2023

MKT20025
CONSUMER BEHAVIOUR

ASSIGNMENT 2
NGUYEN THANH HOA

COMMERCIAL MARKETING REPORTHOA NGUYEN

Nguyen Thanh Hoa – MKT20025 – Assignment 2

TABLE OF
CONTENTS

Executive Summary ................................................................................................................. 2

1. Introduction .......................................................................................................................... 3

2. Market Segmentation .......................................................................................................... 4

3. Internal Factors Influencing Consumer Behaviour.......................................................... 6

Attitude ................................................................................................................................... 6
Motivation: ............................................................................................................................. 8

4. Recommendation: ................................................................................................................ 9

5. Conclusion .......................................................................................................................... 12

6. Reference ............................................................................................................................ 13

7. Appendices: ........................................................................................................................ 15

1
Nguyen Thanh Hoa – MKT20025 – Assignment 2

EXECUTIVE SUMMARY

The findings of this study will be used to inform Australian Gas Light Company (AGL) marketing
strategies by providing insight into the buying habits of the company's residential consumers.
Sustainable energy advocates and eco-conscious homeowners are singled out as the study's primary
demographic.

By doing a situation analysis and dividing their home customer base into subgroups, AGL was able
to learn that their consumers' motivations and attitudes greatly influenced their purchasing decisions.
Motive was analyzed using the Self-Determination Theory, and attitude was analyzed using the
Theory of Reasoned Action; the Fibein model will be utilized to characterize the attitude component.

The research gives two recommendations for filling the gaps in motivation and attitude. The first
suggestion is to promote the advantages of renewable energy using billboards and social media in
order to increase client enthusiasm. The second concept is to use green marketing to change how
people view AGL's green energy and services.

In conclusion, by adopting these recommendations, AGL will be able to more successfully sell to
eco-conscious homeowners, influence positive changes in customer behavior, and increase its share
of the sustainable energy market.

2
Nguyen Thanh Hoa – MKT20025 – Assignment 2

1. INTRODUCTION

This report examines AGL in Australia through an analysis of its target market, segmentation, and
Australian consumer market research. Then, by applying the knowledge gained in the course
MKT20023 (ULOs 1, 3, 4, and 5) regarding the internal factors influencing consumer behavior, such
as Motivation and Attitude, and by applying some important theories, such as CDMP, Self-
Determination theory, Green Marketing, Positioning map, and Fishbein model, to marketing
recommendations will be made for businesses to to encourage the purchase and installation of home
rooftop solar PVs.

AGL Energy Ltd, also known as AGL, Appendix 1 is a significant Australian energy company that
produces, distributes, and retails electricity and gas. In 2022, the company's total revenue, was
$14,478,000,000 (IBIS World 2023).

Figure 1: AGL Energy Australian electricity company

3
Nguyen Thanh Hoa – MKT20025 – Assignment 2

2. MARKET SEGMENTATION

Segmentation is the process of splitting a market into homogeneous subsets of clients, from which a
marketing mix be selected to meet market goals (Philip Kotler, 1980). Target markets are "groups of
purchasers who share needs and/or characteristics with those whom the company or organization
intends to serve" (Armstrong. et al, Principles of Marketing, Eighth edition., 2020). Target market
and segmentation is essential because it helps companies identify and meet customer needs. Firms
improve marketing, customer loyalty by targeting certain consumer groups. For example, the success
of target segmentation by Nike's "Better for It" campaign targeted women interested in fitness and
exercise. The strategy encouraged women to create and accomplish fitness goals by using comedy
and engaging material. That is why this essay will first investigate the "segmentation" of the business
to learn about all those customers geographic, psychological, demographic, and behavioral. After
that, the most potential markets will be selected to focus on analysis.

Based on Segmentation, the most attractive segment for our clients is households (middle-aged),
middle-income households with family sizes of four or more or just living together. Yet, households
are more likely to share energy and environmental principles since they share a living area than
family.

4
Nguyen Thanh Hoa – MKT20025 – Assignment 2

This segment values sustainability and the environment, seeks long-term savings, and is willing to
pay a premium for quality and reliability. These are the criteria that AGL is aiming for and considers
as a sustainable goal of the business. For example, based on the demographic, middle-aged families
with greater discretionary money and stable jobs are more likely to invest in house improvements to
earn a living. Owning a house gives middle-aged families more control over energy usage and makes
them more likely to use rooftop solar electricity. In addition, psychologically, middle-aged families
may care more about the environment, school, and future generations.The small and large corporate
segments are also potential markets for AGL's rooftop solar PV systems, but targeted households
may be a more attractive option due to their customer base greater potential customers, higher
applicability and higher receptivity to environmental messages. Firstly, homeowners outsell small
and large businesses. According to the ABS reports 10 million households but only 2.4 million active
firms in Aus. It means if ALG chose targeting houses may help gain more customers. Families are
more likely to get rooftop solar systems because they manage energy better. electricity savings.
Corporate energy needs and decision-making may complicate rooftop solar deployment. Finally,
family-friendly rooftop solar marketing may appeal more than business. Enterprises may be more
concerned with their bottom line, whereas households may feel more responsible for the
environment. Below is the Persona of the target audience :

The "Eco-Conscious Family" personality is a well-defined and targeted segment for AGL's rooftop
solar power system. This character represents more and more households prioritizing sustainability
and environmental protection in their daily lives.

5
Nguyen Thanh Hoa – MKT20025 – Assignment 2

3. INTERNAL FACTORS INFLUENCING CONSUMER BEHAVIOUR

ATTITUDE

Attitude influences customer behavior because it demonstrates how a customer feels about a product,
service, or brand (Francescucci, McNeish, & Taylor, 2019). AGL's household customers' feelings
might affect their purchases, satisfaction, and loyalty to the company. Attitudes include beliefs,
emotions, and behavioural intentions (Kendra Cherry, 2023). These elements change over time, and
consumer attitudes affect product and service perceptions. AGL customers are more inclined to buy,
recommend, and use their products if they like them. If a consumer dislikes AGL, they may be less
likely to buy its products or services, more likely to switch to a competitor, and more likely to talk
adversely about the company. AGL can tailor its marketing to residential customers by knowing their
needs and concerns. This may boost customer satisfaction, repeat business, and the company.

The Fishbein model is a well-known attitude model that offers a systematic method for analyzing the
internal elements that influence consumer attitudes about a product or service ( Solomon, Michael R
et al, 2016). It is beneficial for examining the ideas and assessments that underpin consumer attitudes
and provides a method for identifying the most influential drivers of consumer behavior.
Understanding the attitude of AGL home appliances is essential to developing effective marketing
strategies that address the needs and wants of the company's target market. Using the Fishbein model,
AGL is able to identify specific ideas and assessments that influence customers' attitudes towards its
products and services. Examples of thorough analysis of the attitudes of household customers when
they evaluate AGL solar power systems can include cost, reliability, durability, energy savings, ease
of installation and environmental impact to determine their level of product awareness. This
information can then be used to create more focused and effective marketing messages that speak
directly to a customer's wants and concerns, leading to increased customer loyalty and increased
customer loyalty.

6
Nguyen Thanh Hoa – MKT20025 – Assignment 2

The score is based on the positioning map of AGL created to help understand how AGL's household
customer (rooftop solar PVs) is positioned relative to its competitors in the minds of
consumers(Appendix 3). According to this study, AGL is perceived more favorably than Origin
Energy and Shell Energy Holdings Australia in terms of general sentiments toward rooftop solar PV
installations. AGL's customers are primarily concerned with quality, reliability, environmental
impact, thus in their attitude, AGL has the best reputation and Origin Energy rates it top. Shell
Energy Holdings Australia was placed second-to-last.

The findings of the Fishbein model may be examined to discover which customer qualities and
beliefs are most significant. In this scenario, the client values energy savings and environmental
effect the highest, and the greatest conviction is that AGL's solar power system is dependable and
environmentally benign. school. The proof for these results is derived from the company's retail
customer reports and the consistent message given by AGL stressing the aforementioned qualities
(Segmentation - Figure 1). Understanding the attitude of AGL home appliances is essential to
developing effective marketing strategies that address the needs and wants of the company's target
market. Using the Fishbein model, AGL is able to identify specific ideas and assessments that
influence customers' attitudes towards its products and services.

Examples of thorough analysis of the attitudes of household customers when they evaluate AGL
solar power systems can include cost, reliability, durability, energy savings, ease of installation and
environmental impact to determine their level of product awareness. This information can then be
used to create more focused and effective marketing messages (Recommendation- Part 4) that speak
directly to a customer's wants and concerns, leading to increased customer loyalty company's success

7
Nguyen Thanh Hoa – MKT20025 – Assignment 2

MOTIVATION:

Motives influence customer behavior (Satinoff, E., et al, 1983). Rooftop solar photovoltaics are an
incentive for AGL residential customers. Rooftop solar PVs may attract eco-conscious customers.
Rooftop solar PVs may not be chosen if users are not encouraged to reduce energy use. Self-
determination theory will explain customer motivation:

Self-determination theory explains human motivation and character in terms of three universal needs:
autonomy, competence, and relevance (Legault et al, 2017). Autonomy is the need to control one's
own conduct and objectives. Competence refers to the need to achieve desired outcomes effectively.
Relevance refers to the desire to have a sense of belonging and social connection with other
individuals (Kendra Cherry, 2013). Motivation may be viewed in the context of AGL's residential
clients as the degree to which the consumer feels independent, competent, and active in the choice to
acquire rooftop solar panels. According to the philosophy of self-determination, self-determination is
a significant motivating element. AGL should explore giving additional alternatives and flexibility in
the installation process, such as allowing consumers to pick a panel type, installation schedule, and
payment plan. In order to increase the likelihood that residential AGL customers will purchase
rooftop solar panels. This will boost the customer's sense of autonomy, hence increasing their desire
to purchase the goods.

In contrast, AGL provides a limited number of payment plan and rooftop solar installation choices at
this time. The majority of the company's product promotion is conducted via its website, social

8
Nguyen Thanh Hoa – MKT20025 – Assignment 2

media, and customer care channels. Yet, the emphasis is mostly on the qualities and benefits of the
product, rather than giving buyers a sense of autonomy and control over the purchasing process.

Based on the self-determination theory, there is a disconnect between AGL's existing marketing
approach and what has to be done to motivate AGL's residential customers to acquire rooftop solar
panels. To solve this deficiency, AGL explore giving more alternatives and flexibility in the
installation process, as well as a stronger sense of client autonomy and control in the purchase
process. This may be accomplished by customized marketing initiatives, individualized client
service, and enhanced communication methods.

4. RECOMMENDATION:

According to IBIS World, Origin Energy (18.2%), AGL (14.8%), Energy Australia(6.9 dominate the
retail power market in Australia. Due to an oversaturated market and low entry barriers, the
Australian power sector is declining, as the article states. Hence, market and customer research and
marketing strategy formulation are crucial to a company's success and consumer reach.

There are many marketing strategies to accelerate residential solar power system adoption, including
targeting the eco-conscious Family character, creating a social media platform to promote solar
power systems as a reliable and trustworthy source of energy, partnering with local governments to
promote incentives and rebates that can offset initial costs, and creating a referral program.
Therefore, via research of segmentation and consumer decision-making (Appendix2), this report will
provide two main optimization recommendations focused on customer satisfaction and company
efficiency.

Recommendation 1: Personalized energy saving tips program mix integrated communication.

9
Nguyen Thanh Hoa – MKT20025 – Assignment 2

For its customers who purchase residential solar panels, AGL will provide a distinctive, personalised
energy-saving counseling service.

AGL may use customer information to create a customized energy-saving ideas program that gives
customers tips on how to reduce energy use, maximize the benefits of solar panels installed on their
roofs, and optimize energy use. The program may be made available by email or a mobile app.

According to the analytics software, AGL's target market for rooftop solar-equipped homes includes
those who care about the environment and want to save money. Contrarily, the Self-Determination
Theory contends that autonomy, competence, and involvement are what motivate people. When
customers receive personalized recommendations on how to minimize their energy use, they feel
more in control of their energy costs. Moreover, it will strengthen their relationship with AGL as a
source of vital and crucial information and their capacity to control how much energy they consume.

AGL may use customer information gathered through technology, data, and information systems to
provide customized energy-saving recommendations for each client based on energy usage trends,
power system parameters, and the rays of sun on their roof. The customer may then easily use email
or a mobile application to access the program.. After that, businesses create an extra marketing effort,
such as a workshop or a video message on energy-saving advice, to advertise the program and
encourage customers to join up on Facebook. According to Australian Communications and Media
Authority in 2020, 79% of Australians aged 35-44 and 69% of Australians aged 45-54 use Facebook.

Recommendation 2: Promote solar energy's environmental advantages on social media.

10
Nguyen Thanh Hoa – MKT20025 – Assignment 2

(Apply Green Marketing, Social Marketing and Integrated Marketing)

AGL invests in content creators to make visually appealing, well-organized promotional videos and
messages for social media. These videos and messages show the environmental benefits of solar
energy, such as reducing carbon emissions and becoming energy independent. To grab your target
audience's attention, use relevant language, relevant hashtags, and attention-grabbing images.

According to TM study, AGL's residential customers are environmentally aware and more likely to
respond favorably to messages encouraging sustainable behaviors. This green marketing initiative
has been put in place to show how winning over customers' values and beliefs boosts their
engagement and loyalty. An effective way to reach a wide audience and spark interest in AGL's
environmental activities is through Social marketing.

The development and execution of the social media campaign, including the creation of content and
the planning of updates, will be handled by a team. Depending on the interests of the target market,
they will locate the right social media outlets such as Facebook and Instagram. Have a budget for
sponsored articles and paid adverts to increase reach, and use data analytics to monitor and change
engagement metrics (likes, shares, comments) campaigns, if required, to boost output. For example,
the Coca-Cola "Share a Coke" campaign: this appeal blended communication across all social media
and technology platforms. The advertising campaign uses Coca-Cola bottles with customized labels
carrying the names of several people. As messaging creates an emotional connection with the
customer and a sense of personalisation, it is essential to the success of a campaign. To increase its
efficacy and reach, the campaign is integrated across a variety of marketing platforms, including
social media, television, and in-store displays.

By accepting this idea, AGL may improve its standing as a source of sustainable energy and boost
client loyalty through Green marketing.

11
Nguyen Thanh Hoa – MKT20025 – Assignment 2

5. CONCLUSION

This business report's objectives were to define the target market and offer suggestions to AGL, a
residential energy provider. We were able to pinpoint the target market as middle-aged homeowners
with a high income who are environmentally aware using market segmentation study and internal
factor analysis. The analysis's main conclusions showed that attitude and motivation were two
important internal elements influencing consumer behavior.

The research suggests that AGL pursues the following two marketing tactics in light of its findings:
Firstly, AGL has to enhance customer service by giving target customers individualized
recommendations and energy use information. Secondly, AGL has to concentrate on green
marketing, advertising its eco-friendly energy solutions to the target market via multiple platforms by
integrated marketing including social media and email marketing

If these suggestions are followed, AGL is likely to see an improvement in customer happiness and
loyalty, as well as more money from this target market. AGL can position itself as a pioneer in
environmentally friendly energy and obtain a competitive edge in the market by catering to the
demands and values of the target market.

12
Nguyen Thanh Hoa – MKT20025 – Assignment 2

6. REFERENCE

Anuar, et al. (2017). The influence of internal factors on consumer’s green consumption behavior.
International Journal of Advanced and Applied Sciences, 4(12), 238–242.
https://doi.org/10.21833/ijaas.2017.012.041

Armstrong., Denize., Volkov., Adam., Kotler., & Ang. (2020). Principles of marketing (Eighth
edition.). Pearson. Retrieved March 15, 2023, from Swinburne Libary
https://librarysearch.swinburne.edu.au/permalink/61SUT_INST/7ojd5o/alma9937504592801361

Blythe, J. (2008). Consumer behaviour. Thomson Learning. Retrieved March 13, 2023, from
Swinburne University of Technology
https://librarysearch.swinburne.edu.au/permalink/61SUT_INST/7ojd5o/alma9918379770001361

Electricity, Gas, Internet and Mobile | AGL. (2020). Retrieved March 13, 2023, from Agl.com.au
website: https://www.agl.com.au/

Hill, M. E. (2010). Marketing strategy in play : questioning to create difference (1st edition).
Business Expert Press. Retrieved March 15, 2023, from https://doi.org/10.4128/9781606491508

Hyllegard, K. H., Ogle, J. F., & Dunbar, B. (2003). Sustainability and Historic Preservation in Retail
Design: Integrating Design into a Model of the REI Denver Decision-Making Process. Journal of
Interior Design, 29(1-2), 32–49.Retrieved March 13, 2023, from https://doi.org/10.1111/j.1939-
1668.2003.tb00383.x

Legault, L. (2017, June 17). Self-Determination Theory. Encyclopedia of Personality and Individual
Differences. Retrieved March 15, 2023, from https://doi.org/10.1007/978-3-319-28099-8_1162-1

Malhotra, S., Sivakumar, K., & Zhu, P. (2009). Distance factors and target market selection: the
moderating effect of market potential. International Marketing Review, 26(6), 651–673. Retrieved
March 15, 2023, from https://doi.org/10.1108/02651330911001332

Ottman, J. A. (2011). The new rules of green marketing : strategies, tools, and inspiration for
sustainable branding (1st edition).Retrieved March 13, 2023, from Berrett-Koehler Publishers.
https://librarysearch.swinburne.edu.au/permalink/61SUT_INST/7ojd5o/alma9938026602301361

Satinoff, E., & Teitelbaum, P. (1983). Motivation. Plenum Press. Retrieved March 15, 2023, from
https://doi.org/10.1007/978-1-4684-4286-1

13
Nguyen Thanh Hoa – MKT20025 – Assignment 2

Sharam, A. (2005). Market segmentation and domestic electricity supply in Victoria. Retrieved
March 13, 2023, from Swinburne University of Technology
https://librarysearch.swinburne.edu.au/permalink/61SUT_INST/aue3i6/alma9937274253601361

Solomon, M., Bamossy, G., Askegaard, S., & Hogg, M. (2016). Part C Consumers as Decision-
Makers. Consumer Behaviour. Pearson Education UK. Retrieved March 13, 2023, from EBSCO:
https://search.ebscohost.com/login.aspx?direct=true&AuthType=shib&db=nlebk&AN=1419690&sit
e=ehost-live&scope=site.

Vlahna, K., Krasniqi, B., & Krasniqi, D. (2021). Customer Relationship Management in the Purchase
Decision Process. Journal of Accounting, Finance and Auditing Studies, 7(4), 151–168. Retrieved
March 13, 2023, from Swinburne Library: https://doi.org/10.32602/jafas.2021.038

Francescucci, A., McNeish, J., & Taylor, N. (2019). 3.4 Factors That Influence Consumers’ Buying
Behaviour. Retrieved March 15, 2023, from Torontomu.ca website:
https://pressbooks.library.torontomu.ca/marketing/chapter/3-4-factors-that-influence-consumers-
buying-behaviour/

11843 AGL Energy Limited - MyIBISWorld. (2023). Retrieved March 13, 2023, from Ibisworld.com
website: https://my.ibisworld.com/au/en/company-reports/11843/company-details

Joshua Treisman (2022). D2640 Electricity Retailing in Australia - MyIBISWorld. . Retrieved March
13, 2023, from Ibisworld.com website: https://my.ibisworld.com/au/en/industry/d2640/about

Kendra Cherry (2023). How Can Our Attitudes Change and Influence Behaviors?. The Components
of Attitude. Retrieved March 15, 2023, from Verywell Mind website:
https://www.verywellmind.com/attitudes-how-they-form-change-shape-behavior-2795897

Kendra Cherry (2013). How Does Self-Determination Theory Explain Motivation? Retrieved March
15, 2023, from Verywell Mind website: https://www.verywellmind.com/what-is-self-determination-
theory-2795387

Share a Coke: The Groundbreaking Campaign from “Down Under.” (2023). Retrieved March 15,
2023, from Coca-colacompany.com website: https://www.coca-colacompany.com/au/news/share-a-
coke-how-the-groundbreaking-campaign-got-its-start-down-under

14
Nguyen Thanh Hoa – MKT20025 – Assignment 2

7. APPENDICES:

Appendix 1 : AGL profile

Appendix 2: Consumer Decision Making Process

15
Nguyen Thanh Hoa – MKT20025 – Assignment 2

Appendix 3 : AGL positioning map

16