ASSIGNMENT ON

CONSUMER BEHAVIOUR

Submitted to:M/s Ruchika Asst. Proff. NIFT, Jodhpur Submitted by:Ram Deo Bharti MFM 2nd Semester (2012-14)

National Institute of Fashion Technology Ministry of Textile Govt. of India

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Introduction
Founded in 1853 by Bavarian immigrant Levi Strauss, Levi Strauss & Co (LS&Co) is one of the world's largest brand-name apparel marketers with sales in more than 100 countries and distribution from more than 500 contractors worldwide. The company designs, manufactures and markets apparel for men, women and children, including jeans and jeans-related pants, casual and dress slacks, shirts, jackets, skirts and related accessories. Headquartered in San Francisco, California, LS&Co employs approximately 13,000 people in more than 40 countries and owns and operates 21 production and finishing facilities, 20 distribution or customer service centers, and numerous sales and marketing offices. Today, the Levi's trademark is one of the most recognised in the world and is registered in more than 160 countries. Despite its glowing heritage, the companys financial performance is less than stellar, a slide that began in 1996. Levis execs attribute the downturn to being inattentive to consumer needs, relying on its heritage, inefficient logistics, domestic production, poor relationships with retailers and a decline in department store business Levis primary channel. Levis has been battling to reverse its situation with a major 5-year business turnaround, The Great Levi Strauss & Co Turnaround. The turnaround is based on three parts: gaining control of the business, steadying sales and realising profitable growth and is aimed at stabilising revenues and expanding the business within the next few years. To make this happen, the company brought in Philip Marineau in 1999. Since his hire, hes instituted a number of major changes designed to improve relationships with retailers and increase margins, such as updating inventory systems, closing domestic factories in favour of overseas sourcing, revamping its executive force and cutting costs. Levis sales this fiscal year will rise 2 to 5 per cent above last years $4.14 billion, speculate Levis exec utives, down from $7.1 billion in 1996 when its revenues peaked, according to experts. Despite ending the last two quarters of fiscal 2002 with strong sales, the company ended the year with its sixth straight annual sales decline and a steep slide in profits (down 83 per cent to $25 million), say reports. Levis jeans are the original, authentic jeans. Since their invention by Levi Strauss & Co. in 1873, Levis jeans have captured the imagination and loyalty of millions of people, generation after generation. The Levis brand continues to evolve, powered by a pioneering spirit unparalleled in the apparel industry. From quintessential classics, such as the famous Levis 501 Original jean, to favorite fits and styles in our Red Tab and premium collections, the Levis portfolio offers a wide range of products with innovative fits, fabrics and finishes. Sold in more than 110 countries, the brand epitomizes classic American style and effortless cool, allowing individuals around the world to express them.

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In 2009, the Levis brand continued to delight customers with new products, designer collaborations and the launch of a new premium business Levis XXfeaturing the new Levis Made & Crafted range and our Levis Vintage Clothing line. Last year also ma rked the 75th anniversary of Levis invention of womens jeans, bringing relevant new interpretations of the brands classic skinny and boyfriend jeans to markets around the world.

Reconnecting with consumers

Key to reconnecting with consumers is that Levis stops focusing entirely on its heritage and takes a multi-pronged approach to growing multiple brands globally, according to experts. Its strategy must leverage brand equity and generate news through relevant and innovative product offerings. In 2 000 the company segmented the marketplace better and designed and delivered relevant products and marketing programs to a broader range of consumers, which should propel the company in the right direction. The result has been recent launches like Dockers stain-resistant extensions in chains, Type 1 and superlow-rise mens jeans, Levis Vintage Clothing and Levis Red Tab in specialty stores, Levis Premium and Special Edition at high-end department stores and trendy chains, and the Signature label through discounters. Marineau has stated that spring 2003 marks the first time the company will offer a womens jeans line that is equal to or better than the mens line. New fits and innovative finishes in the Levis brand have improved our brand relevance scores with consumers and helped us gain market share this year in the US mens jeans market, says Beckman. He also cites innovations from the Dockers brand in recent years like the Mobile Pants in 2001, Go! Khaki with Stain defender in 2002,and new Individual Fit Waistband technology in 2003. These products have led innovation in the category and after several years without any significant news in the khakis arena, given men a compelling reason to get off the couch and go buy a new pair of pants. These products have all performed extremely well in the market. Analysts, however, have yet to see the sales gains from innovation and are taking a wait-and-see attitude towards the Signature launch to see if Levis is truly reconnecting with consumers.

Introduction of Consumer Behaviour

Consumer behaviour has changed dramatically in the past few decades. Today, consumers can order online many customised products ranging from trainers to computers. Many have replaced their daily newspapers with customised, online editions of these media and are increasingly receiving information from online sources. Students choosing a university no longer rely on receiving prospectuses through the post; instead, they have online access to all the pertinent information about a universi tys courses and teaching staff and, in some cases, can visit, virtually, actual classes. People wanting to sell their old computers or grandmothers antique table no longer need to advertise in the local newspaper or rely on a pricey auctioneer; instead, they can sell these items via online auctions or their own personalised online

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advertisement. Consumers who want out-of-print books no longer have to visit out-of-the-way shops with hundreds of poorly organised dusty shelves, and those who wish to purchase a book published in another country no longer have to call foreign publishers or deal with the bureaucratic nightmare of overseas delivery; instead, they can visit online stores where they can easily locate and place orders for the books they seek. Television viewers can now avoid the advertisement breaks by using the skip feature of their recorders and order on demand previously shown television programmes as well as films. All of these new ways of selling products and services became available to consumers during the past 15 years and are the result of digital technologies. And they also have another thing in common: they exist today because they reflect an understanding of consumer needs and consumer behaviour. The term consumer behaviour is defined as the behaviour that consumers display in searching for, purchasing, using, evaluating and disposing of products and services that they expect will satisfy their needs. Consumer behaviour focuses on how individuals make decisions to spend their available resources (time, money, effort) on consumption related items. That includes what they buy, why they buy it, when they buy it, where they buy it, how often they buy it, how often they use it, how they evaluate it after the purchase, the impact of such evaluations on future purchases and how they dispose of it. Clearly, as individuals we are all unique. However, one of the most important constants among all of us despite our differences is that, above all, we are consumers. We use or consume on a regular basis food, clothing, shelter, transport, education, equipment, holidays, necessities, luxuries, services and even ideas. As consumers we play a vital role in the health of the economy local, national and international. The purchase decisions we make affect the demand for basic raw materials, for transport, for production, for banking; they affect the employment of workers and the deployment of resources, the success of some industries and the failure of others. In order to succeed in any business, and especially in todays dynamic and rapidly evolving marketplace, marketers need to know everything they can about consumers what they want, what they think, how they work, how they spend their leisure time. They need to understand the personal and group influences that affect consumer decisions and how these decisions are made. And, in these days of ever-widening media choices, they need not only to identify their target audiences, but also to know where and how to reach them. The term consumer behaviour describes two different kinds of consuming entities: the personal consumer and the organisational consumer. The personal consumer buys goods and services for his or her own use, for the use of the household, or as a gift for a friend. In each of these contexts, the products are bought for final use by individuals, who are referred to as end-users or ultimate consumers. The second category of consumer the organisational consumer includes companies and charities, government agencies (local and national), and institutions (e.g. schools, hospitals and prisons), all of which must buy products, equipment and services in order to run their organisations. Despite the importance of both categories of consumers individuals and organisations this book will focus on the individual consumer, who purchases for his or her own personal use or for household use. End-use consumption is perhaps the most pervasive of all types of consumer behaviour, for it involves every individual, of every age and background, in the role of either buyer or user, or both.

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Personality
Personality is defined as Individualistic, Lavish, Smart, Trendy, and Upper Crust.

AN OVERVIEW OF PERSONALITY: ITS NATURE AND THEIR APPLICATION TO CONSUMER BEHAVIOUR

All of us, at some time or another, have described friends or acquaintances in terms of their personalities. We may have described someone as having a `friendly personality', someone else as having an `aggressive personality'. Sometimes we go to the extent of saying that someone has a `personality problem'. The term personality is used, in other words, to describe individuals. When we talk of personality, however, we do not just mean that a person is charming, has a positive attitude towards life, or a smiling face. Personality is a much more dynamic concept which describes the growth and development of an individual's whole psychological system. The fundamental question of concern to marketers has been that, given that consumers differ on readily identifiable characteristics such as personality, how do these factors influence their consumption behaviour? As you know the personality is the composite sum of an individual's psychological traits, characteristics, motives, habits, attitudes, beliefs and outlooks. Over the years many different definitions have been proposed. One of the most widely used is that by Allport according to which personality is defined as an `internal system' which includes all those aspects of a person that are inherited as well as those that are learned. These two internal aspects are interdependent and cannot be isolated'. You will see this illustrated in Figure 8.1 which highlights the origin of personality traits: Some theorists believe that personality differences can be explained primarily, if not completely, by how individuals acquire their behaviour patterns. If, as stated, personality is the result of a complex interaction of genetic and environmental inputs then every person is, in certain respects: 1. like all other persons 2. like some other persons 3. like no other persons In other words each person has some attribute in common with all other human beings and other, totally unique qualities. Thus, we share certain characteristics with others because of our biological make-up. For instance, you will find that some personality characteristics are dictated by heredity. Thus, you may be `relaxed and easy going' because your parents were similarly so. A second important factor that impinges on our personality formation is the culture in which we were raised, and our early conditioning, along with the groups and institutions from which that culture is acquired. Thus, our families and peers, i.e. friends and associates; are important reference groups that influence our own personality characteristics. Furthermore, it is necessary for you to note that, since learning contributes to personality formation, the personality is not fixed because; learning itself is a continuous process'. This does not mean, however, at personality is unstable or is subject to abrupt changes. On the contrary a basic personality change is exceedingly difficult and, also, slows to occur.

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For your purpose you should think of personality as the sum total of ways in which an individual reacts and interacts. As a concept applied to marketing, personality can be viewed as having following distinct characteristics: 1) Personality is used to account for differences between individuals rather than show how people are alike. Here again, refer to Figure 8.1. This enables us to categorize people into groups on the basis of a single or a few traits. The difficulty inherent in trying to understand uniqueness has led to an emphasis on such measurable characteristics as intelligence, aggressiveness, and sociability. Unique combinations of individual characteristics result in variations in thought and behaviour and these tend to differentiate one person from another. 2) Personality is a set of response tendencies that are consistent and endure over time. Consistency means that the characteristics contributing to an individual's personality tend to carry over to a variety of situations. Consistency is essential if marketers are to predict consumer behaviour in terms of personalities. The stable nature of the underlying personality characteristics also suggests that it is unreasonable for marketing practitioners to attempt to change consumers personalities. At best they can attempt to appeal to the relevant personality traits inherent in target groups of consumers. 3) Personality is, however, subject to change over time, in response to situations and events in life and, also, as part of a gradual maturing process. 4) Finally, it is not possible to predict an individual's purchase behaviour from single measures of personality; we cannot expect to predict the type of furniture a person will own, merely by looking at specific personality, characteristics. Activity 1 1) Make a list below, of six or more personality characteristics that you would say are inherited from your parents. 2) Next, list four or more personality characteristics where you are like some of your friends. 3) Finally, list down six or more personality characteristics of your's which no person around you appears to possess.

Theories of Personality
There are several theories that have been proposed on personality. While there is no agreement on exactly how personality influences behaviour, there are at least four distinct approaches that are known to have implications for developing the marketing mix and for segmentation. Each of these theories has played a prominent role in studying the relationship between consumer personalities and their behaviour. These theories are: 1) The Psychoanalytic Theory of Freud

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2) Social-Psychological Neo-Freudian Theory 3) Trait Theory 4) Self-Concept Theory

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Segmentation Targeting and Positioning Target Audience Gender

Levis target both the male and females genders. They manufacture their jeans and cuttings to fit each gender specifically. For instance, they have Levis Engineered specifically for male and Levis Curve for females (Levis 2009). In such, their advertisements are exclusively published in unisex magazines such as JUICE to attract both genders.

Age
Levis has a huge product line where they provide a wide range of products for children to adults. However, they specially target the younger generation which age group falls between 15-30 years (Our Course Work 2011). Their target audiences are younger, fresher, stylish and sophisticated, and wear jeans as fashion. In order to reach out to their target audience, Levis portrays their advert isements for their jeans as original, youthful, individualistic, rebellious, and masculine sexy and freedom. Hence, Levis advertisements tend to be creative and deliver messages that represent their target audiences.

Education
The advertisements of Levis are targeted at individuals who are middle to highly educated. The comprehension of their advertising message is correlated with intelligence where they use catchphrases and images to bring across their messages to individuals. As a result, target audiences have to assess the cognitive capacity to understand and interpret the meaning of the advertisement Levis has. In this case, Levis target audience are of secondary level and above where they are able to interpret, understand and appreciate the meanings and messages of the advertisements.

Income
The target audiences of Levis are from a middle to higher income range where they have a higher purchasing power. The prices of Levis products are relatively high; hence, they target those individuals who are able to afford to purchase the brand. On the average, a pair of Levis jeans ra nges between S$85.50 to S$155.50.

Consumer Needs
According to Maslows Hierarchy of Needs, the need that Levis focuses on is through self -esteem (Bay n.d.). In Levis, advertisers aim to use the self-esteem needs of individuals to emphasise on how fashionable, stylish and lasting the jeans is and the feel good factors of owning a pair of Levis jeans. Levis jeans are tailored to fit and suit each individual; hence when consumers put on a pair of Levis jeans, they would have a sense of belonging and this would boost their self-esteem and confidence, feeling good in a pair of Levis jeans.

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Consumer Wants
Levis consumer wants a pair of jeans that is of good quality, easy to handle, comfort and never goes out of fashion over the years, and the assurance that their designs are young and trendy. To address such wants in consumers, they use catchy phrases such as Easier to handle than your boyfriend in their advertisements indicating that it is easy to handle and it can Last longer than your husband. On to p of that, Levis advertisements also show that their jeans are so comfortable that consumers are reluctant to remove the jeans for laundry.

Consumer Motivations
In Levis case, the consumer motivation that advertisers are appealing to their consumers woul d be the desire of having a pair of good quality jeans. It is vital that Levis jeans are of good quality, fashionable and comfortable. Hence, in Levis advertisements, advertisers portray that Levis jeans are made with good quality that are lasting, trendy and fashionable and at the same time, giving comfort to their consumers.

Consumer Attitudes
Consumer attitudes can be changed and replaced. Levis is often seen as a mummy jeans or work -wear by many consumers, hence it was often thought as unfashionable, boring and dull. Therefore, advertisers are determined to change the attitude consumer has of Levis. Their advertisements constantly aim to reinforce the youthful perception of the brand by using messages containing humour and originality to create a positive attitude from consumers. Now, Levis emphasizes on being a rugged, confident, individualistic and laid back brand.

Consumer Personality
The personality traits of Levis consumers are individualistic, originality, sophisticated and youthful. Likewise, Levis advertising personality has similar traits of their consumers personality. As such, Levis consumers will be attracted to the design, style and how Levis brings across their messages through their creative advertisements.

Psychographics
Psychographic influences lifestyle and psychological characteristics that have a bearing on how people make decisions. According to the VALS system which uses a specific set of psychological traits and key demographics that drive consumer behaviour, Levis advertisers are appealing to the Experiencers. They are young, enthusiastic and impulsive consumers where they seek variety and excitement, savouring the new, the offbeat and the risky. In addition, they are avid consumers who are willing to spend a high proportion of their income on fashion, entertainment and socialising (Strategic Business Insight 2011). With the characteristics of Experiencers, Levis is able to tap on their impulsiveness and their higher purchasing power to convince them to purchase their product through Levis advertisements. In addition, with catchy and witty advertising, Levis would be able to pique the interest of their consumers.

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Positioning
Positioning is to establish a location in the consumers mind based on what the product offers and how that compares with the competition. It determines what place a product should occupy in a given marketplace. (Wells 2009, 248) Positioning strategies generally focuses on either the consumer or the competition, and both approaches involve the association of product benefits with consumer needs. Many advertisers consider market positioning the most important factor in establishing a brand in the market place (Blech 2009). Generally, positioning differs between countries and market segments. For example, in America and Europe, jeans are seen as casual attire however, in Russia, wearing jeans indicates to society awareness and high status (Vrontis and Vronti 2004). According to the Product Life Cycle, Levis is at the maturity stage where competition in the industry is intense (Jain and Haley 2009). Hence, it is essential for Levis to emphasise on the usage of persuasive and reminder advertising.

Perceptual Map

In relation to the perceptual map above, Levis is positioned as a better value and quality than its competitors. It positions itself as affordable with comparable quality against competitors such as Calvin Klein Jeans. Levis also emphasise on the comfort it gives to its consumers where it is comfortable enough to fit into consumers everyday lives in physical and social sense. In addition, Levis advertisements perceive itself as durable, casual, affordable, fashionable and youthful. For instance, with reference to Levis advertisements, using catchphrase like Last longer than your husband shows that their jeans are durable.

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Motivation
Advertising appeals aim to influence the way consumers view themselves and how buying certain products can prove to be beneficial for them. The message conveyed through advertising appeals influences the purchasing decisions of consumers. An emotional appeal is related to an individuals psychological and social needs for purchasing certain products and services. Many consumers are emotionally motivated or driven to make certain purchases. Advertisers aim to cash in on the emotional appeal and this works particularly well where there is not much difference between multiple product brands and its offerings (Different types of advertising appeals 2009). In the series of advertisements that Levis produces, it conveys a chain of message through the limited choice of words such as last longer than your husband to convey the message long lasting instead of just directly and straight forwardly use the word. Besides, in the three advertisements, there are very little information shown about the product and they rely heavily on their soft selling strategy that appeal to the consumer emotions rather than hard selling that requires a lot of facts and information to persuade the consumer into buying the product.

Learning
Advertising has the power to persuade, the power to influence the mind and shape destiny. It has the power to change markets and improve profit margins (Thomas n.d.). Therefore, an effective ad is one that delivers the message the advertiser intended and consumers respond as the advertiser hoped they would (Moriarty, Mitchell and wells 2008, 72). The fundamental to the measurement of the effectiveness of interactive advertising is whether consumers are indeed responding and providing feedback. Hence, the facet of effects model is used to determine and show the effectiveness of ads that shows how the market gets attracted and make general opinions about them. In the facet of effects model, it consists of six components that are perception, emotions, association, persuasion, cognitive and behaviour (Facet Model of Advertising n.d.).

Perception
Perception is the process by which we receive information through our five senses and assign meaning to it such as exposure, selection and attention, interest and relevance, awareness and lastly recognition (Moriarty, Mitchell and wells 2008, 156). Exposure refers to whether a marketing communication message reaches the consumers. For the three Levis advertisements, they can be found in either the Juice magazine or 8 Days magazine. For Juice magazine, the readers of this magazine are usually fashionista, whereby they would particularly seek for opinions and ideas and keep up with the latest trend that is published in the magazine, and usually this group of people happens to fall within Levis target market range which is 18-30 years old. Therefore publication of ad in this magazine represents that the designs that Levis produce are up and on par with the current fashion goings, therefore it would be able to achieve effective exposure due to the ability to send out its message in the ad to their main target market. As for 8 days, readers of this particular magazine are usually interested in new products and the latest happenings of movie stars and idols with readers ranging from 18-40, therefore it not only captures the attention of Levis main target group but also the remaining mass.

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The next factor that drives perception is selective attention in which it is a process by which a receiver of a message chooses to attend to a message (Moriarty, Mitchell and wells 2008, 156). With high competition level in the fashion industry, it is important that an ad stands out in order to capture the attention of the audience amid all the clutter in the media environment. Thus Levis ad often uses the key colors and logo to reinforce again and again that when a person wish to buy a pair of jeans, the first brand that they would think of is non-other than Levis. They make use of pictures, signature logos, denim backgrounds that are distinctive enough for the consumers to pick out the brand behind the ad almost instantly, thus minimizing the risk of getting their ad being filter out as junk and non-interesting when the consumer browses through the magazines. The third factor is interest and relevance which refers to a factor in crossing the selection barrier is interest, which means the receiver of the message has mentally engaged in some way with the ad and the product (Moriarty, Mitchell and wells 2008, 156). Achieving the audience attention are just the fundamentals, but to capture and hold the audience interest long enough to register the ad is the challenge. Levis have been very straight forward and clear cut in the message that it wants to send across, and besides, they have been rather consistent with the key points advertised as it wish for these key points such as Levis represents quality to sink into the consumers mindset permanently. Though being straight forward, the ad often includes a twist in it, so that it does not come off as too direct and boring, but neither does it appear to be difficult for the consumers to figure out the meaning behind it. This act of the ad would then be able to hold and capture the audience attention and interest for that particular moment as they decipher the whole ad, and with such effort, the ad would then tend to stick to the audiences mind for a longer period of time as well. Awareness is when an advertisement makes an impression of where something registers (Moriarty, Mitchell and wells 2008, 156). Levis signature red tab logo and the m arch logo has been distinctive, thus when consumers look at the ad, they are able to recall almost instantly the brand name and products. Lastly, recognition is a measure of perception and is used to determine awareness (Moriarty, Mitchell and wells 2008, 156). The three different ads, though trying to send out different message, it all aims to reinforce the key qualities of a pair of Levis jeans. With the signature red tab logo and m arch logo and for the fact that they have been in the market for a relatively long period of time, it is not difficult for the audience to achieve the recall factor as the key points and features are distinctive.

Affective/Emotions
Affective responses mirror our feelings about something and it describes something that stimulates wants, touches the motions, creates liking and elicits feelings (Moriarty, Mitchell and wells 2008, 157). Advertisements therefore evokes feelings that could results in wants and liking from the consumers towards a particular product or brand, ultimately inducing the consumers to make the purchase. The Levis advertisements are created in such a way that it brings out the key points and qualities of their pair of jeans, creating a positive impression and feeling about their brand, therefore triggers the consumer to visit the stores to try and feel the cutting of the whole package of the pair of Levis jeans.

Association

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Association is the technique of communicating through symbolism, thus it is the primary tool used in brand communication. It is the process of learning to make symbolic connections between a brand and desirable characteristics and qualities (Moriarty, Mitchell and wells 2008, 162). Levis has been quite successful in this area, especially with their signature red tab logo that is sewn to the right butt pocket of the jeans and the m arch threading on both the butt pockets. It is so successful that one look at it, consumers are able to associate Levis jeans to it, and remember the good quality the pair of jeans provides for the owners.

Persuasion
Persuasion is the conscious intent on the part of the source to influence or motivate the receiver of a message to believe or do something. Persuasive communications create and change attitudes and create convictions which are important goals of most marketing communication (Moriarty, Mitchell and Wells 2009, 163). In Levis advertisements, they focus on sophistication and quality of their jeans which enabled them to create a positive impression and feeling about their brand hence, motivating consumers to purchase and creating conviction. Consumers can easily understand and interpret advertisements as they are direct and straightforward. The advertisements require a low-involvement from consumers since it has little process of responding to the message or decision making.

Cognitive
Cognition refers to how consumers search for and respond to information, as well as how they learn and understand the ads. It applies to large purchases such as cars, computers and major appliances. In addition, cognitive processing compliments feeling and thinking (Moriarty, Mitchell and Wells 2009, 159). Levis advertisements focus more on consumers emotions rather than the rational aspect of providing facts, information and explanations of their products. Adding on, Levis is able to differentiate itself through its brand logo and the way they convey their message through their advertisements. Their advertisements have achieved recognition through their copy points where consumers are able to recall the advertisement message, remember seeing the advertisement or the brand.

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Behaviour
The behavioural response involving action of some kind is the most important goal in advertising. The goal of the advertisement is to get people to try or buy their product (Moriarty, Mitchell and Wells 2009, 165). Levis uses call to action in their advertisements where they convince and motivate consumers to purchase through their advertising message. For instance, they use catchphrase like Last longer than your husband to pique consumers curiosity on the durability of their jeans, hence motivating and influencing them to purchase the product.

References 1. www.just-style.com 2. Curtin Singapore Advertising Principle 211 Ad Book. 3. Levis Strauss and Company, Annual Report 2009.

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