School of Business Administration, University of Technology, Jamaica

MKT2001: Fundamentals of Marketing

February 25, 2022

 Consumer and Business Buying Behaviour

Question

Victoria’s Secret is planning to open a production and sales outlet in Jamaica. Using the concept

of the Buyer’s Black Box, identify and explain the different factors that influence a customer’s

buying decision for clothes. Why is knowledge of this important to marketers? Identification

and use of appropriate examples are important for both elements of the Buyers Black Box.
 Objectives

 Brief background of Victoria’s Secret (VS)

 Overview of Consumer Buying Behavior

 Overview of the buyer’s black box

 Identification of the elements of the buyer’s black box

o Buyers’ characteristics

o Buyer decision process

 Relevant factors that influence consumer buying decisions for clothes

 Why is knowledge of consumer buying behavior important to marketers?

 Use appropriate examples for elements of the Buyers Black Box

 Brief Background of Victoria’s Secret

Raymond was inspired to create a place where men could feel comfortable shopping for

lingerie after an uncomfortable trip to a department store to buy underwear for his wife. In 1997,

Roy Raymond launched Victoria's Secret. He wanted to reflect the delicacy of the Victorian era

with his lingerie, so he named the brand after it. Victoria's Secret evolved into a male-oriented

women's underwear store (Hanbury, 2021). Although sales were good, the company was on the

verge of going bankrupt. It was during this time that businessman Les Wexner stepped in to save

the company. Mr. Wexner was the owner of Limited brands commonly known as L Brands

which was the parent company for Victoria’s Secret. Wexner concluded that Victoria's Secret's

bankruptcy was not due to poor management, but rather to the fact that the company was

appealing solely to men at the time. Mr. Wexner altered the company's target market to include

both men and women who can buy lingerie and underwear. Under the new management,

Victoria's Secret grew even more successful.

Victoria's Secret & Co is the world's largest specialty shop, with signature bras, panties,

lingerie, casual sleepwear, and athleisure collections, as well as award-winning prestige

fragrances and body care (Our company, 2022). Despite its success, Victoria's Secret is facing

tremendous challenges in the current era, particularly in light of the growing pandemic.

Victoria's Secret sales have been declining between 2016 and 2020, prompting Les Wexner to

break the two firms under L Brands' umbrella (Victoria's Secret and Bath and Body Works) into

two distinct entities. Victoria's Secret sales increased by only 1.6 percent in 2016 and plummeted

by 7.4 percent in the fourth quarter, which is often a high-revenue season owing to the winter

holidays. In 2017, sales continued to fall. The company's shares fell 40% in 2018 and it

announced the closure of 53 outlets. Victoria's Secret's annual fashion show was cancelled in
2019. Several senior executives have quit. In the same month, Victoria's Secret was sold to

Sycamore Partners, a private equity group, for $525 million. Wexner’s L Brands retains a 45%

stake in the company. In April 2020, Sycamore Partners exercised its option to back out of the

deal due to the COVID-19 pandemic. Mr. Wexner has then stepped down as CEO. Victoria’s

Secret is expecting to have a great comeback after the split with L Brands that happened in

August 2021 with the new CEO Martin Waters.

 What is Consumer Buyer Behavior?

Consumer buyer behavior is a branch that deals with the various steps individuals and

households go through before acquiring goods or services for their final consumption

(Management Study Guide, n.d). According to Kotler & Armstrong (2014), marketers study

consumer behavior to know what they buy, how much they buy, and where they buy. However,

identifying the “whys” is often difficult as the answers are in the depths of the consumers’

minds, and they often don’t know what influences their purchasing decisions. According to

Lumen Learning (n.d), in relation to consumer buyer behavior, a marketer must seek to discover

the answers to two key questions:

 How do potential buyers go about making purchase decisions?

 What factors influence their decision process and in what way?

The Buyer’s Black Box

The buyer’s “black box” is a part of the stimulus-response model of consumer buying

behavior, also known as the Black Box Model. Marketers are interested in learning how stimuli

are transformed into responses inside the buyer's black box. The box has two (2) elements: The

buyer's traits, and the decision-making process of the buyer (Kotler & Armstrong, 2014).

Buyer Characteristics

There are four (4) major factors that affect consumer buyer behavior: Cultural, Personal,

Social and Psychological. For this paper, the focus will mainly be on the factors that are most
likely to influence a consumer’s buying decision for clothes and provide examples relating to

Victoria’s Secret.

Factors that Influence Consumer Buying Decision for Clothes

Cultural Factors

First, we’ll take a look at the cultural factors, beneath that broad heading stands a subtopic

called the social class. According to Kotler & Armstrong (2014), the social class is society's

relatively permanent and well-ordered divisions, with members who share similar values,

interests, and habits. As it relates to Victoria’s Secret plans as it relates to opening a sales unit in

Jamaica, it would be beneficial as the social class tends is not only determined by income.

Social class tends can be measured by income, wealth occupation, and other variables (Kotler &

Armstrong, 2014). This means persons in Jamaica of the social class would be drawn to

Victoria’s Secret products, because of the brand name as well as the quality of products they are

known for. Persons in the social class tend to buy things that possess these attributes. For

example, individuals who are of the social class are likely to be in a spotlight where others

perceive them to have things that are of price and quality. Therefore, these persons tend to shop

at brand-name companies.

Social Factors

Social factors can influence what and when a consumer purchases. According to

Management Study Guide (n.d), these are factors pertaining to groups, immediate family

members, relatives, and societal role and status. All these factors would impact an individual’s

decision in purchasing clothes.

 Kotler & Armstrong (2014) describes three types of groups that can influence an

individual’s behavior. Firstly, reference groups are formal or informal groups with whom a

person interacts, whether directly (face-to-face engagement), or indirectly. Secondly,

membership groups are those in which a person belongs and is directly influenced. Lastly,

aspirational groups are those in which a person wants to be in. Moreover, another factor that may

have a strong effect on a clothing purchase is word-of-mouth influence and buzz marketing.

Individuals tend to believe in the opinions and recommendations made by their closest friends,

acquaintances, and other consumers about a product or service. Additionally, research has shown

that word-of-mouth influence from reference groups will directly influence a consumer’s interest

and behavior towards clothing selection (Cham et al, 2017). Marketers implement the use of

buzz marketing to recruit opinion leaders, who because of their talents, expertise or personality

can exert influence over others (Kotler & Armstrong, 2014). According to Loureiro et al (2017)

consumers compare themselves to opinion leaders who convince them to purchase specific

clothing items. Furthermore, the presence of online social networks can influence buying

behavior. These platforms can compel consumers to purchase specific clothing products

(Loureiro et al, 2017). People submit product reviews, service information, food or health advice,

product warnings, suggestions on how to use certain items, and more as consumers.

Moreover, family plays a vital role in the buying decision of a consumer. According to

Lumen Learning (n,d), an individual’s family has a major impact on attitude and behavior, and

families are significantly important in society as “consumer units”. For instance, a married

woman would show a strong tendency towards purchasing products that would benefit not only

her but also her family members. Hence, she will not choose a Victoria’s Secret outlet as the

family’s main store to purchase clothing.

 Individuals may dress in particular clothing to display their social status, define

themselves, or distinguish themselves from others (Loureiro et al, 2017). At home, a Chief

Financial Officer of a respectable company is also a parent and wife. Thus, she will purchase

professional clothes to signify her role and status at work, but for going to the gym she may buy

an item from the athleisure collection at Victoria’s Secret. In addition, individuals' purchasing

habits are also influenced by their social position. A high-class individual would spend on

expensive clothing, whereas a middle-to-low-income one would purchase clothes as a necessity.

Personal Factors

In addition, personal factors are another key influencer in customers’ buying decisions

for clothes. The buyer’s decision can be influenced by personal characteristics such as

occupation, age, and stage, economic situation. Occupation affects what type of clothing people

will purchase. For instance, a person who is the host of a Dancehall event may wear a mesh

garment where her undergarment (Bra) may be highlighted. Therefore, this individual may

purchase Victoria’s Secret undergarments to make a statement of having brand name

undergarments. As it relates to age and stage, individuals' tastes for clothing may change over

time as they age. For example, some teenagers who are becoming young adults would prefer to

have Victoria’s Secret undergarments than unpopular brand name undergarments. Finally,

people’s need for clothing may be influenced by their economic status. For instance, some low-

income earners would tend to shop less and shop cheap; therefore, if there is a necessity for

clothes especially undergarments some of these low-income earners would choose to purchase

from a competitor that has a cheaper rate. On the other hand, you’ll find some low-income

earners who would save and purchase clothing of quality to supply their needs for a long time.

Psychological Factors
 The four major factors which influence an individual’s purchasing decision include

motivation, perception, learning, and attitudes and beliefs.

People are motivated by needs and wants. Abraham Maslow proposed that there are five

levels of human needs: physiological, safety, social, esteem, and self-actualization. Individuals

normally purchase clothes as it is seen as a physiological need, while others purchase clothing

due to esteem needs. An example of an esteem need is that for uniqueness. Individuals are

generally motivated to retain a sense of individuality within themselves and to project that sense

of uniqueness onto others. Thus, persons who wish to stand out from the crowd buy clothes to

showcase their distinct personalities and self-image (Cham et al, 2017).

Another factor that affects buying decisions for clothes is perception. This refers to the

process through which humans acquire and evaluate information through various selective

processes. Additionally, according to Cham et al (2017), consumers frequently develop an

interest in a certain sort of clothing based on appearance and texture. This sensory observation

would lead to a perception of the clothing's quality in terms of material, design, and

craftsmanship.

Furthermore, a consumer’s buying decision for clothes can also be influenced by their

attitudes and beliefs. The brand image of a company may influence an individual’s attitude

towards their set of products. A brand image is described as a collection of impressions about a

product that are mirrored in the consumer's mind by the brand association (Cham et al, 2017).

For example, Victoria’s Secret is trying to rebrand their image to one that is more inclusive and

centered around empowering all women. So, Jane who is an advocate for women’s inclusivity

will change her views about Victoria’s Secret and try out one of their products.
 Why is knowledge of consumer buying behavior important to marketers?

According to (Southeastern Oklahoma State University, 2016) Businesses can better promote

their products and services by knowing how customers think, feel, and make decisions. This aids

in the marketing of existing products and services by allowing marketers to predict how their

customers will behave. It also enables forward-thinking companies to spot fresh opportunities

before others do. For example, if a specific item at a grocery shop begins to sell more quickly

than it has in the past, marketers could investigate what is causing this. The results of the study

could lead to a social media trend in which this product is utilized as a prop.
 Examples for Elements of the Buyers Black Box

The Buyer's Decision Process is one of the elements of the Buyer's Black Box. Under this

process lie multiple stages which will be looked at individually.

Need Negotiation

The first stage of the buyer selection process is called need recognition. As the name

implies, need recognition is defined by Kotler and Armstrong (2014) as a consumer identifying a

problem or need. For example, one may realize that their undergarments are worn out and new

ones are required.

Information Search

The following stage is known as information search, and it is defined as when a consumer

becomes motivated to seek out additional information (Kotler, et al. 2014). This means after one

recognizes the need, they will then do an investigation on where to meet this need. According to

(Lumen, 2016) family and friends, personal observation, Consumer Reports, salesmen, product

samples, and so on are all possible sources of information. Given that VS plans to open a store

in Jamaica, some people may wish to satisfy their need for a new undergarment by purchasing

from this company, which, according to their research, is known for producing high-quality

items. Others, on the other hand, may look for the cheapest option.

Evaluation of Alternatives

According to Kotler & Armstrong (2014), when a customer is looking for a solution to an

issue, she looks for alternative products, services, and outlets. The next step is to weigh these

options and make a decision. Furthermore, the evaluation criteria differ from one consumer to

the next, and from one purchase to the next. Price may be the most essential factor for one buyer,
while quality or convenience may be more significant to another. For example, the consumer will

compare the prices and product catalog of Victoria’s Secret to another clothing store such as

Shein, and then decide which to buy.

Purchase Decision

Consumers must eventually select whether they will make a purchase after searching for

and assessing alternatives. Buyers will respond positively to anything that marketers can do to

make the buying process easier. Several decision circumstances can sometimes be bundled

together and sold as a single unit (Lumen Learning, n.d.). Furthermore, at the point of purchase,

product pricing, labeling, and packaging can have a significant impact. Product samples,

vouchers, and discounts may also be used to entice customers to purchase. Personal selling,

window displays, accessibility, and ease of locating the products can all influence a customer's

decision. For example, the consumer will now choose to purchase products from a Victoria’s

Secret outlet because their quality and brand image is better than the other store, Shein.

Post-purchase Behavior

Following the purchase of a product, the customer will participate in post-purchase

behavior that the marketer is interested in (Kotler & Armstrong, 2014). The link between the

consumer's expectations and the product's perceived performance determines whether a customer

is satisfied or dissatisfied with a product. The consumer feels disappointed if the product does

not match their expectations, while they are satisfied if it does. Also, if the product exceeds

expectations, then the consumer is thrilled. To illustrate, after a consumer has purchased

underwear from Victoria’s Secret collections, it fits perfectly and makes her feel comfortable and

thus she is satisfied with her purchase.

 References

Hanbury, M. (2021, June 17). The rise, fall, and comeback of Victoria's Secret, America's

biggest lingerie retailer. Business Insider. https://www.businessinsider.com/victorias-

secret-rise-and-fall-history-2019-5#victorias-secret-was-founded-in-1977-by-american-

businessman-roy-raymond-1

Kotler, P., & Armstrong, G. (2014). Principles of marketing (15th ed.). Pearson.

Loureiro, S. M., Costa, I., & Panchapakesan, P. (2017). A Passion for Fashion. International

Journal of Retail & Distribution Management, 45(5), 468–484.

https://doi.org/https://doi.org/10.1108/IJRDM-11-2016-0202

Lumen. (2016). Buying-process stages | Principles of marketing [Deprecated]. Lumen Learning

– Simple Book Production.

https://courses.lumenlearning.com/marketing-spring2016/chapter/reading-buying-

process-stages/

Lumen Learning. (n.d.). The “Black Box” of Consumer Behavior. Lumen. Retrieved February

2022, from https://courses.lumenlearning.com/marketing-spring2016/chapter/reading-

the-black-box-of-consumer-behavior/

Our company. (2022). Victoria's Secret & Co. https://www.victoriassecretandco.com/our-

company/overview

Southeastern Oklahoma State University. (2016, June 22). Gain a better understanding of

consumer behavior. https://online.se.edu/articles/mba/gain-a-better-understanding-of-

consumer-behavior.aspx#:~:text=Why%20Is%20Consumer%20Behavior

%20Important,marketing%20existing%20products%20and%20services
What is Consumer Behavior - Meaning and Important Concepts. Consumer Behaviour. (n.d.).

Retrieved February 2022, from https://www.managementstudyguide.com/what-is-

consumer-behaviour.htm