The Pursuit of Happiness:
How Do We Make The Shopping Experience More Enjoyable Audience and Brand Experience DE1131
Harriet Cooper w13009175
The Pursuit Of Happieness
Contents Introduction
1
Target Market
1
Methodology
2
Research Convenience Personalisation Loyalty Shop Layout
3 Convenience 3 4 5 5
Recommendations
7
Conclusion
8
Bibliography
9
The Pursuit of Happieness Introduction In a time where everything from advertisements to social media is specifically made to be captivating and stimulating, the retail industry seems to have fallen behind. Efforts have been made by brands such as Burberry and Nike to make shopping as experiential as possible, but the rest of the industry needs to catch up, making the progress accessible
to a range of audiences, not just the fashion forward or tech savvy few. This report will look into the personalisation that people now crave from high street brands, the idea of brand loyalty and how it effect customers, the need for convenience in modern day retail and the impact store layout can have on sales.
Target Market This report is dedicated to the specific target market-working mothers. The vast majority of this target market has little time to spare. 85.71% stated that that strongly disagreed or disagreed with the statement “I have plenty of spare time.� They don’t shop regularly often either twice a month, 40.74%, or seldom/never 37.04%. The demographic is split 50/50, with
half stating they chose to shop for necessity, while their counterparts shopping for fun and leisure. 47.58%, choose to shop alone, while the remaining 52.42% choose to shop with either friends for family. The market is often split in two over most things but one thing the market always has in common is the lack of spare time and the wish for convenience.
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Methodology Through primary research this report will look into the specific needs of time poor, working mums with a moderate income. Mapping their opinions of modern day shopping and how they think it could be improved, combatting the limitations of the companies and making the experience more enjoyable. A survey was conducted specifically for this report, asking the target market how and when they shop. It also looked into customer experience, how it could be improved, and how this could be tailored to the specific target market. This will allow the report to tailor the recommendations to the target market. Looking at secondary research, the report will consider customer satisfaction on a much larger scale. The report will consider customer
satisfaction on a much larger scale. Reviewing a range of industry reports such as the Oracle and The E-tailing Group Inc. examining the reaction of consumers to today’s retail markets and how they respond to different methods of achieving consumer satisfaction. This report will show the shortcomings of the retail industry through studies into different brands like M&S, and their interaction with different target markets, showing ways they can improve their customer experience. The report will also use information gathered by Solomon and Rabolt for Consumer Behaviour In Fashion (2004), Kelley for The Importance of Convenience in Consumer Purchasing (1958) and Wheeler’s Designing Brand Identity (2006) to ensure that the industry knowledge from a range of sources informs the reports recommendations.
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Research Convenience In the modern era, convenience is key to a consumer. Through the advancements of the Internet and e-commerce, people have become used to instant gratification, buying something online as soon as they want it and having it delivered the next day. Kelley (1958) states, “Key to understanding shopping behaviour is the increased importance consumers are attaching to convenience considerations.” Although this was stated over 55 years ago, it has never been more relevant. Research on this topic (Viccars, 2013), shows how the expectations for convenience have increased dramatically in direct correlation with e-commerce. Therefore a brand needs to make their shopping experience as quick and easy as possible to increase customer satisfaction. It is questionable however, whether this craved convince can be at a cost to the consumers themselves. Kelley (1958) states “purchase decisions are made at the point where the total of commodity costs are considered minimal” therefore people will debate whether the cost to them, not just the monetary value, but the effort it takes, such as getting to the shop, finding the merchandise in store,
and purchasing is worth the product. This is particularly important for the target market the report is looking into. 85.71% stated that they strongly disagreed or disagreed with the statement “I have plenty of spare time” (Appendix 2) thus, making their shopping trips as convenient as possible would be beneficially for both parties.
“Key to understanding shopping behaviour is the increased importance consumers are attaching to convenience considerations”
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Personalisation The consumer has come to drive most things in the retail industry, leading them to expect a more personalised experience. According to a report from MyBuys Inc. and research firm The E-tailing Group Inc. (2013), 40% of consumers said they buy more from retailers that personalise the shopping experience. Furthermore, research conducted by The Oracle (2012) states that the biggest driver for revenue growth in the improvement in the overall customer experience. One of the other top five big drivers for increased revenue was providing customers with a more tailored or personalized shopping experience, therefore consumers must capitalise on this. Additionally, Oracle research (2012) shows 81% of shoppers are willing to pay more for a better customer experience. Through a survey conducted for this report, (Appendix 2), 51.8% of the people asked said they were willing to pay more for a better shopping experience. One questionnaire response stated specifically (Appendix 2) that they would pay more for a personal shopper. This is one of the best ways that a business can ensure both personalisation, convenience, and
customer satisfaction due to one to one time a customer would get with a stylist and skills a personal shopper has. Also, with the target market of working mums who are very time poor but often cash rich, this recommendation will give them what they are looking for, without having to spend the time they don’t have searching for the items themselves that they may struggle to find, or give them styling tips if they have been out of touch with fashion.
“81% of shoppers are willing to pay more for a better customer experience.� One brand that does personalisation successfully is Liberty, who uses a membership system called Liberty Loyalty to monitor their customers. The customers are given points every time they spend, and are sent a gift card twice a year, depending on how much they have spent in store. Liberty also employs high quality
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staff who are rigorously trained. They are asked to remember esteemed clients, making sure they get the best service possible, therefore helping to boost the businesses brand image and revenue. Additionally, Liberty use a commission system with their staff, subsequently, as their income is directly linked to how much they sell, the staff are driven to make as many high quality sales as they can. This is supported by Tlapanna (2009), who states that high quality interactions with service providers often result in customer satisfaction, even if faced with other issues.
Loyalty Customers have begun to think of brands as personalities, choosing to shop with a certain brand because they identify with the image the brand tries to promote. “People will choose to go to the brand that has that point of difference, rather than one that’s supposed to stand for everybody.” Says Jon White, marketing director at Kimberly Clark. Research shows that brand personality “influences consumer preference and usage” and “increases levels of trust and loyalty” (Crosno and Freling, 2011). A brand needs to be clear about what type of person they want to
connection with. Otherwise they are likely to alienate the people they aim their brand at.
Shop Layout Griffith (2005) states that store layout is a critical driving factor for consumer elaboration and response in retailing. If a shop is difficult to navigate, the customers will not engage. If the customer struggles with the layout of a shop due to tight spaces or the inability to find what they want, it will leave them with a negative feeling of the brand. To help with the feeling of overcrowding in
“People will choose to go to the brand that has that point of difference, rather than one that’s supposed to stand for everybody.”
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stores, lights can be used to “impart a feeling of spaciousness and serenity” (Solomon and Rabolt, 2004). If the store uses lighting effectively, they do not need to increase the space in their stores to make the customers feel more at ease. Lighting can also be used to increase sales through other methods. The fashion brand Norma Kamali replaced the lighting in their changing rooms from florescent to pink. This meant that the customers had their face flattered and their wrinkles banished, making them more willing to try on, and buy the swimsuits (Blumenthal, 1988). If customers feel uncomfortable in the changing rooms, they will not feel comfortable in the clothes, therefore it is unlikely that they will purchase the items, and potentially leave with a negative feeling of the brand. Therefore, brands should consider making their changing rooms feel as comfortable as possible in order to encourage customers to purchase the products.
has become a chore to many people. When asked to comment on the question “What do you enjoy about shopping?” over a third of the answers were along the lines of “Nothing” or “Getting home” (Appendix 2). Brands need to find a reason to get people into stores. This could be done through dedicated events or evening, designed specifically for working mothers.
Sushma Sagar, senior brand manager for Banana Republic says brands “Need to deliver something engaging and compelling to get them through the door.” The shopping experience needs to become enjoyable. Shopping
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Recommendations High street retailers seem to have forgotten the influential target market of working mothers. Above all, the most important thing the retailers need to consider is to appeal to the target market is convenience. These women are extremely time poor and neglect going into store if they think it will cost waste their time. The best way a business could combat this is the introduction of free personal shoppers across their stores. This will achieve many goals in one by saving the customers time, helping them to find what they’re looking for and create a positive
image for the brand. If a customer is happy with the service, they are likely to become loyal customer of the brand. If the customers can book a time slot that is convenient to them, they will be willing to spend more, due to Kelley’s (1958) theory that the consumer will debate the cost to them in terms of money, time and effort. To make the shopping experience more enjoyable, the brands could consider putting together events and evenings specifically for the target market with personal shoppers and stylists available to give them the best customer experience possible.
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Conclusion Although high street stores can never be as convenient as e-commerce, it is the personalisation, experience and human interaction that give retail its unique selling point. The consumer must be at the forefront of the retailers mind when designing the shop layout, thinking about how much space a customer will need to navigate the shop, and how they will find what they’re looking for without getting frustrated. This report has found that consumers crave convenience and quality of service above everything else, if the brands fail to succeed at these points, no
matter how well they practice anything else, they will fail to keep the customer on side. Further research could be made into creating events for working mums, in conjunction with personal shopping to make it as entertaining and engaging as possible while remaining convenient and time sensitive. People want to be entertained. Everything is now made as captivating as possible, therefore retail must not be left to become dull and mundane.
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Bibliography Books
Articles
Marconi J. (2000) The Brand Marketing Book: Creating, Managing, and Extending the Value of Your Brand. Lincolnwood, Ill: NTC Business.
Blumenthal. D. 1988. Consumer’s World; Scenic Design for In-Store Try-Ons. The New York Times. Available at. http://www.nytimes.com/1988/04/09/ style/consumer-s-world-scenicdesign-for-in-store-try-ons.html [Accessed 16.11.14]
Shaw C, Dibeehi Q, Walden S. Customer (2011) Experience: Future Trends and Insights. Houndmills, Basingstoke Hampshire: Palgrave Macmillan. Smilansky S. (2009). Experiential marketing: a practical guide to interactive brand experiences. Philadelphia: Kogan Page. Wheeler A. (2006). Designing Brand Identity: A Complete Guide to Creating, Building, and Maintaining Strong Brands. Chichester: Wiley.
Crosno, J.L. & Freling, T.H. 2011, “Brand personality appeal: conceptualization and empirical validation”, Journal of the Academy of Marketing Science, vol. 39, no. 3, pp. 392-406. Kelley EJ. (1958). The Importance of Convenience in Consumer Purchasing. The Journal of Marketing. Volume 23. Page 32-36. Available through ProQuest Hospital Collection. [Accessed on 12/11/14]
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Movarrei R, Rezaee Vessal S. (2010). Mysteries of new product promotion; effects of layout on buyer behavior.IEEE International Conference on Management of Innovation&Technology. Pages 468473. Available trough IEEEEXPLORE.
Vicars, J. (2013). Store Experience is Key to Reviving the High Street. The Marketing Magazine. [Accessed on 12/11/14] http://www.marketingmagazine.co.uk/article/1215925/store-experience-key-reviving-high-street
Ruddick G. 2014. Why are Marks & Spencer’s Sale Still Falling. The Independent. Available at: http:// www.telegraph.co.uk/finance/ newsbysector/epic/mks/11203400/ Will-Marks-and-Spencer-be-ableto-beat-the-Christmas-blues.html [Accessed on 13/11/14]
Reports
Stambor Z. 2013. Shoppers Want A Personal Touch. Internet Retailer. Available at: http://www. internetretailer.com/2013/03/21/ shoppers-want-personaltouch?campaignkw=Etailing-group [Accessed 11/11/14]
Griffith, D. A. 2005. An examination of the influences of store layout in online retailing. Journal of Business Research, Volume 39. Pages 392 – 406. SpringerLink. The Oracle. 2012. 81% of Shoppers Willing to Pay More for Better Customer Experience. [Online]: http://www.oracle.com/us/corporate/press/1883120. [Accessed on 12/11/14]
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Harriet Cooper w13009175 Audience and Brand Expereince DE1131