1. The Impact of Niche Marketing Strategies on Consumer Consumption Patterns Erin D. Parrish International Foundation of Fashion Technology Institutes 7 th Annual Conference Tokyo, Japan THE UNIVERSITY OF ALABAMA

2. Overview of Industry  Increased competition  overcapacity  price deflation  Focus on competitive strategies  decreased consumer confidence  differentiation THE UNIVERSITY OF ALABAMA

3. Niche Market Strategy  Focused on a specialized consumer segment  earn higher margins  insulated from competition  Examples

4. THE UNIVERSITY OF ALABAMA

5. Niche Market Strategy  Focused on a specialized consumer segment  earn higher profit margins  insulated from competition  Examples  Push vs. Pull marketing

6. THE UNIVERSITY OF ALABAMA Niche Strategy Niche MarketNiche Product Market Product

7. THE UNIVERSITY OF ALABAMA Niche Market Strategy  Focused on a specialized consumer segment  earn higher profit margins  insulated from competition  Examples  Push vs. Pull marketing  Previous research

8. THE UNIVERSITY OF ALABAMA

9. Objectives of Research 1. Define niche market strategy from a consumer’s viewpoint; 2. Determine how consumers identify a niche product; 3. Determine how consumers differentiate products; 4. Determine what motivates a consumer to repeat purchase a particular niche product; and 5. Develop an interactive model incorporating the findings of this research with previous upstream research.

10. THE UNIVERSITY OF ALABAMA Conceptual Framework Information search Evaluation of alternatives Purchase decision Postpurchase behavior Purchase intention Attitudes of others Unanticipated situational factors Problem recognition Input variables Stimulus exposure (internal/external) Perception of stimuli Five-Stage Model of Consumer Buying Process

11. THE UNIVERSITY OF ALABAMA Methodology  Quantitative survey  pilot study  determine how consumers evaluate the niche strategy of apparel brands/retailers  Instrument development  self-administered survey  field test  21 questions – nominal, ordinal, Likert, or open response

12. THE UNIVERSITY OF ALABAMA Methodology  Sample selection  non-probability convenience sample  99/102 responses  Data Analysis  collected and coded data  conducted descriptive analysis  developed model represented results

13. THE UNIVERSITY OF ALABAMA Sample Description  Average age  31 years of age  Gender  female: 63%  male: 37%

14. THE UNIVERSITY OF ALABAMA Results: Research Objective 1 1. Define niche market strategy from a consumer’s viewpoint  pull marketing (89%)  product vs. market vs. brand

15. THE UNIVERSITY OF ALABAMA Results: Research Objective 2 2. Determine how consumers identify a niche product  friends (51.5%)  advertising (45.5%)  sales associates (3.0%)

16. THE UNIVERSITY OF ALABAMA Results: Research Objective 3 3. Determine how consumers differentiate products  product characteristics  quality (36.4%), style (30.4%), price (21.2%), brand (12.1%)  brand name  advertising  retailer

17. THE UNIVERSITY OF ALABAMA Results: Research Objective 4 4. Determine what motivates a consumer to repeat purchase a particular niche product very important  quality must be consistent (97.0%)  brand name (72.7%)  retailer (69.7%)  price (58%)

18. THE UNIVERSITY OF ALABAMA Results: Research Objective 4 4. Determine what motivates a consumer to repeat purchase a particular niche product somewhat important  advertising (54.5%) not at all important  advertising (42.4%)

19. THE UNIVERSITY OF ALABAMA Results: Research Objective 4 Purchase MotivationMean ScoreStandard Deviation The product/brand is in style2.421.276 The marketing is aimed at my lifestyle 3.121.219 The product fits a particular need 1.640.822 My friends have the same product 4.151.004 The retailer selling the product3.481.034

20. THE UNIVERSITY OF ALABAMA Results: Research Objective 4 Purchase MotivationMean ScoreStandard Deviation The product/brand is in style2.421.276 The marketing is aimed at my lifestyle 3.121.219 The product fits a particular need 1.640.822 My friends have the same product 4.151.004 The retailer selling the product3.481.034

21. THE UNIVERSITY OF ALABAMA Results: Research Objective 5 5. Develop an interactive model incorporating the findings of this research with previous upstream research.

22. THE UNIVERSITY OF ALABAMA Niche Strategy Consumer Information search Evaluation of alternatives Purchase decision Postpurchase behavior Problem recognition advertising peer influence friends TV/radio/ magazines experience quality brand price retailer/distribution Impact of Niche Marketing Strategy on Consumer Decision Making Niche MarketNiche Product

23. THE UNIVERSITY OF ALABAMA Limitations of Research  sample  sample size  sampling technique  pilot study

24. THE UNIVERSITY OF ALABAMA Implications of Research  How can a niche strategy be used to compete?  differentiation  insulation from price sensitivity  protected market share

25. THE UNIVERSITY OF ALABAMA Implications of Research  How do consumers evaluate niche products?  product vs. market characteristics – quality – brand – advertising – retailer/distribution  How can retailers/branded apparel manufacturers influence consumer consumption patterns?

26. Thank You! Questions? eparrish@ua.edu THE UNIVERSITY OF ALABAMA