Concept of Egonomics - Assignment Example

Egonomics of the of the Data Contents Introduction 3 Egonomics: The Concept 3 Consumer Behavior and Egonomics 4 Apparel Industry 5 Conclusion 8 References 9 Introduction Egonomics has been described as one of the 17 marketing trends that have been driving business in the contemporary era. Egonomics captures the need of the consumer for the purpose of ego satisfaction and customization of needs. In other words, it implies that organizations must develop their products in a customized manner that can help in satisfaction of ego of the consumers. Marketers have observed that social, political, economic, technological forces are the factors that can significantly influence the attitude, beliefs and views of customers. This implies that the impact of culture on shaping the attitude of the consumer is profound. The concept of egonomics arose in the computerized era where the concept had become synonymous to that of providing greater importance to the customer personally. The importance of egonomics is slowly being recognized by researchers with the growing importance of ego as an intangible factor in the bottom line of the profit and loss statement of a company. The purpose of this paper is to explore the concept of egonomics in details and to explore the reasons for which it has become a driving trend in the business practices in the era of globalization. This paper uses the market of luxury goods as a whole that contains items like bags, jewellery, clothes, fragrances and shoes and examines the concept of egonomics as a marketing trend. Egonomics: The Concept The concept of egonomics has come from the Latin word ego which means “I myself”. In a broader sense, egonomics has often been combined with other marketing trends like cocooning and cashing out. This concept is related to produce a connection with the customers in a way that differentiates them, and places an additional value to them. The concept of egonomics had infiltrated the popular culture in the works of Faith Popcorn. The evolving marketing trends in the American society and their corresponding communication strategy to engage with the customers were first published in The Popcorn Report (1991 cited in Flint, Woodruff & Gardial, 1997). The research conducted by Boyd, Haller & Kresch (1983) had shown that, consumer trends have heavily influenced the aspects of strategic planning of the corporate. Their research had also concluded that consumer trends are important forces that shape the marketing environment and management should use these trends as a strategic tool for shaping the long-term strategies. The initial Popcorn Report had identified ten trends and egonomics had featured as one of the trends in the report. The idea of the egonomics is deep rooted in the theory of consumer behavior. It identifies the fact that, consumers have the urge to be acknowledged as individuals who are constantly trying to establish their own unique identity (Irmak, Vallen & Sen, 2010). In this regard, they keep on searching products that can satisfy their own personal needs. An important discovery in indentifying trend of consumer behavior is that, consumer trends cannot be changed by the marketers, but they can only be observed. This means that, marketers have no power whatsoever to change the marketing trends but can take actions based on these trends. The book of Popcorn and Marigold (1996 cited in Kokko & Moilanen, 1997) had also revealed that egonomics has emerged in the era of information technology when personal connections with customers have almost become redundant. Consumer Behavior and Egonomics In the recent era of marketing it has been observed that, consumers are often guided by uniqueness in their choice of products. Consumers want to be unique and develop their own social-image and self-image which clearly distinguishes them in the public sphere. This implies that, a customer wants to engage himself in the product design, product development and customization of the service. The research conducted by Belk (1989) had focused on the possessions of a consumer to determine the overall consumer behavior. The findings of the research had suggested that possession of a consumer is nothing but the mere reflection of his own extended self. It means a consumer can be defined by what he possesses. The extended self is not only a micro concept but can be spanned over family, sub-cultural, group and national identities. The research had also identified that, marketers must be aware of this attribute of the consumer. The Popcorn Report (1991 cited in Flint, Woodruff & Gardial, 1997) can be treated as an extension of this trend where individuals show a trend to purchase a product that is extension of his or her own self or in other words it expresses his own self. The theory of Maslow can also be considered to be one that had pointed out that consumer often purchase products to satisfy a hierarchy of needs that ranges from basic needs to the satisfaction of ego and self (Solomon, 2007). According to the theory of consumer behavior, it has been observed that in case of luxury goods consumer makes purchases based on the idea of satisfaction of one’s own ego. The importance of social factors and personal factors has dominated the traditional theories of consumer behavior. It has been noticed by multiple researchers that social factors that guide the consumption of luxury products include approval and opinion of others, desired to be included in the elite social circles and a desire to uplift the social status. Personal factors that guide consumer behavior include the desire to be perfectionism and situational conditions. The consumer behavior theory has often stated that consumers are driven by emotional rather than functional needs (Wiedmann, Hennigs & Siebels, 2007). This means that consumers have a desire to be unique in terms of the products that they purchase and this is often guided by the theories of extended self and perceived hedonism. The issue of catering to the needs of the customers and providing them special attention to make them feel valued has dominated the marketing literature off late. In this new era of marketing, the focus of the researcher has shifted from mass markets or mass segments to that of serving the customers individually. The marketers now have to determine whether to serve the customers directly or via third parties. However, there is a need to differentiate the process of one-to-one and relationship marketing from the concept of customer centric marketing. This is because, in case of one-to-one marketing the focus is on the product itself and the aim is to modify the product (Gilmore and Pine, 1997). The works of Popcorn and Marigold had shown that, egonomics have been observed in case of a number of consumer market products like the buying specific bicycle, watching particular television channels, customized home décor and apparels to name a few. The research conducted by other researchers like Kotler and Armstrong (2005) had also shown that materialistic behavior of consumer is also being increasingly replaced by traditional behavior. Apparel Industry The apparel industry is now being largely guided by the trend of custom made products. This trend was absent previously but now it is being increasingly followed by companies. In an article published by Forbes magazine it was reported that, ordering custom made products was initially an attribute that could be only observed for high-end customers. Affluent customers had the power and the resources to purchase products that were especially custom-made for them. However, the growth of technology in the recent era has made custom-made products a reality for the mass market. Technological advancements have made the process of customizing products an economical enterprise that allows companies to use sizing algorithms. The growth of online retailing has also made the process of online ordering of customized clothes an easier aspect. A new trend has evolved in the apparel industry that goes by the name of mass customization (BDC Study, 2013). Mass customization is somewhat of a cross between mass production and customization. Researchers have described the concept of mass customization as the production of individually customized products for the mass markets. Mass production is economically beneficial for not only the manufacturer but also the consumer. The changing trends in the consumer market coupled with the advancement of technology like computer-aided design, computer-integrated manufacturing and flexible manufacturing system have revolutionized the apparel industry (Srivastava & Gupta, 2012). It has been observed that the proportion of made-to-order clothing has considerably increased in the last fifteen years and it has begun to appeal customers from all age groups. The trend has become extremely common in not only solo operations, but also for multinational corporations. It has become extremely important for manufacturers to go beyond the product offerings presented through the brick and mortar framework to find new ways in product development. The growth of the made to order trend have increased considerably in the past decade and there is an increasing willingness among customers to pay a slightly higher price for the customized product (Jacobs, 2013). In case of the apparel industry it has been found that, customers are becoming more conscious about the products they are purchasing. Customers are increasingly looking for options that provide them custom-made solutions to the problems and are engaging themselves more in the aspect of product creation. Companies are extending product lines to suit the preferences of the consumers. These trends reveal that the idea that was propagated by The Popcorn Report (1991 cited in Flint, Woodruff & Gardial, 1997) is actually relevant and much of this behavior can be linked back to the attitude of expressing one’s individual self in product purchase. It implies that, consumers are willing to satisfy their ego through the purchase of products. Much of the empowerment of the consumers can be linked to the rise of the power of internet. It is now being increasingly observed that consumers are using internet not only as a tool for making purchase but also as a tool for engaging in the product development. Research work on the fashion industry has revealed that customers are integrating technology to link the process of selection of products, studying promotional trends and obtaining customer services. Use of body scanners has become very popular among the fashion retailers as they have the ability to provide customized apparel to the consumers (BDC Study, 2013). Uses of body metrics account online have resulted in many customers obtaining advanced service from the retailers. Examples of fashion brands using the system of customized cloth making have become abundant. For instance, the service provided by companies like Indochino, Black Lapel and Tailor store are all centered on providing custom fitted clothes to the consumers and provides a host of services that cannot be provided by the brick and mortar stores. These examples clearly indicate that the consumers have a great deal of ego when it comes to purchase of clothes (Jacobs, 2013). It has been found that ego needs of consumers are both inwardly directed and outwardly directed. The inward oriented ego needs of the consumers is related to needs like self-esteem, self-acceptance, independence, success and personal satisfaction obtained from doing a particular activity. Outwardly, oriented ego needs of the consumers are driven by needs like the needs of prestige, recognition, reputation and status. It has particularly been observed that in case of clothing and other luxury products, consumers are unlikely to make any purchase if they feel that the product does not describe their personality (Irmak, Vallen & Sen, 2010). The growth of the fashion labels in the clothing industry shows evidence that each of the brands is thriving by catering to the needs of individual customers. Consumer behavior is a direct link with the self-aspect of the consumer. Every consumer has a particular way in which he/she sees him/ her and constantly works hard to protect this image. Valuing their possessions is directly related to the ego needs that the consumers have. The process of choosing clothes by a customer is a rather complex process that is directly regulated by the need of the customer to satisfy his ego. It has to be pointed that purchasing of clothes are not exactly related to spending of large sum of money on designer clothes. The economic slowdown since 2008 following the global financial crisis has hugely impacted the attitude of consumers towards luxury clothing (Brown, 2010). The concept of conscientious consumption has become extremely important in the present times and that of conspicuous consumption has reduced. Consumers have increasingly started to attach value to the moral needs before making a purchase. This means that they are being heavily influenced by the aspect of mind-full consumption. Spending significant amount of money on apparels and jewelry have fallen post recession as consumers have attached whole new meaning to the concept of luxury. Recession has significantly reduced the proportion of money that is being spent on clothes for the American and the European consumers (Brown, 2010). This change can perhaps be reflected in the concept of mass customization that has swept the market for apparels in the recent times. It has become difficult for the consumers to spend too much money on the high-end fashion labels. At the same time, consumers are also driven by the needs of satisfying their ego and be unique. Marketers have therefore realized that, in order to make this trend profitable it has become very important to capitalize on the trend of customized clothes for individual customers by offering them a slightly high price. This validates egonomics as a trend in the consumer market for the apparel industry. Therefore, it can be argued that the concept of mass customization has influenced boutiques owners, export houses, fashion houses and entrepreneurs. Conclusion Over the past two decades there has been a huge change in the consumer markets. Changing trends of the markets have to be closely followed by the marketers in order to remain competitive in the industry. The apparel industry and the role of consumer purchase is a rather complex one. The marketing trend of egonomics is clearly visible in the changes that have taken place in the apparel market. Customers are driven by emotional needs and ego when they purchase clothing items and they have a desire to be unique among others. Therefore, in order to satisfy their personal needs consumers are shying away from the purchase of products aimed for the masses. Marketers have followed these changing needs and they are now trying to focus on customized clothing and this trend is expected to rule the consumer clothing market for the forthcoming future. The advancement of technology has helped in the changes that have occurred in the apparel industry and mass customization has become a profitable business venture for the manufacturers by taking special care about the personal needs of the consumers. From these arguments it can be understood that, egonomics is the new marketing trend that is expected to dominate the apparel market. Recession has also weakened the purchasing power of the people for luxury products and they are now willing to purchase products that are not extravagant. Instead, they want to purchase products that reflect their own personality. It can therefore be concluded that mass customization is catering exactly to these needs. References BDC Study, 2013. Mapping your future growth five game-changing consumer trends. Retrieved from http://www.bdc.ca/Resources%20Manager/study_2013/consumer_trends_BDC_report.pdf. Belk, R. W. (1989). Extended self and extending paradigmatic perspective. Journal of Consumer Research, 129-132. Boyd, H., Haller, T. & Kresch, S. D. (1983). The Impact of Consumer Trends on Corporate Strategy. Journal of Business Strategy, 3(3), 58-63. Brown, M., 2010. Post-recession Marketing: Addressing a new, more mindful consumer. 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