Monday, October 8, 2012

Chapter 6: Consumer Decision Making



According to MKTG textbook, consumer behavior is a process a consumer uses to make purchase decisions, as well as to use and dispose of purchased goods or services; also includes factors that influence purchase decision and product use. In another word, It relates to the way a consumer behaves in given circumstances, so do they respond to adverts, direct marketing, promotions, etc and  how do they behave in store, do they want to browse, do they need assistance etc. By understanding these it helps marketers provide a better service to their customers.





THE CONSUMER DECISION-MAKING PROCESS

The consumer purchase decision process is generally viewed as consisting of sequential steps or stages through which the buyer passes in purchasing a product or service. 


A.Problem recognition—The first step in the consumer decision-making process is that of problem recognition, which is caused by a difference between the consumer’s ideal state and actual state. There are various causes of sources of problem recognition. These include: 

1. Out of stock
2. Dissatisfaction
3. New needs/wants
4. Related products/purchases
5. Marketer induced problem recognition
6. New products

B.Information Search—the second step in the consumer decision making process is information search. Internal search involves a scan of information stored in memory to recall past experiences or knowledge regarding purchase alternatives.


C.Alternative Evaluation—At this stage the consumer compares the various brands and services he or she has identified as being capable of solving the consumption problem and satisfying the needs or motives that initiated the decision process. 

D.Purchase Decision—as an outcome of the alternative evaluation stage the consumer may develop a purchase intention or predisposition to buy a certain brand. Once a purchase intention has been made and an intention formed, the consumer must still implement it and make the actual purchase. Many purchase decisions are made on the basis of brand loyalty which is a preference for a particular brand that results in its repeated purchase. 

E.Post-purchase Evaluation—the consumer decision process does not end once the product or service has been purchased. After using a product or service the consumer compares the level of performance with expectations. Satisfaction occurs when the consumer’s expectations are either met or exceeded, while dissatisfaction results when performance is below expectations. 

These actions are determined by psychological and economical factors, and are influenced by environmental factors such as cultural, group, and social values. 

For example, what makes shoppers pick forever 21 is first the new need or want of specific trend. Then they start recalling some stores they have shoped and with their budget they narrow down the the clothings store they would like to shop which meets their wants and needs. finally forever 21's latest trendy clothes and asscories with reasonble prices makes the shooper purchase an item. And after using that item if that consumer thinks its worth it and satisfy their needs and wants, they will more likely to make more purchases in the future and also recomend others arounds them.





                 Uploaded by  on youtube


Also for noways videos like this (which is an opinion of other consumer that already made a purchase from that store)  below helps consumer make their buying decisions.


Monday, October 1, 2012

Chapter 5: Developing a Global Vision



Times Square NYC


Forever21 is globalizing themselves all around the world. They have now stores in not in just United States
but also Puerto Rico, Canada, Europe, Asia, Latin America, and the Middle East. In 2005, Forever 21 was operating over 355 locations nationwide. As of today, Forever21 now has stores over 480 in 26 countries. Forever21 is increasing its numbers of stores every year and are becoming more international by entering several new markets, such as Scotland, and a lot more stores n England.





Stores are also due to open in 2011-13 in the following locations in Europe:
·  Lakeside Shopping Centre - in a store currently occupied by Topshop and Topman, which are relocating
·  Blue water - in a store currently occupied by W H Smith
·  Buchanan Street, Glasgow - as a key store in a major new retail development
·  West Quay Shopping Centre in Southampton


Tokyo, Japan



 
Forever21 has a global marketing approach. The stores design and decorations within United States and other countries are pretty much look alike but the names are different. Current store operating formats are Forever 21, XXI Forever and Heritage 1981. The stores are standardized by keeping the same atmosphere throughout the store. Forever 21’s merchandise does not have uniform specifications, quality, patterns or even sizes; these details vary by supplier
 

Every forever21 stores launch all new products the same time, especially new campaigns in the company worldwide.


They make all of their clothes in their factories. And some are purchased at wholesale factories in Los Angeles which they take their tags off and sew their tags on. Up to 30 percent of the store's offerings are still made in Southern California. One Los Angeles factory worker told Bloomberg BusinessWeek she was paid 12 cents a piece to sew vests that sell for $13.80. It would take 67 vests an hour to earn $8 minimum wage. (http://articles.businessinsider.com/2012-02-27/strategy/31103150_1_cheap-labor-child-labor-factories#ixzz2850ixKpr).