Lohas Consumer Behavior

Topics: Organic food, Decision making, Decision theory Pages: 11 (2685 words) Published: May 14, 2011

1. Section A1
1.1. What is LOHAS?1
1.2. Describe two LOHAS products.1
2. Section B2
2.1. Consumer decision process2
2.1.1. Need recognition2
2.1.2. Information search2
2.1.3. Evaluation of alternatives2
2.1.4. Purchase3
2.1.5. Consumption4
2.1.6. Post-consumption evaluation4
2.1.7. Divestment4
2.2. External influences4
2.2.1. Culture4
2.2.2. Social class5
2.2.3. Family5
2.2.4. Reference groups.5
2.2.5. Situational influences5
3. Section C6
3.1. Target market6
3.2. Marketing communication media7
4. Section D7
4.1. Compare and contrast7
4.2. Argument8

1. Section A

1.1. What is LOHAS?

LOHAS, standing for Lifestyles of Health and Sustainability, is a demographic defining a particular market segment related to health and environmental consciousness, personal development, sustainable living and social responsibility. It is a recognized market segment in the USA, Western Europe and South East Asia. LOHAS was originally founded in 2000 with estimated of $209 billion US marketplace for goods and services such as organic food, natural personal care products, hybrid cars, green building, natural household products… The LOHAS movement focuses on educating and providing resources for businesses and individuals on the market of healthy and sustainability. The number of LOHAS consumers has increased steadily, meaning that more and more people are aware of their health and the environment.

1.2. Describe two LOHAS products.

The product that is representative of extensive problem solving (high involvement) product is Hybrid car. It is a kind of vehicle that uses both a traditional engine (combustion) and a rechargeable system (typically operated by a battery). There are many advantages of hybrid car such as cleanness, lower emissions, better mileage, environmental protection… Because of these advantages, many new brands of hybrid car have been invented during the time.

Organic food is a limited problem solving (low involvement) product. Organic foods are those foods that are produced, processed and packaged without using chemicals. They have been accepted due to their perceived health benefits over conventional food. Some of the popular organic food items include organic tea, organic coffee, organic wine, organic meat, organic beef, organic milk, organic honey, organic vegetables, organic fruits, organic rice, organic herbs… Organic foods protect users from heart disease and cancer, ensures high food quality, which other conventional foods can not give. Moreover, organic food is natural and fresh, and thus, it is tasty. That is the reason why many people choose organic food for their daily meals.

2. Section B

2.1. Consumer decision process

There are seven stages of consumer decision-making process:
1. Need recognition
2. Information search
3. Evaluation of alternatives
4. Purchase
5. Consumption
6. Post-consumption evaluation
7. Divestment

2.1.1. Need recognition

Need recognition occurs when a buyer becomes aware of a difference between a desired state and an actual condition. It depends on how much discrepancy exists between the actual state and the desired state. In case of buying a hybrid car, need recognition may occur when consumer realizes that his current car is out of date or performs badly, thus, he dissatisfy with it and needs a new one. Another reason is that consumer is aware of the environment so he wants to buy a hybrid car to reduce greenhouse gas emission. Besides, consumers may recognize their need by marketer inducement through promotional campaigns such as advertising, sales promotion…

2.1.2. Information search

After recognizing the problem, consumers continue the decision-making process with information search. There are two aspects of information search: internal...
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