Market Segmentation of Lounge Suites in Malaysia
Background to lounge suites
This report is aimed at developing a market segmentation that profiles different groups of consumers for lounge suites which are commonly known as sofas in Malaysia. Sofas come in a variety of styles and can be made of fabric or leather. Furthermore, there are numerous types of fabrics and patterns that lounge suites can be designed in. Some lounge suites can also be multi-purpose and double as a bed. This essay will be covering the profiling of market segments, identification of a primary target audience and influences on consumer decision making.
Consumer Analysis
A lounge suite could fulfil the need of completing one’s home as an object to sit on in the living space and so is classified as an acquired need and can go on to fulfil one’s social, ego and self-actualisation needs (Maslow, 1943).
There are certain influences that determine a consumer’s decision to purchase. These influences include internal influences like income and their level of involvement, and external influences like family, social class as well as culture and subculture (Shiffman, et al., 2011; Wind, 1978).
Demographics - Income
Cicarelli (1974) found that people’s consumption increased with their income. The amount of money consumers are willing to pay for a particular product depends largely on their household income. The more affluent would be able to buy sofas that satisfy their whims and fancy whereas a lower-income person will have to choose a sofa that does not exceed his or her budget. However, it was found that the lower income group did not mind paying for an expensive item as long as they can pay in instalments (Liebermann and Silber, 1993). Many furniture retailers practice this tactic in order to allow lower income groups to purchase expensive furniture. The smaller amount that they are required to pay each month allows them to purchase items that they otherwise will not be able to afford. Although these instalments would add up to
This report is aimed at developing a market segmentation that profiles different groups of consumers for lounge suites which are commonly known as sofas in Malaysia. Sofas come in a variety of styles and can be made of fabric or leather. Furthermore, there are numerous types of fabrics and patterns that lounge suites can be designed in. Some lounge suites can also be multi-purpose and double as a bed. This essay will be covering the profiling of market segments, identification of a primary target audience and influences on consumer decision making.
Consumer Analysis
A lounge suite could fulfil the need of completing one’s home as an object to sit on in the living space and so is classified as an acquired need and can go on to fulfil one’s social, ego and self-actualisation needs (Maslow, 1943).
There are certain influences that determine a consumer’s decision to purchase. These influences include internal influences like income and their level of involvement, and external influences like family, social class as well as culture and subculture (Shiffman, et al., 2011; Wind, 1978).
Demographics - Income
Cicarelli (1974) found that people’s consumption increased with their income. The amount of money consumers are willing to pay for a particular product depends largely on their household income. The more affluent would be able to buy sofas that satisfy their whims and fancy whereas a lower-income person will have to choose a sofa that does not exceed his or her budget. However, it was found that the lower income group did not mind paying for an expensive item as long as they can pay in instalments (Liebermann and Silber, 1993). Many furniture retailers practice this tactic in order to allow lower income groups to purchase expensive furniture. The smaller amount that they are required to pay each month allows them to purchase items that they otherwise will not be able to afford. Although these instalments would add up to
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