Different people demonstrate unique approaches when it comes to their purchasing behavior and decision-making while shopping for clothes for a various reason. In line to this, the product, price, promotion, and place play a major role in their decision-making process. This paper tends to discuss the consumer behavior, its aspect, and the e-4p while analyzing the essential factors that determine the purchasing power of Hong Kong female undergraduates to online Korean Fashion. The paper will be structured in the following order;
Identification of the Study of Consumer Behavior. Definition of Consumer Behavior
Discussion of different aspects of consumer behavior
Definition and explanation of e-4P
Correlation of the 4 aspects: e-price, e-product, e-promotion, e-place from e-4P
The connection between theory and chosen study case
Recent Hong Kong online Korean fashion market, the reason why you focus on female undergraduate
Hong Kong online Korean fashion market and the important role of female undergraduate
The reason why the research topic is chosen
Contribution on the research topic
Research Questions
E-product (Korean Fashion for Hong Kong female undergraduates)
Identification of the Study of Consumer Behavior. Meaning of Consumer Behavior
Consumer behavior is the study of individuals and groups as well as the organizations' activities that are related to the purchase and utilization of commodities, and the use of disposable goods and services (Peter et al., 1999, p.4). It includes the emotional, mental and behavioral aspects of a consumer and their responses that are associated with their activities. Consumer behavior has remained an active field in the area of marketing (Peter et al., 1999, p.5). Consumer behavior is classified as one of the main interdisciplinary social sciences that blend in various elements from a range of field (Chauhan, 2013, p.2). These fields are mainly made up of psychology and sociology, social anthropology and ethnography, as well as marketing and economics. As science, consumer behavior examines the effects of consumers’ emotions and attitudes, as well as their preferences on their buying behaviors. The consumption behavior directly deals with making efforts to understand the different wants and consumptions of people based on the characteristics of the individual consumers. These features are influenced by factors such as the people’s demographics, personality, and lifestyle, as well as various behavioral variables like the consumers' usage rates and occasion, their loyalty, and the brand advocacy. In the study of consumer behavior, investigations are also carried out concerning the impacts on the consumers from different groups such as family and friends. Studies on consumer behaviors cover all the aspects of the purchasing behavior ranging from the pre-purchase activities to the post-purchase consumption alongside evaluation and different disposal activities (Nelson, 1970, p.311). It covers all the people involved both directly and indirectly in the purchasing decisions made and the related consumption activities that are associated with the influence attached to specific brands and the attitude leaders.
Discuss different aspects of consumer behavior (i.e., different factors: psychological, personal, different models: black-box model, personal variable model)
Mainly, three factors affect the consumer behaviors, which are psychological, personal and social factors. The psychological factors tackle the numerous issues that uniquely affect the thought process of a particular consumer (Kengthon, 2010). They include the insight of a given need and situation, the customer’s capability to learn and comprehend information as well as the attitude of an individual consumer (Kengthon, 2010). Every person individually responds to the marketing messages they encounter based on their perceptions as well as their attitudes. The psychological factors significantly influence the consumption rates and levels of a given target audience.
The other aspects affecting consumer behavior are personal factors. They are the features and characteristics that are particular and specific to a person, and they do not relate similarly with the other people in the same group (Gajjar, 2013, p.11). Such characteristics include how an individual makes their decisions, their particular behaviors, habits, interests, and opinions. The personal factors go a long way in influencing the consumption activities of individuals even in the same group comprising of a common target audience. The personal factors affecting consumer behavior are influenced by age and gender, as well as culture and background alongside other personal issues (Gajjar, 2013, p.12). An example is seen whereby an older person is most likely to exhibit different consumer behaviors as compared to a younger person and this means that their decisions to settle for particular products significantly varies. The items an older person spends their money on may be of no interest to a person in a younger generation.
Social factors are the other aspects that primarily affect the consumer behaviors. The social characteristics and influences vary greatly, and they could include a person's family, their work or school communities, their social interaction as well as the different individuals or groups of people that the consumer associates with. The social factors could also include the consumer’s social class involving their income and living conditions as well as their level of education. Social factors extensively affect the consumer behaviors, and they significantly influence how different people respond to the marketing messages they encounter. They also determine how consumers make their purchasing decisions and activities (Gajjar, 2013, p.15).
Research and observation have led to the development of several consumer behavior models, and they help in further explaining why consumers make certain decisions (Brown and Deaton, 1973, p.177). Such models include the black box model, the complex models and the personal variables model. The black box model is mainly based on the outside stimulus-response. It, therefore, means that this model focuses on the various things that trigger the consumers to make the buying decisions. They are influenced by multiple factors such as product availability, sampling and promotions, the product’s price and the marketing messages. The personal variable model is based on when consumers make buying decisions that are influenced by internal factors. The internal factors could include the customers' own opinions, their beliefs and value systems, their traditions and goals, as well as any other internal motivators. The complex model is the third consumer behavior model that takes consideration of both the internal and the external variables (Solomon, 2012, p.7).
From different consumer behavior angles, the focus will be set on e-4P. Definition and explanation of e-4P
The e-4P is a marketing mix that is mainly used for online marketing in influencing various consumer behaviors. The marketing mix (4Ps) is used as a powerful tool to entice customers to the e-commerce sites. An organization's marketing mix that is 4Ps refers to the grouping of the tactics and strategies that are used to deploy a marketing plan. For most companies, the marketing mix strategy emphasizes on the price and place elements as the chief components of the selling points.
The first p, product, refers to any intangible service or tangible good that meets a particular customer's demand or need. Products undergo different life cycle, and as a result, marketers should understand the problems that the product is trying to solve. Moreover, the features and benefits of the product should be realized as well as the selling proposition. In addition, marketers should be able to understand the potential buyers. The second p, price, is the actual amount that a customer is expected to pay for the commodity. The pricing of a product is what directs the purchasing power of an end user. If a product seems to be overly priced or lower than the perceived value, then it will not sell. Distribution plans, markups, competitors price and value chain costs affect the price of a product. The third p, promotion, includes the public relations, sales promotion, sales offers and advertising. Promotion plays a significant role in marketing in that, the channel selected should be suitable for both the price, end user and the product. The last p, place, deal with the placement of the product and how it will be provided to the customer (Goi, 2009, p.2).
The primary purpose of the marketing mix is to execute and create a successful marketing strategy. This aims at ensuring both the seller and customer’s satisfaction. The key features of the marketing mix are a customer as a focal point, flexible concept, the role of the marketing manager, constant monitoring and interdependent variables (Goi, 2009, p.2).
Correlation of the 4 aspects: e-price, e-product, e-promotion, e-place from e-4P
The 4-ep marketing mix is essential in understanding what the product or service can offer and how to launch the product or service successfully. The four aspects work together for success to be derived when applied in an actual business situation. The price offered relates to the exact amount a consumer is expected to spend on a product, which means that the pricing aspect affects how the product sells. The pricing of a product is dependent on the supposed value a consumer has for it. The promotion of a product must also be suitable for the product and its price as well as the consumer who the marketing function targets. The place aspect of the 4-ep strategy covers how the product will be provided to the customer through distribution. Placement is essential for the e-4p to work where it helps assess the best channel to sell the product based on the predetermined customer assessment. By working out the correlation between the four aspects of the e-4p model, both the seller and consumer can achieve satisfaction (Ferguson, 2011, web).
According to Goi (2009, p.4), a company develops its marketing mix based on its understanding of the consumers. The elements are sensitively and intricately related to each other in the sense that one part can either affect the marketing mix positively or negatively as a whole. Ferguson (2011, web) states that all the elements of the marketing mix reinforce each other to increase the purchasing power and experience of a customer. In case a change is made on one item, the other components need to be checked to ensure that the changed elements still reinforces and fits the other parts (Goi, 2009, p.4)). A precise analysis should be done to examine if the change has contradicted other components, making the marketing mix less efficient in serving clients. The 4p’s need to be managed by a manager in a way that the level of customer satisfaction is reached, which should be higher than the level of competition. The decision made concerning the elements of the marketing mix plays a significant role in the aspect of the application of the marketing model.
The product is the essential part of the marketing strategy. It forms the brand image, which depends on the success of the commodity (Brown, 1973, p178). Competition today has become rampant in the current world hence; manufacturers need to ensure that they maintain an excellent quality of their product. Otherwise, the product might get lost in the crowd of different brands that a consumer comes across in the market. Placement goes hand in hand with the product in the sense that it serves a crucial role in the selling of the brand (Goi, 2009, p.7). If a company wants its product to sell, then they have to place where their customer segment is. For instance, if the product was made for the rural areas, the company should not try to sell it to the metropolitan crowd. Moreover, a company should be able to vary its prices per the location and placement of the product. Price is also an essential factor in the brands marketing strategy. The pricing strategy is the most efficient part when it comes to the success a brand. The lack of a proper pricing strategy would lead to the shrinkage of the customer base hence reducing the competitive power of a company (Gajjar, 2013, p.12). Promotion comes next after pricing in the marketing mix. Despite having the rest of the components right, a company needs some marketing and advertisement to let its consumers have a better glimpse of the product and its quality and features. Moreover, a company still needs to reach its customer base to help them understand the value proposition and brand (Gajjar, 2013, p.15).
The connection between theory and chosen study case
The primary focus of this paper is to understand how the e-4P model can be used in analyzing the most critical factors that determine how Hong Kong female undergraduates purchase online Korean Fashion. This research seeks to understand how the Hong Kong female undergraduates as consumers buy Korean fashion items from online spaces. The research topic is chosen to introduce the connection between the e-4p marketing model as a theory and its real application in a case where there are real consumers placed in the online space. For an online Korean fashion business targeting to reach Hong Kong female undergraduates, applying the marketing model reflects consumer and market trends, which in turn helps the company reach out to the end user.
The study case is similar to Amazon online where the target end user is the online market where the focus is the price and place as selling points (Ferguson, 2011, web). The connection between the theory of the marketing mix and the case study comes into place when the company in the case study needs to ensure its resilience and success within the Korean online fashion retail business. For the business to succeed in understanding the purchasing nature of Hong Kong female undergraduates, the four components in the marketing mix have to be considered (Ferguson, 2011, web). Application of theoretical aspects of the e-4p model means that the retail products offered have to relate to the market needs of the target group (Chen, 2009, pg. 407-408).
In addition, the place aspect has to be considered as places where the business can reach to the Hong Kong female undergraduates. This means identifying specific and suitable websites as points of a transaction with the consumers where the target is to have a resilient virtual presence. With a sturdy online presence, the promotion aspect can then be put in place to establish an effective way to communicate with the target market and convince them to visit the websites and buy items offered on them. The pricing of the products can be market-based meaning that the prices for goods on the sites are friendly to the undergraduate population. Connecting the business at hand in the case study and how the e-4p model can be used to introduce the link between theory and application (Chen, 2009, pg. 407).
Recent Hong Kong online Korean fashion market, the reason why you focus on female undergraduate
Hong Kong is internationally known as a leading regional shopping center for the North Asia region due to the nil sale tax and product diversity. As a result of the favorable business environment, Hong Kong has a more substantial number of international brands with physical retail stores. According to a report by the Australian government, most of the consumer population relly on store-based retail shops although there is growth experienced within the online retail sector. The report also notes that local consumers between 20 to 30 years are mainly concerned with the brand and fashion trends over functionality. The growing online market is considered an opportunity for any fashion labels as the rental costs within the region increase (Australian Trade and Investment Commission, 2018, web).
Majority of the female undergraduate population are under the age of 15 to 30 years range, which makes the highest fashion consumers within Hong Kong. Due to this, female undergraduate is the most suitable target population. According to research by HKTCD Research (2017, web), industry trends indicate that online shopping is popular in Hong Kong where there were an estimated 467 million online shoppers by 2016. The report also revealed that 41% of the overall online sales in 2016 were from virtual clothing sales. In addition, research shows that many online shoppers consider shopping online cheaper, faster and convenient and more diverse compared to physical shops (HKTCD Research, 2017, web).
Hong Kong online Korean fashion market and the important role of female undergraduate
According to Lima (2018, South China Morning Post), Hong Kong millennials who are in their late teens and early twenties are high consumers of Korean street fashion. The popularity of the Korean pop culture has influenced consumer behavior in Hong Kong with the young fans indulging in Korean food, music, and fashion (Lima, 2018, South China Morning Post). The consumption of Korean culture within the young Hong Kong population has seen huge brands such as Alibaba Tmall and E.Land open online fashion retail platforms targeting the millennials (Li, 2015, China Daily). Female undergraduates within Hong Kong are mainly in their late teens or early twenties, which means that they are a central target population for the fashion industry. The rise of internet consumption amongst them makes them the ideal target consumer in the online Korean fashion market. Consequently, they have an important role in promoting the popularity of online shopping and the success of Korean fashion businesses that are placed online.
` The reason why the research topic is chosen
The research topic was chosen due to the lack of literature on the Korean online fashion consumer trends and the relationship with female undergraduates in Hong Kong. Although there is information of the growth of the Korean fashion in Hong Kong as influenced by the popularity of the Korean culture, there is no information on the performance of online platforms offering Korean fashion. The Hong Kong female undergraduate is part of the larger millennial population that not only has a high record in using websites to purchase but the affinity to shop for fashion items. In addition, it is unknown which factors within the e-4p model most affects how Hong Kong female undergraduates purchase online Korean fashion, which is what the research focuses on understanding. Consequently, the main objective of this research is to investigate the influence of pricing as part of the e-4p model in influencing how female Hong Kong undergraduates purchase Korean online fashion.
Contribution on the research topic
The findings of this study to the research topic will be relevant to Hong Kong internet retailers offering Korean fashion with the target of reaching female students and millennials. As a result, the research aims to advise e-retailers how to structure their e-4p marketing model in a manner that favors consumer-oriented pricing. Overall, the study will be crucial to the growth of Korean online fashion targeting female consumers between the ages 15 and 30 in Hong Kong by helping them understand the market needs better.
Research Questions
To achieve the objectives of this research, the study will focus on understanding the influence of the e-4p model (product, price, place, and promotion) on the Korean fashion online shopping towards Hong Kong female undergraduates.
E-product (Korean Fashion for Hong Kong female undergraduates)
The e-product that the Korean online fashion retailers focus on in this case is anything such as clothing and accessories that come from the Korean culture and suitable for the needs of the target population, in this case, the Hong Kong female undergraduates. This is a focal point of the research since it addresses the product that needs to be priced according to the market needs for it to be beneficial.
E-price
Pricing issues are important and understanding factors that consumers find vital with the provided prices helps the business position itself against the competition. Consumers price products based on the presumed value that they place on the product, which is why it is important to understand how pricing relates to consumer satisfaction.
E-place
Place refers to the distribution channels that the product will be offered to the customers to maximize interaction with the retailers. The retail business in this study is based online which means that there is need to understand the best ways to reach the online Hong Kong female undergraduates.
E-promotion
Communicating with the target population is crucial for every business, which is why there is need to understand the best promotion method. Some of the most common methods include advertising, sale promotion, public relations and direct marketing (Ferguson, 2011, web). For an online business, online promotion through websites is universal especially through links to the main site. However, for the market-based 4-ep model to work, it is important to understand the position of the target consumers.
References
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