Question+3+–+CONSUMER+ANALYSIS.


 * PART 3 – CONSUMER ANALYSIS.**

The personas are fictional characters with their own personalities and lifestyles used to represent a typical customer of the industry. To help better understand key consumers of Victoria’s Secret and Lululemon we introduce two amazing women: Victoria and Lulu.
 * Assessment of what key consumers buy the products.**
 * || Lulu || Victoria ||
 * What does this persona do on a daily basis?[1] || Lulu wakes up ready to face challenges of the coming day. She puts on comfortable clothes and does not bother to do her make-up. She is focused on more important things, such as healthy lifestyle. That is why she goes to work/school by bike, takes vitamins, eats healthy, and practices yoga. She likes to observe plants before and after watering and relate these benefits to her body and brain. She values family, friends, and loves children. She sweats once a day. [2] || Victoria wakes up knowing that the world is in her hands. Before she leaves her home she does her make-up and hair because it is important to always look the best. She goes to work/school by car or taxi since she values a life of luxury. She spends her free time taking care of herself and her beauty. She likes long baths with a glass of wine, fancy diners and clubs. She is unapologetically sexy, she knows what she wants, and everything she puts on is empowering.[3] ||
 * What’s the persona’s life mantra? || Live a healthy lifestyle and pursue exercise, physical fitness and inner peace. [4] || Be self-confident, expressive, playful and sexy. [5] Know what you want and use your beauty to get it.[6] ||
 * What’s this persona’s unspoken question regarding this product? || Will this product help me achieve the amount of healthiness and peace I want? || Will this product help me show to the world how confident and amazing I am? ||
 * What does she expect from this product? || She expects it to be comfortable, high quality, allowing her to have active life style, showing her personality. || She expects it to be sexy, give her self confidence, make her feel powerful, and make her feel like she is living a fantasy.[7] ||
 * What are their demographics? || She is an educated woman whose age does not matter, and who has financial stability. || She is a young woman with middle to high income. ||
 * How do they spend money? || She values the benefits of the product in spite of its cost because it helps her pursue the healthy lifestyle and her life goals. Her spending is not impulsive. The product is supposed to do its job so she will keep it as long as it is performing well. || She values the boost the product gives to her self confidence. She buys because she can, not because she needs. ||

The consumer decision process starts with **need recognition**. Lululemon consumers are driven with both psychological and functional needs. They want the product to perform certain functions, such as enable them to do extreme and regular sports. Lululemon products also motivate consumers to pursue their goals, such as being active and healthy. Victoria’s Secret(VS) customers are driven by psychological needs. The product is supposed to make them feel sexy and self-confident. They don’t really need the products, they just want them. Another factor which has an influence on purchase decision is **actual or perceived risk**. The following table presents types of risk consumers may face and their comparison.
 * How buying decisions are made.**
 * Search process** which consumers go through after need recognition and before a purchase is affected by numerous factors. One of them is type of product or service. Both Lululemon and VS products are **specialty goods**. Customers show strong preference towards them and are ready to spend considerable amount of time to search for the best fit for them.
 * || Lululemon || Victoria’s Secret ||
 * Psychological risk || Lower || Higher ||
 * Financial risk || Higher || Lower ||
 * Performance risk || Higher || Lower ||

Psychological risk is higher for VS consumers because its products are supposed to boost their self confidence and self esteem. If the product does not make the consumer feel sexy she will be dissatisfied. Since Lululemon products are more geared towards performing its functions than unleash emotions and moods, the psychological risk is lower. Lululemon consumers buy products for themselves, not for others, so disapproval of environment is very unlikely. Financial risk is higher for Lululemon consumers. Its products are bought less frequently and are meant to last longer. If it does not perform its function, the cost for consumer will be very high. VS consumers buy its products more frequently and can afford them more ealily, therefore financial risk is not so high. Performance risk is higher for Lululemon consumers since its products are designed to perform certain functions. If they are not comfortable or do not allow the consumer to do extreme sports he or she will be dissatisfied. Physical specifications and requirements of VS products are not so rigid so performance risk is lover. At the evaluation of alternatives stage, consumers often use **heuristics** (brand, price, presentation) – mental shortcuts, which help them make decisions. Both companies ‘ brands are very recognizable therefore they encourage purchases. Prices are at similar lever but because VS appears to be more luxurious the price seems to be more reasonable. The price of Lululemon products for some of their consumers may be too high and discourage purchase. VS uses product presentation very well to enhance purchase. They are nicely packaged and presented by extremely attractive top models. Buying decisions are also influenced by past experience with the product and that is why **postpurchase satisfaction** is so important. It is enhanced if consumers have **realistic expectations** about the product. VS’s promise of feeling sexy and self confident seems to be difficult to keep. Lululemon sometimes does not meet the expectations of consumers, for example, by promising products made of sea weed which in fact are made of regular cotton. Lululemon enhances postpurchase satisfaction by providing **information about proper use** of its products. Their website is full of instructions and tips about washing, wearing, and taking care of clothes.[1] They also encourage **feedback** in order to improve customer experience.[2] Buying decisions are influenced by **psychological factors**. One of those factors is **personal need** – people’s inner desire. VS makes use of it by promising feeling, sexy and special thanks to its products.
 * Social factors**, such as **reference groups** can also encourage purchase. For VS customers, top models and celebrities are a reference group. For Lululemon consumers this group consist mostly of friends and family.
 * Shopping situation** is one of the **situational factors**. Friendly sales people, yoga classes, and information about healthy life style provided by Lululemon stores encourage purchase. Intimate feel, sexy design, and uncrowded stores of VS have the same function.

[1] http://www.lululemon.com/community/blog/how-do-i-wash-my-lululemon/ [2] http://www.lululemon.com/feedback/

[1] http://searchengineland.com/behavioral-targeting-google-analytics-how-to-create-personas-31063 [2] http://www.lululemon.com/about/manifesto [3] http://www.youtube.com/watch?v=bwg3joBT0Dk&NR=1 [4] http://www.lululemon.com/about/manifesto <span style="font-family: 'Calibri','sans-serif'; font-size: 14.6667px;">[5] http://www.youtube.com/watch?v=fI8C2zkaLZY <span style="font-family: 'Calibri','sans-serif'; font-size: 13.3333px;">[6] http://www.youtube.com/watch?v=bwg3joBT0Dk&NR=1 <span style="font-family: 'Calibri','sans-serif'; font-size: 12px;">[7] []