IDM – Consumer Behaviour

Behaviour, Group Behaviour, Attitude and Perception

Rolex v/s Tag Heuer

Behavioral segmentation - Rolex

1. Purchasing behavior

Buying a Rolex is not an impulsive decision. It is a luxury product and the brand projects
image such that only the deserving can buy a Rolex. Hence, it adds an unique layer of
complexity to the purchasing process.

Rolex markets to expensive people looking for an expensive watch. The customer wants
to benefit from this watch by showing off the quality of the watch and the live for
greatness tag that it exhibits. Using the crown as their symbol, Rolex emphasizes that it is
only for those who are the new age royalty, yes, it is luxury and that it only sells to those
who dream and are the epitome of success. Rolex relies on customer loyalty because
their customers are rich and settle for only the best, so they stick to Rolex because it is
the best watch out there.

Buying a Rolex is an example of the Complex Buying decision, the customer is highly
involved in the purchasing and decision-making process, and there is a significant
difference between the brands being considered. For example, if someone is deciding
between buying a Rolex and a TAG Heuer, there’s likely a lot weighing on that decision --
it’s complex.

2. Benefits sought

The primary reasons for Customers buying a Rolex watch over all other brands, is clear
from a survey – The 2014 Global RepTrak 100 study by the Reputation Institute. It places
Rolex at second place. This clearly proves that Rolex has a high degree of trust among its
consumers and tells convincing stories. Rolex is so high on the list because they have
been successful at retaining a core element of the Rolex ownership experience–that
being that a Rolex is a sign of success and personal accomplishment. The primary reasons
why people buy a Rolex or think about purchasing one are:
 Reputability – It works for ages, is an heirloom, an investment

High Value and Quality

Conscious

As a reward, for success

Product Ownership Experience

3. Buyer journey stage

Owning a Rolex is a dream for many as it symbolizes being the epitome of success.
Therefore, the company targets people on two different timelines, one who aspire and
two who are ready to make a purchase, ie, those who can afford to get a product.

4. Usage

Getting a Rolex watch is looked at like buying heirloom, Rolex watches last for
generations due to exceptional craftsmanship and the quality of materials used. They can
be passed down in the family and are down like that. Even thought the usage of watches
have gone down by the day, the sales of Rolex watches have gone up. People also buy
secondhand Rolex watches, for the limited edition collections and older models which
are not sold today. The re-sale value is also higher as it is not just looked as a product,
but rather as a trophy.

5. Occasion or timing

People tend to want buy a Rolex for one of the following main reasons: to celebrate an
achievement, to own a watch that appears to hold value, to communicate a level of
career or life success, to own a luxury watch that is a simple choice, or to wear a
timepiece with a lot of history.

6. Customer loyalty

Rolex watches are a monolith. The brand is like a rock-solid force that was here before
will be here after. And customer retention is very high. Rolex is a a brand that focuses on
customer loyalty.

Behavioral segmentation – TAG Heuer

1. Purchasing behavior

TAG Heuer is for people who are sporty and love adventure, right from the brand’s
marketing campaigns, print ads, and celebrity endorsements to its customer outreach
like sponsoring the Indian National Racing Team, everything about owning a TAG Heuer
is that it’s luxury, but it is adventurous and sporty at the same time.

The ‘Don’t Crack Under Pressure’ campaign is intended to enlighten the mental strength
of the Dream Team, athletes and partners, who reflect the values of the TAG Heuer
shield. Each build on the legend in their particular field, reinventing the rules as they go.

Buying a TAG Heuer watch is an example of the Complex Buying decision, the customer is
highly involved in the purchasing and decision-making process, and there is a significant
difference between the brands being considered. For example, if someone is deciding
between buying a Rolex and a TAG Heuer, there’s likely a lot weighing on that decision --
it’s complex.

2. Benefits sought

The primary reasons for Customers buying a TAG Heuer watch over all other brands, is
clear, it is made for those who don’t crack under pressure and chart out their own
destiny. It is a brand that stands for high precision timing and innovation and a major
part of the brand image is their commitment towards sports and all forms of adventure.
TAG Heuer has always patronized sporting events and has stood behind, backing those
who are just not happy with success but want to truly achieve greatness. The primary
reasons why people buy a TAG Heuer or think about purchasing one are:

Supportiveness – An entire collection dedicated to racing

Accuracy of measurement

High Value and Quality

For People who don’t crack under pressure

High Precision of Timing

Product Ownership Experience

 3. Buyer journey stage

Owning a TAG Heuer comes with responsibility, it showcases that you are an edge apart,
having an knack for adventure. Therefore, the company targets people with increasingly
improve in-store customer experience so people can be inspired and then those who buy
can go on to achieve greatness. It also targets two segment of people, one who aspire
and two who are ready to make a purchase, i.e., those who can afford to get a product.

4. Usage

TAG Heuer watches are preferred by young people, those who are making their first
high-end luxury watch purchase. They remain in great condition for many years with.
TAG Heuer watches have excellent residual values because of their covet ability and
reliability. The resale market is strong, and depending on the watch, the chances of a
resale are typically high.

5. Occasion or timing

People tend to want buy a TAG Heuer for one of the following main reasons: to celebrate
glory, to own a watch that appears to hold value, to communicate achieving greatness in
their career, to own a luxury watch that is a simple choice, or to wear a luxury watch
while playing adventure sports and including deep sea diving as these watches are made
to endure extreme conditions.

6. Customer loyalty

TAG Heuer watches are made to last and endure extreme collections, they can be work
while racing, diving or even to space and will still work. They are robust sturdy watches
made to last. The customer satisfaction and retention is very high and the brand keeps
on improving customer experience.

Group Behaviour

Rolex

Maslow’s hierarchy of needs theory are known as the needs that addresses universal needs
that affects every single person. There are 5 layers that is arranged into a pyramid and from
the bottom to the top: Physiological, Safety, Social Self-esteem, and Self-actualization needs.
In this theory, the group behaviour of Rolex’s customers belongs to Self-esteem and Social
needs. The reason behind self-esteem is because most of Rolex’s consumers are wealthy and
are successful in their respective fields. They purchase it to feel good about themselves, and
to gain esteem and respect in the society. By purchasing Rolex, they want to show off their
sense of achievement and wealth. And the other behaviour is for societal position and
status. For social needs. Consumers tend to purchase luxury brands so that they can have a
sense of belonging to someone or a particular group. As Rolex, with the ownership of a Rolex
watch, Consumers tend to be placed in a higher status in their individual society.

TAG Heuer

The group behaviour of TAG Heuer’s customers also belongs to Self-esteem and Social
needs. The reason behind is it that the customers are simply not getting a watch they are
getting one because they are in the pursuit of greatness or have achieved greatness and are
willing to push their limits and are adventurous just like their watches. They purchase it
because it gives them a sense of adventure, sportiness and makes them feel good about not
cracking under pressure. They purchase it to mix in their social group, of likeminded people
who share the same spirit of uniqueness and experimentation. The other behaviour is for
societal position and status, if everyone who is around you in your club team is wearing the
same watch it does have an influence on you. With the ownership of a TAG Heuer watch,
consumers tend to be placed in a unique bracket, people who are in high status but at the
same time are not afraid to take risks. The ones who strive.

Attitude – Brand Personality - Rolex

Rolex embodies competence and sophistication. It is a brand that scores high on

competence – it is constantly known for producing the world’s finest and most reliable
timepieces. Rolex watches are not just watches, they are an artifact, they are a piece of
history.

The attitude of a man/woman who wears a Rolex is a solemn, stable, responsible, organised
and a complete professional in their field.

Who is the target customer? —most likely an executive type who needs a watch for the
boardroom that can be worn to follow through to dinner.
Rolex — Brand Personality

He or she doesn’t want anything flashy, but something finely made, elegant and classic.

This person identifies with the finer things in life and use the Rolex brand to convey their
success to the world.

The Rolex company’s philosophy is “the highest quality for high price”.

Attitude – Brand Personality – TAG Heuer

TAG Heuer, the name TAG stands for [Techniques d’Avant Garde], which emphasis the
values that the brand stands for experimentation and perfection. TAG Heuer timepieces are
among the world’s most accurate watches with very high precision and endurance.

Watches made by this brand suggest that the wearers are lovers of luxury. By wearing a Tag
Heuer, an individual can send out a signal that= they are a fan of all things adventure,
sportiness, and luxury.

Sporting a Tag Heuer watch demonstrates an eye for quality. It suggests that the owner is a
bit of a perfectionist.

The wearer doesn’t want anything flashy but one that can endure and is made for precision
and adventure and is unique and experimental.

It also signifies youth and the being young at heart. The brand targets wearers of all ages
selling the idea of being classic yet funky and young at heart.

The wearer uses the watch to convey that they value great things in life and that they are
successful yet still adventures and, in a quest, to achieve more. It signifies ambition.

The TAG Heuer company’s philosophy is “precision timepieces, built to last.”

Perception – Rolex

It’s not sheer coincidence that the majority of the public would choose the brand Rolex
when asked to buy a luxury brand watch. When it comes to wristwatches there could be no
other brand more emblematic of luxury, status and exclusivity - in the eyes of the masses,
other than Rolex. With such a strong prominent place and image forged into history as much
as it is into the mass public sub-conscious, it remains a branded force to contend and seems
set to be on the pedestal for a long time.

Rolex in the world of watches is synonymous in many ways to Mercedes Benz in the
automotive industry. Both brands are often driven by a positive reputation, consumer trust
in quality manufacturing and the permanent stronghold they have as symbols of luxury and
status. No other watch brand can reflect success in the eyes of more people than Rolex.

Even though most Rolex watches are priced at a mid-range luxury segment, wearing one is
seen by many as the ultimate sign of wealth and success in life.

It is not a simple matter of perception, though. The brand dominates the watch market,
producing over one million units per year and holding a 25% market share of the watches
sold in Switzerland in 2020.

Although the brand produces over one million watches per year, that number is significantly
inferior to the current demand, forcing buyers to wait several years for their desired
timepiece. The most impatient customers are even willing to pay well above retail price in
grey and secondary markets to skip the dreaded waitlists, to own a piece.

Despite the huge production volumes, this apparent scarcity helps to further accentuate the
brand’s desirability and makes their watches one of the few consumer products that can
hold (and even increase) their value over time.

Initially sketched by the founders, the five-pointed crown carries a beautiful double
meaning: the crown is the watch part used to set the time, while in our society crowns are
seen as symbols of royalty and prestige.
Over the years, Rolex has settled its status and reputation as a dependable and established
brand. It disrupted the industry at its inception, but as the company matured, so did its
marketing strategy.

While vintage Rolex advertisements were fun and provocative, the modern versions are
meticulously crafted and with minimal copy — the brand is now strong and confident
enough to present their timepieces without the need to explain what makes them special, as
can be seen from the advertisements.

Perception – TAG Heuer

TAG Heuer has revamped its strategy and tried to re-position itself many times. But one
thing that the brand has consciously tried to retain and keep the same perception is how the
brand still stands by the same ideas it did, when it started – Avant Garde, Experimental,
Adventurous, and sporty time pieces made to stand the test of time. It is luxury, only for
those who dare to dream more, and who don’t crack under pressure.

Heuer is the historical brand which gives the roots and the legitimacy of making traditional
watches and foremost the iconic timepieces such as the MONACO and the new AUTAVIA to
be launched next.

TAG Heuer is the Avant-garde brand meant to capitalize on high-technology (e.g. TAG’s
smartwatch or the Mikrograph) and the mainstream product families, it has also forayed
into the smartwatch category recently. TAG Heuer in many ways is synonymous with the
BMW in the automobile world. Both brands are often driven by a positive reputation,
consumer trust in quality manufacturing and the permanent stronghold they have as
symbols of luxury and avant-gardes. No other watch brand can reflect style, sportiness and
luxury as much as TAG Heuer.

The brand occupies the frontrunner when it comes to precision and innovation. It was the
first company to manufacture watches with precision to 1/100 th second, the first watch to go
to space and to be qualified for deep sea diving.

Over the years the company has carefully marked its presence in global sporting events, and
has charted its marketing into holding events and running print ads which have only
strengthened the perception.