Rolex is affected by many macroenvironmental factors. Demographics really affect Rolex because they usually chose store locations based upon the general population in the vicinity of the store (Rolex 2017). They would not shoes a dealer that is based in a poor area simply because they would not be able to make any money. Another factor that affects Rolex is the technological one. Because tech is constantly improving, phones are basically taking over the place of watches. As a result, companies such as Rolex are at risk of becoming somewhat irrelevant. This risk causes Rolex to change their approach. One of the most important macroenvironmental factors for Rolex is the social one. A company can only perform as well as the population of your target group wants it to. Additionally, as fashion continues to change Rolex will continue to adapt by producing new trendy products. The economic factor also directly affects Rolex because, the better the economy, the more people will be willing to spend that extra buck on a Rolex wrist watch. III.G: CONSUMER DECISION PROCESS …show more content…
A main factor for Rolex would be the psychological one due to the face the most people purchase Rolex wristwatches due to their own motives (Grewal& Levy, 2014). No one literally needs a Rolex watch over a ten-dollar, cheap watch yet people chose to buy a Rolex because they simply want one for some cognitive reason. Social factors also affect consumer decision about Rolex watches because sometime people in a society where it would be impractical and somewhat impossible to purchase a Rolex. Lastly, Situational factors affect consumer decisions because they might dislike the store atmosphere of the local Rolex dealer (Grewal& Levy,
People are often deceived by some famous brands, which they will buy as useless commodities to feel they are distinctive. People require brands to experience the feeling of being special. People spend their money to have something from famous brands, like a bag from Coach or Louis Vuitton which they think they need, yet all that is just people’s wants. Steve McKevitt claims that people give more thought on features or brands when they need to buy a product, “It might even be the case that you do need a phone to carry out your work and a car to get around in, but what brand it is and, to a large extent, what features it has are really just want” (McKevitt, 145), which that means people care about brands more than their needs. Having shoes from Louis Vuitton or shoes that cost $30 it is designed for the same use.
The factories around the world (China, Asia, and Vietnam) assist in manufacturing and distribution of the products. (Mahdi et al., 2015). The globalization and technology have impacted competition and larger expansion of the corporation around the world. The Nike brand is nearly in every culture of the world from the result of globalization and technology impact. The technology has grown on the quality of the research and innovation the company is performing that is resulting in great volumes of customer cares and choices. The globalization and technology have also helped stabilize the prices of the products and avail them all year round so that there are no experiences of low supply and thus raise in the products prices. (Mahdi et al., 2015). The market is always satisfied with the quality and volume of supply that meets all the fluctuation like the sudden increase in demand or its fall. The impacts of globalization have made the company produce high quality, durable and limited the production impact on the environmental pollution and degradation. It is playing a global roll in the management and conservation of the environment worldwide by taking part in community participation and charitable organizations that serve the society in community issues alongside environment (Mahdi et al.,
Other than statistics, there are important aspects that impacts the shoes industry. The increasing number of discount retailers entering the market, adds some heat for the competition. There are also two major trends that seems to be opposite but are not, in terms of consumers’ behavior when it comes to shoes; the “stripped casual” or “casual cool”, and the growing demand for design and style. These trends only benefits the already fashion conscious Steve Madden brand and its
In the external environment we observe the opportunities and threats for Lululemon. We will look at the broad environment (macroenvironment) as well as the competition that could impact Lululemon’s successfulness.
A weakness for Vuitton as a brand is their limited target market and customer segment. Although their products are very accessible and attainable, they only cater to the elite individuals. The longevity of debt within the company was very interesting because these obligations can cause of inability of growth within the company (Louis Vuitton-History, 2015).
There are 3 main factors that affect the buyers decision: cultural level, such as culture and social status; personal factors like family role and
Key macro-economic indicators are the level of GNI and GNP per capita which reflect a consumer’s ability to purchase for example high priced luxury items or cochlear implants. However the average level of GNI per capita in a country may not show the true income distribution which may be highly unequal in certain countries such as Latin America and the Middle East (Douglas & Craig, 2010). One micro variable that has to be taken into account is the customers’ estimation of the value of the company and its products relative to its competitors (Jobber & Shipley, 2012). Cochlear preserves its superior brand image due to its “exceptional customer experience, operational excellence, product innovation, people engagement and value creation” (Cochlear Annual Report, 2013 pg. 23), and if consumers in the international market view it the same then Cochlear has a considerable advantage over its competitors. This customer assessment on the company will affect the marketing mix in terms of price as this in turn affects the customers’ ability and willingness to pay a certain price for the product.
We are all consumers, and we buy diverse products every day. But, do you know what the main factor is that influences us to choose a product? If someone selects a cloth, maybe he pays attention to its quality! Customers’ decisions can be changed depending on what the main factors they are looking at. Various influences can cause consumers to select different products.
Since the Apple Watch is not a necessity and relatively expensive for even its lower end models, the economic environment could certainly negatively impact Watch sales in present and future markets. One thing Apple has on its side with the release of the Watch, is “the constant thrill that will make the Apple Watch compelling” (Elgan, 2015). To reach another market segment, Apple has succeeded in marketing the Watch as a fashion piece that caters to the “makers that are high achievers who eat, dress, and live well” (Kotler & Keller, 2012, p. 79).
Nike’s goal is to remain unique and different from others in terms of the items offered on the market. Arguably, Nike belongs to a monopolistically competitive market as there only a few organizations with the ability to regulate the amount charged for their product which means they cannot make their prices high as this is likely to make customers move on to other available choices (Nike, Inc., 2012). However, Nike can find a balance between the prices to charge for their products and remaining competitive with other companies in the industry. Nike has formed a distinction between the appearance and performance of their footwear and that of their competitors. Although products are differentiated from other companies, they still influence each other because they are items of the same
A second problem that New Balance faces is its limited product line. New Balance prides itself on providing quality athletic shoes for the serious athlete. However, the market has been shifting to not only include serious athletes, but it now also caters to the more fashion-oriented crowd. This crowd tends to be from the younger generation, the part of the population that New Balance has so far not been focusing on. New Balance has geared itself toward the older crowd, which has severely limited the company as far as its ability to expand into new product areas and remain competitive in the changing market.
The current stock holding period in the luxury watch sector is 8-9 months which is very normal in consistent to other luxury watch players in the same segment. Recent studies by Google, show that in India 75% of the cars are bought are researched online. A similar policy also works in the mind of prospective customers who are looking for luxury watches. With customers becoming more Internet savvy with each passing day, they research online and gather knowledge of the whole range of the products in a particular brand. Thus, to cater to all customers, we need to keep the whole range of stock for each brand,to positively influence the buying decisions of the customers. Thisin-turn leads to a biggerinvestment in
The second category could... ... middle of paper ... ... y what it is that consumers want and then provide products to meet that demand. 7.2 External factors that could be researched are competitors, and changes and trends in fashion, which inevitably influence Nike. The findings of this research would allow Nike to maintain their fashionable and innovative image as well as market share.
It is also important to remember that in realizing the bandwagon, snob, and Veblen effects, the basic assumption that the consumers' consumption behavior is independent of the consumption of others, must be ignored. The bandwagon effect is seen in cases where individuals are trying to "fit in". This effect is shown when the demand for a certain good is increased, based on the assumption or knowledge that other consumers are also consuming that same good. This effect is most easily described using the example of fashion or clothing.
in this segment are often brand conscious and enjoy the latest fads and trends. They...