Understanding Consumers Analysis Report
Module Title – Understanding Consumers Analysis Report
Introduction
Consumer behaviour determination is an effective and essential factor for any organisation for identifying key customers as well as modifying their intentions towards its products. Launching significant advertisements and marketing mix for products accordingly can be executed by companies for engaging the majority of customers. Thus this study focuses on the customers’ analysis determination for understanding factors which influence customers in modifying its purchasing intentions.
Therefore, potential customers and market segments by using market segmentation strategies are included primarily in this report. This context also develops the impact of psychological and personal aspects of customers on their purchasing behaviour. Finally, discussions on perception procedures and process of using it in marketing mix and a consumer behaviour model are developed in this report.
Potential customers and market segments with the help of marketing segmentation strategies
Determination of key and potential customers often is essential for any company for targeting them effectively. In the opinion of Hossain and Rahman (2022), potential customers often help organisations in gaining consistent business growth in companies as they majorly retain in companies for gaining their preferred products. In the case of this concerned company, as this is a leading chain of clothes and garments therefore key customers of this company are women who have fashion awareness. Therefore this organisation has conducted market segmentation for identifying these key customers and targeting them significantly.
There are different market segmentation strategies which are considered by this company for conducting proper market segmentation.
Behavioral Segmentation
Behavioral segmentation is the most important market segmentation which groups people by focusing on their behaviour and actions. This company has conducted this on the online platforms. As stated by Botraba (2019), people are likely to be fond of social media thus it is easy for companies to determine behaviour and preferences of people from their actions on online platforms.
This concerned organisation has implemented the strategies of highlighting the browsing history, search intents and previous purchasing history of customers for identifying their key customers. In this account, this segmentation often has developed correct targeting of customers in this organisation.
Geographic Segmentation
Geographic segmentation is another essential grouping of people by their city, state, zip code and country. Thus this organisation has grouped regional customers firstly for its physical stores and targeting them for attracting offers and discounts of physical stores.
However, in the case of e-commerce, this organisation has identified their potential customers from the countries or regions which have smooth delivery and distribution options for this provided organisation. Geographic segmentation often helps organisations in preventing lack in meeting customer demands for deficiency of delivery (Jia, 2021). Thus this organisation has gained a high rate of customer growth and smooth customer delivery for this segmentation.
Demographic Segmentation
Demographic segmentation is further one of the vital market segmentations for grouping people by their age, gender and income level. This often assists in determining the target customers.
As a result, this organisation has segmented females aged from18 to 30 and has middle and high income level. As a result, this organisation has gained an effective customer engagement towards this organisation by targeting them. This organisation has targeted females aged 18 to 30 because this organisation sells clothes and garments henceforth young aged females can be engaged within this business. Therefore, demographic segmentation has created effective interests among customers.
Psychographic segmentation
Psychographic segmentation is similar to behavioural segmentation but it focuses on the lifestyles, personality traits, opinions of audiences and social status. This selected organisation conducts marketing segmentation by supervising these factors of customers on social media or other online platforms.
This company also executes this market segmentation by including survey and feedback form on online platforms for determining these factors of people. Psychographic segmentation can also help organisations in targeting psychological factors of customers for modifying customers’ purchasing behaviour towards companies (Elliott and Galeotti, 2019). In relation to this, psychographic segmentation often has brought effective sales and revenue growth in this concerned organisation.
Impact of personal and psychological factors on the purchasing behaviour of customers
Psychological and personal factors have a major role in developing the purchasing behaviour of customers. As regards by Joshi and Rahman (2019), organisations often use psychology factors in promotion and product advertisements for engaging customers towards these products. For example, this selected company has adapted the strategy of providing advertisements by using its environmental sustainability as this company retails clothes and garments which are generated and recycled from waste. Therefore, a major group of people which have environmental awareness can engage towards the products of this organisation.
Other than this, psychological factors can also target adequate customers due to the advertisements of attractive offers and discounts. Thus, people who are students and do not have enough money for buying the products of brands modify their purchasing decisions by targeting their psychology. Therefore, retail apparel industry of Berlin has gained revenue growth of 60.72% in 2021 (CSI market, 2022). Thus it is found that like other apparel retail of Berlin, this company also utilises these effective psychological factors and also effective psychological targeting for modifying customers’ purchasing behaviour.
Other than this, this organisation also has implemented the strategies of promoting their product features with visual representation of clothes and garments. Henceforth maximum numbers of people can engage towards this company by observing product facilities and by not being able to control their temptation. Therefore, it is evidenced that this organisation gains major benefits in customer growth and business growth by using these psychological factors at the time of its product promotion.
On the other hand, personal factors have also a considerable contribution in modifying purchasing intentions of customers. There are several personal factors that have a major impact on the purchasing behaviour of customers for instance occupation, life stages, age and economic conditions (Prentice et al. 2019). Occupation of people has a major impact on the purchasing behaviour of customers in the case of this organisation.
As per the context of this company, people who are employees of corporate sectors have a crucial chance of modifying their purchasing behaviour as they need the new and proper clothes on a daily basis for going to office. Other than this, life stages further has its important impact on the customers purchasing intentions modifications. Life stages include the tastes and preferences of customers (Chetioui et al. 2020). This organisation has considered the life stages of customers by including proper interactions with them through surveys, feedback sheets and posts on social media for determining the preferences, tastes and demands of customers. Therefore, product launching according to the preferences and demands of people often modify the purchasing intentions of customers.
In this organisation, henceforth this organisation has modified customers’ purchasing intentions by launching clothes and garments which have a high demand in the market. Besides that, age of customers also isimportant personal factors which help in determining target audience of this provided enterprise. Thus, as this company has a segregated section of trendy fashionable clothes and garments consequently this organisation has its benefits in engaging the customers aged from18 to 25 by modifying their purchasing behaviour. Finally, economic conditions are also important for modifying the customers’ purchasing intentions. Middle and low income level grouped people can modify their purchasing decisions as per the context of this organisation.
Discussions on perception procedures and procedure of using it in designing marketing mix
Perception procedures are defined as the information collection, organisation and interpretation regarding the customer’s perceptions and attitudes. As regards by Ibrahim et al.(2020), perception procedures and determination of organisations help these in conducting proper marketing.
Marketing mix of a company often needs these perception procedures of potential customers in gaining a huge amount of financial benefits. Thus this concerned organisation utilises perception procedures at the time of designing marketing mix of a product. In the case of this provided organisation, marketing specialist focuses on a specific fashionable product for students. Therefore 4Ps of marketing mix with the perception procedures of students are discussed below-
Product
As students majorly are fond of trendy and branded products, thus this organisation has executed a marketing strategy of launching most trendy and branded products. Therefore, this organisation has a chance of developing major people’s engagements towards this product.
Thus this marketing specialist of this organisation has conducted the strategy of including developing diversification of products and modern outfits for engaging the majority of young adults. Product marketing often is essential as it helps in focusing only on the quality of products instead of price and other factors (Georgsdóttir Velander and Raun, 2021). Therefore, it is acknowledged that this organisation can be able to attract a huge amount of student customers by marketing using the perception procedures of customers.
Price
Price is also a major marketing aspect of this selected organisation which can be regulated for a product by using perception procedures for engaging students towards its product. As determined by Andryushenkova (2021), price strategies often are helpful for companies for targeting an excessive amount of customers.
As products of this organisation are for students thus this company can take the strategy of launching cost effectiveness in these products to make it affordable for students as they often do not have a high amount of money. Thus this organisation can develop a high rate of profits within these products. In this account, this organisation further can include special offers and discounts in its products so that youth adults can gain more interests in modifying its purchasing behaviour by their perceptions of low price of product gaining.
Promotion
This provided organisation can conduct promotion for its products on online platforms and by providing visual representation and interesting information regarding products. As described by Yuliasih et al. (2018), product promotion can attract targeted audiences by promoting within their interests. In recent times, young adults like to spend time on social media and can get effectively influenced by the social media influencers.
Therefore, this organisation can conduct promotion for its products for students by appointing social media influencers. Thus this organisation can gain major benefits by engaging a maximum number of students. In this aspect, this organisation has been able to increase proper market value of this specific product for students.
Place
This organisation also needs to place strategies for marketing its products among the students in an effective way. Therefore, this organisation can develop the place strategies of advertising on Facebook, Instagram and Whatsapp as well as including paid advertisements on student beneficial online mediums like learning apps and online learning websites.
Thus this concerned organisation can spread the product promotions among students of different regions and countries. Therefore, this provided business can be benefitted by enhancing financial growth by considering major new customer involvements. Thus place strategy also is important for this organisation for targeting students by following their perception procedures.
Consumer behaviour model
Industrial Buying Model
Industrial buying model is an important model for this organisation as this theory focuses on the decision making procedure of this organisation. Thus this organisation can use this theory for modifying customers’ purchasing decisions towards its company in a significant way. Therefore, profitability and revenue growth can be developed in this organisation for making over the losses of COVID-19. Other than this, this theory has also a major role in improving segmentation and targeting procedures of organisations (Chavan et al. 2018).
Thus this theory can be implemented by this organisation for determining better insights regarding psychological outlooks in decision making procedures as well as joint making and decision pertaining procedures. As a result, this concerned organisation can gain an effective benefit by enhancing its marketing operations.
Conclusions
From these discussions, this selected organisation has potential customers who are females aged 18 to 30 and have middle and high income levels. From the discussions of market segmentation, this study has found that this organisation uses behavioral segmentation, geographical segmentation, demographic segmentation and psychological segmentation.
This provided organisation uses psychological factors like promoting environmental sustainability and cost effectiveness and personal factors like targeting females who have stable income and occupation for modifying customers’ decisions.
Reference list
Botraba, T., (2019).Market Segmentation.
Chavan, G.D., Chaudhuri, R. and Johnston, W.J., (2018). Industrial-buying research 1965-2015: review and analysis. Journal of Business & Industrial Marketing.
Chetioui, Y., Benlafqih, H. and Lebdaoui, H., (2020). How fashion influencers contribute to consumers’ purchase intention. Journal of Fashion Marketing and Management: An International Journal.
CSI Marketing, (2022), Retail Sector Growth.Available at https://csimarket.com/Industry/Industry_Growth.php?s=1300 [Accessed on 01 February 2022].
Elliott, M. and Galeotti, A., (2019).Market segmentation through information.Available at SSRN 3432315.
Georgsdóttir Velander, M. and Raun, S., (2021).Expanding the classic marketing mix towards sustainability: How internationally operating SMEs in the fashion industry can expand their marketing mix.
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Prentice, C., Han, X.Y., Hua, L.L. and Hu, L., (2019).The influence of identity-driven customer engagement on purchase intention.Journal of Retailing and Consumer Services, 47, pp.339-347.
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