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