How Upper Classed Brands in John Lewis Are Able to Get Lower Classed Customers to Buy Their Products - Research Paper Example

Upper ed brands in John Lewis are able to get lower ed individuals to buy their products also Contents Contents 2 Introduction 3 Discussion4 Literature Review 4 Methods used for data collection 9 Data Analysis and Interpretation 10 Conclusion 14 References 15 Introduction John Lewis is situated in Westfield shopping centre located in Stratford City. The departmental store basically showcases greatest and latest products in context of electronics, beauty, home and fashion. John Lewis has tried to incorporate best ideas in order to create a memorable and pleasurable shopping experience for customers. The brand has even included personal services and delicious foods for all its customers. Special events are even hosted at this departmental store. There are knowledgeable and helpful partners at John Lewis who ensures that customers leave the premises with products aligned with their needs. John Lewis fashion department can be considered as a store within a departmental store. This is a new approach comprising of brands like Mint Velvet, Damsel, Coast, Miss Selfridge and Whistles. There is even a beauty department located in the store encompassing brands like Benefit, Tom Food and Jo Malone. Menswear section within the store also highlights some well-known brands such as Levi’s, Barbour and Polo Ralph Lauren. There are even some new brands included in this departmental store like Penfield and Eleven Paris. Upper class brands are usually purchased by customers who are brand conscious. There is a link between brand and culture. Societal cultural dimensions play a significant role when it comes to purchase decision. It can be stated that social class, gender and race are key elements during final purchase decision making. Lower class people often do not purchase such high valued items. The reason behind this is it is perceived that such upper class brands are purchased only by upper class market segment. This kind of perception influences all key factors that are involved in buyer decision making process. In this study it shall be analyzed how upper class brands within John Lewis are able to attract customer’s attention belonging to lower income class segment. Discussion Literature Review According to Holt (2004), a brand can be defined as a term, name or a design that distinguishes product or service of one manufacturer from others. Brands are normally utilized in advertising, business and marketing. In accounting terms, brand is an intangible asset which is present within every organization. It is most valuable asset that is outlined in the balance sheet of a company. Brands owners need to effectively manage their brands in order to enhance shareholder value. Brand valuation is an important technique that associates money with a brand. Effective branding often results into high sales volumes of a particular product. A customer who prefers a brand is more likely to choose other products which are offered by the same brand. Brand can be stated as a personality that facilitates identification of a company, product or service. It even encompasses relation with other constituents like customers, partners, investors, staff, etc. Individuals distinguish psychological aspect of a brand from experimental aspect. These aspects are known as brand associations and focuses on perceptions, thoughts, images, feelings, beliefs, experiences and attitudes. On the other hand, the experimental aspect deal with sum of all such points and are referred to as brand experience. It is usually action of a brand which is perceived by an individual. Psychological aspect is closely knitted with brand image and it can be stated as a symbolic construct. This construct is developed within consumers mind encompassing expectations and information related to product, company or service. Team members who are involved in brand management facilitate brand experience through aligning consumer’s expectations. There has to be certain characteristics or qualities that make a brand unique or special (Holt, 2004). As stated by Knapp (2008), brand orientation is another important concept in brand management approach. It is all about orientation of a company towards their brand. Market intelligence can be stated as a supporting pillar for brand orientation. Products or services can be made relevant to particular target audience through appropriate brand management. However brands need to be viewed more than just a difference between selling price and actual product cost. They actually represent all those valuable qualities that a product encompasses for its customers. Brand recognition is a term used for well-known brands. When brand recognition achieves a desirable point in terms of enjoying positive sentiment from critical mass then it is said to establish brand franchise. Brand recognition can be considered as successful when people can easily identify a brand without being exposed to a company’s name. Customers usually view branding as an essential aspect of services or products, as it helps to deliver attractive characteristic and quality. Branded products or services in maximum scenario represent higher prices in market place. When there is more than one product and one of them is not associated with any such brand value then customers are more likely to opt for branded items. This is because branded products are perceived to be of higher quality and denotes respective position within society (Knapp, 2008). Brand name can be described as a trademark that helps to identify a company’s offerings. Relationship between trademark and brand name has been elaborated in figure1. Figure 1: Trademark and brand name (Source: Holt, 2004) As per Klein (2008), culture and brand are strongly related to one another. There are societal constructs which classified individuals on basis of their income level. It can be stated that people who belong to upper class segment prefer to purchase branded products more in comparison to unbranded products. Purchase decision is generally based on culture and other societal dimensions. In overall context, society has been divided into three significant segments such as upper income group, middle income group and lower income group. Upper class segment purchase those products or services that well represent their position in the society. Brand inclination is usually higher in this category and they tend to be more quality conscious. This proves to be an added advantage for all popular brands since they represent high priced items (Klein, 2008). According to Lynn, Kahle and Close (2011), economic stability is correlated with purchasing branded items. Middle income group can be broadly classified into lower middle income group and upper middle class segment. This particular income group is brand conscious but even considers price to be an essential component. Hence company’s targeting this segment needs to focus both on quality and price. Upper middle income group is greatly influenced in context of purchasing brand value rather than products or services. This kind of purchase decision is at times regarded as impulse purchase. Retail store environment or ambience plays a critical role in influencing this customer segment to purchase high end branded products. Consumer behaviour is all about perception, belief, attitude or information present within a consumer that ultimately influences a purchase decision. There are certain key influences on consumer behaviour which directly affects brand recognition or awareness. Figure 2: Influences on and of consumer behaviour (Source; Lynn, Kahle and Close, 2011) The marketing activities are designed by an organization in order to influence customer’s purchase decision making process. There are certain elements which are internal to customers and this affects buying decision. These elements are sensation or perception, affect, beliefs, cognition, social influence, etc (Lynn, Kahle and Close, 2011). As per Foxall (2005), customers take into consideration these elements and then engage into information search, references, communication and evaluation of wide array of product or service choices. Buyer decision process encompasses three major elements such as consumer, lifestyle and experiences. On the other hand, the influencing factors can be further classified into different categories as outlined in figure3. Figure 3: Factors influencing decision making process (Source: Foxall, 2005) According to figure3, psychological elements basically represent motivation, memory, perception, personality, attitudes and beliefs and self-concept. Personal aspect is associated with lifecycle stage and age, economic situation, occupation and education. Social component has a greater influence on selecting branded or unbranded items. This component encompasses three major aspects such as roles and status, reference groups of individuals and household type. Buyer’s response play a significant role in terms of category selection of services or products, brand selection, purchase timing, purchase amount and repurchase intervals. Cultural aspect greatly initiates decision making process of customers. Culture is closely knitted with social class and subculture. Individuals belonging to higher social class are expected to share a common culture. On the other hand, regions also establish a particular culture and it is observed that individuals who belong to a specific region share common culture and beliefs. Environment influences are mainly in the form of technological advancements, political scenario and economical conditions. Companies usually implement a marketing strategy comprising of marketing mix and marketing techniques so as to set a strong brand position in consumer’s mind (Foxall, 2005). The stages of consumer decision making can be stated as problem recognition, information search, alternative evaluation, purchase decision and post purchase evaluation. Identified influential factors majorly affect the stage of information search and alternative evaluation. Methods used for data collection Research methodology is a framework on basis of which the entire research process is conducted. There are two forms of research methods such as qualitative and quantitative research methods. Quantitative research method is implemented in order to collect market data that would be beneficial for the research study. This method helps to gather information about current scenario in context of research problem. There are statistical tools encompassed within this type of study so as to evaluate set of collected data. Qualitative research method is totally based on opinion of experts or theorists. In this form of study there are no statistical tools involved since focus is on interpreting data collected from experts. Researcher’s interpretation skills can be regarded as an important component when it comes to analysing qualitative data. This particular ethnographic study shall be based on qualitative research method. The reason behind this is analysis has to be done on what strategies are adopted by John Lewis in order to influence lower class individuals to purchase upper class brands. In such scenario it is essential to collect data by directly involving into an open discussion with various stakeholders such as staffs, customers, etc. There are two forms of data collection techniques like primary and secondary data collection measures. Secondary data collection technique does not hold much importance in this study because researcher needs to analyze current scenario at John Lewis. Primary data collection method is most appropriate for this particular study. Interviews shall be conducted with customers and staffs of John Lewis. This form of primary data collection technique facilitates acquiring data related to current scenario of the company. Random sampling method would be incorporated in order to conduct the entire interview process. Data Analysis and Interpretation The interview process has been conducted at John Lewis, Stratford City. There are different sections in this departmental store and each of them comprises of branded items. Questions were asked to customers and staffs separately. Four set of questions were asked to customers and another four questions were asked to John Lewis’s staff base. The first question was asked to customers – “have you purchased products from this store unnecessarily or which you do not need currently?” Most of the customers agreed that they have undergone impulse buying at John Levis. One of the interviewee replied –“store ambience and appropriate brand display has facilitated me and my friends to purchase high value luxury items such as electronic and home appliances.” This form of buyer behaviour is often termed as conspicuous consumption. It is mainly observed within individuals who belong to upper class segment. This form of consumption indicates spending money on luxury items so as to highlight economic power. The next question asked to customers was – “why do you prefer branded products when similar features are available in unbranded items?” Customers shopping at John Lewis said they purchase branded and unbranded items. However desirable percentage of customers outlined that a brand encompasses culture or lifestyle of an individual. Their reply was – “branded items focus more on lifestyle of their target market segment. Apart from quality brand deliver uniqueness to customers which cannot be easily imitated.” Post Fordism concept can be efficiently associated with this kind of consumer behaviour. This approach was basically structured by some scholars and it describes consumption, economic system and various socio-economic phenomenons. There are specific attributes describing post-fordism such as economies of scope, small batch production, specialized services or products, advanced technologies, etc. This approach can be related to luxury items or rather branded items. Upper class brands do not only resemble a product or service but it highlights lifestyle of an individual. Hence post-fordism effectively connects the concept of brand with an individual’s culture or lifestyle. Customers who are more inclined towards quality than price opts for products of Polo Ralph Lauren and Levi’s. The next question of interview was – “do you prefer to visit John Lewis more in comparison to other stores?” Majority interviewee’s stated that they prefer to visit John Lewis quite often and this is simply because of wide range of products or brands offered by the store. One of the customers replied – “I prefer to visit this store since it offers wide array of brands and exceptional customer service.” In overall context John Lewis has been able to maintain a wide base of loyal customers. The fourth question was – “do you think brand loyalty plays a critical role in final purchase decision making?” Majority of customers replied – “I am brand conscious and prefer to continue with a single brand if I am highly satisfied with it.” This statement clearly reveals that brand loyal customers perceive it as a risk to switch to some other brand. When switching cost is high customers generally is inclined towards continuing with the same brand. These data collected from customers indicates that majority of shoppers at John Lewis opt for upper class brands. Appropriate ambience is maintained at the departmental store for attracting lower classed individuals to purchase upper class brands. This form of store ambience initiates impulse purchase of high end products. On the other hand, brand represents lifestyle and lower classed individuals purchase such items available at John Lewis in order to transform their lifestyle. The staffs at John Lewis were interviewed on basis of techniques incorporated by the firm to attract lower classed individuals. First question asked to staffs present there at the store was – “is branded products purchased only by upper class segment or even by lower class segment?” Many staffs avoided this question saying that they have not clearly observed buying behaviour of consumers. However some staffs answered this interview question saying – “Lower class individuals also purchase upper class brands due to quality or brand image at the market place.” This outlines that upper class brands are able to establish positive image in consumer’s mind. Perception plays a major role while purchasing any product and this is influencing lower classed individuals to undertake such purchase decision. The next question asked was – “can you distinguish lower class group from upper class group at the store?” Majority of interviewee’s replied – “Many individuals visit John Lewis in groups and they verify more about brands rather than purchasing. To certain extent dressing style of upper and lower income group is highly distinguishable.” Cultural capital is a theoretical framework which denotes this form of consumer buying behaviour. It is observed specifically in lower class segment that they prefer to go for shopping in groups but upper classed individuals are observed to visit stores individually. There is a fear residing in lower classed individual’s mind when it comes to purchasing branded products. The way in which lower income class segment behaves or react is far more different from that upper income class group. Staffs were even interviewed on impulse purchase like – “have you observed shoppers who are not brand conscious opt for a branded item?” Majority of staffs replied a yes to this question. They stated that – “brand logo drives attention of wide array of customers.” Marketing activities play an important role in context of establishing a strong brand image. This perception building in consumer’s mind is responsible for attracting them to a particular brand irrespective of their social class. The last question asked to interviewees was – “do you feel John Lewis has been able to remove societal segregation from its stores?” This question was answered in different manner by all interviewees but some of them possessed similar opinion like – “Yes John Lewis do not encompass any form of societal segregation and is only focused on delivering wide array of brands to all its customers.” Each individual is given a particular label by the society in terms of age, race, gender, social class, etc. This segregation is not followed by branding or brand management activities. The major reason behind this is a brand focuses on creating perception, quality and belief, rather than being aligned with particular customer segment. Upper class brands at John Lewis facilitate developing a perception of value for money in minds of lower classed individuals. These brands highlight that they are providing superior quality items at a significant price higher than unbranded products. It has adopted the strategy of balancing the two components quality and price appropriately. Conclusion As per this analytical study, John Lewis encompasses wide range of upper classed brands within its stores. These brands belong to different segments which highlight basic needs of customers. However it is often observed that lower income class segments do not prefer branded items more in comparison to upper income class group. It is difficult for brands to develop a strong perception in minds of lower income class group for purchasing such products. John Lewis witnesses upper income class group visiting their departments but in recent times these high ended brands has been able to attract lower income classed individuals. The theoretical background encompassed within this study highlights that consumer decision making process is a complex one with wide number of influencing factors. These factors are related to beliefs, attitudes, values, culture, social class, etc. In overall context at some point of undertaking final purchase decision these factors has a significant impact. Culture or lifestyle is strongly associated with brand value. This is the reason behind upper classed individuals purchasing branded items from departmental store. In recent times the upper class brands at John Lewis is focusing more offering value for money to lower classed individuals. Though society usually segregates individuals on basis of many elements but branding activities should be inclined towards addressing hidden demand of customers. References Foxall, G., 2005. Understanding consumer choice. Basingstoke. Palgrave Macmillan. Holt, D. B., 2004. How brands become icons: the principles of cultural branding. Harvard MA: Harvard University Press. Klein, B., 2008. Brand names. Indianapolis: Library of Economics and Liberty. Knapp, D., 2008. The brand promise. New York: McGraw-Hill. Lynn, R., Kahle, A., and Close, G., 2011. Consumer behaviour knowledge for effective sports and event marketing. New York: Routledge. Read More