Consumer Behaviour at Gucci - Essay Example

Running Head: Consumer Behaviour Consumer Behaviour at Gucci By _________________________ "Understanding consumers' decision making requires careful attention to the context in which the decision occurs. Context can be understood at micro (immediate) and macrolevels. All behaviours occur in some specific context, which includes the immediate physical environment and the social environment (presence and influence of other people, including friends, relatives, and sales people). Specific behaviours are also influenced by broader contextual factors, such as one's economic situation, cultural influences, and social roles" (Olson, Reynolds 6: 2001). Introduction to the Outlet: The store we decided to have a research on is none other than 'Gucci' located at Sloane street, Knightsbridge. The research was conducted on Thursday and Friday, in the afternoon and the evenings of the weekend. The reason for research at Gucci is simple, had we chosen a common store, we would have made numerous efforts to judge people as it is hard to find differences in people's behaviour at a lower level, but at Gucci, a particular society enters to buy the expensive items, so it is a lot of fun to measure how they look for something and what particular thing about Gucci changes their facial expressions. The place is excellent for people who prefer to stay fashionable and who have got the buying power. The store does not cater every one as its target audience but those who can really afford the high prices, further once the customer enters, the staff prefers to look at the customer from top to bottom but it has got its own charm. It is important to describe the outlook of the store first. The store seems to be transparent as there is just a glass with an entrance door, upon entering the shelves are carrying bags straight ahead. People do complain about the staff as the staff is really rude especially if it sees that the customer does not look like an interested buyer but nevertheless the staff greets upon entrance. The atmosphere within the store is absolutely wonderful as it seems that there is no one near you due to silence. It seems that thousands have been invested in the interior of the shop but the figure could also be a million. A General View on Consumer Behaviour: Lifestyles emerge from various social influences. They are also derived from the individual's personal value system and personality. Marketers need to study the way consumers live and spend their money as well as how they make purchase decisions (Holbrook: 1999). For example, blue jeans may serve as inexpensive, functional clothing to bluecollar workers, but as fashionable, self-expressive apparel to upperclass members. Credit cards may be used as a convenience for the affluent, while others use them as a basis for installment purchases since balances are not paid off immediately. Decisions emanating from lifestyles are learned as the result of many influences such as culture, subcultures, social class, reference groups, and family (Beckman, William: 1967). Activities, interests, and opinions reflect how consumers spend their time and their beliefs on various social, economic, and political issues. When understood by marketers, these variables can help reduce risk in the decision-making process. At Gucci, people prefer to buy those materials that involve less risk and are long lasting, however the brand name itself is a guarantee that no matter what the customer buys would be long lasting and fashionable. So it is fair to say that perception plays a major part in the answer to perceived risk of purchasing a product or service. Perceived risk represents the anxieties felt because the buyer cannot anticipate the results of a purchase. A number of different strategies may be used to reduce risk. First, perceived risk can be reduced by a prepurchase information search, by decreasing the probability of failure. Second, the buyer can shift from one type of perceived risk to another type that is of less impact on the realisation of objectives if this method fails. Third, the purchase transaction can be postponed, thus delaying a situation of risk. Fourth, the purchase can be made and the risk absorbed (John: 2003). Factors Affecting Consumer Behaviour: At Gucci, people prefer to enter without being cautious about what they are about to buy, however it has been found that if something tends to be different than what they have in their mind, they get dejected and do not prefer to buy a substitute, for instance a person entered the store and was willing to buy a particular sort of glasses upon not finding them, he asked for only one different type which was similar but did not suit him and so he decided to move. It is all about attitudes, attitudes are shaped by demographics, perception, learning, social factors, and personality. Marketers try to develop positive consumer attitudes towards their products and brands. Attitudes represent feelings toward an object stemming from opinions and beliefs (Church: 2003). Consequently consumers develop opinions and beliefs about products and their attributes as well as about retail stores where they shop. Attitudes are often difficult to change, but marketers may be able to accomplish attitude change through communications, particularly if buyers' perceptions about the brand are incorrect (Stanton: 1998). The staff at Gucci was although rude but it continuously tried to convince the buyer about the particular product the buyer was willing to buy, but it further was depending on the type of buyer, the staff was not responsive to few types of buyer who were looking not very interested in buying any of the products. Buyers' attitudes towards brands are important because these attitudes do influence consumer behaviour. Attitude change revolves around changing the motivational function associating the product with a special group or event or changing beliefs about competitors' brands. The functional approach is a theory that shows how modifying basic motivations can change attitudes. Consumers today develop new attitudes as the Internet, new technology, and environmental trends change or modify their beliefs and the importance they attach to product attributes such as speed, convenience, and ease of use (Stanton: 1998). There were many other things that came into view such as the factors that affect the buyer behaviour, buyer behaviour and the decision-making process may not just be limited to a single individual but other relatives such as family members, friends, or colleagues may also be involved. The individual may not necessarily be the information gatherer but the other person with him might be doing this job. Others may take the role of an influencer. Another individual might assume the role of purchaser and someone else might actually use the product or service. At Gucci, there were hardly individuals getting in for shopping, mostly people along with partners or family members moved in and they were listening to their relatives more than they were to staff at Gucci, it really shows that the behaviour is influenced by the perceptions. The motivations involve in buying a product vary in complexity depending upon the price, the frequency of use, numerous other factors, there were many people who were willing to buy a certain item but it was just after seeing the price tag that they changed the decision also many of those chose the products based on prices as if the brand name 'Gucci' is enough for them to have over their body, no matter how it looks. When to make the purchase and where to make the purchase are other considerations. Additional dimensions of complexity are the buyer's cultural environment and psychological behaviour, London is a fashionable city and every one wants to remain oneself in fashion, the brand names of such designers do really well in London therefore. Subcultural influences on consumer behaviour are the values, customs, and traditions peculiar to a particular group. Subcultures or microcultures are not necessarily monolithic, even though there may be similarities, but instead often composed of various sub segments. Individuals may view the sub segment as only a slight influence while others find its influence a dominant force on their buyer behaviour. Sub cultures are delineated by geographic areas, religion, ethnic and cultural ties, and age. We cannot expect similar fashion taking place even just outside London such as in Kent or Surrey, nor can we expect a person in early teens getting to Gucci for clothing. When we purchase certain types of clothing, this bears upon our self-concept and helps us to define ourselves. Therefore, it is more likely that products such as automobiles, dresses, and television sets would be more personally relevant than products such as detergents or facial soap. The job of marketers is to make the product or the service as personally relevant as possible. Needs and goals are interdependent. Some people may not be aware of needs for social approval or for status. The purchase of Gucci sunglasses might be to satisfy conscious, utilitarian needs for safety, but subconscious needs for social approval and for satisfying ambitions may also be present. The consumer purchasing characteristics depend on the motives, society and decision process. Motives are developed according to the society and the society helps to develop the motives. People would never have loved to buy Gucci if they never had seen celebrities and high profile models using it, perhaps the positioning of Gucci is done in such a way that only people who prefer to remain updated in the society according to fashion prefer buying it. Consumer goals and needs are constantly changing in response to environmental conditions, interaction with others, and physical conditions. As individuals realise their goals, new objectives may be established. New levels of aspiration may surface. For example, if an individual buys a Gucci handbag another objective to buy Gucci shoes (matching) may be established. Moreover, marketers need to be attuned to changing needs and goals. Concluding the Research: Researching on the consumer's buying patterns almost 90% of the visitors did buy something and left the shop carrying something belonging to Gucci, it has been identified that the singles have more purchasing power, regardless of the fact that they were entering with friends and colleagues. Purchasing power of consumers is a function of income, prices, savings, and the availability of credit in the marketplace. Easy credit has increased the standard of living of many consumers. This has been particularly true of the singles market with few financial responsibilities. Cognitive Learning For Gucci Customers: As per the observations, it has been identified that people do not usually buy Gucci because of its quality, but it is a general mindset about Gucci. People come to know about not only Gucci but also many such brands through the celebrities endorsing such brands. People try to associate Gucci with luxury, fashion and style. People in Europe and US would definitely have a different perception about Gucci than do in Mid East or Asia, this is a cultural influence. It has also been found that people tend to develop the designer concept when they get into the teens age, after which women are more likely to respond to such brands than do men. The focus today is on formal lifestyles and comfort. The growing maturity of the consumer has been a factor as well as price consciousness. There is also a concern about better service in the designer business. Brand awareness is important but value shopping is also present. Many consumers patronise both specialty designer stores and discount stores. Catalogs selling shoes, bags, sunglasses, jewelry have gained in popularity as consumers are increasingly pressed for time. The sales of open market products will increase as consumers want to enjoy the natural environment. Gucci however, is a complete brand, the customer would find merely every item related to fashion inside the shop, regardless of such high prices, Gucci does not really have to put in marketing efforts as the name 'Gucci' itself is enough to market the store, further the stand displays in the store, the service provided by the staff can be an important factor which Gucci works at. The placement of items on shelves is extremely important according to the Gucci's staff, people prefer to have a look at various items first, even if someone enters to buy a handbag, at times buy shoes and glasses along side because the store has a lot in it and customer has many desires. Overall it has been identified that women whether teenagers or adult, prefer Gucci as it suits their tastes but we have hardly found teenage boys there, men were also very limited entering in the store just for clothing and sunglasses. It seems that young teenagers have more intentions to wear and use sport brands rather than designers, therefore they prefer sport brands over their body and into their lives. After observations, we understood that following points impact decision-making: Economic Trends. These changes develop from movements in the direction and magnitude of various fundamental elements. Among the major factors considered are gross national product, personal income, consumer and government spending, availability of capital, interest rates, employment versus unemployment, and savings and debt (Bartol: 1998). London particularly is a multicultural city, there are tourists and people from around the world, many of the people we saw were never looked like residents of United Kingdom and they did spend so much than a local resident. Social & Cultural trends: They are really difficult to find but London has always been a fashionable city and just standing next to New York. Therefore it is fair to assume that any such designer can do exceptionally well in London if not in entire United Kingdom. Regardless of the awareness in the society, people prefer to cope with the fashion the most and the rest is covered by foreigners visiting London. It is not only because of foreigners that United Kingdom's economy gets better and better but also because of their sending patterns and the way they see life here. Geographic/Demographic/Psychographic Trends: These are the second most important after economic. Everyone may not have the need to buy Gucci, it really depends on the age (as children and too old people would never be interested in buying Gucci), gender (teenage boys prefer sport brands while women are completely after Gucci and many such designers), location (people even just outside London do not have so much of interest in fashion popular in London, however the tourists do get involved in it for awhile), and personality (people who really think Gucci would suit them prefer buying it). It depends on the need people have at different times. Buying Habits: It seems unrealistic about people if they buy Gucci as a part of their habits but they do. We have seen a couple of people who were just passing by and suddenly stopped after looking at Gucci, and they made undecided and unneeded purchases without taking proper opinions from the staff. So people who are accustomed to making costly purchases or might be accustomed to collect fashion material never go for prices and just make the purchasing decision, the decision making process fails here. We already had some idea about the market before the research, we did have in mind that people do take buying a suit or an expensive product very seriously and under no circumstances they take it for granted but after conducting the research at Gucci's store we came to know that we were of course true with our hypothesis but that only 75% as merely 25% people do not need the decision process and they buy such expensive products without going through the decision making process as if buying such expensive products is like following a 'Habitual Buying Behaviour' (Kotler: 2003). Significant differences between brands HIGH INVOLVEMENT LOW INVOLVEMENT Complex buying behaviour Variety-seeking buying behaviour. 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