Consumer behavior and retail marketing strategy

Résumé du document

The customers, as humans, have to satisfy their needs. Eating, sleeping, learning and buying are several examples of needs. Within these examples, one can understand that some of them are more important than others. Nevertheless, this essay will conduct an analysis of the segmentation and habits of Chinese consumers with luxury goods and services. The analysis will be divided in three parts. Firstly, some theory from authors will be analyzed. Secondly, the methodology of the analysis will be explained; and subsequently, an analysis of the findings through a discussion group and several studies will be shown.

Literature review
According to Salomon et al. (2002), consumer behavior « is the study of the processes involved when individuals or groups select, purchase, use or dispose of products, services, ideas or experiences to satisfy needs and desires ». Another definition of consumer behavior from Schiffman and Kanuk (2010) is « the behavior that consumers display in searching, using, evaluating, and disposing of products and services that they expect will satisfy their needs ».

Extraits

[...] These factors will have an effect on consumer behavior and their needs. They will not be the same and the marketers have to adapt the offer to the needs. As mentioned before, every single consumer has his/her own feeling and interpretation on a service or product. However, consumer segmentation can be done having as a result different variables. This segmentation will help to bring together different kind of consumers and to understand their needs and habits of consumption. According to Salomon et al. [...]

[...] The segmenting market has to be identifiable, sizeable, stable and assessable. The segments must be identifiable so that the marketer can determine which consumers are inside or outside the selected segment. The challenge is to identify in real time, which consumers are a part of the group, and in which to know the quantity (for example men aged 18 to 25 in Lincoln, United-Kingdom). The segments have to be easily accessible. It refers to the ease and cost effectively to reach the selected segments. [...]

[...] Another study of Chinese consumer behavior is from the China Luxury forecast (2010). In this study consumers (only the “well-heeled” consumers with a salary of more than 250.000 Yuan per year: 25.000 ) were questioned. According to the study of the interviewed people spent more than 20,000 Yuan the last few year in luxurious goods of the interviewed consumers used to purchase luxury goods for them, to make them happy. Also, the culture of the ‘present' is incredibly existent in the Chinese culture of the consumers announced that have already bought in their life a present for their friends, family or professional reasons. [...]

[...] This number is forecasted to increase up to 4.4 million by 2015. According to Ouyang Kun, a study from the luxury business association shows that more than half of the interviewed Chinese aged between 25 and 28 years old earn an average salary of Yuan (around £1000). The quick rejuvenation of luxury goods' consumers is surprising; between 2007 and 2010, the average group of luxury goods consumers was 35 years old and now it's 25. According to the same study, in the following 3 and 5 years, consumers aged from 18 to 25 years old will be the main luxury goods consumers in China. [...]

[...] Another barrier can be the availability of cheap, fake products. In China, counterfeiting products are easily found. According to François Chen, the luxury brands are perceived by the Chinese to be “creative, modern, wonderful, elegant sophisticated and excellent”. Moreover, China is an attractive market for luxury brands as the potential consumers of luxury goods in China increased the past few years and is still increasing. Most of luxury brands are setting-up in the biggest cities in China in order to be close to the consumers. [...]