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Zara Consumer Background

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Zara consumer’s background.

Consumer Behavior involves the psychological processes that consumers go through in

recognizing needs, finding ways to solve these needs, making purchase decision, interpret

information, make plans & implement these plans.

Zara Customer-Centric Model


The customer is co-creator to its products, knowing exactly what they demand is in the core of
Zara’s business model. Attention to detail and technological innovation are present in every
part of Zara’s value chain.

Zara can use the information provided by its shoppers because of the training they give to them
employees. The store’s staff is the most valuable asset of Zara’s customer research, they listen
to feedback given by customers that might lead to styles, cuts, fabrics, and designs featured in
a new collection. Each day the stores have to report to Zara’s HQ, so they are aware of the
consumer behavior and needs in real-time and can act based on this information immediately.
Zara’s customer research capacities give them a competitive edge, they can adapt to each
culture and geography accordingly reflecting their customer needs. Social media is also a tool
that is being used by Zara to improve customer relations and gather feedback.

Unlike its competitors, Zara does not engage in advertising or team up with fashion household
names such as Karl Lagerfeld and Stella McCartney, their designers are anonymous. Zara
invests heavily in real estate, including the location, ambiance, and feel of its stores. In
harmony with Zara’s mantra of offering high-fashion with an affordable price, the location of
each shop a lot of times is not far from fashion names like Chanel and Hermes.
Furthermore, customer experience is taken seriously. In the age of retail apocalypse, this fact
became ever more vital for an apparel business. Zara combines the fast-fashion shopping with
the feel of a high-end store, each of its stores has a sleek, elegant and minimalistic layout.
Adding this with curated merchandise featuring the latest fashion trends with fast rotation.
Zara consumers go to the store knowing that the product they liked will not be there in the
next week, making them more likely to make the purchase, which also adds to customer
loyalty and the frequency they shop.
Despite not doing traditional advertising campaigns, Zara gets a lot of attention through word-
of-mouth and social media. They benefit from a great number of influencers and celebrities
regarded as fashion icons. Among them Olivia Palermo, Kendall Jenner, and Kate Middleton,
the Duchess of Cambridge.

NATURE OF CONSUMER BEHAVIOR –


 Influenced by various factors -
1. Marketing factors such as product design, price, promotion, packaging, positioning
and distribution.
2. Personal factors such as age, gender, education and income level.
3. Psychological factors such as buying motives, perception of the product and attitudes
towards the product.
4. Situational factors such as physical surroundings at the time of purchase, social
surroundings and time factor.
5. Social factors such as social status, reference groups and family.
6. Cultural factors, such as religion, social class—caste and sub-castes.

 Undergoes a constant change –


Consumer behavior is not static. It undergoes a change over a period of time
depending on the nature of products. For example, kids prefer colorful and fancy
footwear, but as they grow up as teenagers and young adults, they prefer trendy
footwear, and as middle-aged and senior citizens they prefer more sober footwear.
The change in buying behavior may take place due to several other factors such as
increase in income level, education level and marketing factors.
 Varies from consumer to consumer –
1. All consumers do not behave in the same manner. Different consumers behave
differently. The differences in consumer behavior are due to individual
factors such as the nature of the consumers, lifestyle and culture. For example,
some consumers are techno Holics. They go on a shopping and spend beyond
their means.
2. They borrow money from friends, relatives, banks, and at times even adopt
unethical means to spend on shopping of advance technologies. But there are
other consumers who, despite having surplus money, do not go even for the
regular purchases and avoid use and purchase of advance technologies.

 Varies from region to region & country to country -


1. The consumer behavior varies across states, regions and countries. For
example, the behavior of the urban consumers is different from that of the
rural consumers. A good number of rural consumers are conservative in
buying behaviors.
2. The rich rural consumers may think twice to spend on luxuries despite having
sufficient funds, whereas the urban consumers may even take bank loans to
buy luxury items such as cars and household appliances. The consumer
behavior may also vary across the states, regions and countries. It may
differ depending on the upbringing, lifestyles and level of development.

 Improves Standard of living –


The buying behavior of the consumers may lead to higher standard of living. The
more a person buys the goods and services, the higher is the standard of living. But if
a person spends less on goods and services, despite having a good income, they
deprives themselves of higher standard of living.
 Reflect Status –
The consumer behavior is not only influenced by the status of a consumer, but it also
reflects it. The consumers who own luxury cars, watches and other items are
considered belonging to a higher status. The luxury items also give a sense of pride to
the owners.

 Leads to purchase decision –


A positive consumer behavior leads to a purchase decision. A consumer may take
the decision of buying a product on the basis of different buying motives. The
purchase decision leads to higher demand, and the sales of the marketers increase.
Therefore, marketers need to influence consumer behavior to increase them
purchases.
 Varies from product to product –
Consumer behavior is different for different products. There are some consumers
who may buy more quantity of certain items and very low or no quantity of other
items. For example, teenagers may spend heavily on products such as cell phones and
branded wears for snob appeal, but may not spend on general and academic reading.
A middle- aged person may spend less on clothing, but may invest money in savings,
insurance schemes, pension schemes, and so on.

OBJECTIVES

ZARA is one of the biggest fashion brands in the world. To be able to create a company this
big is every businessman’s dream. The popularity enjoyed by Zara can be matched by only a
few. The objective is to understand, what exactly is the perspective of the customers or
general public which drives them to Zara.

 To study the current Indian market for clothing brands.


 To analyze the relationship between a specific brand & its buying behavior.
 To assess the factors influencing the buying behavior of the consumers.
 To understand the psychological mechanism that guides the choices of consumers.

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