Summary: Factors Influencing Consumer Behavior

Slide 6

Factors influencing consumer behavior in the fast food industry:

1. Cultural Factors

Culture is an important consideration for our organization, especially at our international locations. Culture teaches us our values and preferences. Because not everyone feels comfortable dining in a fast food restaurant, we have developed a brisk carry-out business, and this has helped to build our organization. We pride ourselves as an organization on being sensitive to cultural differences. We also realize that culture impacts our business since this is what motivates consumers to choose one brand over another.

Culture is also tied in with social class. Different social classes have different consumption patterns. Because our products are

Personal Factors

Personal factors will have a strong impact on this organization. This organization’s image is one of being health-conscious and trendy and attempts to attract like-minded individuals. The goal is to overcome the idea that being health-conscious is only for individuals that are not in good health. The mindset of our organization is to offer choice to the consumer and to attract consumers that eat fast food often and consumer many of their meals away from home, but want healthy choices.

4. Psychological Factors

Psychological factors will impact this organization. In fact, it is also this organization’s goal to encourage the purchase of our new product through motivation, perception, learning, beliefs, and attitudes regarding the consumption of healthy foods (theconsumerfactor.com, 2013).

Slide 7

Advertising expenditures by media for International Burgers Limited

Advertising expenditures by media have been determined based on covering all of the media that our target market is likely to encounter. Our target market is Baby Boomers-people born between 1946 and 1964) as well as Generations X-those born between 1965 and 1977 and Generation Y-those born between 1980 and

For this reason, our advertising structure includes some traditional forms of advertising. These forms of advertising include newspapers, local TV, and magazines.

People in the 50 and over age group still view these media, and they represent 33% of the customers for QSRs and more than 42.3% of the customers for fast casual restaurants, and the advertising to this group will be comprised of 35.5% of the budget. To capture the rest of the market, we will advertise on cable TV, Network TV, the Internet including social media, Hispanic TV, and through other forms of media including digital media, which will be comprised of 64.5% of the budget.

Slide 8

Advertising expenditures and consumer behavior are alike from the standpoint that both are based on measurements. While advertising expenditures are measured in dollars, consumer behavior is measured by the number of people that fall into each category of the product adoption cycle. The adoption cycle is based on Rogers’ Diffusion of Innovations Theory and is dependent upon innovators and early adopters to adopt a new product and move it forward. Advertising expenditures need to be geared toward this group initially in order to have these individuals provide word-of-mouth advertising that will also