Consumer behavior and retail marketing strategy
- Literature reviews
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.
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 ».
[...] Depending on each generation, the consumption and habits will not be the same. For example, a 20-years- old consumer will not have the same needs as the 50-years -old one. Furthermore according to Salomon et al. (2002), other variables are essential in order to analyze consumers such as social class, occupation, income, ethnic group, religion, stage in life, and finally, to see if the purchaser is the user or not. This list is not exhaustive and other variables can be added such as education and family life cycle. [...]
[...] 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. The major luxury products in this country purchased are bags, clothes, watches and perfumes, whereas in Europe or in the United States, houses or expensive cars are mostly purchased as ?luxurious?. According to Ouyang Kun, this rejuvenation of this segment of luxurious consumers is due to the spread of children of rich people. [...]
[...] Furthermore, according to Clais (2002), the present consumers of luxury goods and services are easily affected by the price, more exigent and have less brand loyalty. Moreover, the brand image is important for the consumer and has to be rational. III) Methodology A discussion group with my Chinese classmates helped me to understand and compare results, by my secondary research; surveys and analysis from enquiries. The consumer physiognomies are essential in this essay as we target Chinese consumer's behavior in the luxury goods and services market. [...]