BCO225 Final Project: Consumer Behaviour Analysis of Xiaomi Mi Band 4

This report provides a detailed analysis of consumer behavior in the Spanish market, focusing on the Xiaomi Mi Band 4. It begins with an introduction to the evolving Spanish business landscape and the increasing emphasis on health and fitness, highlighting the role of technology like activity trackers. The report then specifies the market for wearable technology in Spain, detailing its growth and user demographics. It identifies the target market for the Xiaomi Mi Band 4, including geographic, demographic, psychographic, and behavioral segmentations. Two customer personas are developed to represent the target audience, providing insights into their goals, preferences, and shopping behaviors. The report explores the customer behaviors that drive purchase decisions, emphasizing the importance of fitness, brand loyalty, and social media influence. It then outlines the consumer decision-making process, from need recognition to post-purchase behavior. Finally, the report offers strategic recommendations for marketing activities to enhance sales success, emphasizing the need for effective social media marketing and efficient team management. The report is based on the assignment brief requiring a comprehensive analysis of consumer behavior for a chosen product within a specific market context, including market segmentation, customer personas, decision-making processes, and strategic marketing recommendations.

Running head: CONSUMER BEHAVIOUR
Consumer Behaviour
Name of the Student
Name of the University
Author Note

1CONSUMER BEHAVIOUR
Table of Contents
Introduction:...............................................................................................................................3
Market Specification:.................................................................................................................4
Target Market and Segmentation:..............................................................................................6
Geographic:............................................................................................................................6
Demographic:.........................................................................................................................6
Psychographic:.......................................................................................................................6
Behavioural:...........................................................................................................................7
Personas:....................................................................................................................................7
Customer Behaviours:..............................................................................................................10
Consumer Decision- Making Process:.....................................................................................10
Strategic Decisions:..................................................................................................................11
Conclusion:..............................................................................................................................12
References:...............................................................................................................................13

2CONSUMER BEHAVIOUR
Introduction:
The Spanish business market is observed to evolve in a substantial manner in recent
time. The nation is becoming more business friendlier and the development of the strong
corporate policies from the part of the national government is one of the fundamental factor
that is triggering the growth of the business industries in the nation. With stronger influence
of the globalization, the nation is observed to experience extensive amount of cross border
business and that is certainly contributing to the growth of the economy of the nation (Erixon
2018). With a rich history of sports and culture, the Spanish citizens are observed to become
more health concerned and the speedy life style of the people of the nation has certainly
influenced the citizens towards the increased participation in the extra- curricular and fitness
development activities. The tech savvy Spanish people are observed to be exploit the
technological advancement for the betterment of their health and fitness ad that is pretty
prominent with their substantial preferences towards the products such as the activity
trackers.
The study is based on the evaluation of the consumer behaviour for a chosen product
of Xiaomi Company which is named as Xiaomi Mi Band 4. The study provides a detailed
elaboration of the Spanish wristwatch market and in addition to this, the study provides a
brief analysis of the target market for the product with precise mention of the demographics,
geographic, psychographics, behavioural attributes of the customers. The study also delivers
two personas as projection of the target market of the product. Other than this, the study
delivers an interesting elaboration of the customer attributes that influences the purchase
intention and at the same time, the study also analyses the customer decision making process
with appropriate elaboration regarding the stages and the behaviour of the customers at those
stages. Along with that, the study delivers some important strategic decisions for the

3CONSUMER BEHAVIOUR
improvement of the marketing activities for enhancing the level of the sales of the
organization.
Market Specification:
With a close look at the Spanish wearable and wristwatch market, it is understandable
that the Spanish citizens are becoming more aware about the importance of good wealth both
in physiological and psychological forms (Evenson, Goto and Furberg 2015). The youth and
the mid aged citizens of the nation are observed to be largely focused towards the
development and maintenance of good health and that is triggering factor for them in
welcoming the concept and practice of physical fitness activities. The people of the nation
have understood the importance of the physical fitness in achieving a quality life style. As a
result, the societal preferences of Spain have changed in a substantial manner. A certain
change in the culture of the nation when it comes to maintenance of good health is pretty
prominent. At the same time, the people of the nation are primarily focused towards
monitoring their health and activities in a continuous manner and that creates the scope for
the introduction of top quality technology based wearable products such as Xiaomi Mi Band
4. The mentioned product from the Chinese consumer electronics market giant is recognized
as one of the best seller products in the Spanish market.

4CONSUMER BEHAVIOUR
(Information: What brands are your personal smart watches / fitness trackers?)
(Information Courtesy: Statista.com. 2020)
With a close look at the Spanish wearable market, it is understandable that the
revenue of the industry has increased to 160 million US dollars in the year 2020 which shows
a year on year growth of 3.4% (Statista.com. 2020). The number of users in the nation, has
also increased and that is visible with 2.8 million number of customers using these products
(Statista.com. 2020). The number of users is observed to be associated with a year on year
growth of 2.0 and that certainly highlights the increasing emphasis of the people of the nation
towards the health monitoring activities (Statista.com. 2020). The market volume of the
industry is estimated to reach to 173 million US dollars by the year 2024 and the average
revenue per user is currently reaching to 56.99 US dollars which highlights the increasing
preferences of the people of the nation towards the fitness activity trackers or the wearable

5CONSUMER BEHAVIOUR
products (Statista.com. 2020). Along with that, the figure depicts the higher level of
preferences of the people of the nation towards the activity tracker products of Xiaomi
(Statista.com. 2020).
Target Market and Segmentation:
Geographic:
The company is observed to primarily focus on the citizens of largest cities of the
nation such as Madrid, Barcelona, Valencia, Seville, Málaga and Bilbao (Mi.com. 2020). The
citizens of these cities are most preferred by the company and are the prime focus of the
company is on influencing the purchase intent of the customers belonging to these regions.
Demographic:
The company targets Spanish citizens of both the genders and the realization
regarding the importance of the continuous health monitoring and participating in the fitness
training activities is significantly prominent amongst the female and male citizens. Other than
this, the company is seen to primarily focus on the customers belonging to the age group of
15 years to 50 years. The company applies value based pricing policy for the selected product
and justifies their target of customers belonging to an annual average income of 120000 Euro.
Psychographic:
With a close look at the business offering of the company, it is visible that the
company targets the customers with special interest towards body fitness management,
sporting activities and the healthy life style (Shih et al. 2015). The mentioned areas of interest
have greater possibility of influencing the customers towards the purchase of the company’s
product. Along with that, the company is expected to find comparatively higher ease in
managing their marketing and promotional activities through exploiting these areas of
interests.

6CONSUMER BEHAVIOUR
Behavioural:
With a close look at the behavioural segmentation, it is visible that the company
targets the customers with specific interest towards the products of the company and along
with that, the company prefers the customers with strong level of participation in the social
media and online platforms. The participation of the target customers in the social media and
online platforms enhances the ease of the company in conducting the marketing and
promotional activities (Maher et al. 2017).
Personas:
Personal Information:
 Xavier is 26 years old and a resident of Madrid.
 Xavier is currently owning a retail business and his company is continuously growing
across the nation.
“Fitness is important
and activity trackers
are essential
commodities.”
-Xavier Pedro
(A retail businessman)

7CONSUMER BEHAVIOUR
 Xavier is the only son of his parents and is required to take care of them along with
his business.
 Xavier, usually, has considerably busy lifestyle and is requires to travel a lot across
the nation and outside of the nation ads well.
 Xavier is fond of social media and usually spends an hour and half per day in various
social media platforms.
Goals:
o Xavier wants to achieve substantial success in his business in 5 to 10 times from now.
o Xavier believes that the continuous improvement of his body fitness is much required
for him in maintain his professional and personal life in a smooth manner. As a result,
Xavier attends gym sessions on a routine basis.
Shopping and Product Preferences:
 Xavier prefers formal attire.
 Xavier ensures that he feels comfort in the dresses that he is wearing.
 Xavier is a regular shopper of Xiaomi and is currently using a Note 9 Pro of Xiaomi.
 Xavier prefers to wear the activity trackers with even his formal attires.

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Personal Information:
 Juliana is a 34 years’ old IT sector employee in Barcelona.
 Juliana has a small family of two kids and his husband in Barcelona.
 Juliana has a busy lifestyle with all her personal and professional appointments.
 Juliana has strong presence in social media platforms and spends an hour or two per
day in those platforms.
Goals:
 Juliana has the goal of staying fit.
 Juliana joins gym on regular basis.
 Juliana has the objective of keeping her loved ones happy.
 Juliana wants to ensure a perfect balanced between her professional and personal life.
Shopping and Product Preferences:
Juliana prefers casual and stylish clothes.
“A working lady requires
higher level of fitness and
activity trackers are much
required for the purpose of
achieving higher fitness.”
-Juliana Gomes
(An IT sector employee)

9CONSUMER BEHAVIOUR
Juliana is considerably fond of technological gadgets.
Juliana is currently using larger number of Xiaomi products.
Juliana prefers to wear activity trackers to monitor the amount of calorie, she is
burning with her activities.
Customer Behaviours:
The customer behaviours that are expected to drive the purchase intentions are the
substantial urge of the customers in being physically and mentally fit. According to the
comments of Mercer et al. (2016), the appropriate monitoring of the body activities and the
consequences of the same, place the individuals in perfect position for the successful
maintenance of their body fitness both in physical and psychological sense. The focus of the
customers in continuously improving their physical strength and fitness and the excellence of
the product in providing ease to the customers in the improvement, are strong factors that
influence the purchase intention of the customers. Other than this, the brand loyalty of the
customers, also play a significant role in influencing them for the conduct of purchase of the
products offered by the company (Zheng et al. 2015). The previous purchases and the
satisfactory products are strong influencer for the customers in purchasing the products.
Other than this, the presence of the customers in the social media platforms is one of the
important factors in favour of the company as that provides substantial scope to the company
in attracting the attention of the customers through their promotional and marketing activities.
As a result, the participation of the customers in the social media and online platforms is also
an important consumer behaviour that influences their purchase intentions.
Consumer Decision- Making Process:
The consumer decision making process is divided into 5 stages which are Need
Recognition, Information Search, Assessment of Alternatives, Purchase Decision and Post

10CONSUMER BEHAVIOUR
Purchase Behaviour. With urge of continuously enhancing their fitness, the customers are
expected to find a need of monitoring their body activities and for the same, the need of the
product is prominent for them. With recognition of need, the customers are expected to
search information from social media promotions of the companies offering these sort of
products or the customers will interact with their peers and colleagues for gathering the
information (Wang and Yu 2017). With collection of information, the customers are expected
to assess the companies that are offering the products that are perfectly aligned with their
need and with appropriate evaluation of the product offerings, prices, linkage between the
features of the products and their needs along with the reputation of the company, the
customers are expected to conduct the purchase. After the purchase of the product, the
customers are expected to either feel happy with the product and participate in word of mouth
marketing or feel dissatisfied with the products and report his or her grievances to the
company (Maisam and Mahsa 2016).
Strategic Decisions:
The company is in need to conduct extensive amount of marketing activities through
their social media and online presence and in doing so, a major enhancement of the efficiency
of the marketing team of the company is much required (Tuten and Solomon 2017).
The company is in need to offer more to their loyal their customers through the
customer rewards programme. A lucrative discount to the loyal customers of the company is
much required from the part of the company in enhancing the sale of their product (Magatef
and Tomalieh 2015).
The company is in need to promote their products through the offline channels as well
and the advertisement of the products to the national level newspapers and the business
magazines is important for the company to attract the attention of the new customers.

11CONSUMER BEHAVIOUR
Conclusion:
On a concluding note, it is visible that Xiaomi is conducting sustainable business
across the globe and Spain is no different. The introduction of the product Xiaomi Mi Band 4
from the part of the company is pretty significant in portraying the excellence of the company
in their product offerings. With the selected product, the company is targeting the customers
belonging to age range of 15 to 50 years, male and female gender, income level of 120000
Euro and strong social media participation. The success of the company in increasing their
sales relying on their capacity in enhancing the efficiency of their offline and online
marketing actions.

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References:
Erixon, F., 2018. The Economic Benefits of Globalization for Business and Consumers.
European Centre for International Political Economy.
Evenson, K.R., Goto, M.M. and Furberg, R.D., 2015. Systematic review of the validity and
reliability of consumer-wearable activity trackers. International Journal of Behavioral
Nutrition and Physical Activity, 12(1), p.159.
Magatef, S.G. and Tomalieh, E.F., 2015. The impact of customer loyalty programs on
customer retention. International Journal of Business and Social Science, 6(8), pp.78-93.
Maher, C., Ryan, J., Ambrosi, C. and Edney, S., 2017. Users’ experiences of wearable
activity trackers: a cross-sectional study. BMC public health, 17(1), p.880.
Maisam, S. and Mahsa, R.D., 2016. Positive word of mouth marketing: Explaining the roles
of value congruity and brand love. Journal of Competitiveness, 8(1), pp.19-37.
Mercer, K., Li, M., Giangregorio, L., Burns, C. and Grindrod, K., 2016. Behavior change
techniques present in wearable activity trackers: a critical analysis. JMIR mHealth and
uHealth, 4(2), p.e40.
Mi.com. 2020. Xiaomi Global 丨 official Website 丨 mi.Com - Mi Global Home. [online]
Available at: <https://www.mi.com/global>
Shih, P.C., Han, K., Poole, E.S., Rosson, M.B. and Carroll, J.M., 2015. Use and adoption
challenges of wearable activity trackers. IConference 2015 Proceedings.
Statista. 2020. Wearables - Spain | Statista Market Forecast. [online] Available at:
<https://www.statista.com/outlook/319/153/wearables/spain#market-globalRevenuehttps://
www.statista.com/outlook/319/153/wearables/spain#market-globalRevenue>

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Statista.com. 2020. Ehealth Tracker / Smart Watch Ownership By Brand In Spain 2019 |
Statista. [online] Available at: <https://www.statista.com/forecasts/1001381/ehealth-tracker-
smart-watch-ownership-by-brand-in-spain>
Tuten, T.L. and Solomon, M.R., 2017. Social media marketing. Sage.
Wang, Y. and Yu, C., 2017. Social interaction-based consumer decision-making model in
social commerce: The role of word of mouth and observational learning. International Journal
of Information Management, 37(3), pp.179-189.
Zheng, X., Cheung, C.M., Lee, M.K. and Liang, L., 2015. Building brand loyalty through
user engagement in online brand communities in social networking sites. Information
Technology & People.