CONSUMER BEHAVIOUR

REPORT
PRODUCT: “SMART WATCH”
Table of Contents

a. Target market purchase analysis ........................................................................................................ 3

b. Target market demographics .............................................................................................................. 4

c. Marketing stimuli .............................................................................................................................. 4

d. Company Orientation ........................................................................................................................ 5

e. Target Market Segmentation .............................................................................................................. 5

f. Consumer Rights ............................................................................................................................... 6

g. Sustainability ..................................................................................................................................... 6

h. Biological Senses Involved................................................................................................................ 7

i. Product Recall.................................................................................................................................... 7

j. Learning Theory ................................................................................................................................ 8

k. Purchase Factor.................................................................................................................................. 8

l. Influencing Factor.............................................................................................................................. 9

m. Price Quality Mixer ........................................................................................................................... 9

n. Buyer Decision Process ................................................................................................................... 10

o. Maslow’s Hierarchy of Needs ......................................................................................................... 10

p. Buying Behaviour ............................................................................................................................ 11

q. Loyalty Profit Matrix ....................................................................................................................... 11

r. Learning Outcomes.......................................................................................................................... 11
a. Target market purchase analysis

OFFER DESCRIPTION

The intended customer base purchases robust, fashionable, and useful wristwatches. It has a comfortable strap, water
resistance, and an easy-to-read display—all of which make it suitable for everyday usage. Other features that the
watch might have include a stopwatch, alarm, and backlight.

REASONS FOR PURCHASE

This watch is purchased by the target market for a number of reasons:

➢ Practicality and Functionality: Makes accurate timekeeping possible, which is essential for timely daily
agendas.
➢ Style and Fashion: Serves as an accessory that complements their look and draws attention to their best
qualities.
➢ Durability and Reliability: The watch is designed to withstand regular use and normal wear and tear.
➢ Affordability: Offers value for the money by balancing cost and quality.

TIME AND FREQUENCY OF PURCHASE

Generally, the target market purchases wristwatches to give as gifts to themselves or others, to replace an outdated
one, or in response to a campaign. Every two to four years, on average, they might buy a new watch.

PURCHASE PROCESS

The target market often follows this process:

➢ Research: Conduct research by visiting stores, reading reviews, and doing web searches.
➢ Evaluation: Compare different brands, styles, and features.
➢ Decision: Pick the wristwatch that most closely matches their needs in terms of cost, style, and
functionality.
➢ Purchasing: Acquire from licensed dealers, real-world establishments, or online retailers.

QUANTITY PURCHASED

Typically, one wristwatch is purchased per customer, while some could purchase more than one (for gifting or
different occasions).
b. Target market demographics

➢ Age range: 20–40

➢ Gender: Mostly male and some ladies want practical and fashionable accessories as well.

➢ Family Structure: There are small families, young couples, and singles.

➢ Class: Upper-middle-class to middle-class.

➢ Race and ethnicity: varied, lacking a focal point.

➢ Location: Sub-urban and urban regions.

➢ Lifestyle: Contemporary, with an emphasis on style and utility.

c. Marketing stimuli

➢ Product: An excellent watch with a well-known brand.

➢ Cost: Competitive pricing approach for customers who prioritize value.

➢ Location: Available in real stores as well as online.

➢ Promotion: influencer endorsements, social media advertisements, and digital marketing.

➢ People: Skilled employees working in retail establishments.

➢ Procedure: A simple and easy shopping experience.

➢ Material Proof: aesthetically pleasing package and a professionally maintained website.

➢ Environmental Factors: Social influence, technological advancements, and GDP stability.

d. Company Orientation
One can ascertain the company's orientation by comprehending its technique and strategy for developing
and promoting the smartwatch:

➢ Marketing concept era: At this point, the business probably chooses a marketing strategy,
concentrating on determining and satisfying the wants and preferences of the target market. This is
seen by the way that contemporary smartwatch manufacturers, like Apple, create devices with
unique features that are suited to user needs. Examples of these features include health tracking,
seamless device connectivity, configurable aesthetics, and intuitive user interfaces.
➢ Societal marketing concept: Some businesses may also adopt a societal marketing approach, in
which they take into account the long-term well-being of society in addition to meeting the
demands of their clients. This is demonstrated by their attempts to incorporate features that
promote healthy lifestyles and make their products more sustainable (by using recycled materials,
for example).

e. Target Market Segmentation

➢ Delighted: Should the smartwatch surpass their expectations by providing better features (such as
sophisticated health monitoring, exceptional durability, and an easy-to-use interface) and first-rate
customer support, the target market might be overjoyed. The client believes they are receiving
greater value than what they paid for.
➢ Satisfied: The majority of users might classify themselves as happy if the wristwatch lives up to
their expectations and offers the capabilities that were promised (such as seamless connectivity
with other devices, fitness monitoring, and notifications). The gadget functions as it should and
has no serious problems.
➢ Dissatisfied: Customers may become dissatisfied if their expectations are not met by the
smartwatch for reasons such as low battery life, incompatibility with other devices, imprecise
health tracking, or inadequate post-purchase assistance (e.g., limited software updates or repair
options).
f. Consumer Rights
➢ Right to information: Usually through its website, product packaging, or customer assistance, the
corporation gives precise and comprehensive information about the features, specs, cost, warranty,
and after-sales care of the product.
➢ Right to choice: To accommodate a range of customer tastes and financial constraints, the
organization offers a selection of models and styles. Customers can choose from a variety of strap
materials, colours, and models (basic vs. premium), for instance, based on their personal
preferences.
➢ Right to safety: Smartwatch manufacturers typically abide by safety laws, guaranteeing the
usability of their devices (e.g., not overheating, being water-resistant). Additionally, they could
include safety features like emergency SOS services or fall detection.
➢ Right to voice: The business provides a variety of avenues for consumers to express their
thoughts and grievances, including social media, customer service hotlines, feedback forms, and
online reviews.
➢ Right to recourse: Companies usually provide a refund, repair, or replacement policy within a
specified warranty term if the smartwatch is defective or unsatisfactory, allowing customers to
seek recourse.

g. Sustainability
A company's dedication to social, environmental, and economic responsibility is known as its "Triple
Bottom Line." The following are some ways that the smartwatch device could support sustainability:

➢ Environmental sustainability (planet): When making the smartwatch, the firm may employ
sustainable materials, such as recycled metals or plastics. They might offer recycling programs for
outdated electronics or use minimal packaging to reduce waste. Businesses can also reduce their
carbon footprint by employing renewable energy sources or energy-efficient production
techniques.
➢ Social sustainability (people): The business may prioritize moral Labor standards, guaranteeing
equitable pay, secure working environments, and the absence of child Labor in their supply chains.
They could also fund projects related to health or community development.
➢ Economic sustainability (profit): The organization wants to support social and environmental
objectives while continuing to be profitable. For example, by providing high-quality items with
extended lifespans, cutting down on return and repair expenses, and encouraging brand loyalty.
h. Biological Senses Involved

➢ Sight: The most important sense while choosing and utilizing a smartwatch is sight. The
smartwatch's colour, design, user interface, and screen quality all draw in customers. They
communicate with the smartphone through sight (reading notifications, checking the clock, or
tracking activities).
➢ Touch: Using their hands, consumers may feel and judge the quality of the materials (such as
leather, plastic, or metal). With the touch screen of the smartwatch, users may interact with the
interface by swiping, tapping, or scrolling through different options.
➢ Hearing: Hearing is used when communicating with voice assistants (such as Google Assistant or
Siri) or when getting notifications that can be heard. For fitness apps that provide audio warnings
or feedback, sound can also be quite important.
➢ Smell: Although it is less important, smell may have some bearing on how customers evaluate the
product's materials or packaging, particularly if they detect an artificial or chemical stench that
could cause them to question the product's quality.
➢ Taste: Buying or wearing a smartwatch usually does not require this sense.
The business can gain a deeper understanding of the target market's purchasing, using, and
disposing experiences by taking into account all of these senses.

i. Product Recall
➢ Brand Recognition: Recall of memories is greatly influenced by a well-known brand. A well-
established brand makes it more likely that customers will think of the product first when they're
considering making a wristwatch purchase.
➢ Promotion and Marketing: Digital marketing, social media ads, and influencer endorsements all
help to increase brand recall. Through constant and enticing message, these channels expose the
target market to the product on a regular basis, strengthening memory.
➢ Material Proof: The well-designed package and well-kept website work as physical and visual
cues to help customers recall the product. A memorable impression is produced by an eye-
catching product and an interesting web presence.
➢ Customer Experience: A smooth purchasing procedure and strong brand associations are
strengthened by the easy and straightforward shopping experience, as well as the presence of
knowledgeable staff.
j. Learning Theory

COGNITIVE LEARNING THEORY:

➢ Product Understanding: By investigating and assessing wristwatches according to features,
quality, and value, the target market participates in cognitive learning. In order to make well-
informed selections, they obtain knowledge through reviews, comparisons, and brand study.
➢ Decision-Making: Based on this information, consumers formulate opinions on the qualities and
advantages of the product. Prior to making a purchase, this learning method places a strong emphasis
on comprehending and analyzing details.

OPERANT CONDITIONING:
➢ Reinforcement: Promotional offers, discounts, and favourable reviews are examples of positive
reinforcement that might push customers to buy the product. The wristwatch strengthens the
customer's decision and promotes brand loyalty if it lives up to or surpasses expectations.

k. Purchase Factor

➢ Practicality and functionality: The wristwatch's adaptability for daily use, accurate timekeeping,
and practical functions such an alarm, backlight, and stopwatch are important considerations when
making a purchase.
➢ Style & Fashion: The design of the wristwatch and how well it matches one's particular style are
crucial factors to consider. Customers want a product that improves their entire appearance and
doubles as a stylish accessory.
➢ Durability and Reliability: Two important factors to take into account are the watch's strength
and capacity to sustain frequent use without requiring frequent repairs. Reliability and durability
are factors in the product's long-term worth.
➢ Cost-effectiveness: Adopting a competitive pricing approach is crucial. The target market seeks
good value for their money and values price and quality in balance.
l. Influencing Factor

CULTURAL FACTORS:
➢ Fashion Trends: Preferences for specific designs and brands are influenced by cultural attitudes
towards fashion and accessories.
➢ Gift-Giving Practices: Buying watches for milestones like anniversaries or birthdays can be
influenced by cultural conventions surrounding gift-giving.

SOCIAL FACTORS:
➢ Peer influence: Purchase decisions are influenced by recommendations from friends, family, and
influential people. Consumer opinions are significantly shaped by social proof and endorsements.
➢ Social Status: A watch's appeal may be influenced by its status or prestige, particularly if the brand
is seen as a representation of achievement.

PERSONAL FACTORS:
➢ Lifestyle: The consumer's choice of wristwatch is influenced by their daily activities and fashion
preferences. A timepiece that complements their way of life is more desirable.
➢ Income Level: The target market's spending power and budget influence their choices, pointing
them in the direction of products that are the best value for the money.
PSYCHOLOGICAL FACTORS:
➢ Perception of Quality: Customers' decisions are influenced by their perception of the
wristwatch's quality and dependability. A strong sense of superior quality may influence a buyer's
intention to buy.
➢ Emotional Connection: Purchasing decisions may be influenced by a brand's or product's ability
to arouse feelings of satisfaction, pride, or success.

m. Price Quality Mixer

PLACEMENT IN THE PRICE-QUALITY MATRIX:

➢ High Price, High Quality: If the wristwatch is positioned as a premium product with exceptional
features and design, it would fall into this quadrant. The brand’s reputation and the product’s
functionality and durability justify a higher price point.
➢ Low Price, High Quality: If the wristwatch offers excellent quality at a competitive price, it could
also be placed in this quadrant. The balance between affordability and high-quality features would
attract cost-conscious consumers seeking value.
n. Buyer Decision Process

➢ Need Recognition: The consumer is aware that they need a smartwatch, maybe in order to
track their fitness progress, increase productivity, or obtain information quickly without having
to check their phone.
➢ Information Search: They begin by comparing brands, models, features, costs, and reviews
of various smartwatches. They may browse blogs, watch YouTube reviews, visit online
retailers, or get referrals from friends.
➢ Assessment of Alternatives: Following information collection, the customer assesses several
possibilities according to features, cost, brand reputation, smartphone compatibility, and
design.
➢ Purchase Decision: Based on their assessment, the customer chooses which smartwatch to
purchase. They might take into account things like available deals, discounts, and brand
loyalty.
➢ Post-Purchase Behaviour: Following their purchase, customers consider their choice and
determine whether the smartwatch lived up to their expectations. If they are happy, they might
buy from you again and refer others to it; if not, they might return it or leave a bad review.

o. Maslow’s Hierarchy of Needs

➢ Physiological needs: If the wristwatch is able to track important health parameters, such as
heart rate or sleep patterns, these needs will be indirectly met.
➢ Safety Requirements: With features like fall detection and emergency warnings, the
smartwatch could improve safety.
➢ Social needs: By enabling users to engage in social networks, maintain relationships with
friends and family, and share fitness achievements, it helps meet social requirements.
➢ Esteem needs: When a customer purchases a high-end model, the smartwatch can serve as a
status symbol, giving them a sense of accomplishment and distinction.
➢ Self-Actualization: Supports the accomplishment of individual objectives that are in line with
self-improvement initiatives, such as productivity targets, health goals, or time management.
p. Buying Behaviour

➢ Complex Buying Behaviour: A purchase is considered complex if the buyer is very involved
because of the high cost of the wristwatch and notices notable variations across brands.
➢ Dissonance-Reducing Buying Behaviour: A consumer may engage in dissonance-reducing
behaviour if they experience high levels of interest and only notice slight variations across
products. For instance, people might get the first reasonably priced smartwatch but continue to
question if it was the right decision.
➢ Variety-Seeking Buying Behaviour: Customers who are less active in their purchases but yet
seek variety may often swap out brands or models in an effort to try something different.
➢ Habitual Buying Behaviour: When a customer selects the same smartwatch brand they've always
used or buys the same brand frequently out of habit (little participation and few perceived
distinctions), it indicates habitual behaviour.

q. Loyalty Profit Matrix

Customers are categorized by the Loyalty-Profit Matrix according to their profitability and loyalty. Here:

➢ True Friends: Extremely profitable and devoted customers. This may apply to fans of a particular
brand of smartwatches who always update to the newest model and tell others about it. Butterflies
are profitable yet maybe unloyal customers. They are willing to try other brands, yet they might
purchase a smartwatch on the spur of the moment because of a deal. Barnacles are devoted but
unprofitable customers, such as those who only purchase smartwatches sometimes.
➢ Strangers: Consumers who are neither profitable nor devoted; they might purchase a new brand
of smartwatch each time.
To optimize profits, the seller should concentrate on "True Friends" by promoting recurring
business and brand advocacy.

r. Learning Outcomes
You will gain knowledge about consumer behaviour, decision-making processes, and marketing tactics
that are necessary to successfully target particular market segments via this course and report.
Additionally, you learn how to position an offer by comprehending the buying patterns and loyalty
dynamics of the target market and how to examine market behaviour through the prism of numerous
psychological theories, such as Maslow's Hierarchy.