: Voss Bottled Water Essay

Become a StudyMode Member

Sign Up - It's Free