Question 2: Using a multistage CDP model, describe how consumers in this market segment( Gen Y and young professionals) typically make furniture purchase decisions.
In this case, it mentions 4 stages which include need recognition, search process, pre-purchase evaluation, and purchase. Need recognition occurs when consumers really need more furniture commonly. Actually, many situations will cause their needs. For instance, replacing their furniture, having more money, get ting married and so on. After they decide to buy new furniture, if the need of new furniture is not very urgent, they intend to do external research to make sure. However, in many cases, they will be influenced by sales promotion and previous experience. Advice from friends and family will be a reference. Advertising, compared with that, is the most untrustworthy. They will go to real shops to see what they liked online and feel the comfort and workmanship in person. If they like a brand, they will find relevant products from that brand or another brand with similar styles. After deciding which to buy, it comes to the purchase process. Most of consumers had used financing in the past, but now they prefer to pay in cash. But for Gen Y and young professionals, they have lower income and cannot afford to pay cash. They desire to feel the perception, that they can enjoy a lifestyle that is above what they can afford by spreading the payments over a long period of time. Therefore, they would like to pay it with interests for six months.
Question 3: How should Family Furniture respond to competitors?
Over the years, Family Furniture has faced many big competitors. Some furniture store attract customers with “no, no, no” advertising, which means “no down payment, no interest and no payments until next year”. It was reported that an increasing number of Family Furniture’s customers went to other stores in other cities or nearby regions to buy furniture and some others were making their...
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