MKTG1421 - Assignment 1 PDF

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RMIT Classif

MKTG1421 CONSUMER BEHAVIOUR

cation: Truste

PSYCHOLOGY AND

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Semester

2022 S1

Title of Assignment

Assignment 1: Situational influences

Name and Student ID

Ho Dang Hanh Nguyen – S3818222

Class Group

SG_G07

Lecturer

Uyen Do

Word Count (Main content without list of references, cover page, etc.)

1140 words

Declaration and Statement of Authorship This assignment is my original work and no part of it has been copied from any other student’s work or from any other source except where due acknowledgement is made.

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Table of Contents

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1. INTRODUCTION ................................................................................................. 3 2. SITUATIONAL INFLUENCES ON CONSUMER BEHAVIOUR ......................... 4 2.1. PHYSICAL SURROUNDINGS..................................................................................4 2.1.1. PURCHASE SITUATION......................................................................................4 2.1.2. COMMUNICATION SITUATION.............................................................................4 2.2. SOCIAL SURROUNDINGS.....................................................................................5 2.2.1. PURCHASE SITUATION......................................................................................5 2.2.2. COMMUNICATION SITUATION.............................................................................6 2.3. TEMPORAL PERSPECTIVES..................................................................................6 2.3.1. PURCHASE SITUATION......................................................................................6 2.4. TASK DEFINITIONS..............................................................................................7 2.4.1. PURCHASE/USAGE SITUATION..........................................................................7 2.5. ANTECEDENT STATES.........................................................................................9 2.5.1. PURCHASE SITUATION......................................................................................9 3. RECOMMENDATION ....................................................................................... 10

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1. Introduction

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According to Delloite (2020) data, in the past few years, local brands in Vietnam are developing extremely fast, attracting the attention and preference of the majority of consumers. And the fashion brand Libé is also a prominent name in the expansion of Vietnam’s fashion market. Founded in 2013, Libé is a local fashion brand distinguished by its items with simple, liberal, and modern styles. Currently, Libé has four stores nationwide, including three in Ho Chi Minh City (Libé n.d.). Table 1: Libé’s target segmentation (based on author’s observation) Geograp hic People living in HCMC or Hanoi will visit offline stores People in other cities in Vietnam can use online methods to purchase items

Demograp hic Age: 18-40 Gender: Female Income: 510M/month (middle income)

Psychograp hic

Behavio ral

Minimalism, convenient lifestyle: want to wear simple clothes that are suitable for many purposes (study, work, hang out, etc.)

Occasion: anytime they need new clothes Benefit sought: minimal, polite design Usage rate: medium to high

This paper will analyze situational influences on customer behavior at the store on Nguyen Trai Street, HCMC, one of the largest and most visited stores of this brand.

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2. Situational influences on

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2.1. Physical surroundings 2.1.1. Purchase situation Libé store is located in a very convenient location - near the city center and right in the middle of Nguyen Trai street. This is a famous street with many clothing stores frequently visited by young people. When coming to this street, customers will tend to visit each shop in turn to have more choices. If they intend to buy clothes at another store, there is a high chance that they will also visit Libé. The space inside the shop is quite spacious, allowing to display more products than other branches. The lighting system is evenly distributed throughout the space with soft brightness, which creates a prestigious feeling, but less pleasure (Zielke & Schielke 2016). The shop also plays popular songs and use essential oils for good scent, elevating customers’ mood (Morrison et al. 2011).

Figure 1: Libé Nguyen Trai 2.1.2. Communication situation The Libé store made the first impression thanks to the large sign hanging on the second floor of a large building (also the place of sale) on Nguyen Trai street with many passersby. Inside the shop, the link to the Libé website is pasted in many places, inviting customers to visit the website to purchase online and get updated with new products. Signs like "new 4

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arrival" or "last chance" also often cation: appear above the rows of clothes to notify the hot deals that the shop Truste is offering, increasing interactions and facilitating purchases (Knuth, d Behe & Huddleston 2020).

Figure 2: Outside sign (Thong Tin Dia Diem n.d.)

Figure 3: In-store signs 2.2. Social surroundings 2.2.1. Purchase situation Most customers coming to Libé will often go with friends to receive suggestions and comments from them, which mostly, but not always enhances spending (Kurt, Inman & Argo 2011). Meanwhile, employees do not often approach and recommend products to customers. They give customers space to shop alone, which sometimes cannot lead to impulsive buying (Husnain et al. 2018). Also, the customers are usually polite and well-dressed young girls who have a habit of queuing to pay, and rarely argue or complain of the staff. 5

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2.2.2. Communication situation

cation: Truste

The store has applied marketing tactics to organize workshops d and invite celebrities, such as Giang Oi, An Phuong, and Chloe Nguyen, engaging more support for the shop (Jawaid 2018). The selected celebrities are the ones who have a modern, liberal lifestyle, and high influence towards the young female community, who are also Libé's target customers.

Figure 4: Celebrities in Libé Nguyen Trai store (Libé 2018; Dang 2019) 2.3. Temporal perspectives 2.3.1. Purchase situation Every year, Libé launches limited collections for special occasions. The most typical is Tet when the store advertises and sells Ao Dai and other kinds of clothes with bright and colorful patterns, suitable for the style that young people often wear during this holiday. In addition, the store regularly launches many collections with the theme of different seasons. Customers will have the opportunity to change their fashion style to suit the weather conditions of different times of the year.

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Figure 5: Libé’s Tet collection 2.4. Task definitions 2.4.1. Purchase/Usage situation Most customers come to Libé to buy clothes for themselves and use them for a long time. The store will arrange items that can be mixed and matched in one section to encourage customers to try and buy multiple products at once. The mannequins, or even the staff, are also wearing the store's items to help customers easily visualize the product quality. Some customers buy clothes to give as gifts, so the store also prepares eye-catching tote bags and packages to store clothes, or sells gift cards or vouchers for those who need to give gifts to their friends and relatives.

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Figure 6: ‘Mix-match’ set

Figure 7: Packaging and voucher (Libé 2018; Libé 2021)

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2.5. Antecedent states

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2.5.1. Purchase situation Customers tend to shop more after they get their paycheck at the beginning of the month, or in the season change period when they realize they need to buy new clothes for the upcoming season, and at these times, shoppers often feel happy and excited (Health Essentials 2021). Fortunately, the aforementioned factors, especially the physical and social influences (good smell, exciting music, friendly and polite social surrounding, etc.), can maintain the good mood that the customers already have before visiting the shop. In addition, for the convenience of customers, the store supports payment through various methods such as paying cash, swiping cards, or scanning QR codes. The store also arranges a "photo corner" so that customers can take pictures with their beautiful clothes.

Figure 8: Cashier desk

Figure 9: Photo corner 9

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3. Recommendation

cation: Truste

From the above analysis, the first d problem of Libé is that the light system is not too strong, creating a slightly boring feeling. The store needs to increase the brightness of the lighting system or can change the color of the light to warm colors like yellow or light orange, stimulating a feeling of freshness and awakeness. High brightness creating contrast will help products become more prominent and attractive, stimulating emotions of excitement while shopping (Lin & Yoon 2015). However, the shop must not increase the brightness too much to not change the real color of the clothes. The second problem is the lack of interaction between employees and customers. Young customers often do not want to be constantly watched by staff. However, employee feedback is still an effective way to encourage customers to buy more items. The support from staff also creates positive emotions for customers. They will be more inclined to recommend a store with better customer service. Creating close relationships with customers can also enhance their loyalty to the brand (Kattara, Weheba & El-Said 2008).

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4. Reference

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Deloitte 2020, The Vietnam Consumer Survey - An d accelerating momentum, market report, Deloitte, viewed 24 March 2022, . Dang, T 2019, Talkshow mùa tựu trường Libé tổ chức tại cửa hàng Nguyễn Trãi với sự tham gia của Youtuber Giang Ơi, photograph, 25, viewed 22 March 2022, . Libé 2018, An Phuong & Chloe Nguyen, photograph, Facebook, viewed 25 March 2022, . Libé 2021, New season, new packaging, photograph, Facebook, viewed 25 March 2022, . Zielke, S & Schielke, T 2016, ‘Effects of Illumination on Store Perception and Shopping Intention: Shedding Light on Conflicting Theories’, Marketing (Munich), vol. 38, no. 3, pp. 163–176. Morrison, M, Gan, S, Dubelaar, C & Oppewal, H 2011, ‘In-Store Music and Aroma Influences on Shopper Behavior and Satisfaction’, Journal of business research, vol. 64, no. 6, pp. 558–564. Knuth, M, Behe, B-K & Huddleston, P-T 2020, ‘Simple or Complex? Consumer Response to Display Signs’, Interdisciplinary journal of signage and wayfinding, vol. 4, no. 2, pp. 7–22. Kurt, D, Inman, J-J & Argo, J-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. Husnain, M, Rehman, B, Syed, F & Akhtar, M-W 2019, ‘Personal and InStore Factors Influencing Impulse Buying Behavior Among Generation Y Consumers of Small Cities’, Business perspectives and research, vol. 7, no. 1, pp. 92–107. Jawaid, S 2013, ‘Impact of Celebrity Endorsement on Teenager’s Impulsive Buying Behavior’, INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS, vol. 4, no. 10, pp. 10711080. Health Essentials 2021, ‘Why Retail “Therapy” Makes You Feel Happier’, Health Essentials, 21 January, viewed 25 March 2022, . 11

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Kattara, H-S, Weheba, D & El-Said, cation: O-A 2008, ‘The Impact of Employee Behaviour on Customers’ Truste Service Quality Perceptions and Overall Satisfaction’, Tourism and d hospitality research, vol. 8, no. 4, pp. 309–323. Libé 2018, Gift voucher, photograph, Facebook, viewed 25 March 2022, . Libé n.d., About us, Libé, viewed 22 March 2022, .

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