CONSUMER BEHAVIOUR
Post Graduate Dipl in Fashion Buying & Mgmt
Marketing the Fashion Brand
Amanda Ratcliffe
“Marketing Managers are not in charge anymore
........consumers are.”
(Wipperfuerth, 2006)
Objectives
Why consumer behaviour is important to strategic planning
How an individual’s make-up affects consumption behaviour
The factors which affect consumer buying decisions
A variety of models to better explain CBB The strategic implications of consumer buyer
behaviour
Some definitions of Consumer Buyer Behaviour “The behaviour consumers display in searching
for, buying, using, evaluating and disposing of products and services that they expect will satisfy their needs” (Schiffman & Kanuk, 1994)
“…an investigation into the way individuals make decisions on how to spend their available resources (time, money, effort) on personal & household products.” (Schiffman & Kanuk, 2000)
…the consumer may act as buyer, payer, user or any combination of these roles at a time” (Sheth, 2001)
Think of a fashion item that you bought recently…
What was it? How did you find out about its
availability? Did you consult with anyone else over
this purchase? Where did you buy it from? When did you buy it? How did you pay for it? Would you buy it again?
Defining Consumer BehaviourDefining Consumer BehaviourDefinitionDefinition
…the study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas or experiences to satisfy needs and desires (Solomon).
…the study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas or experiences to satisfy needs and desires (Solomon).
Key ConceptsKey Concepts
Select,Purchase, Use, Dispose
Select,Purchase, Use, Dispose
Products, Services, Ideas, Experiences
Products, Services, Ideas, Experiences
ProcessesProcesses Individuals/GroupsIndividuals/Groups
Customer Types
Organisational Customers
Purchase:For use in the operation of a
business or organisation. To manufacture other
products For resale to others
Private Consumers
Purchase:
For personal or household use
ORGANISATIONALPRODUCTCONSUMER PRODUCT
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Consumers can be buyers or users… or both!
Consumers can act as individuals or on behalf of an organisation
Fashion designers have two markets – the fashion buyer and the consumer
Consumer behaviour
Measurement Aims
Describing Understanding Predicting
Fashion consumersTarget marketsFashion channelsMarketing mixes
Market Researchmethods
A Simplified Model of Consumer Decision Making
Individual Factors
Motivation - An activated state that causes a person to initiate goal-directed behaviour.
Motive - An aroused need that energises behaviour and directs it towards a goal.
Need - The gap between actual and desired states.
Incentive - Something believed capable of satisfying a particular motive.
Factors affecting Consumer Behaviour Cultural factors Social factors Personal factors Psychological factors
Culture
Culture: “ the concepts, values and tangible items (such as buildings and foods) that make up a particular society” (Dibb et al, 2001)
Culture is the source of most of our values, norms, and roles.
The term culture is very difficult to define clearly, it encompasses so much about the way a society lives.
A culture consists of values, beliefs, and customary behaviours learned and shared by the members of a particular society. Culture undergoes change over time – slowly Rapid change can occur as a result of outside pressures
These can impact quickly on the nature of markets. Cultural shifts
Culture and consumer behaviour
Subcultures
Subcultures: “Sub-divisions of culture according to geographic regions or human characteristics, such as age or ethnic background.” (Dibb et al, 2001)
Within a society there is a dominant culture. However, there are also cultural differences. These
can be based on; Geography (Counties; Provinces, Countries eg Scandinavia) Language: Gaeltacht? Belgium 2 Languages, Switzerland) Age: Tweenies, Teenagers, “Grey Power” Lifestyle: Punks, Surfers etc
Social factors Group Theory advocates the importance of Reference
Groups : “Actual or imaginary individual sor groups
conceived of having significant relevance upon an individual’s evaluations, aspirations or behaviour” (Solomon et al, 1999)
The set of individuals with whom individuals compare themselves to guide their attitudes, knowledge and or behaviour Family, friends, colleagues, clubs, organisations etc. Aspirational; Football clubs, Celebrities etc. Associative (those of which we are a member & with whom
we identify) Dissociative groups
Social factors cont’d
Reference groups influence CBB by Exposing persons to new behaviours &
lifestyles Influencing attitudes & self concept Creating pressures to conform Group influence varies across product &
brand
Social Factors: Family
Family The most powerful social group in any
society Learn within the family - what to believe - how to behave - what needs are socially accepted Who is the decision-maker within the
family?
Sociological factors
Social groups Norms of dress
The family Women buying men’s underwear for
them Geodemographics
Who Buys?The Buying Decision Making Process
Buyer
Decider(Decision
Maker)
User
Gatekeeper
Influencer
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Initiator
Irish Social Classification (mrbi)
Grade % of Heads of household
Description
AB 10 Upper middle, middle class
C1 20 Lower middle class
C2 25 Skilled working class
DE 30 Other working class; those at lowest level of subsistence
F1 8 Large farmers
F2 7 Small farmers; farm labourers
Personal factors
Age Family life cycle stage Occupation Economic status Lifestyle Personality & self-concept
13D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill
Life cycle stages
At home single
Young couple no children
Young parents
Middle-aged
parents
Empty nester
married working
Empty nester
married retired
Solitary retired
Young divorced no
children
On own young
Young divorced
with children
M-aged divorced no dep’nt children
M-aged divorced
with children
Middle-aged married no
children
Middle-aged divorced no
children
On own middle-aged
M&S: Lifestage Typologies
Carefree Kids are us Family Ties Freedom Finders Golden Years
Personality
Lifestyle Self image
how we see ourselves Ideal self image
how we like to see ourselves Social self image
how we think we are seen Ideal social self image
how we would like others to see us
The Extended Self
External objects that we consider a part of us You are what you
drive & wear Levels of extended
self Individual Family Community Group
ALLMYLIFEFORSALE.COM
Psychological factors
Motivation Perception Learning Beliefs & attitudes
Motivation: Maslow’s Hierarchy of Needs Physiological Needs
Water, Food, Air
Safety Needs Protection, shelter
Social Needs Acceptance, Affection, Feelings of belonging, Friendship,
Esteem Needs Feeling of self-worth, Success, Prestige,
Self-Actualisation Becoming all that one
is capable of being, Self-fulfilmentPeople endeavour to satisfy a number of these daily Depending on age,
income, country etc
Adapted pyramid of needs for fashion products
Sheth’s 5 Sets of Needs
Functional Needs “does what it says on
the tin..” Social Needs
More sophisticated Goods & services that
provide assocs. With certain societal segments Brands
Emotional Needs Express love, regret etc
Epistemic Needs Express tendency to
explore the unknown Travel, books,
courses Situational Needs
Contingent on time & place Unplanned
Needs become motives when they drive us to act
Two High-End Watches for Different Psychological Segments
Perception
The process by which people select, organise and interpret information to form a meaningful picture of the world
Affects how we act People form different perceptions due
to Selective exposure Selective attention Selective distortion Selective retention
Lacoste’s campaign uses a very plain background so the symbol really shows.
Beliefs & Attitudes
Attitudes describe a person’s relatively consistent evaluations, feelings and tendencies towards an object or idea
Belief: a descriptive thought that a person holds about something
Beliefs make up product & brand images Favourable attitudes are NB for marketers – much
more profitable than turning around a negative one Persuasion: either by
Targeting existing attitudes (Because you’re worth it…) or
Modifying the target audience’s point of view (Dove Pro Age)
Learning
Knowledge of brands, sizes, stores, preferences
Learn through experience
Learn through family and peers
Learning and LTM
Learning describes changes in an individual’s behaviour arising from experience
Learning represents changes in the content or organisation of information in consumers’ long-term memories
Marketing communicators attempt to alter consumers’ long-term memories, knowledge structures, by facilitating learning of information that is compatible with the marketer’s interest
The Learning Process
Drive Stimuli Cue
Response
Reinforcement
Choice Criteria used when Evaluating Alternatives
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Technical-Reliability Durability
Performance
Style/looksComfortDelivery
Convenience
Taste
Economic-Price
Value for moneyRunning costsResidual valueLife style costs
Social-Status
Social belongingConvention
Fashion
Personal-Self-image
Risk reductionMorals
Emotions
Decision Making
How do consumers make their choices? An important determinant is the situation in
which a decision is made. Three categories of consumer decision-
making behaviour: Routinised response behaviour, Limited problem solving, and Extensive problem solving.
The consumer decision-making process and level of purchase involvement
Stage Low Involvement High Involvement
Need recognition problem awareness
MinorMajor personality important
Information search Limited search Extensive search
Evaluation of alternatives and the purchase
Few alternatives evaluated on few choice criteria
Many alternatives evaluated on many choice criteria
Purchase Decision Uncomplicated / impulse
Complex decision rulesCompensatory ?
Post-purchase evaluation of the alternatives
Limited evaluation media search
Extensive evaluation
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Opinion leadership
Influence exerted when a consumer is faced with choice
Information is both sought from and/or given by the OL
Fashion marketers ‘create’ opinion leaders
Consumer Types - Diffusion
A modern view of consumer behaviour
Consumer Behaviour Is Interdisciplinary Psychology Sociology Social psychology Anthropology Economics
Why study consumer behaviour? (Micro) Marketing Implications
Marketing ConceptMarket Segmentation Influencing Product/Service Choices
(Macro) Societal ImplicationsUnderstanding Popular Culture--e.g., Lady Gaga,
Nike, the OscarsUnderstanding Consumer Culture around the
World--e.g., Christmas as a Global HolidayHow does Marketing Affect Consumers?--e.g.,
Happiness, Envy, MaterialismAn increasingly significant part of human
behaviour
Strategic Implications of Consumer Behaviour Contemporary marketers rely on CB to increase
effectiveness in light of increasingly complex env’tMarket research: qualitative & quantitative
data Increasing importance of psychographicsMarket segmentation
Brand / product postioning (Burberry / chav disaster) Symbolism & semiotics: the study of meaning
Use of logos; hi-impact packaging; animation Product innovation & value decisions
Brands judged relative to othersUse of perceptual maps
Developments in Consumer Behaviour
E-shopping: Vast consumer choice Growth of global / international marketing:
The “euro”consumer ? The global consumer?
Deviant consumer behaviour (I know I shouldn’t but..) Ethical implications for marketers
Economic psychology: Choice conflict (among equally reputable
brands) Loss / regret aversion