Report on Consumer Buying of Sporting Merchandise
B120 TMA04
July 2015
Submitted by: Simeon Campbell
Tutor: Dr Barbra Wallace
Contents
Part 1 A: Reasons why people buy sporting merchandise 3
Part 1 B: Bundle of Benefits 4
Part 1 C: Ethical Implications 5
Part 2: TGF Summary 6
Part 1 A: Reasons why people buy sporting merchandise
The reasons as to why people decide to invest in sporting merchandise is mainly to support the teams they admire and love. The behaviour of consumers is viewed as a rational approach according to Belk (1995) – (Book 4, Session 3.1). Consumers tend to make a numerous amounts of decisions when it comes to the buying decision. The buying decision of sporting merchandise such as football
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There are approx. 5 main factors that could be used to identify and analyse, these are Cultural [subculture and social class], Social [reference groups, family, status], Personal [age, occupation, economic situation, lifestyle, personality and self-concepts], and Psychological [Motivation, Perception, beliefs and attitudes]. Cultural factors can influence buying behaviour by the different types of perceptions that channel through country to country. Top marketing countries will always spot shifts in different cultures to discover the needs of sporting kits and replica football stickers.
Personal factors such as the collection of football stickers are globally accredited by groups of people ranging from young to old. Football stickers has been manufactured since the start of the world cup and is known to have a high street value in sales. Marketers can use this to manipulate consumers by putting duplicate stickers in packets making consumers who are deeply interested in the collection and obtaining a fully completed book by purchasing more and more packs. This has made groups come together socially by allowing sub-cultured groups such as kids to be able to trade stickers and rare stickers. People have also known to sell and trade globally online using platforms such as EBay, Gumtree and Craigslist. The majority of collectors are mainly males that also hold events in pubs/cafes who this to swap and sell stickers. [Case Study,
The consumption choices undertaken, simply cannot be an understanding, as it belongs to the considerations of cultural context into which they have been made: culture is on the ‘lens’ through which people view products. Ironically, the effects of cultural effects on consumer behaviour has become powerful and far-reaching, with the individual importance that sometimes is a difficult aspect to grasp. Culture determines the priorities that are attached to various products or services. A product that provides a benefit in consistency with a desire by members of a culture, achieves more acceptable chance within the marketplace.
In an article called Cultural Factor Highly Influences On Consumers & Their Buying Behavior – In Indian Context, the basic characteristics of culture are described:
We are living in the informational era where everything is expected to be innovative and always in demand. With that comes the never-ending innovation of technology. Looking back in to the history of sports, the growth of technology has unpredictable consequences towards the sports industry however, it grew sports into what it is today. The sports industry first took its great leap of popularity through the industrial revolution. With more people coming into urban living, people had more money and more time to focus on sports. Without the technology that made factories possible, people may not have time to focus on sports. Furthermore, in the 19th century, the growth of sports was almost dependent on new technology: transportation. The inventions of railroads, trains and telegraphs made sports a nationwide event. Thousands of new inventions of technology such as, TV, internet, shoe factories, clothing factories, phones, magazines, and many more has complimented the growth of sports. With the increasing demand and popularity of sports, sports teams have mega stadiums worth millions and billions of dollars. To give a perspective, the Los Angeles Stadium, the home for the LA RAMS and Chargers has a price tag of $2.66 billion. However, today, technology has shifted towards a “to-go” mentality, where everything can be accessed instantaneously anywhere in anytime. Therefore, this research would attempt to identify the effect of technology on the influences in sports game
In this characteristic there are three features influencing consumer behavior: Culture, Subculture, and Social Class. One of the most important reason which creates consumers needs and wants is cultural characteristic. Human behavior is mostly learned and people exposed different sets of values and beliefs(Kotler and Armstrong 2007). These values influence to consumer behavior. These characteristics are important for marketers for understanding consumer behavior and taste. Subcultures are small groups formatted from people that share the same values and beliefs like nationalities, religions or geographic regions. The subculture is an important and effective market segment, which can be targeted, as soon as it is identified. Social class is a structure, consisting of a combination of factors which gather different types of members (Kotler and Armstrong 2007). Some social factors are income, age, education, and
Cultural Factors- Cultural factors are the differences between the people and their cultures . some of these cultures are religion. If a company sells a product that is biased to christianity they are not going to sell the product to that certain group of people. Another factor is the targeted buyers class. If you are trying to sell a limousine you are not going to target middle or lower class people. So You will put the product into a nice car dealer in an upper class neighborhood not a lower class town.
McCort, D. J., & Malhorta, N. K. (1993). Culture and consumer behaviour: Toward and understanding of cross-culture consumer behaviour in international marketing, Journal of International Consumer Marketing, 6, 91-127.
The distribution of goods, the fourth global marketing mix factor, is also dependent on the cultural differences. The distribution of consumer goods is affected by the wholesaling and retailing systems whereas the distribution of other products is influenced by the transport and logistical systems. The transport systems, logistical systems, wholesale systems and retail systems differ across the European countries because of legal issues. The cultural differences in these systems across the world have a direct impact on the distribution of products. For example, in some countries a wide range of products can be sold in the retailing outlets while in other
There are four main factors that influence the consumer’s behavior; cultural, social, personal, and physiological. These factors determine what the consumer will buy, why they buy an item, and if they will be a return customer.
In recent years, a number of studies have been done on cultural factors and cross culture comparisons in different areas by great researchers (such as Kim, Forsythe and Gu 2002; Sokling, S, 2004; Monika and Morven 2005). Moreover times in the previous studies have been discussed and compared cultural differences between two, or more than two nations and regions and in some cases it explains the effects of cultural factors in customer values, needs and behaviour. The research investigate the customer’s needs, beliefs and buying nature and to gain customer loyalty in two different countries. The research concluded that consumers in different cultural environments will be affected by their cultural values, needs and behaviours when choosing some brand and so retain their brand loyalty (Kim et al, 2002)
This study will allow us to understand how local consumers make decisions to buy. Based on those facts, we will be able to have an effective strategy and avoid mistakes related to cultural differences.
Figure 1 presents the conceptual framework of this study, which identifies fan perceptions of a rival team as determinants of GORFing, which, in turn, affects fans’ likelihood to consume favorite team merchandise when the rival team loses to a third, comparable team. This framework proposes that the outcome examined, intention to consume favorite team merchandise, is influenced by rival perceptions through the mediation of GORFing. First, it is important to quantitatively show that the GORFing is a distinctive construct from factors constituting rival perceptions (Havard, Gray et al., 2013). The following hypothesis is offered:
Cultural, social, personal and psychological factors are the primary types of factors that influence consumer behavior.
Now and again, these topics may convert into changing desires for business organizations and arrangements. Based on the changing desires and needs and wants, “people 's purchasing behaviour ultimately, are shaped by their environment and their values. Therefore, when you are creating new products or services in different countries or regions, it is important to conduct research beforehand about the target market. Consider characteristics like the role of gender in the culture, their decision-making process and what they value the most”(Innov8 Education Solutions, 2017). Based on that, it is clearly stated that the importance of understanding the different culture is just cannot be ignored, and should be implemented to enter the market also understanding the consumer’s behaviour in the market. Besides, the importance of understanding the cross cultural communication through the brand that the company wants has to be accepted in the cultural or even in the society.
The definition of consumer buying behaviour is an individual and households who buy goods for personal consumption. There are four main influencers within the buying behavior of consumers which are the following personal, social, cultural and physiological. All these factors put together will determine whether the consumer purchases your product/service or which product/service is purchased.
Beliefs, values and customs are the three components of culture which influence the international adaptation of products (Usunier, 1993). These three components have an effect on the individual’s consumption behaviours and the buying pattern. Individuals purchase products due to some references from their own culture. Beliefs, values and customs send direct and indirect messages to customers concerning the assortment of products and services; it is known as the cultural message (Doole & Lowe, 2001). The culture a customer portrays determines and affects their decision process. Organisations must adapt their product to meet the requirements of that specific area of operation. (Usunier, 1993)