Consumer Buying Behavior in Fashion

This assignment explores consumer buying behavior within the fashion industry, particularly examining the motivations behind purchasing decisions made on online platforms. It delves into relevant literature, including research on organizational intelligence and marketing strategies, to analyze factors influencing consumer choices. The assignment also considers specific examples like Primark's business model and the booming online luxury fashion market, providing a comprehensive understanding of consumer behavior in this dynamic sector.

Marketing Intelligence

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Main stages of the purchase decision-making process for an individual consumer..............1
1.2 Importance of understanding buyer behavior and related theories........................................2
1.3 Three factors which can affect the buying behavior..............................................................3
1.4 Evaluating the relationship between brand loyalty, corporate image and repeat purchase...4
2.1 Evaluating different types of market research techniques that Primark GB can use.............4
2.2 & 2.3 Effective use of sources of secondary data to achieve marketing research objectives5
TASK 2............................................................................................................................................6
2.4 Prepare market research plan to launch a new shoe product.................................................6
3.1 Assessment of the size and the trends for the fashion industry in the UK............................7
3.2 Competitor analysis for the Primark GB Company...............................................................7
3.3 An evaluation of Primark's opportunities and threats for a the new product.........................8
4.1 Techniques for assessing customer response.........................................................................9
4.2 Design and complete a customer satisfaction survey....................................................10
4.3 Review the success of the completed customer satisfaction survey....................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

LIST OF FIGURES
Figure 1: Buying behavior of an individual customer.....................................................................2
Figure 2: SWOT Analysis...............................................................................................................9

INTRODUCTION
In the modern era, marketing intelligence emergence is an important tool in the context of
collecting best information from the market about services and products offered by firms to their
customers. As per the given case scenario, Primark which is a very famous retail clothing store
chain was taken. Enterprise is famous for selling fashionable clothes at the low cost as compared
to other brands present in the market. Main aim of the report is to provide details about market
research techniques and their benefits for the business operations of Primark in competitive
arena. By conducting the present research, investigator would be able to understand the buying
behavior and the decision making process of customers.
TASK 1
1.1 Main stages of the purchase decision-making process for an individual consumer
Buying behavior of an individual customer can be understood with the help of following
steps:
Need Recognition: In this stage, market research department of enterprise emphasizes on
understanding the needs of customers and their perceptions about services and products offered
by company to them (Harker, 2008) For example, if customer wants to purchase clothes then
he/she need to firstly consider the features of products such as price, brand and other features
before purchasing the clothes.
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Figure 1: Buying behavior of an individual customer
Information search: After collecting information about products, customers take guide
from his/her relatives and friends about the products and services offered by Primark.
Evaluation of Alternatives: On the basis of taking suggestion from their relatives and
friends, prices and other features of clothes need to be compared and then customer will take
decision to purchase clothes as per his needs and budget (Wilson and et.al., 2010).
Purchase decision: After reviewing all alternatives and getting satisfied with the price,
brand and other features of products, customer will take final decision regarding from whom to
buy and when to buy.
Post-purchase decisions: After purchasing the product on the basis of meeting all needs
and by getting satisfied with the product, he/she will recommend it to their friends and relatives
for usage.
1.2 Importance of understanding buyer behavior and related theories
The term buying behavior can be explored in terms of gathering information about
purchasing habits of individuals or groups towards products and services. Brosekhan and
Velayutham (2011) stated that knowledge of consumer behavior helps the marketer to
understand the way in which consumers think and respond about services and products. By
considering stimulus response model and generic theories, researcher can be able to understand
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the customer buying process and need to examine the factors that can affect the purchasing
decisions of them (Brosekhan and Velayutham, 2011).
Generic theory of Buying Behavior: In this theory, customer’s main focus is on decision
making rather than other factors. The product purchase steps include needs and identification of
products; alternative evaluation and taking final purchase decision before taking final decision
have been followed by customer while purchasing products. For example, after when changes
arise in fashion and lifestyle factors, customers will take decision to buy new clothes and
suggests their family and friends also (Lacobucci and Churchill, 2009).
Stimulus response model: This theory helps Primark to understand the impact of market
stimuli such as product, price, place and promotion on customers. Besides that, other factors
which include political, economic, social and technological factors have also been considered by
customers before taking decision regarding purchasing the product (Calof, 2006).
1.3 Three factors which can affect the buying behavior
Consumers are the kings of markets and it is essential for enterprises to fulfill the needs
of them because customer buying has become an integral part of strategic market planning.
Sociological, psychological and personal are the main factors which can affect the buying
decision of an individual customer.
Sociological factors: In the present marketing scenario, peer groups and family are the
major social factors which highly affect the thinking of customers and their buying behavior as
well. For example, upper class people in society purchase the products which suit with their
personality and lifestyle (Forrest, 2002) On the other side, lower class people buy cloths by
considering the price and peer group suggestion factors.
Psychological factors: Apart from the sociological factors, other factors which include
motivation, perception, learning attitudes and self –belief can influence the buying behavior of
customers towards product.
Personal factors: In the modern arena, as per the change arise in lifestyle and fashion,
needs and demand of products also get influenced. In addition, person desires and perceptions
about the firm product are also affecting their buying behavior (Wilensky, 2015). For example,
some customers want to buy products from local shop and some desire to purchase the cloths
from branded shop.
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1.4 Evaluating the relationship between brand loyalty, corporate image and repeat purchase
Brand loyalty mainly deals with meeting all needs of customers and their desires which
are attached with the particular brands. On the other side, brand image of product can be
explored in terms of creating brand image of products in the canvas of the mind of customers.
Customer's satisfaction towards purchasing products can be defined in terms of repeat
purchasing. All three terms include brand loyalty; corporate image and repeat purchase which are
interrelated with each other (Matsuno and Mentzer, 2015). For example, if firm will be able to
maintain its corporate image in the mind of customers by delivering quality of products to them
within stipulated time period then customers will become loyal towards the firm. It will motivate
them to become a regular customer of firm and to do repeat purchase of products from
enterprise.
Merit 1: For example, Primark can be taken which has created positive brand image in
the mind of customers by using CRM and social media analytics techniques at workplace
(Conduit and Mavondo, 2015). Firm was able to create its corporate image and brand loyalty
through increasing the flexibility and convenience of customers during purchasing cloths.
2.1 Evaluating different types of market research techniques that Primark GB can use
Different types of market research techniques that Primark would use can be evaluated
like:
Market research: In context of taking appropriate decisions and reducing the risk, market
research technique is used by the enterprise. By analyzing the information, management of
enterprise would be able to understand the current trends and can predict future trends of market
and customers so that their demand can be met within stipulated time period (Wilson and et.al.,
2010). Market research provides opportunity to enterprise to gather the information about
individuals or organizations by using the statistical and analytical methods. In context of
gathering information from customers to know their perception, Primark can use primary and
secondary data collection approaches. In this regard, different techniques such as interviews,
survey, focus groups, observations and field trials can be employed. Despite of that, in order to
collect in-depth features and dimensions of the market, researcher can use qualitative and
quantitative analysis techniques (Conduit and Mavondo, 2015). Besides that, focus groups,
interview, observation and experiment are the other major approaches which are used for
gathering information about customers.
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Quantitative technique: For the purpose of collecting numeric nature data, enterprise can
apply this technique at the workplace. In addition, excel, SPSS, R programming and SAS
statistical tools can be considered to analyze the quantitative data. Primark can conduct survey
by using interview and questionnaire techniques (Drummond, John and Ashford, 2007).
However, a lot of time and cost related factors are associated with the use of this method.
Qualitative data analysis technique: On the other side, in qualitative data analysis,
fashion brand can collect information from already present records and past studies of
researchers (Alexander, Khonglah and Subramani, 2015). For this purpose, thematic analysis,
interview and literature review approaches can be employed.
2.2 & 2.3 Effective use of sources of secondary data to achieve marketing research objectives
Secondary data: In this method, investigator can collect data from past studies and already
available information related to the same field. By conducting review of literature, researcher
would be able to understand the perceptions of customers towards the products of Primark.
Marketing objectives:
 To examine the buying behaviour of customers towards products and services of Primark
 To investigate the perception of customers towards Primark and its product features
Sources of secondary data: For the purpose of understanding buying behaviour of customers,
researcher can employ different approaches which include, journals, books, case study, publish
research papers and online published articles (Nusairat, Rashid and Rembielak, 2015).
Furthermore, as per the present given case study, books, journals and online published articles
have been considered by the investigator to gather information about customer purchasing
decisions (Biemans and Hillebrand, 2015).
Limitations of market research: Main limitation of this method is that investigator can only
collect the information which is already available and not a new one. Despite of that, some other
factors such as costly affair, fragmented approach and non-availability of reliable data are also
associated with the use of secondary data collection method.
Reliability and validity: By considering the authentic sources and appropriate selection of
analysis tools, researcher can be able to increase the reliability and validity of research. As per
the present case scenario, both approaches, that is, primary and secondary data analysis have
been used to synthesis the information about buying behaviour of customers towards products
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and services of Primark (Terada, Jing and Yamada, 2015). Despite of that, only valid sources and
references have been considered for carrying out the present research in a significant manner.
Distinction one: By using attitude and iconic branding strategy, firm would be able to meet the
needs of customers and for solving their problems within stipulated time period. Major benefit of
this branding strategy is to better understand the consumer's self-expression and personal
identity. However, proper knowledge of market and customer views are required to better grasp
the opportunity from this branding strategy (Ozer and Gultekin, 2015).
TASK 2
2.4 Prepare market research plan to launch a new shoe product
Research plan activities Main reason behind taking
approach
Time period (in weeks)
Background  Enterprise wants to
launch new shoe
product aimed at
young consumers
(Primark, 2015).
 In order to support
future growth,
company concentrate
on opening new
distribution center at
Thrapsto and
Northamptonshire
regions.
1
Rationale The main aim of organization
is to expand its stores outside
of UK & Spain and meeting
expectations of their
customers.
1
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Objectives of research  To investigate the factors
which can influence
performance of Primark
whether entering in the
new market
 To analyze the ways
through which enterprise
can meet expectation of
diverse background
people
1
Methodology of section  For collecting data, both
primary and secondary
collection methods will
be used.
 For analyzing the data,
quantitative and
qualitative approach can
be employed
(McKinsey,2015)
2
Data analysis section Statistical test and thematic
analysis techniques can be
considered.
2
Total time frame 7 weeks
Budget £1200
3.1 Assessment of the size and the trends for the fashion industry in the UK
The UK fashion and textiles sectors are provided employment to an estimated 600
thousand people. In addition, member state industries like Bulgaria and Romania have a strong
impact on UK Fashion manufacture (Facts and Figures about the Fashion Industry, 2010). It is
found that most of the consumers preferred online shopping of luxury brands.
Market: This term can be defined in form of gathering of people for purchasing and sales
provision.
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Market chose: As per the present case scenario, foot wear market of UK was taken. From the
study, it is found that European market valued at USD 42,941.3 million in 2014. In addition,
Primark can focus on both athletic footwear and non-athletic footwear market segment to
penetrate customer (Nusairat, Rashid and Rembielak, 2015).
Market trend: It shows the tendency of market or price of asset in a particular direction within
stipulated time.
Market size: This term can be considered as total volume of a given market. With help of bar
chart, market size of Footwear industry can be understood. The below figures indicate the market
size and consumption of footwear’s.
Figure 2: Market size of footwear market
(Source: Wilson and et.al., 2010)
Figure 3: Footwear consumption by consumers
(Source: Wilson and et.al., 2010)
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Market forecast: It is a core component of analyse part and it is used to predict future trends and
characteristics of target market. For example, it is predicted that due to changes in lifestyle and
introduction of new footwear styles, demand of shoe will be enhanced.
Figure 4: Future forecasting of footwear market
(Source: UK Footwear & Shoe Market, 2013)
The value of selected market: The price of product would fetch customers in the marketplace
and affect their buying behaviour of customers. UK footwear industry contains 2.1% world share
of footwear consumption by quantity and it had a value of £8.39bn (at seasonally-adjusted
prices) in 2012 (UK Footwear & Shoe Market, 2013).
3.2 Competitor analysis for the Primark GB Company
With help of porter five forces model, researcher would be able to identify major competitors of
enterprise and evaluates the performance of Primark in competitive arena.
Competitor analysis: It is a critical part of company marketing plan or strategy which helps
enterprise to establish product and service unique in market as compared to other competitors.
In footwear industry, threat of entry is low because most of the retailers are concentrating on
virtual and online platform to deliver products to their customers (Afzal and Khan, 2015). In
addition, threat of substitution and competitive rivalry in UK are high due to presence of various
foot wears providers firm like Adidas and Red chief etc. Buyer power is high and customers
have wide opportunity to switch over other brands. While supplier power is low due to absence
of big supplier and less bargaining power of suppliers.
Strategic group: It is a group of companies who follow same strategy or model in an industry.
Primark can be divided into price and segment strategic groups. It offers both athletic and non-
athletic shoes to its customers at compatible price and it has stock everything from new born and
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kids clothing, to women wear on the basis of various variables such as price, brand and other
factors (Ozer and Gultekin, 2015).
Competitor analysis of Primark:
Competitor assumption: Competitor of firm including Top-shop and H&M offers diverse range
of shoe products to their customers and constantly expanding business online using advance
technologies. It is predicted that in future they will more emphasize on technology advancement
and design products as life style of customers.
Competitors Strategy: Top-shop and H&M applied skimming pricing strategy because they had
captured wide market size segment and customer base. In order to better compete with them,
Primark should focus on penetration pricing strategy. However, target same audience and time
taking delivery of products and services are the major weakness of competitors of firm
(Lacobucci and Churchill, 2009).
Competitors Marketing Capabilities: Office Holding firm is emphasized on effective use of
modern media marketing to attract young and techno-savvy customers. In addition, low cost,
product differentiation and emphasize on technology are the major factors that can influence
performance of Primark.
Competitor innovativeness: C&J Clark Ltd., operates its business through wholesaler and
retailer in the United Kingdom. Innovation comes in clothing industry encourages enterprise to
sell footwear brands. Furthermore, Primark can grab business opportunity through promoting
upcoming fashion trends, using innovative technology and meeting dynamic changing lifestyle
of people in a significant manner (Matsuno and Mentzer, 2015).
3.3 An evaluation of Primark's opportunities and threats for a the new product
In UK fashion industry, sales of online luxury brand are increasing continuously. It is
predicted that in future sales and customer base of enterprise will be enhanced. By applying
SWOT analysis, the opportunities and threats of new shoe product launched by Primark can be
identified.
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Figure 5: SWOT Analysis
 Opportunities: Primark can grasp opportunities through providing online shopping
services to their customers and showcase's their products in stores. In addition, by
targeting fashion-conscious customers and spending heavily on advertising mediums both
traditional and modern media marketing channels, enterprise would be able to enhance its
sales. As per the study of Wood (2010), sale of Primark was boosted 7% in 2010 by
opening online stores. Through emphasizing on promotion mediums and opening more
online stores, enterprise will be able to overcome its weakness and better perform as
compared to other business rivals such as H&M, Top-Shop and Mark& Spencer etc
(Wood, 2010).
 Threats: Sales of Primark is highly depended on the economy of EU. Presence of strong
competitors is the major threat which can create hurdle in success path of enterprise
(Nusairat, Rashid and Rembielak, 2015). Apart from this, low number of sales assistant
in stores and limited level of sales services are the other major factors which can create
business threats for enterprise in term of reducing profit margin and customer base.
4.1 Techniques for assessing customer response
Survey ( questionnaire) and interview methods can be employed in the context of collecting
response from customers in a proper manner.
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 Conducting survey: By preparing questionnaire both the open and the close ended
questions and filling them by customers, researcher would be able to understand their
views related to shoe product and other services provide by company (Matsuno and
Mentzer, 2015). By creating its own website and provides connectivity with social media
platform, enterprise can provide opportunity to their customers to share their views about
Primark products and their staff-members. Nonetheless, this process is time consuming.
 Interview: By conducting interview of respondents when they reach at the store of the
enterprise for the shopping purpose or sending mail to them, investigator would be able
to know the perception of customers towards new shoes introduce by firm (Calof, 2006).
However, permission and desire of customers, time and cost related constraints are
associated with the use of this customer response assessing approach.
4.2 Design and complete a customer satisfaction survey
For interacting with customers and know their perceptions about products and services,
questionnaire approach can be used which contains all types of questionnaires such as open,
close ended and scale etc. that can be enlisted as follow.
1. How often do you typically use the clothes and other products of Primark?
 Once a year
 Daily
 Weekly
 Every 2-3 months
 Do not use
2. Are you agreed with the fact that enterprise provides better quality of products in compatible
price?
 Strongly disagree
 Disagree
 Neutral
 Agree
 Strongly Agree
3. Overall, I am very satisfied with the way of services and products offer by company?
 Highly dissatisfied
 Dissatisfied
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 Neutral
 Satisfied
 Highly satisfied
4. Give the rating to products and services of Primark
Miserably Somewhat
satisfactory
Very satisfactory Delightful
Overall quality
Value
Usage experience
Purchase
experience
After purchase
service
5. Is organization able to provide products as per your desire?
 Yes
 Somewhat
 No
 Not at all
6. How many brands shows do you buy every year?
-------------------------------------------------------------------------------------
7. On average, how much money do you think spend in a year on designer shoe? (In pound)
 0-500
 501-1000
 1000-50000
 Above 5000
8. Which of the following shoe brand your favorite?
 Adidas
 Reebok
 C&J Clark Ltd.
 Top-shop
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 H&M
 Fila
 K-Swiss
9. Based on your per-experienced with enterprise would you recommend products and services
of Primark to your friends and relatives?
-------------------------------------------------------------------------------------
10. Do you feel that prices of shoes and clothes provided by Primark are affordable?
---------------------------------------------------------------------------------------
11. Based on your awareness, services and products are offered by Primark is better?
 Much better
 Better
 About the same
 Worse
 Much worse
12. What recommendation provided by your side to Primark regarding to improve the services of
the firm?
4.3 Review the success of the completed customer satisfaction survey
For understanding the view of customers, 50 respondents were chosen on the basis of
their pre-experience and awareness about products and services of Primark. The success of
survey can be measured in term of number of respondents participated in the study to share their
view about services and products of organization (Wilson and et.al., 2010). From the result of
survey, it is clear that most of the respondents agreed with the fact that enterprise provides better
quality of products in compatible price as compared to other brands. 30 customers replied that
they were typically used the clothes and other products of Primark in every 2-3 months.
Respondents replied that organization is providing products as per their desire. Besides that, they
had shown their positive perception about prices charge by enterprise for their shoes and clothes
products. Furthermore, customers recommended that firm should focus on opening online stores
and effective use of online promotion mediums like social media marketing techniques to
magnetize and retain customers with the enterprise for long time period.
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CONCLUSION
From the research report, it is clear that consumers are the kings of markets. In modern
era, without understanding buying behaviour of them, firm would be unable to meet their
expectations in a significant manner. By expanding its business at global level and proper
applying marketing strategies, Primark will be able to take advantage from the business and
grasp market opportunities effectively. Despite of that, by considering different factors such as
customer satisfaction level, developing more innovative products and timely communicating
with customers at regular time period etc., enterprise can be penetrate more customers towards
their brands in competitive arena.
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REFERENCES
Books and Journals
Afzal, S. and Khan, J. R., 2015. Impact of Online and Conventional Advertisement on Consumer
Buying Behaviour of Branded Garments. Asian Journal of Management Sciences &
Education.
Alexander, R., Khonglah, O. and Subramani, A. K., 2015. Customer buying behaviour towards
branded casual shoes. ZENITH International Journal of Business Economics &
Management Research. 5(6). pp.48-54.
Biemans, W. G. and Hillebrand, B., 2015. Exploring Product Replacement in Business Markets.
In Creating and Delivering Value in Marketing. Springer International Publishing. pp.
48-52.
Calof, J., 2006. The quest for competitive, business and marketing intelligence: A country
comparison of current practices. European Journal of Marketing. 40(5/6). pp.453 – 465.
Conduit, J. and Mavondo, F. T., 2015. Internal Customer Orientation: Antecedents and
Consequences. Springer International Publishing. pp. 208-213.
Drummond, G., John, E. and Ashford, R., 2007. Strategic Marketing: Planning and Control.
Routledge. Pp.125-135.
Forrest, E., 2002. Internet marketing intelligence: Research tools, techniques, and resources.
McGraw-Hill, Inc. PP. 224.
Harker, M., 2008. Marketing Intelligence & Planning: past, present and future. Marketing
Intelligence & Planning. 26(1). pp.7 – 10.
Lacobucci, D. and Churchill, G., 2009. Marketing research: methodological foundations.
Cengage Learning.
Matsuno, K. and Mentzer, J. T., 2015. Market Orientation: Reconciliation of Two
Conceptualizations. Springer International Publishing. pp. 49-55
Nusairat, N., Rashid, T. and Rembielak, G., 2015. Design factors-customer behaviour
relationship: The mediating role of emotions and cognition.
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Ozer, L.and Gultekin, B., 2015. Pre-and post-purchase stage in impulse buying: The role of
mood and satisfaction. Journal of Retailing and Consumer Services. 22.pp. 71-76.
Terada, K., Jing, L. and Yamada, S., 2015. Effects of Agent Appearance on Customer Buying
Motivations on Online Shopping Sites. ACM. pp. 929-934.
Wilensky, H. L., 2015. Organizational intelligence: Knowledge and policy in government and
industry .Quid Pro Books.
Wilson, A. and et.al., 2010. Marketing research: an integrated approach: solving business
problems: the value of marketing research.
Online
Brosekhan and Velayutham, 2011. Consumer Buying Behaviour – A Literature Review. [Pdf].
Available through :< http://iosrjournals.org/iosr-jbm/papers/ncibppte-volume-1/1014.pdf
>.[Accessed on: 30th November 2015].
Facts and Figures about the Fashion Industry, 2010. [Online]. Available through:<
https://www.fashionunited.co.uk/facts-and-figures-in-the-uk-fashion-industry#UK1 >.
[Accessed on: 30th November 2015].
McKinsey, 2015.McKinsey: Online luxury fashion market booming. [Online].Available
Through :< http://www.consultancy.uk/news/1557/mckinsey-online-luxury-fashion-
market-booming>.[Accessed on: 30th November 2015].
Primark, 2015.Introduction about company.[Online].Available Through :<
http://www.primark.com/en/homepage >.[Accessed on: 30th November 2015].
Wood, Z., 2010. Primark's sales boosted by £12 dresses and £10 shoes. [Online]. Available
through :< http://www.theguardian.com/business/2010/jul/08/primark-sales-boost-12-
dresses>. [Accessed on: 30th November 2015].
UK Footwear & Shoe Market, 2013.[Pdf]. Available through:<
http://www.goodmanassociates.co.uk/images/resources/UK%20Footwear%20and
%20Shoe%20Market%20%20-%20Nov%202013.pdf>. [Accessed on: 12th Decemebr
2015].
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APPENDIX 1: GANTT CHART
ACTIVITY/TIME PERIOD 1 2 3 4 5 6 7 8 9 10
Background
Rationale
Literature review
Objectives of research
Budget
Methodology of section
Data analysis section
Result interpretation
Implications
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