Jewellery Buying Decision Making Process - Essay Example

Jewellery buying decision making process "Jewellery is the ultimate luxury and today's jewellery shopper is driven by an experiential passion that goes far beyond the item's features and benefits -- They buy jewellery based upon emotion, not reason," so reports a market research firm based in Ireland. According to Jewellery Consumer Opinion Council, women are not waiting for the men in their lives to buy them diamonds. Of the nearly 90 percent of female respondents who say they own diamond jewellery, almost 70 percent have purchased it for themselves in the past (up five percent over the same September 2004 JCOC study), and more than 80 percent are willing to buy more for themselves in the future. Of those self-purchases, nearly 20 percent would likely buy diamond stud earrings, right-hand rings and other diamond fashion rings for themselves. Jewellery purchase is primarily by women and most of them are self-purchased and this makes the women a prime target segment required to be convinced to make the purchase. This has served as an eye-opener for the industry that sidelined women in their target advertising. The power of the female consumer has changed the way many companies are branding and positioning their products in the marketplace. Recognising the purchasing power of women has changed consumer marketing into a revolution that even traditionally male consumers in areas such as financial services, home improvement and automotive are wooing women buyers. In order to reach their target segment, companies are starting to seriously examine the lifestyles of women and come up with solutions that cater to their desires and needs. Today, it's all about individualism and personal style, wearing what works for you. It's an attitude of casualness, instead of looking too polished or too studied. Women do cater their cultural originalities and like subtle deviations from it rather than complete diversifications. Similarly, a trend is set and becomes popular and those designs and specifications reign until something else becomes the norm and the whole cyclic process is repeated. Jewellery trade is all about catering to current demands and trends, vintage designs come and go in seasons and demands are cyclical and move with the times. Jewellery purchase is a very personal decision by an individual consumer. The consumers may be of three buying types. The Impulsive Buyer who purchases products quickly, often the purchase is not premeditated and there is little or no analysis involved. Impulsive purchases are generally lower in value compared to premeditated ones. The easiest way to conclude them will be to make available products where they visually catch the eye. Point-of-service displays that attract the eye, instant discounts, sale prices and mass advertising often help in the sale of these products. This is probably attuned to the less-than-J500 impulsive shopper for whom it is an on-the-spot decision to make a purchase and does not involve too much analysis. The Patient Buyer purchases the product after some comparisons and has put in some thought to the purchase. Analytical Buyers do substantial research before buying and the purchase is definitely premeditated. The shopping done may be Utilitarian, meaning with a purpose or Hedonic, for just fun purposes. In the case of jewellery, the patient and analytical buyers who are mostly by women, mostly for self and, a good percentage of them end in high-end sales. This makes it important for the jewellery shops to lure the women into making purchases at their store by using the right marketing gimmick. The major process in decision-making would primarily begin with need identification. This may be a genuine demand for a special occasion like weddings etc, or a simple need for indulgence, a gift or a simply an impulsive buy. This may vary depending on age, ethnicity, education, and purchasing power and price of the product. It could also be influenced by word-of mouth, by friends and family, by the advertising campaigns, branding, social or economical factors and by psychological factors. Once the need is created, then the search for information begins. What to be bought and where the purchase is to be made are pondered upon. At this juncture, known persons may recommend a shop, a sale sign or incentive for the sale may catch the eye offering the consumer various choices to arrive at a decision. Having a number of options causes an evaluation process, which may lead to a need for negotiation and selection. A critical issue for retailers is how consumers select the venue where they purchase a product. Research indicates that consumers evaluate such attributes as the store's distance from their home, brands carried, service, placement of stores within the mall and the types of stores placed in the mall, aesthetics, and more. In addition, the types of stores available, the number of stores available, and the presence or absence of alternative purchase options influence the choice process. When there are stores in the immediate vicinity competing within the same industry, the choice is more crucial and often the decision is made by the consumer to visit a particular retailer or jewellery shop to cinch the deal. Once the venue is chosen, the need now culminates into a purchase, and the product delivery is made. Customer service and post sales service are often evaluated and this information is often considered when a repeat purchase by a consumer needs to be made or when a recommendation is given to another person. Therefore, sales do not necessarily stop after product delivery. Maintaining a good relationship with the customer with often pays off in building brand loyalty. The buying process is a complex one, initiated by the initiator who suggests the product or service, the influencer who's preference carries some weight in the process, the decider who has the final say in the what and where to buy, the buyer who makes the actual purchase and the user who consumes it. The higher priced sale will target the moneyed customer and the key requisites that a store can look at in enticing customers to conclude a sale may be described as follows. Price is a key factor. When prices are competitive, customers look at the store as a prime contender and these continue to be in the fray. At the same time, due to the myriad competitor options available, building up the brand value so that the customers see a perceived value in the product and are ready to pay a little more in the store if necessary will be a key factor, Therefore appropriate pricing coupled with a perceived value by the customer is important. Offering credit and rotational credit makes paying for the expensive item easier and makes owning jewellery more easy and appealing. Quality is key. If the customer needs to make a repeat purchase, quality cannot be compromised upon. Ability to move with the times and respond to market needs unerringly. Jewellery is all about feeling good and looking good and therefore needs to be tailored to the current individual needs. Good design and originality are essential, and timeless classic pieces do not lose their appeal and will bring consumers again and again. Brand names inevitably draw the knowledgeable and affluent crowd. Aesthetic dcor of the store adds an advantage in promoting stature and increasing the esteem in point of purchase. The last but most important requisite is advertising. This cannot be emphasized enough. One of the key factors in establishing a brand is first having an adequate advertising budget. Visibility is the key. The customer needs to know that there is a venue where his jewellery needs will be met. Therefore, firms will need to be able to effectively promote their image and reinforce their position. Aggressive print and electronic marketing appealing to feminine values need to be incorporated. Promotions and sale prices that proclaim prestigious ownership and high visibility celebrities' endorsements will be an asset. Overall ability to promote competitive pricing with abundant choice and impeccable service will attract consumers to their stores. Sources Jewellery Consumer Opinion Council: Consumers Don't Care About Brands - July.2005 The Diamond Registry Accessed 31 Jan 2006 from website http://www.diamondregistry.com/News/2005/jewelry.htm Yonick, Debbie Be Your Own Stylemaker Jewellery Consumer Opinion Council Accessed on 31 Jan 2006 from website http://jcoc.net/reviews/article_detail.phpid=35 Internet Consumers and Market Research Kaist management Accessed on 31 Jan 2006 from website http://iis.kaist.ac.kr/KAISTEC/lecture1/MET656-2000-ECweek11.ppt Barletta, Martha Pretty maids all in a row How to translate gender specific insights into Impactful Tactics All about Women Consumers 2002 Accessed on 31 Jan 2006 from website http://72.14.207.104/searchq=cache:zVp9CPj-8NAJ:www.trendsight.com/resources/articles/AA-MB%2520-%2520Pretty%2520Maids%2520-%2520R1.pdf+female+jewellery+buying+decision+processes+key+influences&hl=en&gl=ca&ct=clnk&cd=12 Read More