UNDERSTANDING CUSTOMER VALUE

THROUGH FIELD OBSERVATION

Market Segment: Cosmetics

Group D7
Key observations and inferences
Departmental Store
 3/5 customers checked the price of the product

Pricing 
immediately.
2/5 customers based their purchase decision
based on product pricing

Brand Loyalty:
 2/5 customers looked at the brand and utility Consumers are looking
offered by product before price. for good quality products

Product
 4/5 looked across products from one brand only with reasonable pricing
 1/5 looked for a different brand. and based their decisions
on guidance from sales
Quality of product: personnel
 3/5 customers attributed brands with quality

 In-shop customer experience played a role in

quick purchase decisioning for all 5 customers
observed
Place  Sales personnel at the stores guided the
customers in the decision making based on their
preferences
 Primary mode of payment was cash
Values desired by customers
Departmental Store
40%
Low Price
Only 2/5 customers made the
purchase decision based on
the price of the product.
60%
High Quality
3/5 customers made the
purchase decision based on
the perceived quality of the
product
80%
Brand
4/5 looked across products
from one brand only. Most of
the Customers were Brand
loyal, and looked for a
particular brand before price or
quality.
3
Key observations and inferences
Neighbourhood Store
 3/4 customers checked the price of the product
immediately.
 5/5 customers based their purchase decision
Pricing based on product pricing indicating high price
sensitivity for this sales channel
 2/4 customers asked for a discount as unlike
department stores prices were not fixed Consumers are looking
Brand Loyalty: for heavy price discounts
 3/4 customers looked for variety. They asked for and need minimal
products of one particular brand and had a guidance to make
threshold for quality. purchase decision
Product  Customers were aware of the product prices,
brand and competitors
 1/5 looked for a different brand.
Quality of product:
 3/5 customers attributed brands with quality

 Customers felt free to ask more on the discounts

Customers were not looking for information or
Place

guidance about the products
 Primary mode of payment was cash
Values desired by customers
Neighbourhood Store

75% 50% 75%

Low Price High Quality Variety

3/4 customers made the 2/4 customers had a particular 3/4 Customers tried different
purchase decision based on threshold of quality that was products and were looking for
the perceived low price of the being offered by the product. variety in the utility offered by
product. the product range.

5
 DIFFERENCES

• Customers at department store

did not ask for discount, while
those at retail store asked for it
• Customers at department store
were influenced by the
salesperson, while this was not
the case in retail outlet
SIMILARITIES

• Customers at both the outlets

were price sensitive
• Cash was the preferred mode of
payment
• Customers tried different
variety of the same brand
Key Learnings
Pre-purchase information research: Both the
departmental and neighbourhood customers had pre-
Purchase Decision
decided criteria/brand for selection of product.

Internal factors
(consumer budget,
income, brand loyalty
and quality preference)
Alternative evaluation:
External factors • Consumers evaluation of product alternatives is
(sales personnel based on multiple factors – price, quality, product,
influence, sales
channel) brand and sales channel

• Pricing and quality preferences are majorly governed

by consumers themselves with minimal influence
Purchase Intention
from sales personnel

• Sales channel influence the purchasing decision via

providing guidance and letting consumers
Evaluation of experience the products
Alternatives
• While salesperson plays an active role in providing
Customer Journey from Evaluation of alternatives in a departmental store, the sales
Alternatives to Purchase Decision person play a passive role in the wholesale stores
Thank you!