Consumer Audit Report

Transcription

1 Consumer Audit Report Dan Hoff The brand/business that I am choosing to audit for this report is Express. They are a midto-high priced clothing store. They specialize in lavish clothes like dress shirts, pants, ties, dresses, and the like. Market Segmentation A. External influences 1. Are there cultures or subcultures whose value system is particularly consistent (or inconsistent) with the consumption of our product? There are two main cultures whose value system is consistent with buying Express clothes. The first would be a young demographic, which I would nail the age range between They tend to value new, cool styles, and that is what the store offers. The second group would be business professionals. Since the style of clothing is for getting dressed up, it would be appropriate for their values of looking nice and professional. 2. Is the product appropriate for male and female consumption? Will ongoing genderrole changes, affect who consumes our product or how it is consumed? The store offers both men s and women s selections of their clothing, so it does not target one sex over the other. This helps to expand their profit. 3. Do ethics, social, regional, or religious subcultures have different consumption patterns relevant to our product? Certain social subcultures in teenagers have shopping rituals where they travel in groups to the stores and malls. This is beneficial to Express if we can bring in these large groups of kids to shop in the store. 4. Do various demographic or social-strata groups (age, gender, urban/suburban/rural, occupational, income, education) differ in their consumption of this product? Obviously income has a lot to do with the consumption of the product. The clothes offered at Express are more expensive than most retail stores. Those with a higher disposable income will be buying larger quantities and more often. Also, the younger the age of the

2 social-strata group, the more they will be buying. As age increases, people are generally less concerned about the clothes they wear, and how trendy they are. Older people will buy less from this store. 5. Is this product particularly appropriate for consumers with relatively high (or low) incomes compared to others in their occupational group? This product is more appropriate for consumers with relatively high incomes. Express also offers a credit card to its shoppers, which helps those with less disposable incomes to be able to purchase. 6. Can this product be particularly appropriate for specific roles, such as students or professional women? The clothes offered by Express can be appropriate for specific roles like business professionals. This can range anywhere from someone just entering into the business world who needs a nice outfit for an interview to those already working careers who need day-to-day business wear. 7. Would it be useful to focus on specific adopter categories? With Express clothing, it would be useful to focus on the innovators. With clothing, it is constantly adapting and changing. The innovators are the ones who will be willing to try new styles first, and introduce them to the rest of the public. B. Internal influences 1. Can this product satisfy different needs or motives in different people? What needs are involved? What characterizes individuals with differing motives? The clothing offered by Express can satisfy different needs in different people. One of these needs would include the social desire to look cool. By offering trendy styles and creating a brand image involving attractive models, Express offers a solution to this need. This need can also tie in with wanting to feel accepted into a group. With the younger end of the target demographic this can include social groups at school. With the older end, this can include a group of professionals at a career. The needs will vary with age, mostly. 2. Is this product uniquely suited for particular personality types? Self-concepts? The clothes are suited for people with outgoing personalities. The clothes are dressy, so they are not meant to be worn when hanging out at home. They would be for social situations like parties, clubs, or the workplace.

3 3. What emotions, if any, are affected by the purchase and/or consumption of this product? Some people get a rush of excitement from buying new clothes, and bringing them home to try on. This is one example of a feeling associated with the purchase of the products. Others may include a boost of self-confidence, satisfaction, and/or a need to socialize. There also may be feelings of regret associated with the purchase, like buyer s remorse after a consumer realizes that they spent too much. 4. Is this product uniquely suited for one or more distinct lifestyles? As previously mentioned, this product is suited for outgoing, social individuals or those with a professional career. 5. Do different groups have different attitudes about an ideal version of our product? The individuals that don t regularly shop at Express probably would most complain about the prices being too high. Their ideal vision would be to see the clothes become more reasonably priced. However, for the customers who regularly shop at the store see the clothes as a luxury item, which is enhanced by the price. C. Situational influences 1. Can this product be appropriate for specific types of situations instead of (or in addition to) specific types of people? The clothes are most appropriate for social situations where the wearer is with a group of people. The product is intended to enhance the look of the wearer, and create an impression. D. Decision process influences 1. Do different individuals use different evaluative criteria in selecting the product? Some individuals may decide that price is the most important evaluative criteria to them when purchasing. Others may decide that appearance is more important than price. Usually, price tends to be more important to the older demographic, while appearance is more of a concern to the younger crowd. 2. Do potential customers differ in their loyalty to existing products/brands? Potential customers may differ in their loyalty to existing brands like JC Penny, or other department stores. These types of stores offer dress clothing at a more reasonable price, but they usually have smaller selections or don t have the latest styles.

4 Product Position A. Internal influences 1. What is the general schematic memory structure for this product category in each market segment? A schema that one might have for buying clothes from Express would include fashionable, upper-end prices, proud, confidence boost, quality products, and status. B. Decision process influences 1. Which evaluation criteria are used in the purchase decision? Which decisions rules and importance weights are used? Since high-priced clothing is viewed as a luxury item for most people, there are probably a few things used as evaluation criteria. These could include emotions, feelings, moods, and the situation. Usually, when people buy expensive clothes, it is not out of necessity, so no major decision process would be involved. Pricing A. External influences 1. Does the segment hold any values relating to any aspect of pricing, such as the use of credit or conspicuous consumption? The values are probably a lot more relaxed than other segments. The particular consumer group that shops at Express probably holds appearance over price. Therefore, in order to buy the clothes they want that will enable an enhanced appearance, they will be willing to use credit cards for purchase. Express caters to this buy offering a credit card to their patrons. 2. Does the segment have sufficient income, after covering living expenses, to afford the product? Usually, the segment has the income needed to buy the clothes. If they didn t, they would probably shop somewhere else. However, that is not always the case as witnessed with the growth of credit card owners.

5 3. Is it necessary to lower price to obtain a sufficient relative advantage to ensure diffusion? Will temporary price reductions induce product trail? Perhaps Express would gain a small amount of diffusion to the rest of the public if their prices were lowered, but I think that they would lose profit in the long-run. They are maintaining a product image of high quality, high class. I think that this would be lost if they lowered their prices. Maybe a very slight price reduction on certain items would cause product trail, especially if it was on items that would make up an outfit (shirt, pants, accessory). 4. Who in the household evaluates the price of the product? The shopper themselves or, if they are not old enough to buy themselves, their parent would. B. Internal influences 1. Will price be perceived as an indicator of status? Yes, definitely. When it comes to luxury items like clothing, the price is definitely seen as an indicator of status. Often, there is an association between high price and high quality. 2. Is economy in purchasing this type of product relevant to the lifestyles of the segment? I would say economy is relevant to the lifestyles of the consumers because of the price factor of the clothing. Many of the consumers that are buying using credit or saving up to buy may think twice before purchasing if the economy is slow. 3. Is price an important aspect of the segment's attitude toward the brands in the product category? Yes, it gives an impression of status and high quality. 4. What is the segment's perception of a fair or reasonable price for this product? I think that it depends on the article of clothing. For shirts, it can range from $ For pants, it can range from $ C. Situational influences 1. Does the role of price vary with the type of situation? If clothes are being bought for a more important event (job interview), price would probably play less of a role because the shopper has an idea of how they want to present

6 themselves. If they find something that fits well, looks nice, and conveys their personality, they will be willing to spend the amount listed. D. Decision process factors 1. Can a low price be used to trigger problem recognition? I think that if Express were to suddenly switch their prices lower, it would raise some questions and concerns amongst its clientele. 2. Are consumers likely to respond to in-store reductions? In order to balance out their higher-end prices, Express runs a very active coupon promotion. If you own an Express credit card, or have provided your address at the register at POS, they regularly mail out coupons. They also send them on special events like birthdays. I think these are very effective because there are a lot of Express shoppers that are brand loyal, but would like a price reduction. Distribution Strategy A. External influences 1. What values do the segments have that relate to distribution? Easily available, close location, mall location. 2. Do the male and female members of the segments have differing requirements of the distribution system? Do working couples, single individuals, or single parents within the segment have unique needs relating to product distribution? I think that male and female members have similar distribution needs. As for single individuals, I don t think they would have as many distribution needs as a single parent. The single parent would need a lot of ease in the distribution since they would have less time to shop. 3. Can the distribution system capitalize on reference groups by serving as a means for individuals with common interests to get together? This is definitely an opportunity as teens and young adults usually prefer to hang out in groups of similar people. 4. Is the product complex such that a high-service channel is required to ensure its diffusion?

7 No, the clothes are simple and have been around as a product for a long time. B. Internal influences 1. Will the selected outlets be perceived in a manner that enhances the desired product position? I think the mall setting will help to drive greater traffic to the store, and also increase the average number of people shopping in groups. D. Decision process influences 1. What outlets are in the segment's evoked set? Will consumers in this segment seek information in this type of outlet? The types of outlets are probably malls and brick-and-mortar locations. Since a lot of the clientele are of a younger demographic, this would also include e-tailing. Yes, they would seek out information. Promotion Strategy A. External influences 1. What values does the segment hold that can be used in communications? Which should be avoided? Today s younger (and older) demographic is all about speed and ease, especially when it comes to shopping and spending money. Express should avoid anything that could be considered un-trendy or mature. 2. What is the nonverbal communication system of each segment? The nonverbals are communicated through various advertisements like coupon mailers and in-store ads. These ads contain young, attractive models wearing Express clothes which help to reinforce the idea that the clothes are for trendy, good-looking people. 3. How, if at all, can we use reference groups in our advertisements? Continue marketing to the younger age demographic by staying current with the latest trends like social media. 4. Can we reach and influence opinion leaders?

8 Yes, by implementing a thorough promotional mix that reaches a wide audience. 5. Who in the household should receive what types of information concerning the product? The coupon mailers get sent to those who are members of the credit card. Primarily, it goes to the shopper. B. Internal Influences 1. Have we structured our promotional campaign such that each segment will be exposed to it, attend to it, and interpret it in the manner we desire? I think the campaign is thorough. The mailers are the best way to reach out to consumers, and also bring them into the store with the coupons. 2. Do our messages relate to the purchase motives help by the segment? Do they help reduce motivational conflict if necessary? Yes, many of the younger demographic may be concerned about the price level of the store. That is why the coupons are sent out to ease most or all of those concerns about spending too much. 3. Are we considering the emotional implications of the ad and/or the use of the product? The emotional implications include the need to feel included and the desire to look good. Neither of these induce negative emotions. 4. Is the lifestyle portrayed in our advertisements consistent with the desired lifestyle of the selected segments? Not 100%, but it is close. The older demographic might be a bit turned off that all of the advertisements contain models younger than 30, but this might also be a motivating factor for them to want to look younger through the clothes. C. Situational influences 1. Does our campaign illustrate the full range of appropriate usage situations for the product? Yes, the mailers that get sent out are multi-fold. They contain several different pictures of the models wearing the clothes in different social situations. This translates well to the younger demographic. D. Decision process influences

9 1. Will problem recognition occur naturally, or must it be activated by advertising? Should generic or selective problem recognition be generated? The majority of the problem recognition will occur naturally. Most people decide they need new clothes based on a look inside their closet, or measuring themselves against what others are wearing. A small majority can also be activated by advertising, like the clothes and ads in the store windows that catch shoppers attention. 2. Will the segment seek out or attend to information on the product prior to problem recognition, or must we reach them when they are not seeking our information? Can we use low-involvement learning processes effectively? What information sources are used? The segment will probably seek out information on the product prior to problem recognition. They will realize that they need new clothes, go to the mall, and experience store contact. Information sources can be online, advertisements in magazines/paper, and word-of-mouth. 3. After problem recognition, will the segment seek out information on the product/brand, or will we need to intervene in the purchase decision process? If they do seek information, what sources do they use? Yes, they will feel the need to select a store that reflects the type of image they want to portray with their clothing. They probably mostly use online sources or word-of-mouth. 4. What types of information are used to make a decision? Cost, appearance of the clothes, word-of-mouth referrals, and quality of the clothing. 5. How much and what types of information are required at the point of purchase? There shouldn t be too much the main bits of information should be things like return policies, payment options, and the like. 6. Is postpurchase dissonance likely? Can we reduce it through our promotional campaign? It is likely considering the price range of the clothes is higher, and the coupons may entice the consumer to spend more than they were intending. The only way it could be reduced through the promotional campaign would be to reinforce the fact that the price is worth the benefits. 7. Are the expectations generated by our promotional campaign consistent with the product's performance? Yes, the clothes are high-quality and durable.

10 8. Are our messages designed to encourage repeat purchases, brand loyal purchases, or neither? They are designed to encourage brand loyalty. The credit card is one way that this is achieved because it can come across as being part of the Express club. The exclusivity of the brand also helps to encourage loyalty. Product A. External influences 1. Is the product designed appropriately for all members of the segment under consideration, including males, females, and various age groups? With the selection of clothes, it is appropriate for both genders. Some older age groups may feel excluded due to the youthful look of the clothing. 2. If the product is an innovation, does it have the required relative advantage and lack of complexity to diffuse rapidly? No, clothes are not an innovation. 3. Is the product designed to meet the varying needs of different household member? It is only designed to meet the needs of the purchaser/wearer of the clothing. B. Internal influences 1. Will the product satisfy the key purchase motives of the segment? It depends. Most likely, yes. The clothes are quality and stylish, which helps to reinforce the need to look better. 2. Is the product consistent with the segment's attitude toward an ideal product? Yes, most of the younger demographic may perceive higher price to equal higher quality. This is true in the case of the clothes Express sells. C. Situational influences 1. Is the product appropriate for the various potential usage situations? The product only has one usage situation, and that is wearing it.

11 D. Decision process factors 1. Does the product/brand perform better than the alternatives on the key set of evaluative criteria used by this segment? The quality of the clothing is higher or equal to most of the mid-level clothing in the market.