Consumer Study

8/8/2019 Consumer Study

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Who is a Consumer?


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We usually think of a consumer as a person who

identifies a need or desire, searches for a product

buys and then consumes the product in order to

satisfy the need.

But in many cases differentindividuals may be involved

in this chain of events.

Common Understanding


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Some Consumer Behavior Roles

1. Initiator Individual who determines that some oneneed or want is not being met and authorizes apurchase to rectify the situation.

2. Influencer A person who by some intentional orunintentional word or action influences the purchasedecision, the actual purchase or the use of theproduct or service.

3. Buyer The individual who actually makes thepurchase.

4. User The person most directly involved in theconsumption or use of the purchase.


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Consumer behavior & Buying

Consumer behavior examines how individuals acquire,use & dispose off company offerings.

Goods and services can be acquired throughpurchase but they can also be obtained throughbarter, leasing or borrowing.

After acquiring the goods it may be consumed indifferent manner

--- Offering is consumed in one use (ex:- pepsi)

--- It could be consumed over a certain time (ex:-phones, apparel)

Usage could also influence the behavior of others


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What influences consumer behavior?

---what leads them to buy the product& brand they

finally choose?

These factors can be grouped into 3 conceptualdomains

1. External influences

2. Internal processes (including consumer decision

making)3. Post-decision processes


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Model of consumer behavior factors influencing the purchase

EXTERNAL INFLUENCES

Firms marketing efforts Consumer culture

Product

Promotion

Price

Place

Religious & Ethnic influences

Age & Gender

Reference groups

Social class

Psychological processes Decision making

Motivation

Perception (observation, awareness)

KnowledgeAttitudes

Problem Recognition

Information search

Judgment & Decision making

INTERNAL PROCESSES

POST DECISION PROCESSES

Purchase

Post purchase behavior


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The Powerful Consumer

Modern fashion is about freedom, democracy &

individualism and this is a development that I, for one,

welcome.

Giorgio Armani

Does the designer or the consumer determine thedirection fashion will take?


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Consumer Markets

It can be examined in terms of :-

1. DEMOGRAPHICS

2. PSYCHOGRAPHICS


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Demographics

It is the study of various objective characteristicsof the population, such as

Population size

Geographic concentration Age

Occupation

Family life cycle

Education

Income


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POPULATION

Population size & location are importantconsiderations. A company does not study the entirepopulation, only that portion directly related to theproduct being considered.

Ex: children's wear manufacturer is concerned withnumber of children in general population.

Geographic concentration of people plays vital role,

ex:- population shift in 1990s to mountain statescreated greater needs for hiking gear


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AGE

Fashion manufacturers & retailers may

emphasize styles that cater to a specific age

group. To market their product effectively they

need to know what portion of the overallpopulation fits into each age group.


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OCCUPATION

Growing presence of women workforce in

today's market resulted in fashions suitable

for the workplace

Friday dressing - resulted in casual clothing

for work


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GEOGRAPHIC CONSTRAINTS- Where people live alsodetermines the clothing & accessories they need.

EDUCATION Money alone does not account for the style and

quality of merchandise preferred by consumers. Although many withlittle or no formal higher education earn substantial salaries,educational level often determines income levels & merchandiseneeds.

INCOME A persons income determones the quality & price of thefashion merchandise he or she purchases. Fahsion retailers miustbe constantly be aware of income shifts in their potential markets.(discretionary spending and disposable income)


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Full nest1 Arrival of children typically causes a temporary reductionin real & discretionary funds.

Full nest 2 In this classification children are teenagers. Womenwho stayed home to raise their kids often return to workplace. Moremature women with sophisticated taste. Kids are wearing trendy

merchandise

FullNest 3 Husband & wife usually work & children are 17 yrs &older but still dependant on parents. (bridge merchandise)

Empty nest1- With the children on their own , much parents financial

responsibility has diminished. Manufactures & retailers direct qualityfashion products for both work & play at this market.


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Empty nest 2 both the members have retired as a result there isa decrease in the income. Except for those whose financialinvestments guarantee a good lifestyle most of them cut downcosts. Clothing for work wear is not necessary.

Sole survivor Survivor remains on the job, This group isresponsible for quality purchases.

Sole survivor 2 Retired couples lose their mates. Place &lifestyle changes. Purchase of more leisure wear merchandise.

Buy little for themselves.


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Source of this info?

Market researchers can find this information in

governmental sources, such as the

publications of the census bureau

the commerce department

from original research studies companiessponsor to assess their markets


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PSYCHOGRAPHICS

It is the subjective study of characteristics that

describe motivations to buy, such as personality,

lifestyle, ethnicity, attitudes, interests & opinions.

Results offer a more complete look at the customers.

By identifying particular characteristics, companies

can better match their products to the need of the

potential customers.


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Buying Motives / Decision Making

-- Do price & quality & motivate a customer to buy amerchandise?

-- Does the prestige of the label stimulate purchasing?

-- Does the polo pony logo on the Ralph Lauren shirtmake it a better product?

-- Or does the name increases its desirability?

Consumers are motivated to buy for different reasons

some emotional & some rational.


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Emotional Motives

(emotional decision maker)

Status & prestige are often involved in the

purchase of consumer products. Fashion

merchandise, in particular, often appeals to

emotional motives.


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Rational Motive (rational decision maker)

These consumers base their purchases on careful examination ofthe products

-- Is the quality good?

-- Is it competitively priced?

-- Is the material durable?

Consumer is not motivated to buy simply because everyone else iswearing a new fashionable product.

Decision is based on whether or not it is appropriate for them.

Designer names do not play a major role in purchasers decisionmaking.

These consumers constitute a sizable segment of the fashion market.


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Example:- Categories of Men in Specific

Psychographic groups

The Quiet Family man shy individual with little communityinvolvement.

The Traditionalist conservative shopper & wears moderately pricedclothing

The Discontented Man ambitious, off price merchandise

The Ethical Highbrow sensitivity towards others needs, quality isimportant.

The Pleasure-Oriented man macho type, self centered, shows offhis physique

The Achiever hardworking, interested in prestige, power & money,

likes adventure, social activities, food & entertainment. The He- man Action & excitement, dominant single individual.

The Sophisticated man intellectual, admires artistic & intellectualachievement., unique & fashionable.


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Pleasure oriented

Sophisticated

Discontented


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Ethical eyebrow

He man


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Buying Habits

Purchases are made at locations convenient to the

consumers home or work place.

If store satisfies the customers needs repeat businesswill happen.

Buying on line (saving on time)

The mall culture


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SOCIAL CONSIDERATIONS

We often hear about the various social classes into

which our society is divided, in terms of income, goals

& attitudes.

They can be categorized into upper, middle & lowerclasses & then into subdivisions.


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Upper Class-- Upper-Upper Class (inherited wealth , understated elegance) eg:- Armani, Louis

vitton

-- Lower Upper Class (newly rich, flashy, expensive) eg: - Mango, Tommy Hilfiger,levis

Middle Class

-- Upper-Middle Class (fashionable merchandise but cautious about the money) eg:DKNY, Van Heusen, Lee

-- Lower Middle Class (bridge merchandise) eg:- Express, Peter England

Lower Class-- Upper Lower Class (price important, buy fashion merchandise when its on

sale):- Walmart, Megamart

-- Lower-Lower Class (extremely price conscious, buy merchandise as necessities)


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FASHION & CONSUMERRESEARCH

Study of market segments, buying motives,

sociological considerations & social classes provides

general information with which the fashion

professionals can evaluate the potential consumer

market.

satisfying consumers needs profitably


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Research methods are of 2 types --

1) Qualitative - is subjective

2) Quantitative is objective & data driven

There are 2 types of data which is derived from differentresearch methods

1) Primary data is collected by individual researchers or

organizations to answer specific research questions

2) Secondary data is information that has already beencollected by another person or organization


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RESEARCH PROCEDURE

Identifying & Defining the problem

Gathering Data

-- Company Records

-- Government Agencies-- Trade Associations

-- Periodicals

-- Focus Groups

Sampling & Collecting Data

-- Random sampling-- Non random sampling

-- Area Sampling

Processing & Analyzing Data

Consumer Study

Documents

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