Week 8 Final Project

Table of Contents

Problem background. 2

Research objectives. 3

Research methods. 4

Research design. 4

Sampling and data collection. 4

Ethical consideration. 4

Research findings. 4

Demographics of the respondents. 4

The consumer behavior related to the purchase process of jewelries. 5

The consumer behavior implications  to  address concerning its marketing strategy. 6

The overall effectiveness of the organization’s marketing strategy. 6

The strength and weaknesses of the current marketing strategy. 7

Strengths. 7

Weaknesses. 7

Recommendations. 7

References. 8

Problem background

Jewelries are sentimental jewelries that hold value t the people purchasing them or to whom they are purchased. Consumers just like the companies are usually characterized by indecisiveness. Wenben  (1995, pp. 381-388) argued that as the consumers are undecided on what to purchase, the right price to offer for each jewelry and the right model or brand, the companies are undecided on the 4P including price tom charge for its jewelries, the jewelries to sell to specific market segment, the promotional methods and channels to use to communicate their jewelries messages as well as the distribution channels to use (Rothschild, &, Healey, 1995, pp. 95-111). Because the summers are king, the companies are faced with other decisions including the market segmentation approach to deploy, the right target market and the marketing strategy to pursue. This leaves Damas Jewelry with only one problem that they have to sturdy and understand the consumer’s behaviors when determining their price, jewelries, promotion, and place. Secondly, the companies must take into consideration the environmental stimuli, cultural stimuli and also understand the underlying consumer attitudes, motivations, perception, personalities as well as her lifestyles (Apostolopoulos, et al, 2012),

Marketing sentimental jewelries such as jewelry can be very difficult as they are not only expensive but they are also expensive.  As such jewelries cannot be sold to the mass markets but to selected target markets that have emotional connection with the sentimental jewelries. Companies need to understand the consumer behaviors while developing their marketing strategy in order to maximize consumer involvement.

 Research objectives

The aims of this study are to determine the right target market segment for Damas Jewelry’s high end jewelry jewelries. On the other hand, the objectives of the study include:

  1. To analyze the current marketing strategy used towards the target markets
  2. To recommend changes to the marketing strategy that fits the jewelries features and the consumer’s behaviors.
  3. Determine the buyers purchase intention and decision processes
  4. Analyze the buyers purchase responses.
  5. To recommend directions for future research.

 

Research methods

 Research design

The research was mainly based on primary and secondary data. Primary data was collected through interview and secondary data involved literature reviews from industry magazines, news papers, and marketing books and journals.

Sampling and data collection

Primary data was collected from a randomly selected sample of 20 jewelry customers. These customers meet the inclusion criteria which included having purchased jewelry industry for at least 3 years. The random sampling method was selected to avoid bias and to ensure that the sample was fully representative of the entire study population. Quantitative data was collected and analyzed for the study. The qualitative data was collected and analyzed using data reduction method.

 Ethical consideration

During the study, respondents were assured of their privacy and safety. Permission to interview the customers was sought from their company and the respondents were asked to participate anonymously. Data so collected was used for the specific research purposes and the data deleted from the retrieval system after the study.

Research findings

Demographics of the respondents

The response was 100% as al the respondent were interviewed.  Additionally, the respondents were made up of 90% males and 10% female all aged between 20 and 40 years (Till, Stanley, and Priluck, 2008, pp. 179–196).

The consumer behavior related to the purchase process of jewelries

Based on the  research findings, the consumer’s behaviors pattern in relation to the purchases of the jewelries was similar. For example, those consumers coming to the shop to buy jewelry had:

Stage 1 – Need recognition. When the consumers realized that they needed the jewelry further friends or relatives, they developed the interest to purchase the jewelries. Most of the consumer’s need recognition as stimulated by Damas Jewelry’s marketing and advertisement. The marketing stimuli included the price of the jewelry, the jewelry themselves, the promotion that Damas Jewelry deployed as well as the distribution structures and location of the shops.

Stage 2 – Information search – most of the consumers had first searched for the jewelries information over the internet. Books, and even asked their references groups such as family members, friend and even bosses where they could get authentic jewelry (Peter, & Olson, 2010)

Stage 3 – Alternative evaluation-

The consumed evaluated a number of alternatives based on what they expected from a good jewelry. Most of the customers looked for authenticity; some looked at the prices while some of the consumers looked at the color of the jewelries quality. Most people indicated they loved the 24 carat diamonds rings of their friends, spouse or relatives. It is also important to note that the marketing companies played important roles here as they framed the alternatives (Till,  Stanley,  & Priluck, 2008, pp. 179-196).

Stage 4 – Purchase decision– after evaluating different jewelries based on their search criteria, the consumers settled for specific jewelries. The market usually influences the purchase decision by offering competitive prices, and convenient payment processes. Other ways to induce ambient condition for processing, in store entertainment as well as in store attendants.

Stage 5 – Post-purchase behavior- after the consumer has purchase the jewelries, they are usually seen trying to evaluate their purchased jewelries by trying them on. Some usually come for refund or replacement because they undergo post purchase cognitive dissonance (Chen, 2008, pp. 559-579),

The consumer behavior implications  to  address concerning its marketing strategy.

 The consumer behaviors   implication varies from consumer to consumer. However, all the consumer’s behaviors have one implication on Damas Jewelry. Damas Jewelry has to revise its marketing strategy in line with the consumer’s behaviors. For example, when consumers complain about the poor serviced delivery, Damas Jewelry has to improve its serviced, jewelries layout, prices as well as their packaging. Most consumers complain about the rigid system within the shops as was reported by almost 90% of the respondents so they try to make the product viewing easy by providing adequate jewelries information in store, and online through their website (Harmon-Jones, & Allen, 2001, pp. 889-898)

Lack of adequate  jewelries information including prices changes, currency incretion, availability and other convenience factors must be addressed. Damas Jewelry should consider conducing market research to find more information about the difficulties that consumers face

 

The overall effectiveness of the organization’s marketing strategy

Damas Jewelry currently used the 4Ps marketing model which resolves round jewelries, price, promotion and place. The entire above are optimized towards market penetration, jewelries development, brand loyalty, and faster purchase decisions. Damas Jewelry usually influences the customers brand choice, purchased timing as well as the amount of jewelries purchased by the consumers (Maio, & Haddock, 2010;  Chatzisarantis, Hagger, & Wang, 2008, pp. 97-115).

The strength and weaknesses of the current marketing strategy

Strengths

The current marketing strategy has the following strength.  For one, Damas Jewelry’s pricing strategy is very convenient of the consumers in addition to its store location. The fact that Damas Jewelry has an online store makes it even much easier for the consumers to purchase the jewelries. Finally, Damas Jewelry’s promotional method was also very effective as the brand was well known brand all over Kuwait. This is the only shop preferred by the consumers for buying jewelries.

Weaknesses

Damas Jewelry’s current marketing strategy seems to overlook the fact that the consumers usually experiences post purchase cognitive dissonances. Despite the consumers have chosen jewelries with the highest valuation, they usually feel bad after purchasing the jewelry. For example most consumers get involved with jewelries that are offered at the point of purchase which changes the consumer’s jewelries choice and affects their original valuations. Secondly, the consumers are usually under influence of their reference groups that influences their purchase only to realize that the jewelries do not meet their desired standards (Maio, & Haddock,  2010).

.

Recommendations.

For the online store, Damas Jewelry has to develop a unique jewelries engagement strategy that will prevent the considers from abandoning he online purchase as most consumers who had greater our chase intention did not actualize their purchases.  Probably Damas Jewelry should streamline their checkout processes as it is very elaborate and time consuming. In the store, Damas Jewelry should consider having more in store attendants to talk up the customers. This would influence purchases. Consumer engagement- Damas Jewelry should engage the consumers more through all their customer contact points as this increase the chance of purchase intention and actual purchase.  Finally, Damas Jewelry should consider conducting more research to determine what makes the customers want to purchase from the store and how well Damas Jewelry can serve them better. Understanding the customer’s psychographics could help Damas Jewelry leverage its unique financial capacity to drive revenue and growth.
 

 

 

References

Maio, R., & Haddock, G. (2010). The Psychology of Attitudes and Attitude Change. Thousand Oaks, CA: Sage.

Chatzisarantis, D., Hagger, S., & Wang, K. (2008). An experimental test of cognitive dissonance theory in the domain of physical exercise. Journal of Applied Sport Psychology, 20, 97-115.

Harmon-Jones, E., & Allen, B. (2001). The role of affect in the mere exposure effect: Evidence from psychophysiological and individual differences approaches. Personality and Social Psychology Bulletin, 27, 889-898

Chen, F. (2008). An integrated research framework to understand consumer attitudes and purchase intentions toward genetically modified foods, British Food Journal,110 (6), pp. 559-579,

Till, D., Stanley, M., & Priluck, R. (2008). Classical conditioning and celebrity endorsers: an examination of belongingness and resistance to extinction, Psychology and Marketing, 25 (2), pp. 179-196, Wiley InterScience

Peter, P. & Olson, C. (2010) Consumer behavior and marketing strategy. 9th ed. New York: McGraw-Hill/Irwin.

Till, B. D., Stanley, M. and Priluck, R. (2008), Classical conditioning and celebrity endorsers: An examination of belongingness and resistance to extinction. Psychol. Mark., 25: 179–196. doi: 10.1002/mar.20205

Wenben L. (1995) ,”Consumer Values, Product Benefits and Customer Value: a Consumption Behavior Approach”, in NA – Advances in Consumer Research Volume 22, eds. Frank R. Kardes and Mita Sujan, Provo, UT : Association for Consumer Research, Pages: 381-388.

Rothschild M, &, Healey J. (1995). Changing consumer perceptions in healthcare marketing. J Hosp Mark. ;9(2): pp. 95-111.

Apostolopoulos, I, Fallah, N, Folmer, E, & Bekris, K 2012, ‘Integrated online localization and navigation for people with visual impairments using smart phones’, 2012 IEEE International Conference On Robotics & Automation, p. 1322, Publisher Provided Full Text Searching File, EBSCOhost, viewed 26 February 2016.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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