Report on Consumer Behavior and Decision-Making for Tiffany & Co.

This report provides a comprehensive analysis of consumer behavior, focusing on the consumer decision-making process (CDMP) and its application to Tiffany & Co. It outlines the five stages of CDMP: need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior. The report explores how psychological factors like motivation, personality, perception, risks, and attitudes influence each stage. It also examines situational factors, including social, personal, cultural, and psychological influences on consumer buying behavior. The report highlights Tiffany & Co.'s marketing strategies, target market, and the importance of understanding consumer behavior for business success in the luxury goods market. The report also discusses the role of these factors in shaping consumer choices and preferences, and how Tiffany & Co. can leverage this knowledge to enhance its marketing efforts and maintain a competitive edge.

Running head: Marketing consumer behavior
Marketing consumer behavior

Marketing consumer behavior
Table of Contents
Introduction.................................................................................................................................................3
Five stages of consumer decision making process.......................................................................................4
Situational factors that influence CDMP......................................................................................................6
Key recommendations.................................................................................................................................8
Conclusion...................................................................................................................................................9
References.................................................................................................................................................10
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Marketing consumer behavior
Introduction
The main objective of this paper is to provide brief overview about the consumer buying
behavior which influence the decision making process. Furthermore, it explains the business
activities and operations of Tiffany & Company which renders personal accessories, leather
goods and jewelry to the consumers globally. In today’ era, the firm is increasing its profit and
revenue by providing attractive and unique jewelry to people in the market. Furthermore, it
describes five stages of consumer decision making process. Also, it explains that how
motivation, personality/self concept, perception, risks and attitudes active in CDMP stages. On
the other hand, it depicts that how situational factors influence consumer decision making
process.
Tiffany & company is an American luxury jewelry retailer and it’s headquarter is located
in New York city. The company sells crystal, water bottles, sterling silver, jewelry, fragrances,
china, leather goods and personal accessories. The firm is known for its luxury goods and it is
specially known for its sterling silver jewelry and diamond. Tiffany & co. was incorporated in
1837 by Charles Lewis Tiffany and John B. Young. Consumer behavior plays a critical role in
the organization in order to increase and enhance the sale in the global market. Thus,
understanding of consumer behavior is important for any organization before introducing a new
product in the market. If the company failed to analyze and measure the behavior of consumer,
the firm will face loses. Therefore, consumer behavior is significant to become successful in the
world. Studying consumer behavior is also important to decide prices of the products which have
been sold by the company. It helps to make quick decisions in the competitive market. Tiffany &
Company analyzes the behavior of consumers in order to increase demand of the products such
as jewelry, and personal accessories.
The target market of the organization includes gift givers, gift receivers and affluent self
buyers. The company is more concerned about the choices, demands and preferences of the
target market. The sale of the firm depends on the income level of the consumers. The consumers
who belong to specific target market, they are accessible and measurable. They are quantifiable
in terms of the income, age bracket and population. Furthermore, consumers are responsive in
the market. These are the characteristics of the key target customers. There are five stages of
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Marketing consumer behavior
consumer decision making process which help to make quick decisions (Wang and Pizam,
2011). The five stages include problem/need recognition, information search, evaluation of
alternatives, purchase decisions and post purchase behavior. All these stages help to increase and
enhance the profits and revenue of Tiffany & company in the global market. The firm also
maintains high standards and policies to conducts business activities and operations successfully.
Five stages of consumer decision making process
The marketers are responsible for selling the goods and services in the market so they
must have knowledge that how the consumers actually make their buying decisions. Consumer
decision making process refers to the process of verifying and identifying the decisions making
of the consumers by the marketers and leaders as well (Solomon et al, 2014). The five stages of
the consumer decision making process have been discussed below.
Need recognition: CDMP starts with need recognition of the consumers. Therefore, marketers
should identify the needs and requirements of the consumers and they should understand how
these needs and desires can be satisfied. Needs and requirements are the important point of the
all buying decisions. Determining the wants, desires and wants of the customers provide support
to enormous marketing decisions.
Information search: It is the second stage of the consumer decision making process. Under this
stage, consumer search and collect information about the products either from friends, family,
whole seller, retailers, neighborhood, dealers and advertisements. Furthermore, consumers
evaluate and analyze the positive and negative phases of the purchase. By collecting enormous
information, consumers are able to make better purchase decisions in the global market. Tiffany
& company uses consumer decision making process in order to beat the competitors globally.
Evaluation of alternatives: In consumer decision making process, evaluation of alternatives of
alternatives comes at third number. After collecting the essential knowledge and information
about the products, the consumers analyze the various alternatives on the basis of its quality,
features and desires. This stage helps the consumers to choose the best products available in the
market on the basis of their taste, preference, income and style (Tzeng and Huang, 2011).
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Marketing consumer behavior
Purchase decision: After analyzing the alternatives consumers buy the suitable products. However,
sometimes there are chances to postpone the buying decision due to various reasons. In this
condition, the marketers shall try to find out the reasons and try to eliminate them either by
providing enough information to the customers or by giving them guarantee regarding the
products.
Post purchase behavior: It is the final stage of consumer decision making process which helps
to satisfy the consumers. This stage depends on the satisfaction of the customers. This stage can
be used to evaluate and analyze the satisfaction level of the customers globally. If customers feel
that the product and service are delivering the value and has met the expectations and
requirements then they will become the loyal and faithful customers of the company (Keller,
Parameswaran and Jacob, 2011). In this way it can be said that CDMP process helps to increase
and enhance the efficiency and effectiveness of the marketing plan and it also helps to gain better
results in the rivalry market (Hoyer and Stokburger-Sauer, 2012).
There are various psychological factors such as needs & motivation, personality & self
concept, perception, risks and attitudes which may active in the five stages of the CDMP. The
first stage of the consumer decision making process is recognition and thus, the motivations and
needs of the target customers may become active in this stage. Under this stage, marketers and
sellers identify and analyze the needs, desires and wants of the consumers therefore, it motivates
and encourages consumers to buy the products of the company. The consumers are not able to
buy the products without motivation. The consumer motivation shows the drive to satisfy both
the psychological and physiological needs through consumption and purchase.
Along with this, personality active in the fourth stage purchase decision. Personality is
tiger point to make effective decisions within the organization. Personality traits include
friendliness, self confidence, individualism, compulsiveness, adaptability, introversion,
dogmatism, competitiveness, extroversion and aggressiveness (Freling and Forbes, 2013). These
factors influence the behavior of people in the market. There is a close relationship between
consumer purchasing decision and personality. For this purpose, generally products are created
by considering the personality traits. The marketers believe that personality factors affect
consumer decision making process. Apart from this, self concept also plays a significant role in
buying decision. Self concept helps to increase the self awareness. Self concept comprises
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Marketing consumer behavior
various factors such as social self, ideal self, perceived self and apparent self. In addition, self
image and self esteem are the significant part of the self concept which influences the consumer
buying behavior. If people have a low esteem, they are unable to make unique purchase
decisions. On the other hand, if people having a high esteem then consumers become successful
in the global market (De Mooij and Hofstede, 2011).
Perception refers to the awareness. To get customer’s attention is not sufficient to get
success and growth in the global market. It is customer’s perception which leads them to buy the
product of the firm. Apart from this, perception helps to find out the enormous information and
knowledge about the new products (Betsch and Haberstroh, 2014). Tiffany is a luxury jewelry
company which sells jewelry products to the consumers. Different people keep different
perception in the minds while buying the diamonds and jewelry. The consumers cannot buy the
product without gaining the right and appropriate information about the product and service.
They can collect information from various ways. Perception helps to retain the customers
because they get all the information related to new product (Vivek, Beatty and Morgan, 2012).
On the other hand, risk and attitude associate with the third stage of consumer decision making
process. The consumers evaluate and measure the quality and features of products while buying
the product in the market. They cannot purchase the product without evaluating the quality, and
characteristics of the product. The consumers should have ability to understand and learn
information related to product. Moreover, they should maintain positive attitude while analyzing
the various alternatives that are available in the market. Attitude is a person’s like and dislikes
feeling something. It is also said to be a judgment. Jewelry and diamond has gained positive
attitude of the consumers. Product risk and market risk are active while analyzing the product
globally (Kumar and Petersen, 2012).
Situational factors that influence CDMP
Situational factors are considered the integral part of the CDMP. These factors also
known as external factors which influence the consumer buying behavior that have been
discussed below.
Social factors: Consumer’s wants, motives, learning etc. are affected by opinion, reference
groups, social class, person’s family and culture. All these elements play an important role in
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consumer decision making process (Buunk, Gibbons and Buunk, 2013). Social factors also
influence the consumer’s attitudes and perceptions through their own attitudes and behaviors.
Furthermore, people who are efficiently involved in the service delivery can help customers
through the decision making process. It also helps in making good image in the global market
(Muruganantham and Bhakat, 2013).
Personal factors: Personal factors are those factors which are unique and dynamic to the
consumers. These factors include sex, age, gender and demographics etc. These factors affect the
consumer decision making process. Apart from this, economic situation of the buyer also
influence the CDMP.
Cultural factors: These factors also play an important role in the consumer decision making
process. Cultural factors include beliefs, perception, values and attitude of the consumers of the
country. Every nation should focus on its culture in order to maximize the productivity and
performance of the organization. Price of the promotional programs and product should be
appropriate for the target population’s culture. Tiffany & company is fully aware of the cultural
aspects of the each and every country (Tomalin and Stempleski, 2013).
Psychological factors: There are various psychological factors that influence the consumer
buying behavior very strongly. These factors include motivation, learning, experience,
perception, attitude and beliefs (Maslach and Jackson, 2013).
All these factors also active in the certain stage of the consumer decision making process.
It is essential to understand and evaluate the situational factors which help in controlling the
consumer buying process (Schmoldt et al, 2013). Advertising, brand, psychological, social and
age influence the consumer needs and desires to large extent. Situational analysis is also
important to implement the effective and unique marketing strategy within the organization.
Motivation helps to fulfill the needs, requirements and wants of the customers. Therefore,
Psychological factors are activating the internal requirements, needs and wants of the consumers.
Motivation also helps to attain the desired goals and objectives (Schmoldt et al, 2013). On the
other hand, personal factors encompass financial situations, lifestyle and self concept. Different
self concept and perception influence the pattern of the consumers in the global market. Now it is
assumed that situational factors active in the stages of the consumer decision making process.
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Tiffany & company needs to control on these factors to overcome the competitors in the world. It
also helps to gain competitive advantages in the universal market (Tuškej, Golob and Podnar,
2013). Along with this, various motivational theories are initiated by the firm to inspire and
encourage people for buying the new products (Oliver, 2014). In addition, the company uses
advertisement campaigns and promotional programs to analyze and identify the requirements
and needs of the customers. Consumer’s preferences depend on the age and choices of the
consumers. Moreover, situational analysis helps to differentiate Tiffany & company products
from the other products that are available in the market (Sheth, 2011).
Key recommendations
There are various recommendations have been given in order to facilitate/influence the target
consumers to purchase and become satisfied with the selected brand which have been discussed
below.
 The company should measure and analyze the external environment to identify the
choices, needs and requirements of the target market. It will help to reduce market risks
and the firm can beat the competitors in the international market.
 Along with this, marketers should make reciprocal relationship with customers to
maximize the sale of the firm. Effective and unique promotional programs shall be
conducted by the marketers in order to make easy decision making process.
 In addition, potential customers shall be identified on the basis of age, gender, income
level, family size, religion, race, occupation, marital status and education level.
Moreover, effective and unique marketing strategies and policies must be used by Tiffany
& company to attract target market in the world.
 Tiffany & company should provide right and appropriate information and knowledge
about the product and service to attract more and more customers in the competitive
market.
 Marketers should fix appropriate prices of the products to attract middle class and lower
class people in the world. Apart from this, they should provide right and enough
information to the customers related to product quality, quantity and features. It will help
to make unique decision making process.
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Marketing consumer behavior
 Tiffany should identify and evaluate the current marketing trends and lifestyle of the
customers in order to satisfy them. In this way, they feel happy and customers will buy
the products easily.
 Marketers measure and evaluate the several factors that influence the decision making
process of consumer. It will help to increase outcomes and returns of the firm.
 Tiffany & company should provide post purchase services to the customers in order to
analyze the satisfaction level of customers globally. It will help to increase loyal and
faithful customers in the international market.
 Moreover, the firm must analyze the plans, policies and strategies of the competitors to
increase and enhance the profitability across the world.
In this way, the organization can satisfy the consumers with the selected brand. Additionally,
consumer decision making process must be initiated by each and every organization to purchase
the products of the company.
Conclusion
On the above mentioned analysis, it has been concluded that Tiffany & company is a
holding firm which operates and manages through its subsidiary companies. It offers jewelry and
personal accessories to customers across the world. The firm also engages in manufacturing,
product design and retaining activities. The company directly supplies the diamond and jewelry
to customers all over the world. On the other hand, consumer decision making process plays an
integral role in Tiffany & company to increase and enhance the returns of the firm. Five stages of
CDMP have been explained in the task. These stages also influence motivation, need, self
concept, perception, risk and attitudes of people. Various situational factors also affect the
CDMP. Apart from this, various recommendation have been given to improve and enhance the
decision making process of consumers.
References
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