Assignment 1 - Situational Influences PDF

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I. INTRODUCTION:Among all brands in leisure and personal goods specialist retailers industry, it can be seen that PNJ has the highest brand shares in 2020. Especially, PNJ main competitors, DOJI and SJC’s brand shares are lower with 0 and 0 respectively.Figure 1: Brand shares of Retailing store in V...

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I. INTRODUCTION:

Among all brands in leisure and personal goods specialist retailers industry, it can be seen that PNJ has the highest brand shares in 2020. Especially, PNJ main competitors, DOJI and SJC’s brand shares are lower with 0.7 and 0.4 respectively.

Figure 1: Brand shares of Retailing store in Vietnam by Euromonitor, 2021

Figure 2: PNJ’s competitors by Euromonitor, 2021 In this report, I will briefly describe about consumer behaviour in PNJ store in Dong Ha city. The context is before the Covid-19 pandemic. From my personal experience at the store, it can be figured out that main target customer of PNJ is: Segments

Women want to look fashionable (Millenials and Generation Z)

Demographic

Psychographic

Behavioral

Geographic

s - Age: 28-40

- Individualism

- Benefit

- Online: PNJ

years old

lifestyle: want to

sought:

websites,

- Gender:

be unique in the

trendy and

Shopee

Female

crowd

elegant

- Offline:

- Income:

- Rapidity

design

official store

middle to high

lifestyle: run

- Occasion:

income

after digital

when they

- Social

world, update

want to

status: middle

fashion trends

change

to high

jewelry, PNJ has discount

II. SITUATIONAL INFLUENCES ON CONSUMER BEHAVIOUR: Due to my personal experience and customers interview, the customers are easily be affected by situational influences in purchase and communication situation. A. PURCHASE SITUATION ANALYSIS: 1. Physical surroundings: the owner has put the store in the large street, which is easily for the customer to find the store and a parking lot. Furthermore, Concung's store is directly next to PNJ. Though, once the young ladies and mothers have completed shopping at Concung, they can conveniently stop by PNJ's store to do some purchasing (Appendix 2). Inside the store, the space is designed in a minimalist style but still luxurious. PNJ uses high-intensity lighting to highlight their products to customers. According to Lin and Yoon, when shopping in a bright light environment, it stimulates excitement and create active feelings among customers (cited in Sorca, 1987). In other cases, PNJ does not show the price of the jewelries while displaying product. Huddleston et al. (2015) claimed that people tend to make a purchase faster if the product information is being provided instead of price. Indeed, if the product is high-qualified, they will buy it without any consideration of pricing.

Figure 3: PNJ’s is adjacent to Concung by Nguyen, 2021

Figure 4,5,6: PNJ uses high-intensity lighting by Nguyen, 2021 2. Social surroundings: from my interview, the customers used to visit PNJ with their friends and mum (Appendix 1,2). This is because they do not want to do

shopping alone, also, they want to hear the recommendation from their peers. Kurt, Inman and Argo (2011) claimed that when shopping with other people, the customers tend to arise and spend more than expected. Generally, PNJ’s customers are easily affected by other comments, then, the staff are generally taking advantage of this context by emphasize the opinions of their partners to increase the probability of purchasing. 3. Temporal influences: when it is crowded, the staff will invite guests to the waiting area to be served juices and visit some other display areas (Appendix 3). Consequently, the customers are roughly pleased with the customer service experience and it is also prevent the customer switching store behaviour (Microsoft, 2019). Moreover, PNJ also have suitable promotions to stimulate purchases. During each special occasion, PNJ will launch or run promotions of related product lines so that customers can easily select appropriate product at a reasonable price. For instance, on Mother's Day, PNJ gave out some products and offered a discount code for customers who came to the store to check in with their mother during the promotion period (Appendix 3).

Figure Z: The rate of customers switching-store behavior due to poor customer service experience by Microsoft, 2019

Figure Z: PNJ’s collection in each special occasion by PNJ 2021 4. Task definition: Tiger claimed that when women wearing a jewelry, it will affirm their social status in the society (n.d.). Specifically, these women do not have much worry to their physical needs, then, wearing jewelry is a way to show their standard living. Likewise, PNJ’s customer from my interview said the reason that she chooses PNJ’s product is because it let her to show her aristocracy and affirm her social status in society (Appendix 1,2). Marketers are fully aware of this, which is why they have continued to introduce increasingly expensive product lines, such as diamond jewelry and small brands like Disney|PNJ, to pique the interest of these customers.

Figure Z: PNJ’s diamond products line pricing by PNJ, 2021

Figure Z: Price of Disney|PNJ products by PNJ, 2021 5. Antecedent states: customers are having a tendency of buying jewelry when they are both in good and bad mood (Appendix 1,2). Precisely, to fulfill the “felt” needs, customers tend to purchase more items than they normally do because it make they released stresses and feel comfortable (cited in Heath et al.,-2011). Moreover, with the well-behaved characteristics of PNJ’s staff, it is a positive point which engage in customer purchase decision. Then, PNJ has created a blog for its customers to assist ladies in better coordinating their jewelry and propose jewelry that will bring them luck. Hence, it will somehow increase purchase probability among customers.

Figure Z: PNJ’s blog for their customers by PNJ, 2021 B. COMMUNICATION SITUATION ANALYSIS: 1. Physical surroundings: PNJ has placed a banner in front of the store so that consumers know more about discount program. Hence, PNJ has successfully drawn consumers due to its convenient placement in the city center. Within the store, PNJ has an LCD screen that is suspended from the ceiling to advertise its campaigns to clients. According to Roggeveen, NordfElt and Grewal (2015), putting digital displays in retailing store is might worthy investment if the content is about price promotion or the products detail. However, PNJ is putting the content of their campaign, hence, it is roughly cannot strong enough to attract the customer do some purchase.

Figure Z: PNJ put banner in front of the store by Nguyen, 2021

Figure Z: LCD screen in PNJ by Nguyen, 2021 2. Social surroundings: The staff at PNJ has a great attitude and provides excellent service. Whenever people come to PNJ, staff will advise on everything from the jewelry's size and to protect it from deteriorating. That is why I have

been a regular client at PNJ since they make me feel at ease when I visit. Even if people go into the store with no intention of purchasing anything, staff still greet warmly.

Figure Z: Staff are advising customers by Nguyen, 2021 3. Temporal influences: whenever people visit the store regards of launching new collection involved with special occasion such as Spring or Valentine, the staff will advertise it in detail so that the purchaser may make purchase (Appendix-1). III. RECOMMENDATION: -

Physical surroundings: to stimulate the decision-making process faster, the content of the digital display ads is a prominent factor. Specifically, Sanden, Willems and Brengman (2020) claimed that the LCD screen should contain the product and price information, instead of the brand’s campaign. Hence, PNJ should focus more on showing the information involved with the sales promotion or best-seller jewelry rather than just about their campaign.

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Task definition: as most of PNJ’s customer want to wear jewelry because they want to affirm their social status, I think PNJ should have a collection collab with unique brands like MLB because MLB is a middle high-end Korean brand and roughly viral in Vietnam. Specifically, PNJ will provide their materials which is silver and diamonds to MLB, then, MLB will design their products and mix with these materials. Hence, this collection will aim at high-class customers who want to look flashy and high fashion. Swarovski and Nike have done a collaboration and has created a booming news in worldwide (Hypebae, n.d.). Consequently, I believe that through the collaboration with MLB, PNJ will create a milestone in Vietnam’s jewelry industry.

Figure Z: The design of Nike’s sneaker collab with Swarovski (Hypebae, n.d.)

IV. REFERENCES:

Clarke, P & Mortimer, G 2013, ‘Self-gifting guilt: an examination of self-gifting motivations and post-purchase regret’, International Journal of Retail & Distribution Management, vol. 30, no. 6, pp. 472-483, Emerald Insight. Euromonitor International 2021, Leisure and Personal Goods Specialist Retailers, industry report, Euromonitor International, viewed 17 July 2021, Passport database Huddleston, P, K. Behe, B, Minahan, S & Fernandez, R 2015, ‘Seeking attention: an eye tracking study of in-store merchandise displays’, International Journal of Retail & Distribution Management, vol. 43, no. 6, pp. 561-574, Emerald Insight. Hypebae, n.d., Is 50,000 Swarovski stones on your feet too dazzling?!, SNKRVN, viewed 23 July 2021, Kurt, D, Inman, J & Argo, J 2011, ‘The Influence of Friends on Consumer Spending: The Role of Agency— Communion Orientation and Self-Monitoring’, Journal of Marketing Research, vol. 48, no. 4, pp. 741-754, JSTOR collection. Lin, Y. F., & Yoon, S. Y. 2015, ‘Exploring the Effects of Lighting on Consumer Responses in a Retail Environment using 3D Walk-Through Animation’, Archives of Design Research, vol. 28, no. 2, pp. 5-25,. Microsoft Dynamic 365 2019, State of global customer service report, market report, Microsoft Dynamic, viewed 18 July 2021, PNJ, 2021, blog, PNJ, viewed 20 July 2021, PNJ, 2021, viewed 16 July 2021, Roggeveen, Anne L, NordfElt, J & Grewal, D 2015, ‘Do Digital Displays Enhance Sales? Role of Retail Format and Message Content’, Journal of Retailing Research, viewed 19 July 2021, Elsevier SD Freedom Collection database. Sanden, S, Willems, K & Brengman, M 2020, ‘How do consumers process digital display ads in-store? The effect of location, content, and goal relevance’, Journal of Retailing and Consumer, vol. 56, viewed 23 July 2021, Elsevier SD Freedom Collection database. SSI, 2017, VIETNAM CONSUMER TRENDS: SHIFTING TASTE, SSI, viewed 24 July 2021,

Tiger, n.d., ‘6 Little-known Psychology of Wearing Jewelry You Should Know’, Afashionblog, blog, viewed 18 July 2021,

V. APPENDICES: -

Appendix 1: Miss Anh, 29 years old. She has a high income which is approximately 20 million VND per month. She is unmarried and hope PNJ to have a special collaboration in the future. Here is the interview link: https://drive.google.com/drive/u/0/folders/141eT1rvrnQ91w7L4DFqBI9EOyc_SSh m8

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Appendix 2: Miss Oanh, 22 years old. She has already graduated. Her income is mainly come from the online internship, approximately 10 million VND per month. She is single and will purchase PNJ if her favourite person will be the campaign ambassador. Here is the interview link: https://drive.google.com/drive/u/0/folders/141eT1rvrnQ91w7L4DFqBI9EOyc_SSh m8

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Appendix 3: Interview with the staff of PNJ Me: Hi PNJ. I’m a student at RMIT University, currently. I’m working on my assignment which is about consumer behaviour and psychology and my chosen brand is PNJ. Due to the social distancing so that I cannot go to the store to ask you directly. Then, can I ask you through Messenger? Is it convenient for you? Staff: What do you want PNJ to support? Me: What do PNJ do when the store is crowding? Staff: PNJ ask for your information. PNJ always has a reception room and an area to visit product lines such as watches, Style, Gold. While guests are a bit

crowded PNJ can invite guests to the waiting room to be served juices, confectionery and visit more. Some other display areas. Me: Do PNJ have any incentive for customers who come as a group? Staff: PNJ currently only has a special promotion program for VIP customers that will run throughout. The rest of the other promotions will run at each suitable time of the year to stimulate customers to visit and buy products. Me: Love it. How about special occasion like Valentine or Lunar New Year, what do PNJ do to stimulate customer purchase behaviour? Staff: On the holidays, PNJ will have appropriate promotions to stimulate purchases. During each holiday, we will launch or run promotions but related products so that customers can easily choose to buy the right product at the best price. For example, on Mother's Day recently, PNJ gave out some products with the message "I Love Mom" and offered a discount code for customers who came to the store to check in with their mother during the promotion period. forever. Me: Do your customer go shopping when they have free time or in u rush? Then, how much time do customers spend at PNJ's store on average? Staff: Usually, PNJ's customers will visit and buy products at the store when they really have a demand. They usually spend about 15-30 minutes to choose and buy products. Me: Yeah, got it. I think that is enough for me. Thank you PNJ for spending time answer my questions.

Appendix 4: Sales of PNJ from 2011 to 2017 by SSI 2017

Appendix 5: Vietnamese jewellery demands by SSI 2017

Appendix 6: Quarterly jewelry demand in Vietnam by SSI 2017...