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Consumer Behaviour

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Introduction

The study of the behaviour of consumers assists in the improvement of marketing-strategies. However, the consumer behaviour has been investigated to purposefully choose the behaviour for optimization of customer-utility, a darker side is also accounted in the customer-behaviour (Baker and Procter, 2013). This is in context with the compulsive as well as impulsive behaviours of consumer.

The increase in the pirating behaviour from the side of consumers is affecting the online service-providers. So basically the chosen target market for the current report will be consumers within entertainment industry who are indulged in the pirating of digital-entertainment content.

Furthermore, the focus of the report has been the increase of pirating in the entertainment industry. Consumers in an illegal manner often download the films even before the release. This hugely impact the producers as well as the online-service providers. This dark side of consumer-behaviour has enabled them to be fearless from the threats of jail and penalty.

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Literature Review & Framework

Overviewing of literature on topic

According to the opinions given by Shi and Liao, (2017), there are some common set of elements present between the consumption's compulsive-aspect as well as the impulsive-impact. The compulsive-behaviour takes in consideration the abnormal behavioural realm. In the world of digital entertainment, the consumer behaviour has been experiencing abnormal changes. These days, consumers have started to illegally download pirated shows and films which is adversely affecting the profits of producers since people rather to save their money and watch shows and films at home as argued by Sparks, Perkins and Buckley, (2013).

Piracy of a film and TV shows have hugely caused an economic drain on the film industry. Moreover, the decision involved in engaging within the music or film piracy as well as programs of television is hugely affected by the factors of decision-making. These have an inclusion of the economic, legal, ethical and consumer-behavioural aspects. As per the opinion given by Spiller and Belogolova, (2016), numerous amount of Australians have shifted towards the illegal sites for downloading for the motive of saving money regarding the music, film or any other TV show. In addition, pirated copies of games are also available to which children are easily attracted. As stated by Vitell, (2015), more than 15 % losses have been observed by the sharing from pirating of films. In addition to this, internet has also proven to be attribute for the college studenty to indulge themselves in the pirating of films. This is basically a dark side of behaviour depicted by the consumers. Very lesser attention has been given to the undesirable behaviours shown from the consumers.

To deal with the threat of piracy, government have enforced the usage of ample of legal mechanisms . However, considering the rates of piracy, these mechanisms have not proven beneficial in solving the problem effective as argued b y Wells, (2014).

So, there is a definite need to assess the of consumers in this industry of entertainment where the individuals are getting more & more oriented towards the piracy of films. Furthermore, as contextualised by _, government as well as the entities associated with these have to imply advanced mechanisms & software to keep the film pirates.

Theory for investigating problem

Investigating

The problem will further assist in finding out the appropriate solution to the present problem. Also, in order to effectively evaluate and find solution regarding a particular problem, a theory will greatly assist in carrying out the whole procedure. So, as per the chosen topic, main problem to be dealt with is the dark side of consumer behaviour with particular reference to the increasing piracy of the films, TV-shows, etc. The most effective theory that will provide a great help to understand the consumer behaviour is the 'Theory of Planned behaviour' which will further assist the investigator to evaluate each and every aspect of consumer behaviour.

Overview of 'Theory of Planned Behaviour'

It gives an explanation about the behaviour of individuals over which they possess the ability to impose self-control.

The dark side of customers that is their behaviour will be effectively analysed. It is basically constructed upon 6 different constructive elements as mentioned below

  • Attitudes: The degree possessed by person to evaluate the interest behaviour either favourably or unfavourably.
  • Behavioural-norms: This includes factors of motivation that influence a person's behaviour.
  • Subjective-norms: The behaviour of the individual is either approved or disapproved as per the beliefs of peers or other individuals.
  • Social-norms: These are the standard behavioural codes within larger context of culture.
  • Perceived-power: The behavioural performance of an individual is hugely affected by these perceived factors.
  • Perceived control of behaviour: It indicates the ability of an individual to perform according to the behaviour which is of interest.

Linking above theory with topic chosen

The theory of planned behaviour will provide help in understanding the behaviour of consumers as a whole. The way an individual performs according to the favourable & unfavourable situations will be in better way known by the attitudes they build up with respect to same. The attitude which consumers show towards the downloading of films from illegal sites will be studied. Usually consumers do this to save money spent for going to a cinema to watch the same. Also, this theory will assist to know the motivational factors which consumers get attracted to and get indulged in the pirating of films.

Marketing strategies

1. The 3 C's Model

This strategy helps in providing a competitive advantage to the organizations. It basically consists of three components of Customer, Corporation as well as Competitor. The organization will be able its majority focus upon its customers It also enables to segment the target customers (UNDERSTANDING THE FACTORS INFLUENCING CONSUMER DIGITAL PIRACY BEHAVIOR, 2016). Also, the long-term and short-term goals will be able to build up by the effective use of corporation aspect. Also, the organization would be able to become more competitive in nature by implying the competitor aspect.

In context with the chosen theory of Planned Behaviour, 3 C's model will provide further assistance to target a certain set of customers whose behaviour is to be evaluated. Also, it will enable the film fraternity and online service providers to build the long term goal of minimizing the piracy.

The advantages of this strategy is that it enables a particular individual or organization to develop long-term as well as short-term goals and also the customers are being focussed. However, stating the disadvantage, it could at certain situation be negative impact for a organization if they formulate their each and every service according to the customers. This might turn out the service to be cost ineffective.

2. STP model

This type of marketing approach has proven to be quite familiar with the modern marketing methodologies. Segmenting of the existing market-place could be don e on the basis of either gender, age, personality, recreational-persuit, religious & cultural belief, etc. The targeting of the desired customer base is also assisted by this strategy. Also, the organizations could further aid effective positioning of their particular service or product within the new available market opportunities.

In context to the chosen theory of Planned Behaviour, STP will assist in targeting and segmenting the customers who have shifted towards he illegal sites for downloading the pirated copies of films and other TV shows. This way the segmented and targetted customers will assist in analysing their attitudes behaviour and all aspects of the chosen theory.

The main advantage of the STP is that it aids in segmenting, targeting and then positioning the particular product/service according to the current requirements of market. This assists the organization to effectively deal with a targetted set of individuals in an efficient manner (Mittal and Lassar, 2015). However, the disadvantage is that customers often get misinterpreted regarding the service/product to be targetted or segmented. Also, if the chosen segment is very small then, proper-maintenance of turnover would not be possible which will directly affect the margins of the associated organization.

3. Franchising

The strategy of franchising is used to aid the growth of particular business and it also reduces the level of involved risks. The organization who does franchising typically has to license its associated Copyrights as well as trademarks. It engages long-term relationships. This might also include provisions referring to particular service or product.

In context to the chosen theory of Planned Behaviour, the franchising will assist in analysing the consumers on the basis of which copyrights will be distributed. Furthermore, in addition to this, the online service providers as well as producers of he film or TV shows would be able to effectively distribute the licenses to new film or show that is to be introduced.

The advantage of franchising is that the associated risks are reduced to a much greater extent. Also, with effective franchising the service to be introduced will already have a share of market. Henceforth, the requirement of testing the market will be omitted. The service or product and in particular this case, customer behaviour will be affected since the film or show will be aided to have exclusive rights enabling that customers could not use illegal sites for downloading film. The disadvantage of franchising could be that for providing the exclusive rights and trademarks, costs might turn out to be higher than what are actually expected. Also, another disadvantage in context to the Franchising strategy is that sharing of profits is done. Also, there is a certain inclusion of inflexibility as well.

Recommendations & Conclusions

From the overall report, it could finally be concluded that, the dark side of consumers has hugely affected the film fraternity as well as the online service providers. The reason is because majority of them have shifted towards the pirating. Furthermore, in addition, to this the chosen theory of Planned Behaviour will further assist in evaluating the behaviour of consumers towards the pirated practices. Also, in addition to this, it is recommended that the online service providers should choose the STP model. This is because the model will assist in segmenting and targeting a particular set of customers as well as accordingly assess them to find out the necessary modifications which need to be done for reducing the pirating practices. This way, the impact of dark side of consumer behaviour will be properly assessed and accordingly, the benefits shall be enternained by the producers of films & shows as well as online service providers.

References

  • Baker, A. E. and Procter, N.G., 2013. A qualitative inquiry into consumer beliefs about the causes of mental illness. Journal of psychiatric and mental health nursing. 20(5). pp.442-447.
  • Shi, X. and Liao, Z., 2017. Online consumer review and group-buying participation: The mediating effects of consumer beliefs. Telematics and Informatics. 34(5). pp.605-617.
  • Sparks, B. A., Perkins, H. E. and Buckley, R., 2013. Online travel reviews as persuasive communication: The effects of content type, source, and certification logos on consumer behavior. Tourism Management. 39. pp.1-9.
  • Spiller, S. A. and Belogolova, L., 2016. On Consumer Beliefs About Quality and Taste. Journal of Consumer Research, p.ucw065.
  • Vitell, S. J., 2015. A case for consumer social responsibility (CnSR): Including a selected review of consumer ethics/social responsibility research. Journal of Business Ethics. 130(4). pp.767-774.
  • Wells, W. D., 2014. Measuring advertising effectiveness. Psychology Press.
  • Mittal, B. and Lassar, W., 2015. Measuring Consumer Beliefs About Advertising: a Re-Examination and Extension of the Bauer-Greyser Inventory. In Proceedings of the 1996 Academy of Marketing Science (AMS) Annual Conference (pp. 21-25). Springer International Publishing.
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