Consumer Behaviour (Ayokunle)

Written report by: AYOKUNLE BAJULAIYE
Student Number: A4094870
CONSUMER BEHAVIOUR
F A S H I O N M A R K E T
C A S E S T U D Y : V E R T U , L O U I S V U I T T O N A N D G U C C I

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Contents
Contents ................................................................................................................................................ 2
1.0 Introduction .................................................................................................................................... 3
2.0 Background ..................................................................................................................................... 3
3.0 Consumer Decision Processes ........................................................................................................ 5
3.1.1 Need Recognition/Problem Awareness .............................................................................. 6
3.1.2 Information Search .............................................................................................................. 7
3.1.3 Evaluation of Alternatives ................................................................................................... 7
3.1.4 Purchase ............................................................................................................................... 7
3.1.5 Post-Purchase Evaluation .................................................................................................... 8
3.2 Influencing Marketing Experience through the Instrumentality of the Physical Retail
Environment: The Case of Gucci, Louis Vuitton and Vertu .............................................................. 9
4.0 Motivation and Self-Concepts ...................................................................................................... 10
5.0 Cultural Influences  ...................................................................................................................... 10
6.0 Conclusion ..................................................................................................................................... 11
References ........................................................................................................................................... 12
Appendix A .......................................................................................................................................... 14
Appendix B .......................................................................................................................................... 15

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1.0 Introduction
The basic economic question every producer wants to answer before production can be
determined by three economic agents (the consumer, producer and the government)
(Boulding, 1970) – the consumer being the major and key determinant. By their choices,
consumers determine what will be produced and the pattern of spending. The common
notion has always been that production is allocated only to those who can afford to pay; and
that consumers with no money cannot afford to buy anything only in the exception of free
public goods (e.g. roads) offered by the government. However, observers of human
behaviour believes that beyond a consumer’s income and purchasing power, certain
processes such as national or emotional motives can influence the choice of a consumer.
The attainment of esteem or even envy of others can influence one’s behaviour in terms of
consumption (Yeoman and Beattie, 2005).
To that end, this analysis draws on three brands (Gucci, Louis Vuitton and Vertu) in the
fashion and telecommunication industry in order to understand the purchasing processes
that influence their customers and how the physical retail environment and experience
marketing affects their decisions. Among other things, this review also covers the extent to
which national culture influences consumer behaviour taking into cognizance the case of
Gucci, Louis Vuitton and Vertu.
2.0 Background
Due to the rapid revolution and changes in the area of technology, and perhaps the internet
or the social media and the insatiable needs of consumers (customers), luxury brands
cannot always rely on their existing products and innovations. The fashion industry, having
only metamorphosed from home productions and orders from tailors and dressmakers, has
become a product of the modern age with different brands competing in the marketplace.
Gucci and Louis Vuitton being some of the prestigious luxury fashion brands that command
a high level of customer loyalty irrespective of trends and geographical constraints for
decades. For instance, Gucci is considered a luxury brand, not because of its functionality,
but the craftsmanship (Seringhaus, 2002). The firm engages its workers and artisans in
hand-stich handles, prepare leather strips for woven stitching and hand emboss customer’s
initials (Gucci website). Craftsmanship alongside peerless materials and innovative
technologies also defines the hallmark to the uniqueness of the Vertu brand (www.vertu.com
; www.altair.com).
Vertu unlike Gucci or Louis Vuitton emerged as a luxury brand in the marketplace in 2000.
The brand is known for its continuous collaboration with Ferrari (www.design-people.dk) as

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well as its expensive and sophisticated mobile phones that cost thousands of pounds
(Jobber, 2009). The Vertu strategy was to market phones as seen in the fashion industry;
and also market phones in the same vein as luxury watch brands like Patek Phillipe (Jobber,
2009).
Louis Vuitton products, like Gucci products, have a touch of handmade craftsmanship in
addition with blended mechanisation. The aim is to enhance productivity whilst maintaining a
great level of product quality, without losing the allure that comes with handmade quality
(Jobber, 2009). In order to promote uniqueness, all Louis Vuitton products comes with the
eponymous LV initials (Jobber, 2009).
The table below highlights the three brands alongside what they stand for in the
marketplace.
Gucci Louis Vuitton Vertu
Industry Luxury fashion and Design Luxury goods Luxury communication
products like mobile
phones.
Headquarters Italy France United Kingdom
Other
locations
Paris, Florence, London,
Tokyo, New York, Hong
Kong, Palm Beach.
Las Vegas, Los
Angeles, Dubai, New
York, etc.
Singapore, Paris, Hong
Kong, New York.
Founded 1921 1854 1998
Capacity 278 directly operated stores
as of 2009
Over 600 Stores, including
70 Vertu Boutiques in 66
nations.
Average
Pricing
A handbag starts at €400
and go up to €2800.
Basic Constellation
model begins at
€3500.
Products Shoes, Jewellery,
Perfumes, Home goods,
baby wear, luggage and
handbags, men and
women’s wear, eyewear,
waters.
Textiles, writing
materials and
accessories, leather
goods, as well as
handbags.
Signature collection,
Bordeaux stainless steel,
duo stainless steel.
Business
Strategies
Situated on high street,
online purchasing, directly
operated stores, backward
integration for watch
business and expansion of
brand.
Street locations, high
street locations, online
purchasing (US only),
exclusive shopping
malls alongside other
brands.
Directly operated stores,
high streets, operated
stores, leading department
stores, client suites, fine
jewellers, partnerships and
online purchasing

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Table 1: A Comparative Background Description of Gucci, Louis Vuitton and Vertu. (Source:
Computed from: Jobber, 2009; www.vertu.com ; www.louisvuitton.com ; www.gucci.com).
3.0 Consumer Decision Processes
To a large extent, an in-depth insight about customers is a stepping stone to a successful
marketing; and since consumers are individuals who buy products and services, an
understanding as to why they buy is very important. The aim is to examine psychological,
situational and other factors that affect when, what, and how consumers buy what they do.
That is, the actions consumers perform in consumption process (Peter and Olson, 2008).
Figure 1: Showing a five-stage decision-making process (Source: Riley, 2015)
The need recognition/problem recognition is the first stage any consumer will go through.
Once the need or problem has been recognized, the second stage which is the information
search will commence. Information search has to do with finding alternative ways to solve
problems/needs. Needs can either be hedonic or utilitarian. Illustratively, a consumer may be
interested in buying a Gucci or Louis Vuitton purse because she needs a bag, but the need
becomes hedonic when she decides to get the purse because the purse is a luxurious item
from Gucci or Louis Vuitton.
Gucci Louis Vuitton Vertu
PSYCHOMETRIC SEGMENTATION
Age Groups 20’s or 30’s (Jobber,
2009)
Mature users (25+)
Social Class Upper-Upper Class; Working population,

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Groupings with high quality,
fashionable products.
Those who aspire to
be part of the jet set
lifestyle (Jobber, 2009)
celebrities, models
and others with
financially stable
background
Gender Group Mostly women Mostly females
DECISION-MAKING PROCESS
Need Recognition
(Hedonic or Utilitarian)
Hedonic; usually
because of its
symbolic image and
meaning
Hedonic; to enhance
status; fashionable
Benefits, quality of
product features
Information Search E.g. online and trial
purchase online
(Gucci website);
commercial sources;
public sources and
experiential sources.
Celebrity
endorsements
(Jobber, 2009); public
sources; online
information,
experiential sources
Experiential sources,
online information
Evaluation of
Alternatives
Formal decision rules;
by comparing specific
brand attributes
Formal decision rules;
by comparing specific
brand attributes;
psychological benefits
Functional benefits
Purchase High involvement
purchase
Affective involvement Low affective
involvement
Post-purchase
evaluation
Table 2: Decision-Making Process of Gucci, Louis Vuitton and Vertu Consumers
3.1.1 Need Recognition/Problem Awareness
This is the first stage every consumer will go through in any industry including the fashion
industry which Gucci and Louis Vuitton represent. Fashion is the prevailing styles in
behaviour and the newest creations of textile designers (Fashion, 2012). It can be distinctive
or a habitual trend in the method someone chooses to dress. For some, psychological and
social impact as well as features and symbols may be more important than the actual
function. However in the case of Gucci, like Louis Vuitton‘s customers, its customers
patronise the brand to improve their status (Broke, 2009) and self-identity (Escalas and
Bettman, 2003, Wiedmann, et al 2009). A term called ‘hedonic need’ or ‘conspicuous
consumption’ as described by Thorsten Veblen (1899).
For example, designer clothing such as Versace, Gucci, and Bebe is often purchased on the
basis of its symbolic meaning and image, particularly by teenagers and young adults. (Belch
and Belch, 2003).
Although, Vertu range of phones (i.e. the Signature Touch, Constellation and the flagship
model - Signature) are made of premium and materials of high quality such as the full
QWERTY sapphire sculpted keys present on Vertu’s first smartphone (Quest) or the 5 carats
of ruby bearings on the Signature, the hedonistic urges of customers still outpace the actual

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functionalities in terms of the driving factor that influences consumers patronage, majority of
whom belong to the upper-upper class hierarchy.
Vertu realised that users of mobile devices are often motivated by newer and improved
technology (and these products often lose their values as a result of new researches and
advances); hence a new approach was introduced to get consumers attracted to status
symbols. This is evident in Vertu’s presence in fashion shows in Paris.
3.1.2 Information Search
Once the problem is recognized by the consumer, they initiate a search for relevant
information on products that can meet their needs or solve their problems. According to Riley
(2015), different information sources are available to customers. Some of which are:
personal sources (friends, neighbours and family); commercial sources (dealers, advertising,
salespeople, packaging, retailers, point-of-sale display); public sources (newspapers, radio,
television, consumer organisations, specialist magazines); experiential sources (handling,
examining, and using the product). For luxury products (e.g. Gucci, Vertu or Louis Vuitton),
customers give more value and attention to personal sources more than other sources like
commercial (Riley, 2015). Through celebrity endorsements of Louis Vuitton products,
customers also get valuable information. In addition, online services and presence of Gucci
products give customers the opportunity to evaluate product “performance in the light of their
expectations” (Broke, 2010).
3.1.3 Evaluation of Alternatives
Following the information search process is the evaluation of alternatives. The fact that a
product is outstanding in the midst of competition does not imply that consumers will
ultimately purchase the product (Jones, 2014). In fact, in this dispensation where customers
have access to various information sources, they want to sure they have done in-depth and
rigorous research before making a purchase. This trend has been traced with the consumers
of luxury brands like Gucci, Louis Vuitton and Vertu.
Customer’s evaluative criteria can include the colour of a product, the price, and in some
instances the celebrities attached or captured with the product. As shown in Table 2, Vertu
and Louis Vuitton customers evaluate alternatives in terms of psychological and/or functional
gains. Gucci customers on the other hand utilize the formal decision rule by comparing
brand attributes and accompanying consequences (Jobber, 2009).
3.1.4 Purchase
Purchase can either be high-involvement or low-involvement (Riley, 2015). The distinction is
shown in figure 2 and 3 below:

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Figure 2: Showing High-involvement Purchase (Jobber, 2001)
Figure 3: Showing Low-involvement purchase (Jobber 2001)
A purchase is said to be high-involving when extensive and rigorous evaluation is involved.
High-involvement purchases includes Gucci sneakers, Gucci bags among other ego
intensive items (Riley, 2015). Vertu luxury mobile devices are susceptible to low-involvement
purchases due to the experience and trials attached with these products. Another type of
purchase behaviour known as “affective involvement” has also been linked with Louis
Vuitton products. It is affective because customers are emotionally involved by believing that
they really need the product.
3.1.5 Post-Purchase Evaluation
The importance of post-purchase evaluation is that it will influence the likelihood of a repeat
purchase of products or services (Broke, 2010). Often times, customers always raise certain
concerns after making a purchase. A term known as “cognitive dissonance.” These concerns
can either lead to a satisfactory or an unsatisfactory experience as illustrated in figure 4.
Common among first time buyers of the luxury products in focus (i.e. Gucci, Louis Vuitton
and Vertu) is that they spend longer time evaluating their purchase even though they are
strongly motivated to make a purchase. To make consumers satisfied with their purchases,
luxury brands encourage their customers that they have made the right decision.
Personal
beliefs
Normative
beliefs
Attitudes
Subjective
norms
Purchase
intensions Purchase
Awareness Trial Repeat
Purchase

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Figure 4: Showing Purchase Behaviour by a Customer (Source: Rakesh, 2011)
3.2 Influencing Marketing Experience through the Instrumentality of
the Physical Retail Environment: The Case of Gucci, Louis Vuitton and
Vertu
The influence of the retail environment on a product cannot be overemphasised. The
environment can include the location, the décor or architecture, physical appearance of the
employees and how well they capture the attention of prospective buyers. Gucci, Louis
Vuitton and Vertu have created these unique images in the minds of the customers (Bloemer
and Ruyter, 1997). Gucci for instance exhibit this immersive design with charisma, prestige
and experience through stylishly dressed salespersons. For Louis Vuitton, the environment
is usually large with series of luxurious and relaxed spaces (www.louisvuitton.com) as shown
in the Appendix. A comparison of the retail environment of Gucci, Louis Vuitton and Vertu is
presented in Table 3.
The increase interest in online shopping has also caused a revolution in the design of
websites. Whilst these brands trying to create a similar in-store experience on the websites,
they also create images highlighting the product range effectively with options for live chats,
and effective participation, just to mention a few. Sample screenshots are presented in the
Appendix section.

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Brand Description
Gucci Model like salespeople;
stylishly dressed in black;
provocative window; free
flow
Louis Vuitton Store vary in product;
products prominently
displayed
Vertu Limestone floors, gallery-like
feel to store and
architectural display cases
Table 3: Comparison of the Retail Environment of Gucci, Louis Vuitton and Vertu
(www.louisvuitton.com ; Jobber, 2009)
4.0 Motivation and Self-Concepts
Abraham Maslow stated that an individual is motivated to achieve certain needs. Hence,
when one need is achieved, such individual seeks to fulfil the next one, and so on (Maslow,
1943). Maslow posited that human needs can be prioritized into five levels comprising:
physiological needs, safety needs, social needs, ego/esteem needs, and the last being the
self-actualization need. Taking the case of luxury brands like Gucci, Louis Vuitton and Vertu,
consumers are mostly interested because it can satisfy their self-actualization needs. The
concept of self-actualization (what I hereinafter called the self-concept) has to do with how
consumers perceive themselves. The self-concept can further be categorised into the real
self, the ideal self, other self and the ideal other. While the real self explains what an
individual is in the areas of interest, appearance, worth, etc., the ideal self describes what an
individual is always striving to be. For instance, a Louis Vuitton or a Gucci bag is a branded
luxury product which indicates prestige and luxury for its owner. This bag indicates reality to
the consumer because of the information and knowledge the consumer has about the
product. Thus consumers of these luxury brands try to live up the image the brand portrays.
5.0 Cultural Influences 
Beyond the influence of self-perception, peers, needs recognition, celebrity endorsements
among other factors, national culture has also been recognised as one of the principal
drivers that directly and indirectly influences the behaviour of consumers in luxury fashion

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purchase (Rajagopal, 2011). Culture plays a significant role in consumers’ purchase
behaviours across different nations. It is the unique concept that differentiate an individual
from another individual (Hofstede, 2001). Cultural influence in luxury fashion can take the
form of an individualistic cultural orientation or the collectivistic cultural orientation
(Lindringde and Dibb, 2003). Hence, reasons behind the acquisition of luxury products varies
across cultures. For instance in Asia, consumers strive to fit into the collectivistic cultural
orientation (Lindringde and Dibb, 2003) in that they want to belong into a class in the society
where they can publicly showcase their brand and be publicly admired. This is in contrast to
the individualistic perspective, as in Western countries, where consumers’ preference
revolves around accompanying feeling of achievement and power (Schutte and Ciarante,
1998) over public meanings.
6.0 Conclusion
This analysis has demonstrated that beyond a consumer’s income and purchasing power,
certain factors such as national or emotional motives, status or esteem can influence the
choice of consumers. This has been further illustrated by drawing on the cases of three
luxury brands - Gucci, Louis Vuitton and Vertu. Although these brands adopt different
promotional strategies, their unique and excellent products alongside the prestigious pricing,
their selective distribution channels, an experiential marketing strategy through their
exclusive retail environments and exceptional service experiences, have been able to offer
extra values to consumers.
Further, the analysis has also demonstrated the need for marketers to take into cognizance
the purchase behaviour of luxury fashion consumers as it relates to motivation, self-concepts
and cultural influences. Beyond utilitarian appeals that often characterize products and
services, luxury giants like Louis Vuitton and Gucci have built themselves value-expressive
appeals and this kind of appeal has become a fulcrum for their target customers. Most of
whom often buy luxury fashion brands for symbolic purposes (be it individualistic or
collectivistic-oriented), as against functional purposes.

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References
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Communications Perspective 9th edn. New York: McGraw-Hill Irwin.
Bloemer, J. M. M. and Ruyter, K. (1997). On the relationship between store image, store
satisfaction and store loyalty, European Journal of Marketing, 499 – 513.
Boulding, K. E. (1970). Economics of Science. McGraw-Hill, New York.
Escalas, and Bettman, J. E. (2003). You Are What They Eat: The Influence of Reference
Groups on Consumer’s Connections to Brands, Journal of Consumer Psychology, 13(3):
339 – 348.
Hofstede, G. (2001). Culture’s Consequences. Thousand Oaks, CA: Sage Publications.
Jobber, D. (2009). Foundations of Marketing, 3rd edn. McGraw-Hill Higher Education.
Jones, S. (2014). The Six Stages of the Consumer Buying Process and How to Market to
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marketing/six-stages-consumer-buying-process-market-0811565 (Accessed on 11
October 2015).
Lindringde, A. and Dibb, S. (2003). “Is Culture a Justifiable Variable for Market
Segmentation? A Cross Segmentation? A Cross-Cultural Example”, Journal of Consumer
Behaviour, 2(3): 269 – 286.
Maslow, A. H. (1943). A Theory of Human Motivation, Psychological Review, 50(4): 370 –
396.
Mich, T. (2014). Luxury Mobile Phone Manufacturer, Vertu, Selects Altair’s HyperWorks
Unlimited Plug-and-Play Private Cloud Solution for Computer-Aided Engineering.
[Online]. Available at:
http://www.altair.com/newsdetail.aspx?news_id=11056&news_country=en=US (Accessed
13 on October 2015).
Pavarini, M. C. (2011). Gucci Introduces Immersive Retail Experience. [Online] Available at:
http://www.sportswearnet.com/news/pages/protected/GUCCI-INTRODUCES-
IMMERSIVE-RETAIL-EXPERIENCE--_4534.html (Accessed 1st October 2015).
Peter, J. P. and Olson, J. C. (2008). Consumer Behaviour and Marketing Strategy.
Singapore: McGraw-Hill.

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Rajagopal (2011). Consumer culture and purchase intentions toward fashion apparel in
Mexico, Journal of Database Marketing & Customer Strategy Management, 18: 288 –
307.
Rakesh, M. (2011). Explain Post Purchase Evaluation by a Consumer and Its Reaction?
[Online]. Available at: http://homeworkl.blogspot.nl/2011/10/explain-post-purchase-
evaluation-by.html?m=1 (Accessed on 11 October 2015).
Riley, J. (2015). Marketing & Buyer Behaviour – the Decision – Making Process. [Online].
Available at: http://beta.tutor2u.net/business/reference/marketing-buyer-behaviour-the-
decision-making-process (Accessed on 9 October 2015).
Schutte, H. and Ciarante, D. (1998). Consumer Behaviour in Asia. London: MacMillan
Business.
Seringhaus, R. (2002). Global Luxury Brand Sand the Internet: Exploring Compatibility.
American Marketing Association Conference Proceedings.
Veblen, T. (1899). Theory of the Leisure Class: An Economic Study in the Evolution of
Institutions. New York: Macmillan.
Wiedmann, K-P., Hennings, N. & Siebels, A. (2009). Value based segmentation of luxury
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Websites
www.altair.com
www.gucci.com
www.louisvuitton.com
www.vertu.com
www.wwd.com/fashion-news

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Appendix A
Showing Vertu Homepage (Screenshot)
Showing Louis Vuitton Web Page (Screenshot)

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Showing Gucci Homepage (Screenshot)

Appendix B
Showing Vertu Boutique Redesigned Retail Environment that “affirms and refines Vertu’s
core design codes through the use of strong angles, an interplay of light and technology as
well as seductive contrast of texture, material and colour” (http://www.glamshops.ro)

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Showing Gucci’s immersive retail experience in Milan – a pioneering technology
implemented in Gucci’s flagship stores over a two year period around the world (Pavarini,
2011).

Consumer Behaviour (Ayokunle)

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