Ch. 6 - Consumer Decision Making

As a marketer, we should know about:

• consumer's behavior 
• types of consumer buying decisions
• cultural factors that affect consumer buying decisions
• social factors that affect consumer buying decisions
• individual factors that affect consumer buying decisions 
• the psychological factors that affect consumer buying decisions

First, the consumer decision-making process shows the five stages below:

When people want to buy cosmetics, their  Information Search can utilize: TV adverting, magazines, newspapers, the internet, etc. In Sephora's store we can easily find cosmetics that are advertised by one or more of these methods. Sephora always follows the trends set by top fashion designers.  They provide one-stop shopping for makeup, skin care and beauty products and also carry over 250 brands and including their own private label, so it's easy for consumer to fulfill their Need Recognition requirements. 

Stores also offer knowledgeable staff who, not only sell products to customers, but can also serve as advisers to them. These personnel give valuable information to assist customers with their Evaluation of Alternatives. They offer customers free samples, and let the customers try these products before they buy them.  Whether they like this product or not, staff are trained to stay very patient with customers.  They will introduce more than three product brands, customers will evaluate these different products, and then make a purchase decision. Staff will also provide invaluable feedback and information to the customer about the different brands the customer is considering.  This will  help customers make the Purchase Decision.

Sephora is known for their lifetime return policy. If you purchase a particular brand and if a certain location does not carry that brand, they will still accept the product (originally purchased at a different location) under their return policy.  This will help customers feel more secure during the Purchase Evaluation phase. Either they are happy with the product, or they have alternatives to fix the problem. 

Sephora recognizes the important role that culture plays in consumer buying decisions. For example, in China, Sephora opened 23 retail stores and SEPHORA CHINA'S online store. They offer customers free shipping when they purchase online and during Chinese holidays. In Chinese culture, weddings are always a very big celebration involving the whole extended family for which families are willing to buy, buy, buy.  Sephora popularizes their Wedding product line on the internet for both the bridegroom and bride. 

So, how well are these strategies working?  As of 2010, the LMVH holding company had revenues of €20.3 billion with a net income of just over €3 billion.  LMVH includes Louis Vuitton and Sephora as well as a number of other related concerns.