Business Environment for Psychological Behavior - myassignmenthelp

Question: Discuss about theBusiness Environment for Psychological Behavior. Answer: Introduction According to various sources, for any business organization such Woolworth to effectively sell their products and remain at the top of an industry, the organization must and should have a better understanding of their consumers behavior (Knox, 2016). Consumers ability to purchase a given product is driven by age, social life, culture as well as psychological factors. The content of this paper therefore discusses the influence of external business environment forces and market structure on Woolworth as an entity. Effect of consumer behavior on Woolworth Social and cultural behavior Woolworth as entity operate in a business environment which is composed on buyers with different backgrounds thus different cultures. The organization with regards to the cultural composition of the market stocks food staff and groceries with regards to the diverse cultures in Australia. Some of the consumers do not consume some of the products based on their culture. The business based on the cultural diversity stocks varied types of food consumed by all their consumers and this has helped the organization to stand on top of other firms (Knox, 2016). Most of the consumers in the world today make purchases based on cultural trends and this affects organization which cannot keep up with trends such as Woolworth. Psychological behavior The ability of consumers in a given market to develop a purchasing behavior is influenced by motivation which is a psychological factor. When a brand is negatively perceived by consumers sales of such a product will be low (Pailwar, 2011). Woolworth being a large entity in a retail market have developed their sales strategies based on the consumers motivation, perception on various brands stocked by the organization as well as in relation to consumers attitude and believes. Woolworth rebrands various products according to the consumer psychological behavior even though this is a difficult facto to determine. Age of consumers The organization provide goods which are consumable to all aged consumers within Australia market. Purchasing ability of any consumer may also a rise as a result of the age of the consumer. Even though Woolworth stocks goods which can be purchased by consumers of any age, the organization sell mostly products purchased by adults and low age children. This is because the organization is able to sell more of children staffs and adult staffs (Pailwar, 2011). Woolworths economic environment Woolworth retails as stated is one of the largest retail firms in Australia, the organization together with Coles forms an oligopoly which is currently is mostly a duopoly. The two firms forms an average of 80% of the total retail industry (Knox, 2015). Woolworth as an organization being a firm in oligopoly type of market structure remains at the top based on its competitive advantages. The ability of the organization to control the entry of other firms is one of the factors which have resulted to its top position in the industry (Carraro, Katsoulacos Xepapadeas, 2016). Woolworth as an organization is able to use price mechanism to scare its close competitor Coles as well as to scare other firms trying to join the industry away. Woolworth is also able to exploit the dependence strategy with Coles to control the industry. The organization also uses the ability to control the agricultural production which forms the largest part of raw material for retail industry to its advantage ther eby remaining top retailer within the industry. Conclusion As discussed above the ability of the organization to remain one of the top performing firms in an industry depends on the external business environment as well as the market structure. Woolworths operations is most influenced by various external forces and the nature of the market it operates as discussed above. For any organization to thrive in a competitive environment, the management should be able to formulate marketing strategies in relation to consumer behavior. Reference Knox, M. (2015). Supermarket monsters: The price of Coles and Woolworths' dominance. Carraro, C., Katsoulacos, Y., Xepapadeas, A. (2016). Environmental Policy and Market Structure. Dordrecht: Springer Netherlands. Pailwar, V. K. (2011). Economic environment of business. Place of publication not identified: Prentice-Hall Of India Pv. Knox, M. (2016). Supermarket monsters: The price of Coles and Woolworths' dominance.