How Macroeconomic Environment Influence Consumer Decision Making in Clothes Industry - Literature review Example

Consumer Decision Making- External Factors Name: Institution: Date: Introduction The consumer buying behaviour study has emerged as a key marketing concern across global organisations. In this regard, as Ramesh (2009) noted, the process has gained an increased recognition of the fact that it allows for increased sales and market penetration in the highly competitive global market. In this case, marketing functions have developed a special focus and interest on the external factors influencing the consumer buying behaviour. As such, such an analysis plays a crucial role in the determination and development of relevant marketing principles, policies and strategies. This report evaluates the external factors influencing the purchase of clothes (Cant, 2006). With its being a basic need, whose purchase cuts across all the consumer base segments, the analysis evaluates the extent to which reference groups, social class, family, culture and opinion leaders influence the decision making process. In this regard, the analysis evaluates the extent to which the factors influence the consumer decision-making process and how respective marketing organisations can apply the influence to increase and boost their sales to the respective consumer segments. Reference Groups A reference group is classified as a group that consumers in the society perceive as a point of reference. In this case, this could be a group or a club that the respective consumers would like to join or be associated with. While as some of the reference groups have equal membership, others are just affiliations and with no distinctive members (Lamb, 2012). In this case, the need to be associated with a given reference group influences a consumer buying decision model for clothes. As Patil and Bhakkad (2014) noted, clothes designs and style have appealed to different people. Thus, individuals are likely to purchase and shop for clothes designs that are associated with their desired class. For instance, those with a reference group of working out and body building, would be inclined to purchase clothes that emphasize on their body muscles, as well as appearance. The reference group impact on the consumer buying behaviour, encourage the application of the cognitive purchasing model. Under the cognitive model, the buyers focus on the value and psychological satisfaction implications on the clothes rather than focusing on their basic function for warmth. In this case, reference groups influence the information stage in the decision-making process. In this case, the consumers are based on the type and nature of information they search of clothes, as their searches are inclined to evaluate the extent to which such clothes are related to their reference groups (Batra & Kazmi, 2008). Based on this understanding, organisations can influence and apply the reference group concept in their marketing strategies to increase their overall sales quantities. A market survey should be developed to identify the common reference groups that a given consumer segment associates with. Thus, once such a reference group category is identified, organisations can use endorsements as a means of increasing their sales. In this case, the endorsers should be a member the Society ad consumer base perceives as part of the reference group membership. An evaluation of the reference groups implications to the consumers clothes purchasing behaviour is important as it allows organisations add value to their products through not only their functional features, but also the perceived psychological gains for purchasing and owning such clothes sets. Social Class-Economic Model A social class is described as a societal, individual ranking of its members based on their attributes and traits. In this regard, a social class ranking and positioning is influenced by a range of factors such as the individual economic earning and status in the society as well as their lifestyles among others. Consequently, learning sand understanding the social class influences on clothes purchasing decisions is an imperative marketing component for any stakeholder in the clothes industry. In this case, as Kazmi (2007) noted, a social class implicates on the fashion trends in a society. Therefore, while as a society consumer base section would have a higher affinity for new fashion trends, another would have a lower affinity for fashion, and instead focus on the price and economic value of the purchased clothes. Thus, marketing functions would need to establish a consumer base motivation in the buying decision process, so as to develop relevant marketing strategies and initiatives positively influencing their decision-making process. A critical evaluation of the social class impacts on the consumer decision-making process in the clothes industry illustrates that the impact heavily lies at the alternatives evaluation section. In this case, the respective consumer evaluation of the clothes products is based on the fit between the clothes and their social status. Therefore, the evaluation criteria are based on matching a cloth product, its price and market reputation with the individual social class. On one hand, those higher on the social class ladder is reluctant to purchase products perceived to be of a lower social class. As such, organisations should supply such markets with only clothes perceived to meet their class (Noel, 2009). On the contrary, those lower on the social class ladder are more inclined to purchase clothes perceived to be of a higher class so as to enhance their social status development opportunities. Therefore, when marketing to such a consumer base, organisations should focus on highlighting and demonstrating ways through which a given cloth purchases would increase an individual social status. Family Influence A consumer family background plays a crucial role in influencing the type and number of clothes one purchases. In this case, although all would purchase clothes as a basic need, the type, design and quality purchased differs based on an individual family basis. In this case, a concern for the family base influence and background in marketing is especially relevant to the retail clothes sellers. In this case, as Strydom (2004) stated, human beings are social in nature. As such, statistics illustrates that the settling format across the society is based on individual ties that emanated from family backgrounds. Therefore, the concept of family backgrounds, influence individual’s way of life, perceptions and preferences. As such, the family background has a direct implication on an individual’s social status as well as preferred reference group and role models. Therefore, the use of family group evaluation process serves as a crucial tool through which clothes industry; retailers could develop a concrete market review and analysis of reduced costs (Sarangapani, 2009). In this case, an evaluation of the family influence has a direct implication on the other factors influence. With respect to its influence on the decision-making process, the family background factor has an influence on the information search and alternative evaluation stages. In this context, the perceptions influence leads to a bias in the information search process where individuals from different families would have different priorities such as an inclination for the fashion trends and an inclination on the clothes costs respectively. Thus, as Tyagi and Kumar (2004) noted, an evaluation of the customer family background would play a significant role for the retailers as it informs on the type, nature and extent of information to offer to the respective customers. In this context, one of the approaches through which clothes industry, retailers could apply and use this influence to increase sales, would be a strive to stock variety as a means of ensuring the diverse consumer interests considerations. Culture and Subculture Aspects Culture is described as the bundle of beliefs and perceptions that a given society holds. In this case, culture is categorized into both primary and secondary culture values. On one hand, a primary cultural value is one that remains within a society despite the changing environmental and surrounding situations. On the other hand, a secondary culture values as Doole and Lowe (2008), noted, is one that changes depending on the changing society situations and environmental conditions. In this regard, both primary and secondary cultural values implicate on the clothes industry differently. On one hand, the clothes industry can evaluate the society secondary cultural values and based on the values establish the forecasted culture value changes. In this regard, marketing organisations could capitalize on the secondary cultural values change possibility to develop a market niche. In this case, the market niche development would be based on the possibility of a culture change in the future. On the other hand, with respect to a core primary cultural value, the industry would manufacture and supply clothes that aide with the cultural values of a given consumer base. Therefore, this would allow for the production of clothes that meet specific societal needs (Lamb, Hair & McDaniel, 2012). For instance, in the case of the Muslim religion, culture, clothes supplied in this market should be geared towards the religion values and principles. Learning about the values is an imperative tool in that it influences the clothes manufacturing industry as its subsequent distribution across the globe. A critical evaluation of the culture and sub-culture impact on and the consumer buying behaviour and decision-making process in the clothes industry illustrates that it leads to a cognitive decision-making model. In this case, the consumer decision-making process on whether to purchase a product or not is based on the rationality of the product fit into their lifestyles, status and needs. Therefore, in the marketing process, organisations need to understand the priority of issues for each culture. For instance, while as the Asian culture would prioritize on the third party impressions of their clothing, the USA culture preference would be for personal comfort and satisfaction (Pride & Ferrell, 2006). Therefore, this establishes that an understanding of a consumer base culture influences the content and type of marketing practices adopted. Consequently, this has a direct implication on the strategic organisation decision making on production and supply in the clothes industry. Opinion Leaders Opinion leaders are individuals in the society who have the power, though informal to influence the Actions and practices of other society members. In this regard, opinion leaders in a society could be professional, politicians or even other role models. On their part, the opinion leaders can directly or indirectly influence the society. On one hand, they can directly influence the consumer base through their inclusion in organisational marketing strategies and approaches such as through endorsements and brand images (Cambra-fierro, Polo-redondo & Wilson, (2008). In this case, such endorsements, for instance on medical clothing, gear by a reputable doctor, who served as an opinion leader in the industry, serves as a direct consumer base influence. On the other hand, they can indirectly influence the consumer buying behaviour through their actions. For instance, frequent wearing of a particular clothes brand serves as an indirect approach to influence and market such a brand. On their part, opinion leaders influence the consumers through a passive purchasing model approach. In this case, the consumers under the opinion leaders influence purchase the product not based on their individual preference and understanding of the product, but based on the recommendations of their opinion leader (Valarmathi & Murugan, 2014). Evaluating and understanding the opinion leaders influence on the clothes industry, consumers are a key industry marketing tool. In this case, the extent of influence has a direct impact on the extent to which opinion leaders can influence the change of a secondary culture. Therefore, by understanding the opinion leaders’ influence, the clothing industry manufacturers can use them as a stimulation to initiate a dressing secondary value change to accommodate a new clothes line design and types. Therefore, opinion leaders functioning understanding plays a direct influential role of the strategic decision and functioning of the clothes industry marketing functions. Conclusion In summary, this assessment evaluates the nature and extent to which external factor in the macroeconomic environment influences the consumers’ decision making in the clothes industry. In this regard, the analysis establishes that the family, opinion leaders, culture, social class and reference groups have a direct impact on the clothes industry marketing process. Therefore, the assessment concludes that marketers and organisations in the industry should develop systems and strategies through which to maximize and optimize on the merits of the external consumer buying behaviour influencing factors. References Batra, S. K., & Kazmi, S. H. H. (2008). Consumer behaviour: Text and cases. New Delhi: Excel Books. Cambra-fierro, J., Polo-redondo, Y., & Wilson, A. (2008). The influence of an organisation's corporate values on employees personal buying behaviour. Journal of Business Ethics, 81(1), 157-167 Cant, M. C. (2006). Marketing management. Cape Town, South Africa: Juta. 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