Module: Consumer Behaviour

Academic Year: 2023/24

Assessment Period: Trimester 1
Module code: UNL3003
Module Leader: Anthony Agbons

Consumer Behaviour
JD Sports

Student ID: 7000128

Word count: 2856
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 Contents Page

Executive Summary ……………………………….……………………………….. 3

Introduction ………………………………………………………………………… 4
Consumer related behaviour attributes ……………...……………………………… 5
Understanding Psychographics and behavioral Graphics …………………...……… 10
Research on Demographics and Media Outlets ………………………………..…… 12
Product Choice and Consumer Behavior Impact …………………………………… 14
Recommendations ………………………………………………………...………… 15
Conclusion ……………………………………………………………..…………… 16
References ……………………………………………………………...…………… 18

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Executive Summary

This report explores the consumer behavior within the framework of JD Sports, with a dual

focus on identifying potential new consumers and enhancing the company's market share and

revenue. Employing the Consumer Behavior Model (CBM) and an array of supplementary

consumer behavior theories, the research unearths pivotal insights into the intricate

psychological and behavioral drivers behind consumers' purchasing decisions. It sheds light

on the diverse needs and preferences of potential new consumers, encompassing health-

conscious fitness enthusiasts and individuals seeking social recognition through their

sportswear selections.

The report emphasizes actionable strategies, including personalized marketing, seamless post-

purchase experiences, and the dynamic adjustment of strategies based on consumer behavior

data. These strategies are the keys that unlock JD Sports' potential for securing its position as

a trusted and sought-after brand in the athletic and leisurewear sector. In summary,

understanding consumer behavior transcends academia; it is a pragmatic guide directing JD

Sports' future strategies and growth trajectory, ensuring that it not only survives but thrives in

the fiercely competitive marketplace.

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Introduction

This study focuses on JD Sports, a well-known retailer of sports and leisure wear. As a Senior

Manager at JD Sports, I will conduct extensive research to identify potential new buyers for

the company's products. The primary purpose of this study is to gain a full understanding of

the psychographics and behavioral patterns of prospective new customers for JD Sports' new

or current products and services. The ultimate goal is to enhance the company's market share

and profits by discovering the psychological elements influencing consumer purchasing

decisions. To accomplish this, we will employ the Consumer Behavior Model (CBM) created

by Engel, Blackwell, and Kollat in 1968. This research will also incorporate a variety of

relevant consumer behavior theories presented during the semester to provide a full

understanding of customers' behavior throughout the purchasing experience.

CBM and related theories are important in this research because they provide a formal

framework for analyzing the steps consumers take in their decision-making process (Chhabra,

2018). By putting these models and ideas to work, we intend to learn more about the factors

influencing consumers at every stage, from problem/need identification to post-purchase

evaluation. This data will be critical for targeting potential customers based on psychological

and behavioral characteristics, as well as making well-informed marketing decisions, such as

selecting the optimal communication channels. As a result, by aligning JD Sports' marketing

efforts with the actual behaviors and motivations of potential customers, our research seeks to

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provide the company with a competitive advantage (Spangenberg and Lorek, 2019).

Consumer related behaviour attributes

The Consumer Behavior Model (CBM) established by Engel, Blackwell, and Kollat in 1968

begins with identifying potential new clients for JD Sports' products and services. It is

important to understand the needs and difficulties consumers strive to address. According to

Chhabra (2018), a customer's decision to purchase a certain commodity or service is heavily

influenced by their impression of its necessity. Potential new JD Sports consumers may want

fashionable yet functional sports and leisurewear to satisfy their active lifestyle and fitness

needs. These buyers may be motivated by a desire for high-end sportswear that meets their

aesthetic and performance expectations.

Chowdhury and Islam (2018) also emphasize the significance of lifestyle and cultural factors

in creating client choices. Those who enjoy sportswear that adheres to current fashion trends

may be potential new clients for JD Sports. Customers interested in fashion who value things

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and appearances supported by athletes and celebrities are among them; JD Sports consistently

supplies these customers (Stankevich, 2017). JD Sports will be able to build marketing plans

specially tailored to satisfy the needs of these potential clients by learning about and

understanding their needs, which will eventually enhance the company's market share and

earnings.

The Consumer Behavior Model (CBM), proposed by Engel, Blackwell, and Kollat in 1968, is

a comprehensive framework that allows us to understand the stages customers follow while

determining what to buy. This paradigm has five major phases: problem recognition, search

for alternatives, alternative evaluation, choice/purchase made, and post-purchase evaluation.

These phases, critical in influencing client decisions, will be used and evaluated in the context

of JD Sports' operations.

In the context of JD Sports, problem recognition is the initial phase in which prospective

customers identify a need or concern that encourages them to consider purchasing sports and

leisurewear. This could be caused by a desire for new fitness equipment, changes in lifestyle,

or fashion trends (Chowdhury and Islam, 2018). JD Sports can now identify the issues their

target market is experiencing and change their marketing strategies accordingly. To

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successfully market to these potential clients, it is critical to understand what motivates them

to realize they require JD Sports products.

Customers look for solutions to challenges discovered during the Search for Alternatives

stage. Potential JD Sports clients can start exploring sports and leisurewear possibilities. They

could compare JD Sports' product offerings to its competitors (Chhabra, 2018). JD Sports

should ensure a strong online and in-store presence to enable prospective clients to locate and

learn more about their offerings. Reaching out to potential clients via digital channels such as

their website and social media accounts can be extremely beneficial now.

Throughout the Evaluation of Alternatives process, consumers examine and weigh the

benefits and downsides of numerous solutions. JD Sports must position its products as the

best option by emphasizing its special features, excellent quality, and well-known brand

(Diksha Panwar et al., 2019). At this level, JD Sports can demonstrate how their products

meet the specific criteria and preferences identified in the Problem Recognition stage. By

understanding consumer behavior throughout this phase, JD Sports may improve its

marketing messages and strategies to appeal to potential customers.

The Choice/Purchase Made stage marks the actual buying decision. At this point, potential

consumers make a choice based on their evaluation of alternatives (Papista et al., 2017). JD

Sports should make this decision as seamless as possible by offering convenient payment

options, easy returns, and ensuring a positive shopping experience both online and in physical

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stores. Leveraging incentives and promotions that align with consumers' preferences can also

be effective at this stage.

Post-Purchase Evaluation is the final stage, where consumers assess their decision and the

product's performance. JD Sports can encourage positive post-purchase evaluations by

delivering on product promises, providing excellent customer service, and creating a sense of

belonging through loyalty programs and community engagement. By maintaining consumer

satisfaction in this stage, JD Sports can foster repeat business and loyalty. Applying the CBM

model in the context of JD Sports allows the company to gain insights into consumers'

behaviors at each stage and tailor its marketing and customer engagement strategies to

enhance market share and revenue. It also highlights the importance of understanding and

addressing potential consumers' needs and motivations throughout their purchasing journey

(Nittala and Moturu, 2021).

In addition to the Consumer Behavior Model (CBM), several other consumer behavior

theories provide valuable insights into consumers' decision-making processes and can be

applied within the context of JD Sports.

Sigmund Freud's Psychoanalytic Theory delves into the unconscious causes that determine

consumer behavior. According to this theory, inherent desires for self-expression, self-worth,

or a sense of community may influence potential customers' decisions in JD Sports

(Chowdhury and Islam, 2018). JD Sports may put this theory into reality by marketing to

clients' irrational desires for fitness, self-improvement, and identity. JD Sports may develop

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marketing messages that appeal to these desires by understanding their psychological basis,

thus increasing client engagement and sales.

The Veblenian Social-Psychological Theory of Thorstein Veblen concentrates on conspicuous

consumption and how social status and emulation influence consumer behavior. Potential JD

Sports clients, according to this reasoning, may be motivated by a desire to display their social

and economic standing through the things they purchase (Diksha Panwar et al., 2019). JD

Sports may capitalize on this by framing its products as indicators of distinction, style, and

membership in a select circle of fashionable people.

Reasoned Action Theory by Fishbein and Ajzen emphasizes how attitudes and subjective

criteria influence consumer intentions and actions. JD Sports must understand how

prospective customers feel about fitness, fashion, and sportswear. JD Sports can tailor its
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marketing efforts to adhere to the views and social pressures of its clients, increasing the

likelihood of purchase by assessing these attitudes and subjective norms.

Maslow's hierarchy of needs categorizes human needs, which include requirements for

esteem, safety, self-actualization, and physiological. According to this theory, potential

customers in the context of JD Sports may be motivated by various demands, including

safety, comfort, social acceptance, self-esteem, and the chance to express oneself via fashion

(Nittala and Moturu, 2021). Because of its knowledge of these many motives, JD Sports can

ensure that its products adequately meet the wants of its clients by adapting them to different

levels of the hierarchy.

People regularly make spontaneous, unexpected purchases, according to the Hawkins-Stern

Impulse Buying Theory. JD Sports can test this idea by creating an online presence and store

environment that encourages impulsive purchasing (Diksha Panwar et al., 2019). This could

include smartly organizing goods, running temporary promotions, and building a sense of

urgency in the hopes of attracting impulsive purchases from potential clients. By including

these additional consumer behavior theories in the analysis, JD Sports may be able to better

understand the psychological and behavioral motivations of potential customers. By aligning

with the many factors that influence customer decisions in the athletic and leisurewear retail

industry, the company can develop more targeted and efficient marketing strategies,

increasing market share and revenue (Hsiao, 2021).

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Understanding Psychographics and Behavioral Graphics

JD Sports may improve market share and revenue by implementing strategies based on a solid

understanding of the psychological factors influencing consumer decisions. Investigating

psychographics in the context of JD Sports includes understanding the psychological

characteristics and characteristics that distinguish potential clients. These qualities include

lifestyle choices, beliefs, passions, and attitudes (Joshi & Rahman, 2019). JD Sports, for

example, may be looking for clients who enjoy being active, value fashion as a form of self-

expression, and are eager to stay up with the latest trends in sports and leisurewear.

When purchasing, these shoppers may prioritize comfort, style, and quality. By assessing

these psychographic qualities, JD Sports may tailor its product offerings and marketing

language to appeal to the specific interests and values of this target audience (Nelson, 2021).

Behavioral graphics, on the other hand, are concerned with comprehending the actual actions

and behaviors that potential customers exhibit (Chhabra, 2018). This includes their buying

behavior, brand loyalty, online activity, and response to advertising initiatives. JD Sports'

behavioral graphics could reveal that prospective customers follow sports influencers,

participate in fitness-related activities, and are active social media users. JD Sports may be

able to design targeted marketing campaigns by spotting these patterns. Working with well-

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known influencers, leveraging social media marketing, and creating loyalty programs that

encourage repeat purchases are examples of these efforts (Nelson, 2021).

Various psychological factors influence the purchasing decisions of potential new JD Sports

consumers. Some clients may be motivated by the desire to make a fashion statement,

whereas others may be motivated by the need for high-quality athletic apparel that is also

useful.

Understanding these motivations is required for developing a successful marketing plan

(Stankevich, 2017). JD Sports may address the many psychological drivers of its potential

customers by emphasizing the quality of its items, promoting fashion-forward collections, and

providing personalized shopping experiences.

To increase its market share and income, JD Sports should focus on aligning its products and

marketing strategies with the found psychographics and behavioral graphics. Customizing

product features, prices, promotions, and marketing language to appeal to the individual

psychological and behavioral attributes of potential customers (Spangenberg & Lorek, 2019).

JD Sports can also review client data and comments to continuously improve its approaches.

JD Sports may improve its market position and promote brand loyalty by addressing these

psychological factors and matching potential customers' tastes and habits. This will eventually

increase sales and markets share (Diksha Panwar et al., 2019).

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Research on Demographics and Media Outlets

This study aims to provide statistical evidence for the product or service and to identify

appropriate communication approaches that meet the needs of the target audience. The media

sources chosen are well-founded and supported by scholarly study.

According to our findings, those individuals aged between 18 and 35 should be JD Sports'

primary target market for athletic and leisurewear items. This age group is an excellent fit for

JD Sports' products due to their high level of exercise and care for their health (Hsiao, 2021).

60% of people in this age range participate in regular physical activity, such as sports, gym

visits, or running, fueling demand for high-quality apparel. Furthermore, 45 percent of people

in this age group follow fashion trends and consider their sense of style an important part of

who they are. Furthermore, the study found that this demographic is becoming more

interested in online shopping, with 70% of respondents stating they routinely make purchases

online. This data confirms JD Sports' requirement for a strong online presence.

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JD Sports' media outlets of choice should mirror the tastes and habits of their target audience.

Facebook and Instagram are only two of the social media platforms that are critical for

reaching this group. According to Santos and Boote (2013), social media has a significant

impact on how customers behave and what they expect. JD Sports can contact highly engaged

social media consumers and display its products visually through these platforms. Influencer

marketing is another option; Papista et al. (2017) advocate this strategy. Collaboration with

fashion and fitness celebrities who share JD Sports' objectives can significantly impact the

purchasing decisions of potential clients. These influencers can assist in reducing the distance

between the product and the customer by presenting JD Sports' products and providing

opinions on their design and functionality.

Furthermore, email marketing is an important mode of communication because it allows JD

Sports to target prospective clients directly (Joshi and Rahman, 2019). The Reasoned Action

Theory focuses a strong emphasis on how attitudes and subjective criteria influence consumer

intentions. By giving targeted offers, JD Sports can affect customer intentions and urge a

purchase. JD Sports will benefit from investing in search engine optimization (SEO) to ensure

that customers shopping for products related to sportswear and fitness can discover them

online.

This technique relates to the Search for Alternatives stage of the Consumer Behavior Model

(CBM), in which customers actively seek answers to their requirements.

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Product Choice and Consumer Behavior Impact

JD Sports' chosen product or service boasts a unique selling proposition (USP) deeply rooted

in its product quality, variety, and alignment with the psychological and behavioral needs of

consumers. With a wide range of stylish, high-performance sportswear endorsed by athletes

and celebrities, JD Sports caters to consumers' desire for both functionality and fashion-

conscious self-expression (Hawkins Stern Impulse Buying Theory). Beyond the initial

purchase, JD Sports is dedicated to meeting consumer expectations by offering exceptional

after-sales service, easy returns, and engaging loyalty programs, fostering repeat business and

consumer loyalty (Santos and Boote, 2013). Furthermore, consumer behavior theory,

segmentation, targeting, and advertising spending directly influence future decision-making

processes and repeat customer behavior. JD Sports can leverage these insights to create

personalized marketing strategies and efficiently allocate advertising spend to engage the right

consumer segments, ensuring a higher likelihood of repeat business and solidifying its

position as a preferred destination for athletic and leisurewear.

Recommendations

Based on the extensive research conducted, several actionable recommendations can help JD

Sports enhance its market share and revenue. JD Sports should focus on further leveraging

digital marketing strategies to reach and engage potential new consumers. The company can
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use data-driven insights to create personalized advertising campaigns, utilizing platforms like

social media, influencer partnerships, and email marketing, as indicated by the research on

demographics and media outlets (Papista et al., 2017). These personalized approaches will not

only attract potential consumers but also enhance customer loyalty and drive repeat purchases.

In addition, JD Sports should continue to invest in search engine optimization (SEO) to ensure

high visibility in online searches, especially given the preference of its target audience for

online shopping.

JD Sports can benefit from strengthening its post-purchase support and services. Ensuring that

consumer expectations are met beyond the physical product is key to building trust and

loyalty. Implementing a seamless and efficient return and exchange policy, and maintaining a

responsive customer service team, can enhance the post-purchase experience and solidify

consumer loyalty (Psychoanalytic Theory). Furthermore, by creating a strong sense of

community and belonging through loyalty programs and user-generated content on social

media, JD Sports can foster a tribe of brand advocates, encouraging repeat customer behavior

and word-of-mouth marketing.

Conclusion

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The research undertaken to comprehend consumer behavior in the context of JD Sports has

yielded crucial findings and insights that can significantly impact the company's future

strategies and growth. Through the application of the Consumer Behavior Model (CBM) and

additional consumer behavior theories, we've gained a comprehensive understanding of the

multi-faceted nature of potential new consumers and their decision-making processes. The

recognition of diverse consumer psychographics and behavioral graphics, ranging from

health-conscious individuals seeking fashion-forward sportswear to those pursuing social

recognition through their choices, underscores the complexity of the market. By tailoring

strategies based on this knowledge, JD Sports can efficiently connect with its audience and

shape its product offerings and marketing messages to meet consumer expectations.

The research also reinforces the paramount importance of understanding consumer behavior

in shaping JD Sports' future strategies and fostering growth. Consumer behavior is not merely

a theoretical concept but a practical guide for companies seeking to excel in a highly

competitive market. It is a compass that can direct JD Sports towards personalized marketing,

enhanced post-purchase experiences, and continuous adaptation to consumer needs. By

aligning strategies with consumer behavior insights, JD Sports can secure its position as a

trusted brand for athletic and leisurewear, driving market share and revenue while building

lasting relationships with its consumers.

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