This assignment examines the factors that influence consumer behavior when shopping online. It draws upon various academic sources to analyze aspects like perceived risk, consumer trust, social media influence, and purchase decision-making processes in the context of online retail.
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Proposal- Consumer Decision Making Process of Zara Clothing
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Table of Contents INTRODUCTION...........................................................................................................................3 Aims and objectives....................................................................................................................3 SECTION 1 PRELIMINARY ANALYSIS OF MARKET SECTOR............................................4 SECTION 2 PRELIMINARY REVIEW OF MARKETING CONCEPTS....................................6 Concept and significance of consumer decision making process...............................................6 Buyer behavior process within fashion retail industry................................................................7 Factors that affect the consumer decision making process.........................................................8 Recommend effective measures that helps in enhancing purchase decision of buyers..............8 SECTION 3 PRELIMINARY DATA COLLECTION PLAN AND METHODOLOGY..............9 Research philosophy...................................................................................................................9 Research approach......................................................................................................................9 Types of data.............................................................................................................................10 Research strategies....................................................................................................................10 Data collection methods............................................................................................................10 Conclusion.................................................................................................................................10 Timescale..................................................................................................................................10 REFERENCES..............................................................................................................................12
Title- Customer decision making process of Zara clothing. INTRODUCTION Differentiation strategy can be defined as the method through which it seeks to provide products or services that offer benefits which are different from those of competitors and thus it is widely valued by customers. Main aim of using differentiation strategy is to achieve competitive edge over rivals. It could be attained by the clothing brand Zara through offering the best quality products at same price (ButkeviÄienÄ, StravinskienÄ and RÅ«telionienÄ, 2015). However, differentiation strategy needs to be based upon two key components i.e. strategic customers which firm needs to identify and also value their needs so that competitors can be overcome. Fashion is considered as one of the biggest industry that provides clothing, jewelries and shoes for customers in order to satisfy their needs. However, one factor that has become increasingly important in the fashion industry which is the brand of the product. In the present study, it focuses upon consumer decision making regarding the fashion products so that it helps in enhancing the sales and profitability of firm. Main objective of research is to improve consumer consumption in the fashion industry and expand the areas so that consumers buying behavior can be assessed which helps in increasing market share and gain competitive edge over rivals (Cantallops and Salvi, 2014). The proposed investigation will be carried out in order to analyze the consumer decision making process within Zara clothing helps in assessing the individual's decision to purchase the product. The study involves the review of literature that has been carried out upon particular topic. It assesses the views of different authors upon the selected topic so that results can be attained. Furthermore, it also uses different research tools and techniques for conducting the study. Aims and objectives Aim- To evaluate the factors affecting consumer decision making process for fashion retail industry- a case study of Zara clothing. Objectives- ļ·To explore the concept and significance of consumer decision making process. ļ·To understand the buyer behavior process within fashion retail industry. ļ·To assess the different factors that affect the consumer decision making process within premium clothing brand.
ļ·To recommend effective measures that helps in enhancing purchase decision of buyers. Research questions- ļ·What is the buyer behavior process within clothing industry? ļ·What are the different factors that affect the consumer decision making process within Zara clothing? ļ·Suggest certain effective measures that helps in improving purchase decision among consumers> SECTION 1 PRELIMINARY ANALYSIS OF MARKET SECTOR Fashion is considered as a big industry that is used in everyday speech by consumers which consists of clothing, jewelries and shoes. However, fashion is considered as one of the biggest industry with a high level of competition that requires companies to differentiate themselves. Hence, it is essential for fashion companies to manufacture unique products in order to attract large number of buyers (Chong, Chan and Ooi, 2012). However, one of the main challenge for the fashion industry is that consumers often gets overloaded from information regarding the fashion news offered by companies. Another factor that has become increasingly crucial for the fashion industry is the brand of the product. Therefore, it is essential for fashion firms to identify their potential customers in regard to enhance the sales and profitability of firm. Companies are required to identify the taste and preferences of consumers through providing them information about different features such as luxury, exclusive goods, high quality material and competitive prices etc. Hence, all such factors influences consumers to purchase the high quality product in order to increase the brand value of firm (Sparks, Perkins and Buckley, 2013). In the current era of globalization, consumers requires for high end fashion and low cost product therefore it is required to establish some unique and effective practices in order to create effective impression upon consumers. Furthermore, the industry is required to carry out proper customer analysis so that they can effectively determine the buyer behavior and segmentation of product so that consumers can be attracted towards firm. With the help of this analysis it can be assessed that clothing firms segment their consumers on the basis of high class and middle class customers. Thus, they select particular segment people in order to produce products accordingly (Nasri and Charfeddine, 2012). It also assists in benefiting consumers in relation to gain fashionable products so that needs can be fulfilled. Consumer buyer behavior is a complex process that involves all the stages
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from problem recognition to post purchase activities. However, it is essential for business to identify their potential consumers and analyze their needs and preferences so that decisions in relation to manufacture goods can be made. Hence, through analyzing the consumer decision making process and thus utilizing the theories in relation to satisfy the needs of customers by providing them unique products and services. Consumer behavior consists of different factors that possess effect upon individual's buying decisions. However, all these factors have distinct characteristics that can be divided into four different categories such as cultural, social, personal and psychological factors (Javadi and et. al., 2012). However, all these factors assists in influencing consumers towards the purchasing the product. Hence, through carrying out customer analysis it helps in identifying the segmentation process so that potential consumers can be selected in regard to gain quality products. Also, it is significant for company to identify the buyer behavior and thus provide them suitable products as per their needs and thus influence them towards company. It is also essential for business to undertake effective segmentation process and thus select high class customers in order to provide them quality and fashionable goods (Cheung and Thadani, 2012). Consumer analysis is carried out within firm in relation to identify the buyer behavior in relation to products and thus offer them attractive products so that they can purchase the goods in relation to enhance the sales and profitability of firm. Furthermore, it is essential for business to carry out competitive analysis which helps in identifying the direct/indirect marketing of products or services, marketing performance metrics, marketing spend etc. All such methods helps in identifying the competitive factors so that sales and profitability of firm can be enhanced. It is essential for business to undertake direct and indirect marketing method so that sales and profitability of firm can be enhanced. Through carrying out marketing of products it helps in attracting consumers in relation to satisfy their needs and wants (Chan and Wong, 2012). Also, adopting effective marketing performance metrics helps in evaluating the marketing performance so that sales of products can be enhanced up to a great extent. Also, fashion industry is required to analyze the amount spend upon marketing the products so that it can be decrease in the future and thus competitive advantage can be attained. Hence, with the help of proper competitive analysis it assists in improving the marketing methods so that desired objectives can be attained.
Firm analysis is also one of the major factor that helps in identifying the marketing activities so that sales and profitability of firm can be enhanced. It is also essential for fashion industry to identify the different factors which assists in improving the market analysis so that sales can be improved. Fashion industry is required to adopt effective methods through which consumers can be attracted towards company in relation to enhance the sales and profitability. There ate different marketing activities available within firm and thus it helps people to influence them towards company (Joung and ParkāPoaps, 2013). Hence, direct and indirect method assists in improving the marketing activities so that firm can attract customers towards company in order to achieve desired results. Fashion industry is required to adopt effective measures so that sales and profitability of firm can be attained. Market analysis required to undertake effective measures in relation to adopt effective measures so that proper market analysis can be done in order to achieve desired goals. However, it can be articulated that fashion industry is required to identify the needs and wants of customers so that they can provide the products accordingly. It also assists them to provide proper quality goods in relation to enhance the sales and profitability of firm. Through carrying out market analysis it helps in identifying the effective measures so that competitive analysis can be adopted which helps in improving the sales of firm (Solomon, Russell-Bennett and Previte, 2012). Thus, it is essential for business to identify the needs and preferences of people so that consumers can be attracted towards business and thus enhance the sales of firm up to a great extent. Through carrying out proper market analysis it helps in evaluating the buyer behavior process and thus identify the decision process of consumers in relation to products so that sales and profitability can be enhanced. SECTION 2 PRELIMINARY REVIEW OF MARKETING CONCEPTS Concept and significance of consumer decision making process As per theopinionofKim and Ko, (2012),consumer decision making model can be stated as the process through which consumers identify their needs and thus collect information so that different alternatives can be evaluated in order to make purchase decision. However, such actionsaredeterminedthroughpsychologicalandeconomicfactorssothatvaluesand preferences of people can be identified. It is essential for people to evaluate their decision making process in relation to make crucial decisions and thus deliver particular product or services to consumers as per their choice.However,Bharati and Chaudhury, (2015),argued that
these decisions can be complex and thus it depends upon consumers opinion regarding the particular product and thus evaluate, compare, select and purchasing the product from different types of product. Therefore, understanding and realizing the core issues helps in identifying the consumer decision making process and adopt effective theories so that individual's needs and preferences can be identified. \ Furthermore, consumer decision making process plays a crucial role in order to achieve significant results and thus adopt different ways through which sales and profitability of business can be improved. AsSon, Jin and George (2013),statedby consumer decision process involves different stages that depends upon different factors and findings so that purchasing power of customers can be enhanced. Here, it is significant for firm to identify different factors among which consumers are required to make crucial decisions so that competitive edge can be obtained. Buyer behavior process within fashion retail industry Asperthe view ofFall Diallo and et. al., (2013),it can be assessed that buyer behavior process refers to focus upon motivational factors that helps in identifying the needs of users to understand the reasons behind making the purchasing decision easier. Following are the stages involved in consumer decision model within fashion retail industry- ļ·Problem/Need recognition- As per theopinionofGracia and de Magistris (2013), recognition of need or problem is the first stage and thus it helps in arising the situation where individual realizes the difference between the actual state of affairs and desired state of affairs. Furthermore, it can be stated that individual is required to recognize the needs regarding the fashion and thus create a purchase idea so that best results can be attained. For instance, it is essential for consumers to recognize the need to buy a fashionable clothing and thus they should identify the name of Zara clothing. ļ·Informationsearch-AccordingtotheviewofButkeviÄienÄ,StravinskienÄand RÅ«telionienÄ (2015),it is the next stage within the model tat helps in searching the information and thusassessthatconsumersare required to evaluate the different information so that individual can identify their own experience and thus depends upon past experience and knowledge. For instance, it is essential for consumers to search different options regarding clothing and thus help consumers in making crucial decision to obtain desired results.
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ļ·Evaluation of alternatives- Asperthe opinion ofCantallops and Salvi (2014),it is essential for consumers to evaluate different alternatives so that they can compare and evaluate the information so that right choice can be made. Thus, in this stage, consumer analysis can be made in relation to search the needs of people and thus develop different alternatives so that needs and wants of people can be fulfilled. ļ·Purchase decision-AsChong, Chan and Ooi (2012),stated by once the information search and evaluation process is over then consumer makes the purchasing decision and they are considered as crucial as it helps in making effective decision regarding clothing. Also, in such stage, consumers makes decision in regard to make final purchase as they already review all the alternatives and make final decision. ļ·Post purchase evaluation- It is the last stage of consumer decision making process and thus people develop post purchase evaluation so that after purchasing the clothes they evaluate its significance. Hence, in such stage it reflects the consumers likes or dislikes the products or service (Sparks, Perkins and Buckley, 2013). Factors that affect the consumer decision making process As per theopinionofChan and Wong (2012),it can be stated that it involves various factors that affects consumer decision making process and thus undertake individuals and groups when they select, purchase, use and dispose products, ideas and services so that results can be attained. It involves a huge variety of consumers that affects the decision making process and thus it is essential for business to adopt effective measures so that sales and profitability of firm can be attained. However, consumers buying behavior can be influenced by different factors such as demographic, cultural, social, personal and psychological factors. However,Joung and ParkāPoaps (2013),arguedthat making purchase decision affects the social, personal and psychological characteristics of consumer behavior. Furthermore, social factors affects the consumer behavior significantly and thus each and every individuals are influenced from their buying decisions so that it affects the sales and profitability of clothing industry. Recommend effective measures that helps in enhancing purchase decision of buyers As per theviewofKim and Ko (2012),it can be recommended that it involves various measures which helps in improving the purchase decision of buyers and thus attain desired targets. It is essential for business to adopt certain measures so that sales and profitability of clothing industry can be enhanced up to a great extent. Also, it is significant for individual to
make effective purchase decision process so that buyers can identify the social factors such as reference groups, family, role and status. However,Son, Jin and George (2013),arguedthat each and every consumer is an individual and thus it affects their decision process. Furthermore, it is significant for individual to adopt effective purchase decision process so that buyers can be attracted towards clothing industry and thus achieve desired results. Also, individual's decisions are influenced by personal factors such as buyers age and life cycle state, occupation etc, needs to be identified so that effective purchasing decision regarding fashionable clothes can be made in order to enhance the sales and profitability of firm. SECTION3PRELIMINARYDATACOLLECTIONPLANAND METHODOLOGY In regard to undertake a research in effective way, it is essential for scholar to adopt proper methodology so that study can be carried out effectively. It involved different tools and techniques that scholar has to consider which involve research philosophy, data collection methods, types of data etc. In the present study, qualitative nature has been undertaken in regard to analyze the different factors that affect the consumer decision process in clothing industry (Panneerselvam, 2004). Research philosophy It is the systematic plan that depends upon the characteristics of work and thus indicates the appropriate source of data collection or information. It involves two philosophies i.e. interpretivism and positivism (Scandura and Williams, 2000). Through analyzing the present topic, it can be identified that interpretivism philosophy will be selected because it helps in applying non-scientific data which has been collected by the scholar in the whole study. Hence, in regard to select such study it helps in evaluating the different factors affecting consumer decision process within clothing industry. Research approach It involves two different types i.e. inductive and deductive approach. However, in regard to identify the factors affecting consumer decision model in clothing industry, inductive approach will be selected and thus it helps in evaluating different factors that affect consumer decision process (Scruggs and Mastropieri, 2006). Such method helps scholar in detecting the patterns and regularity in the information so that proper conclusion and recommendations can be made within clothing industry.
Types of data It is essential for scholar to comprehend the selected topic and thus make crucial decision in regard to select the type of data. It involves qualitative and quantitative. In the present study, scholar will undertake qualitative data and thus it helps them to gain in-depth understanding regarding the topic so that different perspective will be assessed and thus identify different factors that affect the consumer decision model in clothing industry (Keller, 2012). Research strategies Research strategy can be defined as the process that assists scholar to plan or forecast the approaches and methods in regard to initiate and accomplish the whole research. However, it is considered as one of the most crucial aspect of the study in regard to create effective platform for carrying out the study. It involves different strategies such as experiment, survey, case study etc. Through analyzing the present study, survey methodology has been undertaken so that valuable and reliable information can be gathered (Karimi, 2013). It undertakes consumers of Zara which are high class people and thus provide them questionnaire in order to identify the different factors that affect the consumer decision process in clothing industry. Data collection methods There are different data collection methods which involves primary and secondary data collection. With the help of primary data collection, scholar is required to develop questionnaire sothatresponsesfromconsumerswillbecovered(ButkeviÄienÄ,StravinskienÄand RÅ«telionienÄ, 2015). While, undertaking secondary method it involves different books, journals, magazines, online articles etc, so that information can be gained in an effective manner. Conclusion It can be concluded that methodology plays a significant role in carrying out the study. Thus, adopting interpretivism philosophy has been selected with inductive approach. While, qualitative study is selected in order to carry out in-depth analysis. Further, survey strategy has been implemented in which questionnaire will be spread to consumers in regard to gain valuable and reliable information. Timescale Activity/Week123456789101112 Identifying and evaluating the research project Carrying out review of literature
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Analyzing the findings of past research and facts related to research topic Determining of aims and objectives of whole research in order to manage further study Planningoftheoutlineandproposalof research project Designing of questionnaire Research methodology Collection of data primary sources Analysis of information which has collected from primary research Writing down of all study and evaluation in research project and report Findings and conclusion Evaluation of facts Creation of final report with systematic formats
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