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The North Face

Consumer Behavior Spring 2013
by

Paulson Domasky

on 3 May 2013

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Transcript of The North Face

Warranties Social proof Returns Stimulus Problem Awareness Info Search Evaluation of Alternatives Purchase Use/Eval Cognitive Dissonance Disposition Never Stop Exploring Three key elements:
Motivation
Ideal vs. actual self
Risk Primary motivation is utility
70% gave "quality" or "performance" as reason for purchase
Many adjectives given are "warm," "durable," and "quality" Secondary motivation is fashion
Many focus group attendees listed "stylish" and "trendy" Purchase Location Impulse Buy Maslow's hierarchy of needs:
Self-esteem level: often bought for social acceptance Time-Constraints Actual vs. Ideal self:
Actual: casual outdoor enthusiasts
Ideal: extreme athlete Urgent need to buy
Early fall, late fall Risk:
Functional: minor - not as high quality as could be
Financial: higher - over priced
Social: little to none - widely socially acceptable Consumer: amount of time spent researching
Company: how it communicates with customers Customer reference group:
Normative: peers
Purchases made on trust Some purchases made as gifts
Influenced by normative group Company communication:
Positive message reinforcement
Ad campaigns
Programs encouraging outdoorsmanship
Exploration
R&D Patagonia
Arcteryx
Mountain Hardware Nike
Eddie Bauer
REI
L.L. Bean Walmart
Target
Kmart 3 Choices
Keep
Temporary Disposal
Permanent Disposal Permanent Disposal
Throw Away
Give Away
Sell
Trade "Clothes the Loop" Initiative
Facts
Advantages
Weaknesses Improving the CTL Initiative
Store Participation
Discount Rewards Program
Mail-in Recycling Program Decision Affirmation Consumer 1 Consumer 2 What affects your decision? Like to be adventurous
Outdoor activities
Decides on quality of performance and durability A fashionable means
Simply having a coat
Fit and look of the material Two Types
fashion vs function
VIPeaks Rewards
Acquisition vs. Transaction Utility
13% received as gifts 43% "expensive"
"commercial"


“I don't want to end
up wearing one with
Ugg boots and yoga pants...
I am better than that.” Perceived Value "Dependable, durable, and stylish"
"Expensive" - 43% of survey respondents Advertisements
Weather
Peer groups
word of mouth
social context Sporting goods store
The North Face factory outlet
Online retailer Sale
Investment purchase Investment purchase
Social proof
Advice from friends
Warranties
Returns Mountain Hardware . 1.7
L.L. Bean. . . . . . . . . . . 3.2
The North Face . . . . . . 3.8
Eddie Bauer . . . . . . . . 4.4
Patagonia . . . . . . . . . . 5.8
Columbia . . . . . . . . . . 6.5
REI . . . . . . . . . . . . . . . 7.0
Nike . . . . . . . . . . . . . . 8.4
Full transcript