Purdue Global University Lee Customer Characteristics & Buying Behavior Essay
ANSWER
Part 1: Understanding Consumer Behavior and Market Research for Lee’s Artificial Flowers
Consumer Characteristics Influencing Buying Behavior:
- Cultural Factors:
- Lee’s product is influenced by cultural factors such as the tradition of gifting flowers on special occasions (e.g., birthdays, anniversaries, holidays).
- Cultural preferences for specific flower types and scents vary across different regions and communities.
- Cultural values related to sustainability and environmental consciousness may also impact consumer choices.
- Social Factors:
- Social influences play a significant role, as many sales are purchased as gifts. Word-of-mouth recommendations from friends and family can drive purchases.
- Social class and income levels may affect the affordability and choice of Lee’s artificial flowers.
- Social media and online communities can influence purchasing decisions through product reviews, recommendations, and trends.
- Personal Factors:
- Individual demographics like age, gender, and occupation can influence preferences for flower types and scents.
- Personal lifestyles and interests, such as a love for home decor or a passion for flowers, can motivate purchases.
- Psychological factors like personality traits and self-concept may also play a role in the decision to buy artificial flowers.
Consumer Psychological Factors:
- Motivation:
- Customers may be motivated to buy Lee’s artificial flowers by the desire for long-lasting, realistic-looking flowers that also provide a pleasant scent.
- The need for convenient, maintenance-free floral decor can be a strong motivator.
- Perception:
- Consumer perception is vital, as Lee’s product aims to replicate the appearance and scent of real flowers.
- Effective marketing should focus on creating a positive perception of the product’s quality, durability, and environmental benefits.
- Emotions:
- Emotional factors, such as the joy of receiving or giving flowers, nostalgia associated with scents, and feelings of environmental responsibility, can drive purchases.
- Emotional branding and storytelling can resonate with customers.
- Memory:
- Positive past experiences with Lee’s products or brand can lead to repeat purchases and brand loyalty.
- Memory-related marketing strategies can include reminders of special occasions and personalized recommendations.
Five-Stage Model of the Consumer Buying Process:
- Problem Recognition: Customers recognize a need for floral decor, either for personal use or as a gift.
- Information Search: Customers gather information about artificial flower options, scents, and brands. They may rely on online reviews, recommendations, or in-store displays.
- Evaluation of Alternatives: Customers compare Lee’s artificial flowers with other options, considering factors like realism, scent, price, and brand reputation.
- Purchase Decision: Customers decide to buy Lee’s artificial flowers based on their evaluation. This may involve choosing specific flower types and scents.
- Post-Purchase Evaluation: After using the product, customers assess their satisfaction. Positive experiences may lead to repeat purchases and word-of-mouth recommendations.
Differences Between B2C and B2B for Lee’s Artificial Flowers:
- Nature of Purchase:
- B2C: Individual consumers buy for personal use or as gifts.
- B2B: Businesses purchase artificial flowers for various purposes, including office decor, event decorations, and resale.
- Decision-Making Process:
- B2C: Usually shorter decision-making process with emotional and personal factors.
- B2B: Typically involves multiple decision-makers, longer cycles, and a focus on cost-effectiveness and functionality.
- Marketing Channels:
- B2C: Relies on digital marketing, social media, and e-commerce platforms for direct consumer engagement.
- B2B: Involves a mix of online and offline channels, including trade shows, industry events, and direct sales.
- Product Customization:
- B2C: Emphasizes product variety to cater to diverse consumer preferences.
- B2B: May require customization to meet specific business needs or branding requirements.
- Sales Volume:
- B2C: Smaller individual orders with potentially higher transaction frequency.
- B2B: Larger bulk orders with longer sales cycles.
Part 2: Marketing Research for Lee’s Artificial Flowers
Research Problem for Lee’s Artificial Flowers:
- To better understand customer preferences, buying behavior, and market opportunities for Lee’s Artificial Flowers.
Research Plan:
- Secondary Data:
- Analyze industry reports to determine market size, growth rates, and trends in the artificial flower industry.
- Review competitor strategies and customer reviews to identify strengths and weaknesses.
- Explore demographic data and consumer behavior studies related to floral decor and gifting.
- Primary Data:
- Utilize both qualitative and quantitative methods to gather primary data.
- Qualitative research: Conduct focus groups and in-depth interviews to explore customer motivations and perceptions.
- Quantitative research: Administer surveys to a diverse sample of consumers to collect data on preferences and purchase behavior.
List of Ten Questions for Customer Understanding:
- What occasions or events prompt you to purchase artificial flowers?
- What factors influence your choice of flower types and scents?
- How important is the scent of artificial flowers in your purchasing decision?
- Do you prefer to buy artificial flowers online or in physical stores? Why?
- What is your perception of Lee’s Artificial Flowers in terms of quality and realism?
- Are you concerned about the environmental impact of artificial flowers? Does this influence your buying decisions?
- Have you recommended Lee’s Artificial Flowers to friends or family? Why or why not?
- What improvements or additional features would you like to see in Lee’s products?
- How do you perceive the pricing of Lee’s artificial flowers compared to other options?
- Are there specific occasions or holidays where you think Lee’s products could be promoted more effectively?
Sampling Plan, Contact Methods, and Data Mining:
- Sampling Plan: Use stratified random sampling to ensure a representative sample of consumers across different demographics.
- Contact Methods: Conduct online surveys, organize focus groups in selected regions, and leverage email and social media for data collection.
- Data Mining: Analyze survey responses, interview transcripts, and social media mentions to identify patterns and insights regarding customer preferences and behavior.
Consumer and Business Opportunities:
- Based on initial research, consumer opportunities include targeting specific occasions (e.g., weddings, holidays), emphasizing sustainability, and creating personalized scents.
- Business opportunities include partnering with event planners, hotels, and retailers for B2B sales, as well as expanding the product line to cater to different consumer segments and occasions.
QUESTION
Description
In 2021, Lee Jones put the final touches on a product she had worked on for years in her garage. Lee graduated with a degree in chemistry from a well-known school in Indiana. However, she has always had an entrepreneurial spirit. Initially called Lee’s Artificial Flowers, the product broke new ground by creating patented, artificial flowers that look real and smell like a flower. In other words, roses smell like roses, and tulips smell like tulips. However, Lee’s flowers will never expire. The scent typically lasts three months and can be replaced with new scented cartridges. As a lover of flowers and the environment, Lee has always felt flowers should remain on the earth.
She launched a website and opened a small store in a strip mall at the beginning of 2022. With modest sales, Lee hired several employees to assist with manufacturing, sales, and administrative duties. In the summer of 2022, a popular morning show interviewed Lee about her new product. This interview led to lots of other popular coverage on television, and in magazines, blogs, and podcasts. Because this product was starting to break on a national scale, she could secure a business loan for $500,000. Lee’s biggest concern was her lack of business knowledge, mainly in marketing.
Lee has just hired you as a marketing manager/consultant to assist her in taking the business to the next level. In your initial consultation with Lee, she suggested that many sales were purchased as gifts. Another segment of customers applied to the home furnishings category. The raw materials required for artificial flowers are paper, cotton, parchment, latex, rubber, sateen (for large, bold-colored flowers and arrangements), and dried materials, including flowers and plant parts and berries, feathers, and fruits. For more upscale silk flowers, silk, rayon, and cotton are the fibers of choice. The cartridges that provide the scents are produced in Lee’s manufacturing facility.
Generic Goals
Sell several hundred thousand units.
Create awareness of new product line to new, prospective clients.
- Incorporate digital marketing.
- Hire more employees.
- Target B2B clients.
- Identify the best distribution model for selling to customers.
- Part 1 for Unit 3: The more you know about your customers, the better position you are in to serve them and create a marketing strategy. In your initial consultation with Lee, you asked about her customers. You realized that Lee did not understand her customers well, what motivates them, the influencers on customer purchases, and the purchase decision process. Using the concepts discussed in Chapters 3 and 4, as well as secondary research, address the following items.
- Checklist:
Investigate three consumer characteristics: cultural, social, and personal factors influencing consumer buying behavior for Lee’s products.
Investigate how the four consumer psychological factors: motivation, perception, emotions, and memory influence consumer buying behavior for Lee’s Artificial Flowers.
Illustrate the five-stage model of the consumer buying process as a diagram for Lee’s Artificial Flowers.
Compare and contrast at least five differences between B2C versus B2B for Lee’s Artificial Flowers.
Part 1, you realize you do not have all the information you need to understand your customers, particularly in the area of B2C. Kotler et al. (2022) suggest that to take advantage of all the resources and practices available, good marketers adopt a formal marketing research process that includes five steps:
- Define the problem.
- Develop the market research plan.
- How will you collect the information?
- How will you analyze the information?
- How will you come to a decision?
Using the concepts addressed in Chapter 5, address the following items.Checklist:
- Compose the research problem for Lee’s Artificial Flowers.
- Create the research plan using secondary and primary data.
- Evaluate secondary data; what does secondary data suggest in terms of market size, growth rates, consumer and business opportunities, and trends for this industry?
- For primary data, include if you will utilize qualitative, quantitative, or both. Defend your rationale for each choice.
- Provide a list of ten questions (open and close-ended) to help Lee better understand her customers.
- Explain how you will collect the information for the sampling plan, contact methods, and data mining.
Evaluate the consumer and business opportunities based on your initial research.
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