Chapter 4: Understanding the Customer in Fashion Industry AD 3118 Fashion Marketing

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Chapter 4 Understanding the Customer in Fashion
IndustryAD 3118 Fashion Marketing Brand
Management

• A.Kwanta Sirivajjanangkul
• Albert Laurence School of Communication Arts
• Department of Advertising
• 2014

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Chapter Outline

• Customer Segmentation
• Consumer Purchase Decision Process
• Adoption of Innovation and Trends

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Customer Segmentation
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Customer Segmentation

• Consumer
• People who buy or use products to satisfy their
  needs and wants
• Customers
• People who buy a particular brand or patronize a
  specific store
• Purchaser
• User

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Consumers are different!!
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Market segmentation

• Customer Segmentation

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Influences on Consumers Buying Decision Process
Behavioral Influences Usage Innovation Adoption
THE CONSUMER AUDIENCE
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Cultural and Social Influences

• Tangible items art, literature, building,
  furniture,food, clothes, etc.
• Intangible concept history, knowledge, moral,
  tradition, language etc.

• Culture
• a way of life
• Learned and passed on from one gen. to another
• Norm
• Core value a sense of belonging, excitement, fun
  enjoyment, warm relationships,
  self-fulfillment, respect from others, a sense of
  accomplishment, security, self-respect

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• Cultural and Social Influences

• Social Class
• The position a person and his/her family hold
  within society
• Determined by such factors as income, wealth,
  education, occupation, etc.

• Family
• Two or more people who are related by blood,
  marriage, or adoption and live in the same
  household
• Household
• Lifestyle the way you
• spend your time and money on the
• activity you value.

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• Cultural and Social Influences

• Reference Groups
• A group of people who are used as a guide for
  behavior in specific situations
• 1) provide info.
• 2) a means of comparison
• 3)they offer guidance

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Reference Group is an actual or imaginary
individual or group considered of having
significant relevance upon an individuals
evaluations, aspirations, or behavior.
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Reference Groups influence in 3 ways
Informational
Utilitarian
Value-Expression

• brand will enhance images others have
• Brand possess characteristics that others have
• Advertisement gives a good feeling of using a
  brand
• Purchasing a brand are admired by others
• brand would help show others what he or she
  would like to be

• Brand is influenced by preference of family
  members
• Purchasing a particular brand is influenced by
  their preferences
• Purchasing a particular brand is influenced by a
  person whom they have social interaction

• Information seeking
• brand- related knowledge and experience
• Reliable information about brands
• Information from experts

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• Social power
• The capacity to alter the actions of others

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• Cultural and Social Influences

• Demographics
• The statistical, personal, social, and economic
  characteristics that describe a population

• Characteristics
• Age (different age,different need)
• Sexual orientation (product preferred)
• Education (media used)
• Occupation (type of product)
• Income (purchasing power)
• Race and ethnicity (type of product)
• Geography (type of product)

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Psychological Influences

• Perception/State of Mind
• Affects how people perceive information as well
  as determines the particular pattern of consumer
  behavior
• (experience, friend,brand message,mental stage)

• Needs Wants
• Basic driving forces that motivate us to do
  something
• Need e.g. choose a motel when traveling
• Want e.g. choose the most expensive motel
• Innate needs (needs necessary to keep life) VS
  Acquired needs (learn in response to culture
  environment) e.g. esteem, prestige, affection
  power and learning

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Need and Wants

• A need is a basic biological motive a want
  represents one way that society has taught to
  satisfy the need.

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Psychological Influences

• Attitudes and Values
• Attitudes impact motivations
• Influence how consumers evaluate products,
  institutions, retail stores, and advertising
• Personality
• Distinctive characteristics that make people or
  brands individual
• Brand personalities make them distinctive from
  their competitors
• e.g. old-fashioned, lively, efficient, helpful,
  warm, dependable, risk taking

• Motivations
• Internal forces that stimulate people to behave
  in a particular manner
• Produced by the tension caused by an unfulfilled
  need
• People are usually motivated by emotion habit

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Psychographic Influences
Psychographics complex consumer profiles ? how
people make the decisions

• Lifestyle
• The way people allocate,
• Time, money energy

Psychological Perception Motivation and
Needs Attitude Personality
Hobbies, vacation, entertainment, club
membership, fashion, family, job, food, trend,
etc.
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Behavioral Influences

• Usage behavior
• How much of a product category or brand customers
  buy
• Usage Rate Light users, Medium users, Heavy
  users (how much they buy)
• Brand relationship Nonusers, Ex-users, Regulars,
  First timers, Loyal users, Switchers

• Innovation and adoption
• How willing people are to be innovative and try
  something new
• Innovators, Early adopters, Early majority, Late
  majority, Laggards
• perceived risk evaluate what u gain what u
  have to lose if the p/d does not work

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Consumer Purchase Decision Process
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Consumer Purchase Decision Process

• Consumer purchase is a response to a problem

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Marketing environment
Interest rates
Taxation
Distributors
Business relationships
Legislation
End-consumers
supplier
stakeholders
Exchange rates
customers
Social trends
competitors
Technology
Cultural influences
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Customer motivation and behaviors

• Getting a bargain
• Standing out from the crowd
• Fitting in and belonging
• Trying to avoid clothes shopping
• Looking like a celebrity

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Adoption of Innovation and Trends
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• Introduction Stage
• Sales grow slowly Profit is minimal or negative
• Create awareness Stimulate trial
• High production costs Limited product models
• Frequent product modification Penetration
  pricing
• Skimming pricing Little competition
• High failure rate, High marketing costs
• Promotion strategy focuses on primary demand for
  the product category
• developing product awareness Informing about
  product benefits.
• Intensive personal selling to retailers and
  wholesalers is required.

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• B. Growth Stage
• Sales grow at an increasing rate.
• Many competitors enter the market.
• Large companies may acquire small pioneering
  firms.
• Profits are healthy
• Promotion emphasis, heavy brand advertising
  Differences between brands.
• Gaining wider distribution is a key goal
• Toward the end of this stage, prices normally
  fall profits reach their peak.
• Development costs have been recovered Sales
  volume has created economies of scale.

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• C. Maturity Stage
• Sales continue to increase but at a decreasing
  rate
• The marketplace is approaching saturation Annual
  models of many products
• An emphasis on product style rather than
  function
• Product lines are widened or extended marginal
  competitors begin dropping out of the market.
• Heavy promotions to both the dealers and
  consumers are required. Prices and profits begin
  to fall.

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• D. Decline Stage
• Signaled by a long-run drop in sales.
• Falling demand forces many competitors out of the
  market
• The rate of decline is governed by how rapidly
  consumer tastes change or how rapidly substitute
  products are adopted.
• A few small specialty firms may still manufacture
  the product.
• Dropping a product from the companys product
  line, is the most drastic strategy.
• Harvesting Company retains the product but
  reduces marketing support
• To prevent slipping into decline, Promote more
  frequent use of the product by current customers
• Find new target markets for the product
• Find new uses for the product, Price the product
  below the market
• Develop new distribution channels, Add new
  ingredients
• Delete old ingredients, Make a dramatic new
  guarantee

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• Some Dimensions of the Product Life Cycle
• 1. Length of the Product Life Cycle
• There is no exact time that a product takes to
  move through its life cycle consumer products
  usually have shorter life cycles than business
  products
• Mass communication shortens life cycles
• Rate of technological change shortens product
  life cycles.
• 2. Shape of the Product Life Cycle
• There are several distinctive life-cycle curves
• Each type suggests different marketing
  strategies

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Significant education of the customer is
required. Extended introductory period.
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Sales begin immediately Little learning is
required by the consumer Benefits of purchase are
readily understood.
Most often appear in womens and mens clothing
styles. Length of the cycles may be years or
decades.
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Rapid sales on introduction Equally rapid
decline. Often novelties and have a short life
cycle.
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• Innovators 2.5
• Eager to try new ideas and products
• Have higher incomes
• Better educated than non-innovators
• Early Adopters 13.5
• Much more reliant on group norms
• Oriented to the local community
• Tend to be opinion leaders.
• Early Majority 34
• Collect more information
• Evaluate more brands than early adopters.
• Rely on friends, neighbors, and opinion leaders
  for information and norms.

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• Monitoring the market

• Life cycle of a fashion trend

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The Innovation Diffusion
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• ?

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Line khunkt