CompanyQuestions- This assessment will cover following questions:
- What are the factors affecting consumer behaviour and helps to encourage new customers?
- Evaluate the implications for understanding customers and influencing new shoppers in the shopping environment.
- Examine the implications for shopper marketing and how it helps to understand the customers behaviour.
INTRODUCTION
Consumer purchasing behavior is an aspect that can be measured by using various market research and information that is related to the influence of internal and external factors taking place in the company. This is related to factors that are affecting the companies and are part of changing the behavior of consumers with context to various factors prevailing in the environment (Badgaiyan and Verma, 2015). The sector chosen in this report is the fashion industry, which has been growing with tremendous speed in recent times as trends are changing, which is posing an impact on positive outcomes of this industry. This report is based on the Burberry Company, which is a fashion house, and its headquarters are present in London. They deal in accessories, clothing, fragrances, cosmetics, and sunglasses, which help in fulfilling various fashion requirements of their customers.
Current Macro-Influence on Consumer Shopping Behavior
development of an understanding of various external environmental factors is very important for development of strategies and practices which can help in serving the customers more appropriately. Many factors are present in the external market, such as cultural norms, social factors, family values, and many other factors that have an impact on the purchasing behavior of consumers. Internal factors that influence customers also include factors such as family roles, social norms, the structure of households, and various groups that affect the purchasing decision of an individual. The industry selected in this report is the fashion industry, which is an industry that has been growing at a rapid speed (Bellini, Cardinali, and Grandi, 2017).
Cultural norms: Culture norms are those which consist of various factors such as experience belief, attitude, and religion. Spatial relations and many other such factors possess an impact on the overall buying behavior of a particular customer. Culture is a way in which a person is living their life, and this is related to what a particular person is doping to satisfy their requirements and demands. Every consumer is majorly affected by four factors, which are cultural, personal, social, and psychological, as discussed.
Social norms are regarded as representations that can collectively affect individual perceptions of a particular group, and this can be viewed as a cultural product that represents basic knowledge related to what others are doing and how they feel should be done. This factor explains the influence of various factors that affect the decision-making of a consumer, whether directly or indirectly. It can be reference groups, family, or social roles.
Impact of family values and reference groups consumer tribes: Reference groups can be defined as a collection of more than two people who are interacting with each other to achieve their goals as individuals & groups. The reference group is a very important aspect that is related to the idea of affecting the overall behavior of a consumer, as this helps in shaping values in a special or general way This refers to determining various purchase decisions or consumption patterns (Sangroya and Nayak, 2017).
Social roles are related to the position of individuals in their family, workplace, country, friends group, etc. All this is according to the social status and role of that particular person. A social role can be defined as a set of activities and attitudes with which individual factors, including age, the lifestyle of a person, occupation, and various economic circumstances, change with time and affect the buying behavior and decision-making characteristics of a consumer.
Pre-decision making on consumer purchase and post-purchase: many factors affect the pre-decision making or the behavior before a person is willing to make a purchase Such factors include the brand of the product, variations in a particular product which they are willing to purchase, quality of the product and lastly, various types of available alternatives with the consumer which they can purchase. Based on the gender, age of the consumer, education level, price of the product, and risk associated with the product, a particular option is selected by a consumer based on outcomes of these above-mentioned attributes (Saluja, 2016).
Pre-purch behavior of a consumer is also related to some steps, such as specific: which is related to finding a particular solution with context to a particular problem.
Ongoing: In this, consumers do their research for a particular point in time to decide to buy or not to buy a particular product.
Incidental: this is related to observation taking place incidentally or naturally; it is taking place in the incidental research. This information can be extracted from internal or external sources, such as internal sources related to the consumer itself when he is recalling information with the help of memories and personal experience.
External sources include information which is related to interpersonal communication with various factors present in the external environment which includes family, friends, marketing people, and also various advertising which is used by them in recalling information which is selected by them.
Also Read: Consumer Behavior and Decision-Making Journey
Post-purchase behavior: This is related to experiences and activities that take place after a product is purchased by an individual. This behavior is related to the dissonance that is experienced by a consumer post-purchase or after they have made a purchase. Sometimes a consumer might regret the decision they made to purchase. This mainly happens because of the large availability of alternatives; other alternatives seem to be better and more attractive (Ramya and Mohamed Ali, 2016). All such factors lead to a situation of dissatisfaction with the decision taken by the consumer about their purchase. Such a stage has to be solved by the shopkeepers and taken care that they do not occur, and if they do, then it can be minimized by them; this results in repeated purchases; otherwise, a consumer might not purchase the product again in the future.
Many times there are instances when, because of the post-purchase dissonance that is being experienced by a consumer, there is an exchange or return of a product that takes place. Sellers can reduce this dissonance by highlighting various benefits and attractive features of the product so that the dissatisfaction level can be reduced or minimized (Popadynets Shults and Barna, 2017).
Influence of Micro Factors in Consumer Behavior
Many factors have an impact on the buying behavior of a consumer, which is related to the micro aspect, and these play a role in affecting how a consumer will make their choices. There is an issue that Burberry is facing in terms of very uncertain demands and changes in trends taking place in the female fashion industry affecting how a company can focus on their future strategies or launches of their products.
Perception and learning perception are referred to as separate sensations which are related to how information is organized, interpreted, and then experienced by a person. How particular information is interpreted is influenced by the available knowledge and experience of a consumer. This is also regarded as a top-down processing.
Attitude and intention: intention is a mental state that represents a sense of commitment used in carrying out an action in the future (Nishanov and Ahunjonov, 2016). It involves various mental activities which are planned by a consumer.
Personality traits: many traits are related to a particular consumer and are used by them in making or not making purchases. Such traits include openness, extraversion, Agreeableness, conscience, and neuroticism All these factors possess an impact on how a customer can decide their behavior and then make a final decision, which can be negative or positive depending upon how these factors have influenced the customer.
Above mentioned are some of the tools that Burberry uses in order to solve this issue of uncertain demands and preferences of their target
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