International Business and Accounting Management Report 2022

Running Head: MANAGEMENT 0
INTERNATIONAL BUSINESS
AND ACCOUNTING

MANAGEMENT 1
Executive Summary
Hennes and Mauritz (H&M) is the global and second largest retailer in the fast-fashion
industry and uphold customer trust since 1947. Since its incorporation, the company has
evolved into international market at a much faster place and mainly with its stores globally in
61 countries. The target market of H&M are middle and working class who perceive
shopping as a social motion that fulfils the desire of their daily life. This report outlines the
consumer decision making process of the company and the impact of various psychological
and situation factors on that process. Furthermore, necessary recommendations are also being
provided at the end through which H&M can effective welcome new customers while
reducing operational cost such as related to store location, product mix, pricing element and
also promotional practices.
Consumer decision making process is explained via 5 stages model include a problem or need
recognition, searching for information, evaluation of alternatives, purchasing and ultimately,
the post-purchasing behaviour. In order to attain a competitive edge in the fashion industry, it
is very important for H&M to understand consumer motivation as per these 5 stages and also
various significant psychological as well as situational factors that directly or indirectly
influence the decision making process.

MANAGEMENT 2
Table of Contents
Introduction................................................................................................................................3
The Process of Consumer Decision Making and Psychological Factors...................................4
CDMP Process.......................................................................................................................4
Psychological Factors.............................................................................................................7
Recommendations......................................................................................................................8
References................................................................................................................................10

MANAGEMENT 3
Introduction
Hennes & Mauritz (H&M) is a multinational clothing retail firm founded in 1947 and
currently at rank 4 in terms of best performing organisation in Europe as per Gartner Supply
Chain gartner.com. (2018). At present, H&M has expanded its reach in 61 nations with
having of 4968 stores (statista.com, 2018). The business model of organisation is based
grounded on ‘quality and fashion at the best price’. In terms of its human resources, H&M
has employed nearly 1, 23,283 people all over the globe and the company biggest market is
known to be Germany (statista.com, 2018a). In relation with its key products, the H&M
Group includes eight clearly defined brands offering a wealthy of styles and trends in fashion,
beauty, accessories and homewares for both men and women.
For any brand or company, understanding consumer behaviour is very important specifically,
before an introduction of new product or service to the market. Understand various
approaches of consumer behaviour helps the brand in effective marketing of product and
services as with continuous change in technology, living standards and social trends,
consumer attitude towards a product or service also changes. Rani (2014) defined consumer
behaviour as the attitude shown by an individual while purchasing, consuming and ordering a
product or service. The target customer of H&M includes the group of trend and fashionable
consumers who see spending as a social activity deliver pleasure in their daily life and also
the younger people. In relation with common characteristics of the targeted customers, it
includes working class, lower middle class and students, aging between 15 and 40 years,
ambitious with high purchasing power.
The scope of the report
This report aims to explain the importance t consumer behaviour and the process in making
any product successful. The study will be helpful to understand various different stages of
mental behaviour of the consumer when buying or purchasing any product from the brand
H&M and also the reader can get to know about process of consumer behaviour relationship,
stages and situational factors that will impact CDMP and the recommendations that can be
develop by H&M to creates a positive influence on CDMP.