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Acne

Studios
MKT6B3 Consumer and Marketing Psychology
Tutor: Jenny Bratherton
Student: Desirée Stiernstam Berg
Student ID: S20005864

Table of Content

1. Introduction 3

2. Buying Process 3

2.1. Problem Recognition 3

2.2. Information Search 4

2.3. Evaluation of Alternatives 4

2.4. Purchase Decision 5

2.5. Post-Purchase Evaluation 5

3. External Methods 6

3.1. Reference Group Theory 6

4. Internal Methods 7

4.1. Motivational Theory 7

4.2. Trait Theory 8

5. Marketing Mix 9

5.1. Product 9

5.2. Price 10

5.3. Promotion 10

5.4. Place 11

References 13

1. Introduction
Consumer psychology can be described as the utilization of psychological concepts and
methods used to understand the underlying dynamics influencing and determining
consumer behaviour (Jacoby, 1976). The purpose is thus to better understand the
fundamental psychological process driving consumption to optimize the way brands
appeal to their target audience (Haugtvedt, Herr and Kardes, 2008).

Acne Studios is a Swedish luxury fashion house based in Stockholm, famous for its
signature juxtaposing gender-fluid design with an emphasis on tailoring and eclectic use of
materials and custom-developed fabrics. The collections cover ready-to-wear clothing,
footwear and accessories (Acne Studios, 2019).

I’ve always admired Acne Studios, not only due to its Swedish heritage but also its
minimalistic designs. This report will thus focus on my decision-making process in
purchasing the Musubi black maxi shoulder bag.

The first section will present the five stages of my buying process and discuss the internal
psychological influences involved. The second section will further analyze the internal
models and the third will present external models. The fourth section will analyze the role
of the current marketing mix throughout the customer journey.

2. Buying Process
Consumer decision making is a complex process, which is highly influenced by individual
factors. However, the five stages model illustrates the key processes and choices every
consumer undergoes to make a purchase. The process starts with problem recognition,
followed by an information search, alternative evaluation, purchase, and post-purchase
activities (Madhavan, M, & Kaliyaperumal, 2015).

2.1. Problem Recognition


The first stage is recognizing a need or problem which occurs when a consumer realizes
the difference between the actual state and the desired state. Without recognition of a
problem, there is no need for a decision (Song, 2016). This process can be either rational
or irrational, and also broad or narrow in its focus, e.g. when a consumer is hungry and
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simply wants something to eat, or instead specifically want to eat a cheeseburger from
McDonald's (Bruner and Pomazal, 1988). The motivation which occurs and is activated
from the aroused need can either be utilitarian, which is the desire to achieve a functional
benefit, or hedonic, which involves emotional responses (Solomon et al., 2006, pp. 90-92).

In addition, problem recognition can be caused by external factors, such as socio-cultural


influences and reference groups, or internal such as personality and motivation (Hoyer,
MacInnis & Pieters, 2016). My problem recognition was twofold, first was the realization of
my need for a bigger bag which could fit a laptop (functional need), and the second was
the desire for a luxury handbag (emotional need). Since many people in my social
environment, also known as a reference group, own luxury bags, the purchase was mainly
driven by social motivation, and the need for esteem fulfilment (Maslow, 1943).

2.2. Information Search


Information search is the second stage in which the consumer searches for product-
related information to make a reasonable purchase decision. The information sources can
either be internal, based on previous knowledge and experience, or external in the form of
information provided by advertisements or friends (Solomon et al., 2006, pp. 265-266). In
addition, the more extensive search involved, the higher the perceived risk due to the
belief that a poor decision will potentially cause negative consequences (Solomon, 2004).
This is also considered to be the most active stage as consumers proactively searching
information to make a decision (Brandão et al., 2018).

My process started with an internal search to identify which luxury brands I previously
bought from and my experience with these. Since I previously shopped from Acne studios
and appreciated both their design and quality, I decided to further research their products
and similar brands. The external search involved both informal sources, such as my
friends, as well as formal sources such as the brand's websites. However, the external
search was not very extensive since I perceived the risk as low as I considered my own
experience to be sufficient and more reliable than external sources.

2.3. Evaluation of Alternatives


The modern society offers an abundance of product choices, and the third stage is thus to
evaluate the available alternatives. These could both be alternatives offered by different
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brands or different variations of the same brand such as colour or size variations. In this
stage, the consumer analyzes the alternatives against important criteria and attributes
such as quality, brand and price, based on individual preferences (Solomon et al., 2006,
pp. 272-280). Furthermore, the brand preference for a brand is highly influenced by the
attitude developed during the information search (Flavián et al, 2016).

My third step was therefore to evaluate the available alternatives based on the gathered
information and my criteria, which in my case was; brand (luxury), size (large), material
(leather), quality (high) and design (minimalistic). After gathering information on different
brands (e.g. Ganni, Celine and Bottega Veneta), I finally decided that Acne Studios was
the best option since they met all criteria at the lowest price, and also felt like the safest
choice since it I’ve been satisfied with my previous purchases. The decision was mainly
based on the internal information search since I wasn’t exposed to any targeted marketing
during this period.

2.4. Purchase Decision


The fourth stage is the purchase decision where the consumer, after collecting and
evaluating information, decides which product to buy (Qazzafi, 2019). There are several
decision rules influencing this, which can be divided into non-compensatory versus
compensatory, where the former refers to decision rules associated with attributes which
are crucial and thus eliminates all options which do not meet these, and the latter refers to
decision rules associated with attributes which can be compensated through other
beneficial attributes (Solomon et al., 2006, pp. 290-292).

My decision was based on non-compensatory rules where I had chosen Acne Studios as
a brand and the Musubi shoulder bag since it matched all criteria previously presented.
Despite other brands meeting some of the criteria, Acne studio, and especially the Musubi
bag, exceeded in terms of functionality, design and price. I was also exposed to targeted
ads from other brands which did not affect my purchase intention. Acne Studios’ brand
recognition and the product’s attributes were therefore the most significant factors.

2.5. Post-Purchase Evaluation


The final stage is the post-purchase evaluation which is one of the most important stages
as it directly affects future purchase decisions where a good experience can be vital for

reducing the uncertainty when deciding to purchase the same product or brand again
(Dudovskiy, 2013). This is also confirmed by my own purchase decision since it was the
satisfaction from previous purchases that led me to purchase from Acne Studios again.

The opinions and feedback received from friends and family are also one of the most
important factors influencing the level of post-purchase satisfaction (Trehan and Trehan,
2011). The opinions and feedback received from friends and family are also one of the
most important factors influencing the level of post-purchase satisfaction (Trehan and
Trehan, 2011). My post-purchase evaluation was both influenced by the satisfaction of my
purchase and by the positive feedback I received from my social environment.

3. External Methods
In addition to the internal factors influencing our consumer behaviours, external factors are
also responsible for many of our actions and choices. The external factors are most
present during the input stage while the internal factors are most present during the
process stage of the decision-making process (Schiffman and Wisenblit, 2015, p. 47).

3.1. Reference Group Theory


Reference Groups are an external source of comparison which influences opinions and
values, but also consumer behaviours. These include family and friends, as well as our
social class and culture. (Schiffman and Wisenblit, 2015, pp. 235-240).

My reference group mainly consists of friends which have a normative influence on me


since I’ve adopted several beliefs and values from them, which is also supported by the
fact that many of purchases from Acne Studios and other luxury brands. Since many of
them also share my social class, it could be argued that this is another factor affecting our
group’s behaviour, and thus indirectly affecting me.

Another important reference group, however, is also my culture in terms of the strong
influence of feminism that surrounds me, which would explain why I gravitate towards
more androgynous design and avoid products with traditional feminine attributes. This
would also explain why one of my key criteria in my purchase decision process was to find
a bag in a minimalistic and gender-fluid design.

4. Internal Methods
4.1. Motivational Theory
Motivation is fundamental for consumption and is triggered by psychological tension
caused by unfulfilled needs. Consumers both consciously and subconsciously try to
reduce this tension through defining goals and subsequent behaviours that are anticipated
to fulfil their needs. The dynamic of motivation is thus divided into needs and goals since
neither exists without the other (Schiffman and Wisenblit, 2015, pp.82-87).

Maslow’s Hierarchy of Needs: My need was initially physical since I needed a bag which
would reduce my physical efforts of carrying multiple bags, but it was also based on
esteem needs since a luxury bag would symbolise prestige. It could also be argued that it
was based on a need for belongingness since people in my surrounding owns luxury bags.
A luxurious bag also serves as a symbol of self-actualisation since it represents the person
I would like the become (Figure 1).

Figure 1. Maslow’s Hierarchy of Needs

The Trio of Needs: Based on the model trio of needs, my need was based on affiliation
since a luxury bag would make me feel accepted and create a sense of belonging. It was
also partially based on achievement in terms of being a symbol of personal
accomplishment through buying an expensive bag for self-earned money.

Goals: My goal was initially generic in terms of a bag to carry my laptop in, however after
my internal search where I recalled the successful purchases from Acne Studios it instead
became more product-specific as a chose their products.

Motivation: My motivation was thus both rational and emotional since I first selected my
goal of buying a bigger bag based on objective criteria (size). However, it successively
became more emotional as I instead started to redefine my goal based on emotional
motives in terms of brand, luxury and social associations.

Arousal of Motive: The arousal of motive was initially aroused in the form of the frustration
and stress I experienced by carrying multiple bags for the things I needed with me. The
motivation to buy an expensive bag, however, was based on arousal since a luxury brand
both unconsciously and consciously aligns more with my self-image
Motivation & Goal Type: Since I was drawn toward a specific goal, instead of away from a
goal, my goal and motivation were positive.

4.2. Trait Theory


Our personality highly affects our purchasing behaviour and consists of the inner
characteristics that determine how we think and act. There are several models developed
to better understand these complex psychological factors. I’ve focused on Trait Theory
which will be discussed below (Schiffman and Wisenblit, 2015, pp. 95-107).

In terms of Social Character, I’m inner-directed since I heavily rely on my values when
making product evaluations and purchases, and rarely look to others. This is assumably
also connected to my need for uniqueness trait since I tend to avoid confirmation of the
expectations and standards of others. My appreciation of minimalistic and more gender-
neutral designs is assumably a strategy for avoiding the feminine stereotype which often
instead is associated with small details, romantic patterns and bright colours.

I’m also more of a visualiser since I gravitate towards visual experiences and promotions
containing pictures, rather than text. With a view of myself as a more innovative consumer
who wants to challenge traditional expectations and perceptions of what femininity is, my
consumer behaviour is strongly influenced by my ideal self-image. Based on these
personality traits, it is also highly likely that I chose acne studio since their brand
personality aligns with my own in terms of being more gender-neutral with a bold visual
expression containing minimalistic colours and materials.

5. Marketing Mix
The Marketing Mix, also known as the 4Ps, is a conceptual framework consisting of;
product, price, place and promotion which is used as a managerial tool for achieving
marketing objectives (Jobber, 2001). This section will thus discuss how the marketing mix
affects and enable the different stages of Acne Studios’ customer journey.

5.1. Product
The first aspect refers to how good a company’s product satisfies the consumer with an
emphasis on product features such as design, packaging and quality (Kareh, 2018). As an
iconic fashion house within the luxury segment, Acne Studios has a strong brand identity
known for its creative direction and recognizable androgynous style with high levels of
functionality, quality and craftsmanship (Sanz Alvarez, 2019). A credible brand also creates
mental structures which help consumers clarify their purchase decision as it signals certain
levels of quality (Kotler and Keller, 2016).

Acne Studio’s well-renowned brand thus creates an underlying trust for their products that
justifies purchases, which undeniably affects the decision-making process. In my case, this
aspect was most present and influential during the stage of information search and
evaluation of alternatives since my mental expectation of their products was a crucial
factor in my purchase decision which exceeded the financial and psychological risks of the
purchase. Furthermore, this was also heavily influential during the post-purchase
evaluation as my needs and expectations were highly fulfilled.

However, another aspect reducing my level of satisfaction with their product was the
limited information available regarding product care. Since leather is a living material that

requires care, and a handbag is exposed to large amounts of daily wear and tear,
additional information on how to take care of my bag would have increased my
satisfaction. This can be further justified from a sustainability perspective where an
opportunity to extend the life of products is an important aspect.

5.2. Price
Price is the value charged for a product and is analyzed in regard to how much a
consumer is willing to pay (Borden & Marshall, 1959). Acne Studios do not qualify as one
of the most expensive fashion houses (Appendix 1), since their handbag prices range from
£850 to £1250 (Acne Studios, n.d.). However, Acne Studio has relatively low brand
prominence and rarely displays its logo which arguably could decrease the price they can
demand since logos creates a perception of luxury (Han, Nunes and Drèze, 2010).

Acne Studio's price strategy is arguable an important factor in the decision-making process
since its prices are considerably lower than other similar brands while still maintaining a
symbol of luxury, something which is quite rare within the fashion industry. Since I early in
my decision-making process decided to purchase a luxury handbag it also resulted in an
expectation of what price I had to pay to do so. However, during the stage of alternatives
evaluation, I quickly realized that there was a significant price range where Acne Studios
were perceived to deliver the most value in relation to its price.

The conclusion drawn is that Acne Studio has created a successful pricing strategy while
still being a competitive brand within the luxury segment. Nonetheless, the pricing strategy
could also undermine the exclusive brand identity since the price is strongly connected to
the perceived value of a product. It is thus very important to maintain its strong positioning
strategy to minimize the risk of decreasing brand perception.

5.3. Promotion
The Promotion mix refers to the activities adopted to advertise and promote products, and
also determines the positioning strategy and heavily influences brand image (Singh, 2012).
In terms of Acne Studios’ promotion, it was mainly their brand image which influenced my
decision-making process rather than marketing efforts since I wasn’t exposed to any
advertising during my customer journey. However, since the brand image is directly

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correlated to promotions, it is arguable previous promotions which have created my


perception of the brand and thus indirectly influenced me.

Acne Studios is also famous for having a ”Branding by doing” marketing approach where
the products are the main focus instead of investing heavily in marketing (Arvidsson,
Torsein and Agné, 2011). However, the lack of active promotions such as targeted ads
could also be considered a disadvantage since the company is missing out on important
opportunities of influencing the decision-making process. My recommendation is therefore
to increase their promotion, especially in terms of social media advertisement since this
potentially could generate more sales and influence customers during the input stage of
the decision-making process.

5.4. Place
Place refers to the distribution and the process by which the product reaches the
consumer (Luenendonk, 2019). Acne Studios uses both direct and indirect distribution
channels with 45 flagship stores worldwide, and multiple department stores such as in
Harrods. In addition, they also have online distributors and an easy-to-use website with
worldwide shipping. In alignment with their brand identity, all stores are located in central
areas with a coherent minimalistic interior (Figure 2).

I purchased the bag through their website which had a high level of UI/UX design and a
smooth buying process, which ultimately motivated my purchase decision. However,
despite having an overall successful distribution strategy which makes the products both
accessible and desirable, one disadvantage is that they may use distributors which do not
reflect their brand values and prestige, which can cause harm and negatively affect the
decision-making process.

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Figure 2. Acne Studios Selection of Flagship Stores

Acne Studios, Berlin Acne Studios, New York

Acne Studios, Milan Acne Studios, Beijing

Acne Studios, San Diego Acne Studios, Honk Kong

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