Buyer Behavior Assignment - Mk 0385
Essay by Leah Nicole Clark • April 16, 2016 • Research Paper • 3,241 Words (13 Pages) • 1,485 Views
Name- Leah Clark
Student number-12007518
Word count - 2886
Buyer behaviour Assignment - MK0385
Task 1 -Marketing Issue
The chosen marketing issue is to branch out into the home wear market and produce luxury dining or table ware products by Louis Vuitton which was our chosen brand. The potential for LV table and dining ware is substantial as today’s consumers style deemed important and when choosing dining ware design will play a major factor in purchasing these items. We want to keep the same luxury association with our new product within the brand, our strategy will reflect how we aim to do this.
Task 2 - Buyer Behaviour Analysis
Target Market Analysis
We analyse the target market using demographics and psychographics to allow us to use segmentation. Most Louis Vuitton customers are from an upper economic and social class and are fashionably aware and value prestige and the importance of self-esteem and power or are aspiring to be part of this demographic for example the up and coming or middle class with disposable income. (Sorin, 2016)
Demographics & Psychographics
The first demographic will be women and men over the age of 55, who may have traditional values and privilege. They are wealthy or middle class with high level income and high levels of disposable income making our products within their price range. They will be customers who are driven by quality and perfection. They may value exclusivity and appreciate lengths our bran will go to accommodate them such as expert advice and customer service. We aim to tap into this demographic by offering our exclusive table ware that will be of high quality.
The second demographic will be women and men over the age of 25, who live wealthy or middle class lives, this groups of people may be working professionals who are high educated. As this demographic are younger they are more aware of technology and they may be at a time in their lives where they have disposable income for the first time and are attracted to luxury brands and products such as Louis Vuitton Table Ware. This demographic are more aware of e- commerce and shopping online. Much of this demographic will be either single with high disposable income or recently settled down so we aim to tap into attracting newlyweds and young wealthy families with high disposable income to our product also. (Mintel, 2011)
In terms of Psychographics Luxury as function we will target 3 main groups.
Quality seekers who buy luxury goods for their superior quality. They may have a longer decision making process in order to make rational and logical decisions, rather than emotional or impulsive ones.
Status seeker purchase luxury goods in order to showcase their achievements. They are motivated by their desire to be successful and demonstrate this to others. They usually purchase ‘smart’ luxury
Self-indulgers buy luxury goods is to self-indulge. They enjoy luxury for the way it makes them feel, therefore have a more emotional approach to purchases.
Decision making
In terms of understanding the process of our consumer’s decision making I looked at the consumer decision making process from Blackwell. (Blackwell, Miniard & Engel, 2006)
Need recognition | Our potential consumers may be motivated to purchase our luxury branded products for a variety of different reasons including status and quality. Potential consumers may associate or identify themselves with the louis Vuitton brand and our new product range. Other potential customers may have a physical need for our product and have a need for table ware and dining ware, for example consumers will always have a need to use plates glasses and cutlery as we use them in everyday life however our products are luxury so the price will reflect this. Potential customers will be able to afford luxury table ware for occasions, everyday use or as gifts and will recognise these needs. |
Search | In the search for information our potential customers of our new product may look at product information for example where was the product made, what is the perceived quality, actual quality and the materials is was made from, the designs of the table ware, its practicality and warranty. Consumers may look at the price if it is affordable to them as the products will be premium in price they will not be in everyone’s price range. Consumers may look at where they can purchase the table ware products such as online or the nearest store or stockist of the product. They may look at who can purchase them. In the past Louis Vuitton has used a special order service for custom products adding exclusivity. (GQ, 2016) Lastly they may look at information regarding the brand as a whole including feedback or reviews from previous customers or recommendations from peers or family. |
Evaluation of alternatives | Potential consumers will look into and evaluate the alternatives to our product. Similar product ranges are offered by competitors Hermes, Versace and Giorgio Armani who are just some of the luxury fashion brands who all have offered luxury table ware products. They may take into account the availability, design, price in comparison, exclusivity and personal association with other competing brands. Factors such as age, culture, taste and budget have all impact on the evaluation process by the consumer. Lastly celebrity endorsement is now seen as a factor that may influence the evaluation of alternatives stage of consumer decision making process. (Cant, 2006) which our brand is renowned for using many celebrities to tap into their customer base. (Fashion Marketing Secrets, 2012) |
Purchase decision | This is the stage in which the consumer will make a decision to make the purchase to buy the Louis Vuitton table ware after reflection on the information gathered and reviewing alternatives. Purchase decision can be classified into three different types planned purchase, partially purchase and impulse purchase (Kacen & Lee, 2002) Factors that may affect the decision could be circumstance, time and location. Physical environment can also affect this such as store atmosphere, sent, surroundings, sound, light and weather. Our brand goes to great lengths to convey a particular vision for consumers in store and online. (Pride & Ferrell, 2015) Lastly our consumers may be affected by social surroundings such as pressures from friends, peer and family or other customers and lastly sales people often have influence in purchase decision. (Pride & Ferrell, 2015) |
Evaluation | It is in this stage where the consumer will evaluate the decision of the purchase of our table ware. This is an important part of the process as the consumer will decide if our product is worth a repeat purchase or recommendation which aid in future purchases for other consumers. |
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