The Concepts of Consumer Behaviour and Consumer Insight
The customer act in a different way to make their decisions towards purchasing that facilitates companies to make effective strategy for the purpose of attaining competitive advantages. Thus, it has become challenge for many companies to attract number of customers’ purchase decision in favour of their products or services. The main aim of this assignment is to elaborate the importance of the consumer behaviour and consumer insight for which the case study will be taken in to consideration. The case scenario of Stella McCartney – a Fashion Brand will be highlighted for this assignment. This task will be categorized into four parts such as the concepts of consumer behaviour and consumer insight, consumer behaviour model, process of research methodology and the recommendations to resolve the proposed issues of the case study.
Customer behaviour is huge as well as complex subject as it is easy sub-section of the huge field of human behaviour. It is the dynamic and multidimensional process of customer behaviour that demonstrates the totality of decision of the customer in the relation to the consumption, acquisition and disposition of services, goods and ideas. In the context of the case study, it has been found that Stella McCartney does not use any leather and fur in their designing material that include ready to wear, shoes, eyewear, kid’s line and fragrance. This brand is eco friendly brand that maintain its dignity to present their products throughout all her collections and number of environmental and charitable initiatives. It has been found in the context of the consumer behaviour that there are three factors of personal, psychological and social factors that impact the purchasing behaviour of the customer (Lin and Huang, 2012). Personal factor includes the interests and opinions which are affected by the age, gender, culture and profession. In the context of the psychological factor it has been found that the response of the customer is entirely dependent on the perceptions and attitude. The concepts of customer behaviour elaborates that McCartney chooses various strategies to attract number of customer but there are number of barriers that has to face by the organization in the context of not meeting the needs of the customers.
According to Gil, Kwon, Good and Johnson, (2012), the main concern of the customers is high prices of the products and other attributes that give benefits. It has been found that the customers have become more conspicuous towards health and using the material that is why they focused on those products which are CFC free and has the quality of the recyclable packaging. In the context of the case study, it has been found that McCartney is nature concerned and that is why they rise the price of the products is generally higher in comparison of other brands. It is the major issue for this brand because it is the consumer behaviour towards buying products that the product should be affordable and higher rate of the products forces them to switch from one brand to another.
Three Consumer Behaviour Problems That Affect the Consumer Intentions to Purchase
It has been found that the customer has become health consciousness and there are number of customers exist who prefer woollen clothes and fashionable bags which is made up of the skin of the leather. It has been found from the case study that McCartney is a real pioneer related to the sustainable development and prevention of the animal care and environment. It has been analyzed that she made commitment to give sustainable business in comparison of luxury brands but it has impacted the customer decision making process towards the buying product of the same brand (Matzler,Grabner-Kräuter and Bidmon, 2008).
It is another issue of the customer behaviour as it has been found from the case study that the McCartney showed the complication to stand as a luxury brand and to have sustainable development strategy. The customer focuses towards the well known brand and luxury products without knowing that from which products they are produced (Boztepe, 2012). The customer decision towards buying product change due to word of mouth as everyone wants to maintain its status in front of people. It has been evaluated that Stella McCartney is a luxury brand but does not follow the strategy of the luxury.
There are various consumer behaviour model that impacts the decision making process of customer. Engel-Kollat-Blackwell model is selected for the customer behaviour model which comes under contemporary model.
The Engel-Kollat-Blackwell model is effectively a major issue problem solving and learning model of customer behaviour. It has been found that this model has significant value in providing active information seeking and analysis process of customer (Brakus, Schmitt and Zarantonello, 2009). The main aim of this model is to demonstrate the components of decision making and the bonding and interaction among them (Bamossy and Solomon, 2016). The customer behaviour is seen by this model in the form of the decision making process of the customer towards purchasing the products.
There are five activities included under this model that entail problem recognition, information search, evaluations of alternatives, choice and outcome. In the context of the problem recognition, it has been found that the customer will identify the difference between the actual state and ideal state of the products. This might happen on account of external stimuli. Information search is another aspect of this model that depicts the importance of the customer decision making. It has been found that initially information available with the customer can be continuous to other beliefs held by the manager (Quester, Neal, Pettigrew, Grimmer, Davis and Hawkins, 2007). At the time of involving the information seeking or stage, it is the tendency of the customer to use various source in order to gather information. It is the method which has nature of selective by which the customer accepts the attention of them. Alternative is another factor of this model that elaborates the switching aspect of the customer due to get a lot of option in the same products (Darley, Blankson and Luethge, 2010). Choice is another step of this model which portrays the choice of the customer which is dependent on the attitude or intention of the customer. It cannot be stated exactly that what will be the outcome of this model as it can be either positive or negative.
Consumer Behaviour Model
There are four distinct stages of Engel Kollat Blackwell Model of Customer behaviour which are mentioned below:
Information Input Stage: it is the stage on which the customer gets information from different sources of marketing as well as non-marketing which affects the problem recognition stage of the decision making process. It is the stage that depicts if customer is unable to arrive to a specific decisions, the information of external information will be activated for the purpose of arriving a choice in different cases of the customer experience dissonance due to the chosen alternative is less satisfactory (Theng, Grant Parsons and Yap, 2013).
Information processing stage: it is the stage that includes the attention, exposure of the customer in the context of the incoming information. It is necessary for this stage that the customer should initially expose the message (Dennis, Merrilees, Jayawardhena and Tiu Wright, 2009). Focus on the space for the information and communicate the stimuli in order to retain the message by moving the input to long term memory.
Decision process stage: it is the third major stage of the consumer decision making model which entails various stages such as problem recognition, search for alternatives and alternate evaluation. It is not required for every customer to go through all such stages as it is dependent on the customer buying behaviour.
Variables Influencing the Decision Process: it is the stage that comprises the influences related to the environmental and individual that affect all mentioned stages of the decision making process of the customers. individual features comprise values, lifestyles, motives and personality, on the other hand, situational influences refer the financial condition of the consumer which put impact on the decision making process of consumer (Jisana, 2014)).
The relation of Engel-Kollat-Blackwell model (consumer behaviour model) with internal factors is quite different as internal factors include various aspects that put positive as well as negative impact over the decision of the customers. The discussion will be made regarding two best fitting internal factors such as motivation and perception.
Attitude is the internal factor of the customer that elaborates the real value for t he products and services in the point of view of the customer. It has been found that the role of the attitude in purchasing the products keep significant value for the customer. It is one of the issues for Stella McCartney Brand as it has become tendency of most of the customer to go for word of mouth advertisement without evaluating information about the products. An attitude of the customer comprises the belief which depicts the favourableness or unfavourableness towards the project. It has main value in the customer decision making prices towards buying products (Wiedmann, Hennigs and Siebels, 2009). There are number of factors such as social behaviour, environmental friendliness, availability, price etc. that handle the gap between the buying behaviour and attitude of the luxury products.
Perception is the factor that can impact anyone to buy the products. It has been found that the perception of the product can lead the company into higher position; on the other hand, negative perception of the products in the mind of the customer can lead the brand into adverse situation. It represents that the company should focus on an effective strategy by which the company can attract number of customers towards its products and services (Cohen, Prayag and Moital, 2014). In the context of the issue of the case study of Products attribute issues, it has been found that the perception has significant role in such issue. People have made perception of the products of McCartney Brand that the price of such products is higher in comparison of other products that force customer to switch from one product to other products. It reflects the connection of this tendency with one of the factor of proposed model that is alternative.
The discussion will be made on two best fitting external factors such as marketing ethics and 4Ps. It has been found that the ethical concerns can take place in the development of marketing mix. Marketing mix is the combination of 4Ps such as products, price, place and promotion.
The price is the major factor that impacts the customer decision making process. It has been found that the customer is influenced due to price of the products. In the context of the issue of price attributes, higher prices of the McCartney Brand are major concern. However, it has been stated by Stella McCartney that the production of non-leather products is considered as more expensive in comparison of leather one. Around 70% of the work to make such products is done by hand and entirely relying on the style, it can cost the company up to 70% more to ready a pair of shoes in comparison of any other brand.
In the context of the product, it has been found that the products of McCartney are on the commitment of the Stanley that is sustainable business. There is no doubt that this brand has produced products by keeping importance of sustainability in which animals are not hampered by the manufacturers (Martínez-López and Casillas, 2009). It has been found through case study that Stella McCartney should prevent the hefty price tag on items in her fashion range. The relation of the model with product factor is identification as there are many people who not significant knowledge about the products has produced by the McCartney brand.
It has been analyzed that the customers can be manipulated without getting knowledge through stable marketing techniques in distribution outlets. Place is major factor that influence the customer decision making process because convenience of the customer keeps noteworthy value in purchasing products (O’Cass and Choy, 2008). The elements of the customer decision making model are information processing, decisions process and various variables that impact the decision making process in which place is one of them.
Promotion of the products can enhance growth of the company. With respect to McCartney brand, it has been found that it got famous position due to adoption of right strategy of promotion for which social media sites have been utilized. Social media is the only sites on which a large number of people active around the world and spread word of mouth and put comments related to the features of the products.
Along with above mentioned factors, there are number of aspects that impact the process of decision making approach of the customer. An environmental influence are income, culture, social class, family and physical that impacts the customer decision making approach towards buying process.
Data collection is referred to the collection of the data in a systematic manner by which various sources are taken into consideration in order to meet the objectives. An effective technique of data collections facilitates researcher to develop better understanding regarding the research concern that aid in drawing conclusion regarding the research concerns. Primary and secondary are two kinds of data collection that helps researcher to gather information regarding the proposed topic in order to generate an effective value of the research. The information can be collected for case study of Stella McCartney by using both method i.e. primary and secondary source. Primary method will be considered for the proposed topic because it gives first hand information on the other hand other, secondary information will be fetched out by taking consideration of articles, journals, books, online sources and magazines (Hsieh, 2011).
With taking consideration of the primary data collection technique, the direct interaction will be made with the customers who are facing issues while purchasing the products of McCartney brands. On the other hand, the research issue can be evaluated in an efficient manner in order to develop depth and theoretical comprehensive regarding the research issue. The reliability of the results will be improved with the help of the secondary sources.
After gathering the information through data collection technique, it is the method by which collected data can be analyzed in order to evaluate the durability. There are various methods available for analysis collected data but for this research content analysis method will be used for which various journal articles will be selected regarding the consumer behaviour and consumer insight so that better understanding could be made by taking help of various models. The critical review of selected article will be made in which positive as well as negative outcome will be elaborated which will refer the qualitative data. On the other hand, statistical analysis will be made in which 50 customers will be selected who have significant knowledge about brand. Questionnaire will be made to get response from them related to the customer behaviour and decision making process. With the help of the statistical data analysis method, the researcher would be able to elaborate the descriptive statistics of the data which would include the table and graphs by using MS Excel. The graphs will be made for each response with short brief so that understanding could be made regarding each graph.
It has been found from case study of Stella McCartney that the strong beliefs and actions of her in the context of the sustainable luxury and fashion industry lead her into success of products (Han, Nunes and Drèze, 2010). McCartney has been put a lot of efforts to make an effective brand of non-leather production. There are various issues made by her in the context of the environmental and cruelty issues are not able to hide the actual that before anything. With respect to the consumer behaviour, it has been found that the decision making processes of the consumer put significant impact over the production of the manufacturer.
It has been recommended to the Stella McCartney to keep focus on certain issues in order to get attention of the customers towards the products. The recommendations in order to reduce the proposed issues are mentioned below:
- With respect to issue of product attributes, it is required by the company to keep focus on the pricing strategy as it affect the customer decision making prices towards the product. The attributes of products have amended at the time of past decades. It is necessary for the customers to make differentiate between premium and luxury industry which can be done by the company by applying appropriate strategies by which customer can get to know the valuable resources.
- In context of another issue, it has been found that Environmental and health consciousness are major concern which is related to the customer sustainability issues. It has been evaluated that people are not aware about the chemicals used in the manufacturing of clothes. There should be campaign by the company in which the information regarding customer awareness should be entailed.
- Customers have different attitudes and beliefs towards products and it is necessary for the company to draw attention of the customers towards the proposed product by the brand. The company can adopt different strategies related to the promotion in order to make them aware regarding the quality of the products so that they can change their attitudes about products.
References
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Boztepe, A., 2012. Green marketing and its impact on consumer buying behavior. European Journal of Economic & Political Studies, 5(1).
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Cohen, S.A., Prayag, G. and Moital, M., 2014. Consumer behaviour in tourism: Concepts, influences and opportunities. Current issues in Tourism, 17(10), pp.872-909.
Darley, W.K., Blankson, C. and Luethge, D.J., 2010. Toward an integrated framework for online consumer behavior and decision making process: A review. Psychology & marketing, 27(2), pp.94-116.
Dennis, C., Merrilees, B., Jayawardhena, C. and Tiu Wright, L., 2009. E-consumer behaviour. European journal of Marketing, 43(9/10), pp.1121-1139.
Gil, L.A., Kwon, K.N., Good, L.K. and Johnson, L.W., 2012. Impact of self on attitudes toward luxury brands among teens. Journal of Business Research, 65(10), pp.1425-1433.
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Matzler, K., Grabner-Kräuter, S. and Bidmon, S., 2008. Risk aversion and brand loyalty: the mediating role of brand trust and brand affect. Journal of Product & Brand Management, 17(3), pp.154-162.
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Quester, P., Neal, C., Pettigrew, S., Grimmer, M.R., Davis, T. and Hawkins, D., 2007. Consumer behaviour: Implications for marketing strategy. McGraw-Hill.
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