Understanding Consumer Behaviour and Consumption Studies: Real Life Impact of Pandemic on Marks & Spencer
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Added on 2023/06/11
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This report analyses the impact of Covid-19 pandemic on consumer behaviour and consumption studies, with a focus on the fashion industry and Marks & Spencer. Theories of consumer behaviour and consumption are discussed, along with real life examples of how the pandemic has affected the industry.
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Table of Contents INTRODUCTION...........................................................................................................................3 MAIN BODY...................................................................................................................................3 Consumer behaviour and consumption studies............................................................................3 Theories of consumer behaviour and consumption.....................................................................3 Analysing the impact real life impact of pandemic.....................................................................4 CONCLUSION................................................................................................................................5 REFERENCES................................................................................................................................1
INTRODUCTION Understanding consumer behaviour is essential for every industry as it is the consumer who purchase or pays for the products and services that the firms within the particular industry produces. Better consumer understanding enables the firms to produce the goods and services that are desired by the consumer for satisfying the needs. Covid 19 pandemic largely impacted almost every industry. It had it impact on creative industry too especially fashion industry. This report will analyse the consumer behaviour and relative consumption studies will be highlighted. The real life examples of leading fashion company of United Kingdom, Marks & Spencer will support the report. MAIN BODY Consumer behaviour and consumption studies Consumer Behaviour is a term comprising the systematic way of studying individual persons, groups or firms and sum total of all those activities that associates their specific decisions regarding purchases, consumption and discard of products and services. Consumer behaviour is greatly influenced by their sentiments, attitudes and preferences. The consumer consumption pattern can be understood on the basis of consumer culture theory abbreviated as CCT (Trudel, 2019). The theory represents the study of choices and behaviours of consumers in relation to consumption. Consumers consumption based choices and behaviours are formed from social and cultural perspective of consumer (Sheth, 2020). The pandemic has hit the Marks and Spencer, the company adapted to it and moved forward successfully. Theories of consumer behaviour and consumption The consumer behaviour that initiates the person to buy something for consumption is based on economic, symbolic and culture viewpoints of the consumer. A lot of research work has been done on these three dimensions of consumer behaviour. All the three perspective interacts with each other to form the consumer behaviour resulting in forming up of decision to consume some product or experience any service (do Paço, Shiel and Alves, 2019). The economic dimension is concerned with the tendency of consumer to evaluate the satisfaction derived from consumption in economic terms. Symbolic perspective is concerned with the status symbol that the product or service entails as per the societal norms. The cultural viewpoint of the consumer makes him consume the product not just for the basic satisfaction but for the cultural necessity
for consumption. All the three theories are responsible for the consumption decision by the customer (Arnould and et.al., 2019). Analysing the impact real life impact of pandemic Covid 19 pandemic resulted in companies sales decline by 6 % approximately. The company's chief executive stated that the company has recognized that crises are being faced by the company due to the pandemic and claimed that the after affects of the pandemic will affect the company as the consumer behaviour of some customers in market will never be same as before. The company was in the struggling situation even before the affects of the pandemic hit the business (Daeid, Hackman and Spencer, 2021). Reason for struggle was the terminal decline in the clothing sector. The pandemic apart from its anticipated adversity of the affect got the golden opportunity to reshape and mould its business according to the changing customer needs. The company worked upon its online capabilities to do better. Company was experiencing that it has heavenly rigid structure that was the result of its complexity in organizational bureaucracy over the years. Pandemic brought the call for change in the structure that was seen as an opportunity for the company to make its business structure and culture swiftly responsive towards the changes that are the part of evolving business environment (Morales and et.al., 2021). The pandemic helped the company of recognize the need of being more digital than before and making its business agile. Agile is an approach that the company follows for managing its projects and developing the software that helped Marks and Spencer to deliver value to its consumers faster than ever with fewer efforts involved on consumer side. The new normal of pandemic times encouraged the company to work upon digital store fronts. Consumer studies by the company revealed that the customer intention regarding purchase fell drastically. The decline rate was different for the advanced (online) medium and the traditional (offline) channels (Jung, Oh and Kim, 2021). There was much higher decline in the consumer buying intention in the offline channel as compared to the online one. This helped the companies rising initiative to shift towards the online medium for selling to be successful based on the consumption pattern or preferences by the consumer. The reason behind the differed fall is clear, the demand of the time to maintain social distance. Many customers were fearful from showing up at the physical store to purchase products. To remain profitable shift in the online market was the best option for the company based on the consumer behaviour to resist the physical stores. The sustainability in fashion increasingly gained its importance with more
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and more customersbecoming aware about the damagefashion industry implieson the environment. Company carried out research to know the consumer preferences revealed out that the consumers are increasingly shifting their preferences to sustainable fashion. Understanding of consumers regarding the damage the fashion industry cause to the environment has increased. In response to the cause the company initiated a sustainable approach to fashion. The company promised to its customers that they can be confident about the clothes they wear asthecompanyofferstheclothesthataremadewithdue respecttothepeople, communities and our mother Earth (Klepp, Laitala and Wiedemann, 2020). The company plays its part in the creation of a fashion industry that is sustainable and makes difference through its environment friendly processes. Based on the consumer behaviour company is committed in making clothes that are not at the cost to the planet and are of high quality and durable. The company helps the consumer with the recycling of the clothes that to be disposed through shwopping. The company values people by making the factory deals fair for them. CONCLUSION Based on the report the meaning and significance of consumer behaviour has been highlighted. The report has outline consumer behaviour and consumption studies. The report has further demonstrated the knowledge regarding consumer behaviour and knowledge. Analysis to real life experiences and business cases has been done.
REFERENCES Books and Journals Trudel, R., 2019. Sustainable consumer behavior.Consumer psychology review.2(1). pp.85-96. Sheth, J., 2020. Impact of Covid-19 on consumer behavior: Will the old habits return or die?.Journal of business research.117. pp.280-283. do Paço, A., Shiel,C. andAlves, H., 2019. Anewmodelfor testinggreen consumer behaviour.Journal of cleaner production.207. pp.998-1006. Arnould, E. and et.al., 2019. Consumer culture theory: Development, critique, application and prospects.Foundations and Trends in Marketing.12(2). pp.80-166. Daeid, N. N., Hackman, L. and Spencer, M. A., 2021. Forensic botany: time to embrace natural history collections, large scale environmental data and environmental DNA.Emerging Topics in Life Sciences.5(3). pp.475-485. Morales, C. S. and et.al., 2021, March. Business Decision Making Based on Social Media Analysis. InWorld Conference on Information Systems and Technologies(pp. 203- 213). Springer, Cham. Jung, H. J., Oh, K. W. and Kim, H. M., 2021. Country differences in determinants of behavioral intention towards sustainable apparel products.Sustainability.13(2). p.558. Klepp, I. G., Laitala, K. and Wiedemann, S., 2020. Clothing lifespans: what should be measured and how.Sustainability.12(15). p.6219. 1