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Customer Philips is one of the largest corporations in Vietnam’s consumer lifestyle, health care and lighting industry. Their main mission is to improve lives through meaningful innovations. Philips’s target group are users of domestic appliances like TV, video games, kitchen appliances; healthcare industry users of imaging systems, patient care and clinical informatics; industry and domestic users of light (MBASkool). As stated by Philips Vietnam, wide varieties of consumers in age, sex, status, etc., are due to wide variety of products, but their main target (modern wives and mothers) profile are: 

Geographic: 

Age: Above 25 years old.

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Country: They mainly reside in urban areas of Vietnam such as HCMC, Ha Noi, Hai Phong, etc.

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Demographic: 

Gender: Female.

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Family: They’re usually married women who may have children.

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Income: Middle to high level incomes.

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Occupation: Housewives, white collar workers.

Psychographic: 

Social Class: Middle class, upper class, high class

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Lifestyle: Modern, balancing between work and life.

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Personality: Open-minded and eager to try new things.

Behavioral: 

Occasion: In need of a new ironing product.

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Benefit sought: An effective and user-friendly product that is safe to use; convenient products that make household chores become easier to do

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User status: Regular users who are familiar with Philips and first time users who would like to try out a new brand or they like this particular Philips’ product.

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Loyalty status: They are mostly loyal due to Philips’ fulfillment in their brand promise, providing products which are satisfactory in quality. Product information Philips hand-held steamer is perfect for modern people with a taste of minimalist,

compactness and flexibility. For specific technical features, the steamer uses the power source between 220V to 240V, a power source that is currently used in every Vietnamese

household. Philips’ steamer has a detachable water tank with a capacity of 70ml and can be refilled for continuous use. Furthermore, an electric pump automatically generates nonstop flows of steam which is essential for clothes de-wrinkling. This clothes flattening device can also be used for delicate fabrics such as silk and will not leave any burn marks on clothes. Another benefit is that this hot steam generated refreshes clothes and kills up to 99.9% of bacteria being harmful for consumers’ health. Customers will be satisfied with compact design which makes it easy to use anywhere, anytime. In comparison to the irons available on the market, this hand-held garment has more outstanding advantages, such as: light-weight and compact design or lower price,... . How the brand has represented in the market “The value of the Philips brand is fueled by a growing awareness of our meaningful purpose to improve the lives of billions of people around the world,” said Tomasz Lisewski, Head of Brand, Communications, Digital & Marketing at Philips. Philips has remained as one of the indispensable electrical and household appliances brands for both Vietnamese people and people around the world. In 2018, according to Philips, they elevated their brand’s value from USD 11.5 billion to USD 12.1 billion and landed at #43 ranking among the world’s top 50 global brands in Interbrand's 2018 Best Global Brands ranking. Philips sets a firm position in the housewares and electronics market as a brand with high quality, modern and meaningful innovations. Furthermore, Philips Vietnam currently sells their products via ecommerce channels such as Tiki, Lazada… or some retailers: Dien may xanh, Nguyen Kim, AEON,...as well. Message For a long time, Philips has always placed the life quality of people on top. With the slogans “Chọn Philips, chọn sống khỏe hơn” or their latest “ Innovation & You”, they want to deliver the message that Philips will bring people and technology together, satisfy customer needs through innovation and make the world healthier and more sustainable. With such strong commitment, “Philips continuously promotes business activities, bringing meaningful creative solutions to Vietnamese people '' (Philips Vietnam). Philips has and will become a companion with every human being in the journey towards the goal of improving the quality and the value of life.

CHAP 3: AFFECT & COGNITION Structure of knowledge: 

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Schema of Philips

Scripts: Process of buying an iron

Look for what type of iron that is popular currently research for its information electronic device

Philips Iron

modern appliance

essential

including reviews (online, directly contact to

new technology

the store) evaluate its specifications

save time

lironing is not boring anymore

among many brands decide what to buy order through website or purchase at store

effective globally popular

big brand

can trust high quality

cost

longevity

higher than others

Clearly understanding about schema and scripts could help marketers define deeply what consumers think about their product then construct appropriate marketing strategies. Philips was and now choosing “innovation” as their competitive strategies. According to Mr. Eddie Ong (CEO of Philips Vietnam), Vietnamese are interested in products that are technologically innovative but user-friendly. We have already constructed a schema about what they might think about Philips iron, terms “new technology”, “effective” was listed. That means Philips understood appropriately insights of consumers and they are on the right track. The experience of products can affect customer loyalty. Reading reviews can make new customers consider whether to buy or not to buy that product. Knowing this, Philips tried to “provide products that meet their needs more closely than ever before” and willingly receive feedback from customers. Info processing models in consumer decision making Generally, the developed information- processing models includes some main steps: environment, interpretation, new knowledge, retrieval, integration, behavior. For example, when consumers need an iron and they see Philips’ advertisement they might experience process as following: Seeing an ironinterpretation (try to understand information appeared on advertisement: “Easy and Effective”)new knowledge (the iron use steam system instead of heat from electricity) retrieval (retrieve that Philips is a popular brand with good

reputation, current iron cannot be used anymore)integration (it brings new experience, looks nice and modern) behavior (order or buy it from distributors).

CHAP 4: PRODUCT KNOWLEDGE AND INVOLVEMENT Product knowledge: are different types of information, meanings and beliefs about the products that consumers store in their minds (4 level of the product knowledge: product class, product form, brands and models which are used to help customers interpret the information about the products and make decisions in certain circumstances). Three types of product knowledge that customers classify based on the above-mentioned levels include: bundle of attributes (knowlegde about features, functions, characteristics of the products which are either tangible or intangible ; bundle of benefit (the desirable outcomes occurring after buying or using the products provided by the attributes of the products and make customers satisfied); and value satisfier (knowledge about personal, symbolic values that the brands try to help them achieve. Values simply mean people’ goals and needs which involve in personal emotions and orientation) Finally, mean-end chain of customers will link those knowlegde together. Based on the concept, Philips has developed the smart household appliances which are easy to use and help customers to save time. Our product is a handheld garment steamer, which takes the housewives interests comparing to the traditional iron products. Moreover, the quality of consumers’ lives has always been Philips’s prior concern, which makes Philips become one of the top household appliances production corporates. Therefore the product has competitive potential comparing with other similar product forms produced by competitors such as Lock&Lock, Panasonic, etc. The model has warm-up time less than one minute is fitted removable water tank with the capacity of 0.07L. The steamer generates nonstop flows of steam which help the clothes can be de-wrinkled quickly and effectively used for various kinds of fabric without being burned. Comapct design and light-weight is useful for using while standing and convenient for carrying. These characteristics give customers benefit of doing house chores more easily and rapidly, giving more time for oneself and family as well as doing other important things. The above-mentioned attributes and benefits of the products are built based on modern mothers mean-end chain, whose final goals are to be take care of family and be resourceful at home whilst completing the duty in work. Therefore our mision is contributing the outstanding functions of the product which will help to relieve new generation moms of the load of household chores, feel relax in fast-paced lives and become good mothers. Involment: refers to the how consumers perceive that an object, event, or activity is relating to them. Consumers who perceive that products have relationship with their personal values will be motivated to put more effort in buying process including searching information, choosing brands, evaluating models, etc.

Two factors affect the level of involvement that a person experience: The intrinsic self-relevance: requires means-end chain that has already stored in the customers’ memories by using or observing others using the products and is used to evaluate the products The situational self-relevance: is the physical and social environment that activates the values which consumers concern. For example, the “sales off 50%” standee will stimulate the customers’ interests. Philips has keep customers’ involvement by ensuring the contribution of various products with guaranteed quality. The brand has developed wide variety of consumers lifestyle products and home appliances with the untiring efforts for improvement. The company has been successful in communicating the message of meaningful innovation for improving lives, built the brand reputation and brought the customers’ loyalty. This will make the ones in target segmentation who have already bought Philips products trust the brand and come back. Philips built a distribution system based on the company’s website and sell products offline in the showrooms as well as cooperate with the retailers such as Nguyễn Kim, Điện Máy Xanh and the onlines retailers such as Tiki, Lazada, etc. In addition, the official website of Philips allow customers to search for products’ information, easily contact with the customer service and register for notice about new products and sales promotion. Moreover the online retailers often organize the discount to attract customers. Since the target customers are the new generation who have fast-paced lives, these strategies will give them the flexibility when conduct the shopping process.

CHAP 5: ATTENTION & COMPREHENSION Exposure Exposure to information is critical for consumers’ interpretation processes (no exposure, no interpretation). Two types of exposure: Intentional exposure (A consumer needs something and tries to look for information about it). Accidental exposure (On my way to school, I accidentally saw a big building banner). Philips maximize or maintain customers’ exposure by facilitating intentional exposure (make sure that information is always available); maximize accidental exposure (place information where accidental exposure is high such as apps and banners on the street also) Attention Due to attention characteristics, marketers can develop strategies to catch consumers’ attention of their products. Some stimuli factors are size, intensity, attractive visuals, color & movement, position, isolation, format, interestingness, information quantity.

Comprehension

For example, this is a piece of advertisement of Philips steam iron. The creator made it clear enough for consumer to pay attention to and understand what it is. The size as well as the position of the iron and the slogan is reasonable. The color and the background bring the feeling like home to customers.

Variations in Comprehension + Automatic processing: For example, most consumers who see or hear “Philips” immediately comprehend “electronic devices” without thinking about it. + Level (shallow vs. deep): “This new iron has a steam system” or “This new iron has large water tank up to 220ml” vs. “I can save my time because of its 2200w power” + Elaboration (the information creates few or many meanings). For instance, information of most electronic devices tends to have just one meaning that is easy to interpret. +Memorability (strong vs. weak): deeper comprehension creates more abstract meanings that tend to be remembered better. Exposure environment: According to Campaign, Philips Vietnam has partnered with digital agencies, Moblaze and Inmobi, to provide multimedia advertising on mobile platforms. At an appropriate time, a Philips ad will be sent to the app on consumers’ devices. This strategy mainly focused on large residential areas in Ho Chi Minh and Ha Noi, and as a result, their sales and click-through rate increased dramatically.

CHAP 6: CONSUMERS’ ATTITUDES. Attitudes: are simply the ways that people feel, think and act toward any aspect in surrounding environment. Consumers’ attitudes show their point of view, sentiments toward the attributes and value of the products, the company's efforts to keep the involvement and catch their attention. Consumers have different attitudes toward different attitude concepts including the product class, product form, brand, model, brand/model in general/specific situation. Marketers pay attention to the brand attitude to form the brand equity. Brand equity refer to the positive evaluation of brand based on consumers’ favorable meanings and beliefs, which can be easily activated from their minds. 

As mentioned before, Philips has been built as one of the top brand of home appliance and lifestyle device production. Thanks to the effective strategies, customers have shown positive attitudes and had good impression as well as beliefs about the brand.

There are three components that generate the attitudes: Affective: represent the emotion and feelings that consumers react to the object. Cognitive: refers to the consumers’ beliefs about the products or brand attributes Behavioral: the tendency to respond after interpreting the meanings and feelings toward the attributes. Philips has analysed and apply the components affecting attitudes in product features. Firstly, when collecting the review from online retailers such as Tiki and the official website of the company, the recorded reviews show that the customers' assessment of the original garment steamer model were at the moderate level. Customers responded well to the compact, easy-tocarry design as well as de-wrinkling delicated fabric without burn marks. Moreover, the brand equity also gives customers the confidence since they believe that Philips products are qualified. However, there are still some defective features such as loose water tank and the uneffectiveness when de-wrinkling thick fabrics causing negative affective toward the model. Therefore, we plan to change the customers' attitudes by adding beliefs. The new version of the model will be reformed and becomes wireless steamer with detachable cable charge to optimize simplicity and convenience, and the defects will be fixed. In addition, there will be the provision of the message communicating the self values, which include the desire to succeed at work and in lives of the career-driven women, as well as the brand value which is the contribution of meaningful, creative solution to improve lives, which will influence the affective component.

CONSUMER DECISION MAKING Type of consumer decisions (3 types): Nominal decision making (requires low involvement, little search efforts, frequent purchases, from a familiar brans or product); Limited decision making (a little more involved than nominal decision-making, but it’s still not in-depth research); Extended decision making (require a lot of involvement, consider around many different or unfamiliar brands or products to evaluate and compare alternatives). The decision type Philips’s consumers involve in for the purchase of handheld garment steamer is Extended decision making, because this is an expensive electronic product with longterm usage so consumers need to spent time looking up product reviews and informations, evaluating alternatives to make a right decision. (detailed process of buying an handhled garment steamer in chapter 3) In this case, consumers use choice rules (in evaluating and chosing from among alternatives, reducing risk in complex decision). Philips’ consumers usually use Conjunctive rule to evaluate product alternatives. It means that Philips must have all of its features above the minimum acceptability levels to be acceptable. Durability, appearance, easy to use, effectiveness, price are the features that consumer pay much attention on. Understanding these concept, Philips try to influence consumers ’problem representation on their official website by: + Suggesting end goals (needs, or values that consumers want to achieve or satisfy): 

Convenient products that make household chores become easier to do

+ Imparting product knowledge ( choice alternatives and choice criteria): 

Brush accessory for thicker fabrics

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Continuous steam removes odors and kills 99.9%* of bacteria

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Safe on all ironable fabrics, no burns guaranteed,…

+ Suggesting choice rules: 

Lightweight & compact design makes it easy to use anytime anywhere

In addition to customer feedbacks on the website, Philips offers customizable mechanisms to assist customers in their decision-making process – “comparison matrix”. If cusumers are not sure which one to buy, they can select up three product and compare them. This tool helps customer save time and enery to make a good decision.

References Phan, M. 2019. Hãng Philips đã thu hút khách hàng cao cấp ở Việt Nam như thế nào? AdvertisingVietnam. Retrieved from: https://advertisingvietnam.com/2019/11/hangphilips-da-thu-hut-khach-hang-cao-cap-o-viet-nam-nhu-the-nao/ Vĩnh Bảo. 2019. Tổng giám đốc Philips Việt Nam: Chiến lược cạnh tranh xuyên suốt của chúng tôi là sáng tạo và đổi mới. VnEconomy. Retrieved fromhttp://vneconomy.vn/thitruong/tong-giam-doc-philips-viet-nam-noi-ve-gu-tieu-dung-cua-nguoi-viet20110822035936859.htm Gimasys. 2018. Học tập cách "Ông lớn" Philips làm hài lòng hàng trăm triệu khách hàng trên thế giới. Retrieved from:https://gimasys.com/tin-tuc/hoc-cach-philips-lam-hai-long-hangtram-trieu-khach-hang-tren-the-gioi Thắng Nguyễn. 2018. Chiến lược Marketing của Philips: Tên tuổi “máu mặt” ngành gia dụng từ Châu Âu. MarketingAI. Retrieved from:https://marketingai.admicro.vn/chien-luocmarketing-cua-philips-ten-tuoi-mau-mat-nganh-gia-dung-tu-chau-au/ Ferrante, M, B. (2018, August 27). The pressure is real for working mothers. Forbes. Retrieved from: https://www.forbes.com/sites/marybethferrante/2018/08/27/the-pressure-is-real-forworking-mothers/#2c50dafa2b8f Tiki (n.d.). Bàn Ủi Hơi Nước Cầm Tay Philips GC350 (1000W) - Hàng Chính Hãng. Retrieved from: https://tiki.vn/ban-ui-hoi-nuoc-cam-tay-philips-gc350-1000w-p...