Analysis of the Consumer Purchasing Process - Example

Introduction The objective of this assignment is to gain a thorough knowledge of the retail operations of Gap, Old Navy, and Banana Republic stores. I will analyze the online stores and the physical stores of all three in terms of their retail elements, retail types, and target markets. In addition, I will analyze the consumer purchasing process for customers buying an item of clothing or an accessory from one of these stores. I will first describe each of the six elements of the retail mix of the stores and then will compare them among the three stores. Finally, I will analyze the difference between the retail elements in the physical stores and how they are presented through the stores’ websites. Retail Elements Merchandise Assortment: Merchandise is effectively displayed throughout Banana Republic stores, projecting an image of selective and trendy fashions with a touch of elegance. Whether it is in the store or on the website, the manner in which the clothes are displayed says much about the type of customers that the retailer wishes to attract. By contrast, at Old Navy the merchandise is displayed in a manner that appeals to those looking for trendy, casual, yet reasonably-priced clothes. There is a high level of focus on teenagers and pre-teens and to a lesser extent younger children in the particular clothing and items sold at Old Navy, a trend not followed at a Banana Republic store. The product mix at Gap is similar to Old Navy in terms of appeal to a broader range of age groups and having a high level of focus on teenage wear, but at a more upscale level. Price: In terms of price, the Banana Republic website and the physical stores make no secret about the higher price-range of the clothes that they sell. Gap is similarly positioned in terms of price, but differs from Banana Republic in having a slightly broader product range. In comparison to both Banana Republic and Gap, Old Navy projects an image of having appealing and fashionable items that are reasonably-priced. Communication Mix: All three retailers communicate a consistent image through both their stores and their websites. A customer browsing either a website or a physical location would not notice any difference in the overall characteristics presented. All three retailers also use the websites and the stores to attract customers to each other; the websites invite customers to visit the stores, while prominent in-store advertising invites customers to visit the websites. Store Design and Display: The store design and display of Banana Republic suggested a fashionable elegance. Old Navy, on the other hand, applies a very casual, almost warehouse-like style to the display of the merchandise. Gap was not as elegant and impressive as Banana Republic, but it was still of a higher level than Old Navy. Customer Service: The level of customer service in each of the three stores mirrors the display of the merchandise. Banana Republic employees provide a high level of personalized service, whereas the atmosphere in an Old Navy store, while still very friendly and helpful, is more casual and less personalized. Gap seems to aim for a broader customer base and is more focused on family shopping rather than individual shopping, but is less informal than Old Navy in its manner of handling customer service. Location: In terms of location, Banana Republic stores can be found only in high-end malls, like the Metrotown Mall, Pacific Centre and Oakridge Centre in Vancouver. Old Navy stores can be found across a broader spectrum, but in general are more likely to be placed in mid- to lower-range centers. Gap stores can be found both in the high-end and mid-range malls. Differences in the Retail Mix among the Three Stores: In broad terms, the three stores represent a high-, middle-, and low-range of retail mixes. Banana Republic represents the upper end with higher-priced items more appealing to individual shoppers, while Old Navy’s retail mix is more cost-conscious. Gap stores fall somewhere in the middle, with a slight tilt to the upper side; their items tend to be upscale, but moderated to some extent by their appeal to family shoppers. Difference Between the Online and Physical Store Retail Mixes: Essentially, most features found on the websites were also found in the physical stores. The elements in the retail mix were presented similarly on all their websites with no significant differences in the information or products found online or on location. In order to draw conclusions about the differences or similarities in the three stores’ retail mixes, the websites were visited first and then compared with impressions gained from visiting actual store locations. The differences and similarities noted from comparing the websites were confirmed by store visits, which in each case gave an impression of the store that closely matched the impression given by the store’s website. Categorizing Banana Republic, Gap, and Old Navy as Different Types of Retailers Banana Republic can be considered as a high-quality service retailer, whereas Gap and Old Navy can be considered as a one-stop shop retailers. Additionally, Gap can also be classified as a convenience retailer while Old Navy can also be called a price-focused retailer. Rationale for Classifying each Chain: Banana Republic: This is classified as a high-quality service retailer because it has all the hallmarks of a high- and good-quality service retailer. When a shopper enters a Banana Republic store, he or she is presented with a feeling of elegance in the manner in which the goods are displayed and the above-average pricing of the products. The quality of the products is excellent, but they are also quite expensive. The store provides a large, but still very selective choice of merchandise. The service is outstanding, similar to service provided in other high-end retail stores, and the retail associates are well-dressed and project the image of the store. Banana Republic stores can only be found in high-end malls and outlets, unlike Old Navy stores, which can be found in more low-end outlets. The Gap: It is classified as a one-stop shop retailer because it sells adult, children’s, and toddlers’ clothes, and accessories all in one store. All Gap stores have male and female lines of clothes. Furthermore, they have Gap children’s and baby clothing in the same store as well. Moreover, Gap also doubles as a convenience retailer since it does not focus on price, nor does it focus on service like Banana Republic does. Rather, Gap focuses more on being a convenience retailer by offering the customer multiple locations and better accessibility. Thus, Gap can be classified into two groups: a one-stop retailer and a convenience retailer. Old Navy: Old Navy provides a wide selection of male, female, adult, children’s, and baby clothes in one store. However, unlike Banana Republic, the clothes are not expensive; rather, they appeal to price-conscious shoppers. Employees do not pay attention to service to the degree that Banana Republic employees do, nor do they pay as much attention to convenience in the manner the Gap does. Therefore, Old Navy could be classified as both a one-stop retailer and a price-focused retailer. Target Markets: Banana Republic: In the case of Banana Republic, the selective line of clothing, high levels of customer service, and high prices make it easy to understand the target market. The target markets of Banana Republic’s clothes were individuals with a particular choice. Looking at the clothes that are offered at Banana Republic, it is apparent that the clothes cater to specific needs and particular tastes of a certain group of individuals. Most of clothes were expensive, very fashionable and of high quality. They also give the wearer the appearance of high-class charm. After taking all of the above aspects into consideration, the target market for the Banana Republic clothes appeared to be trendy and fashion-conscious individuals between the ages of 18 and 35, with a medium- to high-level of disposable income, and who look for elegance and quality in their clothing. These individuals usually shop in the up-market malls where the Banana Republic stores are located and tend to buy these clothes for their formal meetings or for work. Old Navy: In contrast, individuals targeted by Old Navy are those who simultaneously look at comfort and price; customers who like to wear trendy clothes, but are looking for reasonably-priced trendy clothes. Many families shop at Old Navy for these particular reasons. The clothes are not expensive compared to those of Banana Republic or Gap. In addition, consumers can obtain clothes for the whole family in one particular store. Old Navy’s target market is individuals who look for a reasonable bargain, rather than for high priced clothes. In addition, Old Navy has a variety of different clothing sizes for men and women. Banana Republic, Gap stores, and their online stores have limited size clothes, so some consumers cannot purchase their favourite clothes due to the limited size selection. Unlike Banana Republic and Gap, Old Navy has men’s and women’s plus sizes. Old Navy offers more plus size clothing through their online sites for a reasonable price. Hence consumers who wear plus size clothes can buy clothes more conveniently though Old Navy online stores and physical stores. Gap: Gap stores tend to attract or target customers who have middle- to high-end disposable incomes. Clothes sold by Gap are generally more expensive than those that are sold by Old Navy, but cheaper than those sold by Banana Republic. Unlike Banana Republic, Gap attracts families and not just single individuals. The clothing needs of the entire family can be met at Gap, but at a higher price than at Old Navy. In addition, the websites for all these retailers were designed in such a manner that they would attract and retain customers from the targeted demographic group. The websites were also designed with the same philosophy as the stores. They attracted the attention of the customers and gave an idea of the price range and selection available from the very beginning. Consumer Decision Process: My purchase of a dress for my infant niece serves as a good example of the five-step consumer decision-making process. First was recognition of need, in this case, a dress for a baby girl. Second, I needed to search for information on products that could satisfy that need. The label that immediately came to mind was Baby Gap, which has trendy clothes with middle- to high- range pricing. Before I went to a Baby Gap store, which of course would have been one way to search for information, I first visited a Baby Gap website to research a dress for my niece. It was hard to decide online and I wanted to see the actual colour and texture of the clothes, so I decided to visit Baby Gap. That also gave me the opportunity to complete the third step in the process, considering alternative selections, which I did by comparing clothes from Baby Gap to those available at Baby Roots and Gymboree. The fourth step was making a decision on buying the product. The Baby Roots store did not have anything in particular that attracted my attention. Gymboree has a variety of different styles of clothes for babies in a range of prices, but the size of baby clothing seemed slightly different from Baby Gap and Gymboree. Upon my visiting Baby Gap, a display of a baby girl mannequin dressed in baby girl clothing caught my immediate attention. When I looked at the dress, the texture was very soft and the colour was very nice, so it was not difficult to make a decision to purchase the dress. And finally, the fifth and final step was to review my purchase to determine if my original need was satisfied. I felt I had received good value for the price, and my gift to my niece was appreciated and well-received. Therefore, it was a successful process. Conclusion Banana Republic, Gap, and Old Navy have different methods of attracting and retaining customers and serve different segments of the retail clothing market. Even so, their approach is similar in that they all maintain their own carefully consistent mix of products, and present the same impression of their stores whether it is through a website or an actual visit. Even in a situation such as mine where the information about a particular item of clothing I was seeking was not sufficient through just a website visit, their approach was consistent enough that my expectations of the store were still met, even after comparing it with competing alternatives. References Banana Republic. (2008, September 30). Retrieved October 15, 2008 from http://www.bananarepublic.com/customerService/info.do?cid=6740&mlink=5001,429025,1&clink=429025 Gap. (2008, September 30). Retrieved October 15, 2008 from http://www.gap.com/customerService/info.do?cid=7843&mlink=5058,947446,7&clink=947446 Gap Inc. (2008). Retrieved October 17, 2008 from http://gapinc.com/public/OurBrands/brands.shtml Old Navy. (2008, September 30) Retrieved October 15, 2008 from http://www.oldnavy.com/browse/home.do?ssiteID=GAP Read More