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Consumer Behavior In Footwear Industry

1189 Words5 Pages

The footwear market is highly competitive and with great rivalry for the customers.
Persuading customers to make their first buy is very costly and time-consuming.
Therefore companies first have to understand what consumer behavior is: “the behaviour that consumers display in searching for, purchasing, using, evaluating and disposing of products and services that they expect will satisfy their needs (Schiffman, Lazar, Kanuk and Hansen, 2008, p.3). “ Then companies must understand how this consumer behavior works. Find out what the so called needs and wants of their customers are, knowing where they are, what they do, how to reach them, on what device and what message will be sent by the company to their customers. Because of the time and …show more content…

Convincing customers to make a re-buy and change this relationship into a loyal customer is also very costly. Customer loyalty creates a lot of benefits for the companies. These include lower costs associated with retaining existing customers, rather than constantly recruiting new ones especially within mature, competitive markets (Ehrenberg and Goodhardt, 2000).
But the effect of these benefits can differ per industry. Therefore this research in the footwear industry tries to find out how customers reaction will be by an increase of price. When customer loyalty has built it is widely known that companies on the other hand can often charge more for their products and services to their loyal …show more content…

They have no special preferences to the brand and can be persuaded to buy the brand when the price is low enough. This will have effect on the high choice elasticity. Because the elasticity components between loyal customers and not loyal customers are different it is possible that the total elasticity for loyal customers will be greater than for not loyal customers. Much research of the relationship between price elasticity and customer loyalty is not available. In this limited research, based on a single component, both positive – and negative relationship results are found. Positive by Starr and Rubinson (1978) based on choice and negative by Neslin, Henderson and Quelch (1985) based on quantity. Also a positive relationship was found by Mc.Cann (1974) and Raj (1982) based on multi

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