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Consumer Behaviour
Lucinda McNally
LEVEL 4 Unit Leader: Claire Riches
Contents
Introduction ....................................................................................................................................... 2
Target Customers............................................................................................................................. 3
Gender ............................................................................................................................................. 3
Age .................................................................................................................................................... 3
Social Group .................................................................................................................................. 3
Pen portrait 1: Savvy Sammy ................................................................................................. 4
Pen Portrait 2: Jim the Gent .................................................................................................... 4
Consumer Behaviour/ Pen Portrait Analysis ........................................................................ 5
Demographics ............................................................................................................................... 5
Geographic ..................................................................................................................................... 5
Behavioural ................................................................................................................................... 7
Psychographics ............................................................................................................................ 7
Further Customer Insights ........................................................................................................... 8
Reference Groups ........................................................................................................................ 8
Consumer Motives ...................................................................................................................... 8
Maslow’s Hierarchy of Needs ................................................................................................. 8
Decision making process .......................................................................................................... 9
Self-Concept .................................................................................................................................. 9
Analysis of H&M meeting customer’s needs ...................................................................... 10
H&M’s app usage ...................................................................................................................... 10
H&M’s in store customer satisfaction .............................................................................. 10
H&M’s A-list celebrity Campaign ....................................................................................... 10
Marketing Campaign.................................................................................................................... 12
Increased internet usage/Social media ........................................................................... 12
Irrational focus .......................................................................................................................... 12
Rational messages.................................................................................................................... 12
Adaptability geographically ................................................................................................. 12
Things to improve along side this...................................................................................... 13
Evaluation ........................................................................................................................................ 14
Conclusion ....................................................................................................................................... 14
References................................................................................................................................... 16
Introduction
Hennes (Swedish for Her’s) was founded in 1947 when Persson opened a “new
womenswear store in Västerås, Sweden”(H&M, 2017).
Hennes was Swedish for “Her’s.” The company started offering men’s and
children’s clothing in 1973, when they bought Mauritz, becoming Hennes &
Mauritz (H&M). They are now focussing on being more responsible and
sustainable.
They are still known for their fast-fashion clothing today, which is offered to
men, women, children and teenagers.
H&M now has a range of brands, including “H&M and H&M Home, COS, &
Other Stories, Monki, Weekday and Cheap Monday” (H&M, 2017).
“Each with its own unique identity, all our brands are united by a passion
for fashion and quality and the drive to dress customers in a sustainable
way.”(H&M, 2017)
Hard worker in the work place but fairly lazy during free time. Immaculate
house.
In a 6-month relationship with girlfriend Steph, who appreciates him
making an effort on his appearance.
Didn’t plan on going into accounting, just was good at it and never got
around to leaving. Recently go promoted.
Spends money as he’s sure he’ll always have it, but doesn’t go overboard.
Doesn’t hang out with people from the work place, but is still close with old
friends, and goes drinking with them on the rare occasion that they can all
get time off.
Buys instore, because he never got the idea of “fashion apps”
This report will focus on “Savvy Sammy” as a she is a pen portrait of H&M’s
largest target market.
Consumer Behaviour/ Pen Portrait Analysis
Demographics
Age: 21-year-old female
Generation: Y / Millenials. They are “comfortable sharing their entire life
online, this is a selfish, self-regarding generation. "Let me take a Selfie," is their
catchphrase.” (Wallop, 2014)
Ethnicity: White British
Education: went to a state school, but her parents never struggled with money.
Religion: non-strict Christian as she grew up surrounded by the faith.
Occupations: Used to do a mail round and has done waitressing since. Full time
Student.
Income: Low. Receives a loan.
Family size: previously large however “flew the nest.” Now living with friends.
Marital Status: Single
Stage of family: Single/Independent
Social Class: E based on earnings however acts like C1 due to potential
earnings. Therefore, it’s not possible to give Sammy a concrete Social Grade due
to the complications arising through being a university student.
Geographic
H&M’s customers are worldwide. “We have more than 4,400 stores in 65
markets.” (H&M, 2017). It should also be considered that H&M has an online
store too.
Looking at the UK store arrangement, most of the stores appear to be in the
South of the UK, however looking at population density, there is a large
population in the south of the UK, and so there are more consumers to visit
stores in this area, therefore it is likely that this is what the store placement
was based on due to the range of customers from various backgrounds.
As they cater for all over the world and all over the UK, there’s obviously
going to be a huge range of consumers/potential consumers, who they can
categorize using the Acorn and Mosaic systems.
They should also consider how the product reaches different customers. This
is a benefit of online shopping, as so many consumers can now have products
sent to their doorstep.
Jim the Gent lives in the outskirts of London in a flat where his girlfriend has half
moved in.
Using the Acorn system, Jim would be consumer 2; “Rising Prosperity.” He would
be part of group D; “City Sophisticates” and type 17 as one of the “Socialising
Young Renters.”
They are both in very urban areas which inspires their style but importantly
means that they don’t live far away from a store.
Psychographics
Lifestyle: laidback, full-on, flexible
Attitude to life: Follow your dreams and enjoy it.
Interests: Music, Drinking, Fashion, Dancing and Social media.
Opinions: Believes that it’s what’s underneath that counts but focusses strongly
on first impressions too. In turn, she is concerned about her appearance.
Values: The environment, being kept busy, family.
Emotions: Tries to be laid back. Gets excited from the topic of music. Can’t
believe how much she’s changed since
school – she’s become less dramatic, but
still can be sometimes.
Culture: appreciates going for coffees,
despite the price. Effected strongly by
fashions. Enjoys the university drinking
culture.
Politics: Annoyed with outrageous videos
she sees on social media and forms
opinions off that but doesn’t worry about
politics too much.
Perceived class: still thinks of herself as
lower middle class and although she can be
frugal, maybe not as well as some.
Using the “VALS” system, Sammy would
best fit as an “experiencer.” These are
“motivated by self-expression” (M.I.B.A,
2014) and “have a lot of energy, which they
pour to physical exercise and social
activities” (M.I.B.A, 2014)
This information could be used very heavily as it shows some of the key
influences on this consumer, as they don’t make their decisions in a vacuum.
The positive from this is that the primary groups who are likely to have the
biggest impact on her are in the target audience too, so more likely to encourage
shopping at H&M. This means that advertising has a knock-on effect as these
groups then talk to each other about it.
The aspirational groups are helpful as well. Sammy wants to be like the people in
these groups. If it looks like they’re buying H&M, then Sammy is more likely to as
well. Therefore, it would be a good idea to advertise with celebrities who are
popular in this target market.
Consumer Motives
Primary motives: Goes with the wardrobe and is the latest style
Secondary motives: It’s cheaper at H&M than at Zara
Rational motives: She needed another jacket
Emotional motives: Wearing a long jacket makes her feel powerful
Conscious motives: It was time to treat herself
Dormant motives: It was an excuse to not do university work
Emotional and dormant motives can be more powerful than rational and
conscious motives. Irrational unique selling points in adverts can be more
effective due to this. This is where it would be useful to get to know the
customers with qualitative data too. If the feeling
of power and freedom from work is what the
consumers feel then H&M should use this to their
advantage in their future advertisements.
Maslow’s Hierarchy of Needs
With Maslow’s Hierarchy of Needs, he states that
“only when basic physiological needs (and those
of safety and security) are met can humans aspire
to be motivated by higher goals eg. status and
self-respect” (BBC Radio 4, 2014)
Figure 9 (McLeod, 2007)
Firstly, this shows that we make sure that the customer feels that the basic needs
are being fulfilled for the customer to be able to focus on H&M’s garments. This
can include making sure that the stores are at a good temperature, are well
established/give off a sense of security and having friendly staff who make
customers feel like they belong. This is a beneficial feature of online stores, as
customers can shop from the comfort of their own homes.
Another thing to take from this is that fashion tends to fall under esteem needs.
However, if it were marketed more with the feeling of belongingness and love,
then customers may unconsciously rank H&M higher than they would have in
level of importance, as “Belongingness and Love needs” come before “Esteem
needs.”
Decision making process
Need recognition: make the customer feel
like they’re missing out if they don’t get
the product.
Information search: This could be through
investing in the app or advertising on
social media (as these are most likely to
spark the interest of Sammy). With these
it’s important that the Action part from
the AIDA (Attention, Interest, Desire and
Action) model is made easy.
Evaluation: The benefits should also be
clearly noticeable either on the adverts or Figure 10 (Content Sparks, 2015)
online.
Purchase: Once again, this phase just needs to be easy, so the customer is more
likely to carry out the action, and enjoy it.
Post-Purchase Evaluation: All very positive and very negative feedback needs to
be considered strongly to work out what to improve in future. That’s the best
way to ensure it’s a pleasant experience and that the customer is likely to stay
loyal
Self-Concept
Real Self: Sammy is confident, busy but relaxed.
Self-Image: Underachieving, desperate to fit in whilst “being herself”
Looking-Glass Self: Too work absorbed, but a laugh sometimes.
Ideal Self: Self-confident, effortlessly stylish.
Possible Selves: Super successful music producer, waitressing forever, running
music events
The difference between Sammy’s “Ideal Self” and her Self-image plays a large
part here. Sammy may be inclined to buy products that make her more like her
ideal self in an attempt to fix the gap. If H&M could sell the effortlessly stylish
side of itself, then Sammy would be interested.
Looking at the “Possible Selves,” we can see what Sammy perhaps wants to
achieve in the future, and sell the feeling of success. This would make Sammy feel
like she’s getting closer to her favourite “Possible Self” by purchasing the
product(s).
Analysis of H&M meeting customer’s needs
H&M’s app usage
Table 1 shows that 65% of the
customers who are aware of H&M’s
app were using it in 2016. This is a
fantastic way of engaging with the
“tech savvy” Generation Y. However,
only 27% of the customers were
aware that H&M had an app.
Therefore, to better utilise this
source, it would be better if H&M
worked on spreading awareness of
Table 1(Briggs, 2016)
their app.
H&M’s in store customer satisfaction
Table 2 shows “the seven
key drivers of customer
satisfaction” (Briggs,
2016). This is important
as it effects the Post-
Purchase Evaluation,
effecting whether the
customer returns. It is
also useful at making
Table 2 (Briggs, 2016)
customers feel more
comfortable and so more of their (Maslow’s) Hierarchy of needs is fulfilled.
According to this table, H&M need to focus on the “Speed of Checkout,”
“Merchandise Selection” and “Store Atmosphere” to improve the overall
customer experience.
H&M’s A-list celebrity Campaign
There was a recent case H&M used top celebrities for the Balmain campaign.
They included “Top model/reality TV star/ all-round A-lister Kendall Jenner,
popular supermodel Gigi Hadid and Victoria’s Secret Angel Jourdan Dunn”
(Brooks, 2015). Using people from their target customer’s “Aspirational Groups”
encourages them to purchase, in the hope of being more like these celebrities.
“Frenzied shoppers camped out overnight outside stores across the world, from
the Champs Elysees in Paris to Regent Street in London, where the range has
since sold out completely” (Lidbury, 2015). This shows the huge effect these
idols have on H&M’s customers.
Conclusion
Customer behaviour analysis is vital to work out which unique selling point to
emphasize and see where improvements could be made. This deeper
understanding of the consumers allows the business to think “outside the box”
and sell the personality behind the brand better.
Appendix