The purpose of this report is to analyse and evaluate the decision-making process consumers go through when purchasing health supplements and formal clothing. The objective is to compare the differences between the two processes and identify the implications each has on marketing strategy.
This has been achieved through both secondary and primary research. The secondary analysis involved research using the textbooks and articles on health supplements and formal clothing and the application of relevant consumer behaviour concepts and theories.
This report will also thoroughly discuss, compare and report on the typical decision making processes likely to be followed by a selected target market for the purchase and use of health supplements and formal clothing.
This will involve the primary research in which 8 people will be interview with questions regarding to consumer behaviour in the purchase of health supplements and formal clothing.
The report is structured in a way to present each aspect of the decision-making processes for formal clothing, which followed, by health supplements to enable comparison to be made in each section.
2.0 Target Market
Health supplements is an industry which is growing because of intelligent, healthy people. (National Business Review, 1996, p.32).
In New Zealand, the research shows that people are more and more aware of good health, its relationship to lifestyle, and how they can use health supplements to augment self heal health care. In other words, people today are looking for prevention rather than just cure.
In 1994, 32% of New Zealanders took some form of supplement and in the latest study in 1997 this figure has increased to 74%.
Each different product market consists of buyers, and buyers are all different in one way or another. They may differ in their wants, resources, locations, buying attitudes and buying practices. Because buyers have unique needs and wants, each buyer is potentially a separate market. For example, in the health supplements market, the seller identifies market segments, and develops different health supplements products and marketing mixes tailored to each needs and wants.
Both health supplements and formal clothing are market which its’ products appeals to many buyers. Many people once in their life would have bought both products at sometimes during their life stages.
There is no single way to segment a market. In this report, students are selected under the occupation market segment as the target market.
The target market consists of students studying at universities.
Consumer involvement is the perceived personal importance and interest consumers attach to the acquisition, consumption, and disposition of a good, service, or an idea. As their involvement increases, consumers have a greater motivation to attend to, comprehend, and elaborate on information pertaining to the purchase. (Mowen & Minor, 1998, p.64).
In the case of low involvement, consumer views a purchase as unimportant and regards the outcome of his or her decision as inconsequential. Because the purchase carries a minimal degree of personal relevance or identification, the individual feels there is little or nothing to be gained from attending to the details of a purchase. (Hanna & Wozniak, 2001, p.290). For example, a purchase of health supplements requires minimal or no premeditation and planning for some consumers.
High involvement purchases are those that are important to the consumer either from a financial, social, or psychological point of views. The purchase is characterised by personal relevance and identification with the outcome. (Hanna & Wozniak, 2001, p.291). An individual anticipates a potentially significant gain from expending time and effort in comparison-shopping before buying. For example, a girl purchasing an expensive ball dress has a high degree of personal identification. Therefore, a high level of felt involvement can increase an individual’s willingness to search for, process, and transmit information about a purchase.
If a consumer perceived a product, which is important or valuable to them, it is more likely that they will have a high involvement with their decision process. The most important factors influencing a consumer’s involvement level are their perceived risks.
The purchase of any product involves a certain amount of risk, which may include:
? Product Failure – risk that the product will not perform as expected. (e.g., will the health supplements makes me feel better and prevent me from diseases?)
? Financial – risk that the outcome will harm
View Full Essay
More Free Essays Like This