Customer Behavior Report

5,094 views
4,992 views

Published on

Part of first semester studies of Introduction to the international business environment, consisting of 13 credit points

Published in: Technology, Business
1 Comment
1 Like
Statistics
Notes
No Downloads
Views
Total views
5,094
On SlideShare
0
From Embeds
0
Number of Embeds
5
Actions
Shares
0
Downloads
36
Comments
1
Likes
1
Embeds 0
No embeds

No notes for slide

Customer Behavior Report

  1. 1. Customer Behavior Study: Personal trainer services Hezha Muhammad Yulia Volkova Annika Austin Joni Lehto
  2. 2. Table of contents Introduction .................................................................................................................................... 3 Target Group................................................................................................................................... 3 Information search .......................................................................................................................... 6 Purchase.......................................................................................................................................... 7 Influencing factors .......................................................................................................................... 9 The buying situation .................................................................................................................... 9 Extensive problem-solving .......................................................................................................... 9 Limited problem-solving ........................................................................................................... 10 Automatic response ................................................................................................................... 10 Personal influences ....................................................................................................................... 10 Lifestyle ........................................................................................................................................ 11 Social influences ........................................................................................................................... 12 Survey .......................................................................................................................................... 13 Survey distribution and collection ............................................................................................. 14 Survey questions and analysis ................................................................................................... 15 Respondents satisfaction about their body ............................................................................. 15 Do respondents read sports/health magazines ........................................................................ 16 Eating healthy ....................................................................................................................... 16 Paying attention to looks ....................................................................................................... 17 Do our respondents like exercising ........................................................................................ 18 Receiving exercising information through the internet ........................................................... 19 Usage of sports supplements.................................................................................................. 20 Usefulness & awareness concerning personal trainers ............................................................ 21 Exercise frequency and challenges in meeting physical goals ................................................ 23 Reasons for exercising ........................................................................................................... 24 Most important things in training ........................................................................................... 25 Exercising preferences; how, with whom and where .............................................................. 26 How much willing to pay for such personal training services ................................................. 29 Conclusion .................................................................................................................................... 30 Sources ......................................................................................................................................... 31 Appendices ................................................................................................................................... 32 Survey....................................................................................................................................... 32
  3. 3. HAAGA-HELIA Customer Behavior Study 3/34 Team F Hezha Muhammad 15.5.2008 Yulia Volkova Annika Austin Joni Lehto Introduction Business idea is offering personal training services to customers with different needs and health conditions. A personal trainer is a professional who educates people about physical fitness. Personal trainers are also referred to as quot;trainers,quot; but should not be confused with quot;athletic trainersquot;. Personal trainers typically design exercise routines and teach physical exercises to their clients. While some personal trainers work with only one client each session, others also teach groups of clients. Personal trainers typically work with clients to improve body composition (weight loss or muscle gain). They may also be hired for more specific goals, such as an increase in strength, muscular endurance, cardiovascular endurance, or flexibility. Some trainers are qualified to improve sports performance, including speed and power. While not as common, some trainers may also be qualified to work with people who need help with physical dysfunction, including the improvement of balance, range of motion, knee and shoulder issues, and those released from physical therapy. Personal trainers often also have a specific method of motivating clients. Common techniques for motivation include demeanor (some trainers have an aggressive and commanding demeanor; others are more calm and supportive; incentives for reaching goals; and positive re-framing or visualization. Understanding consumers on a deep level is significant in health and fitness industries. Therefore we need to analyze thoroughly fundamentals of our consumer behavior, describe buying process and identify different influences on their behavior. Main questions that we are going to take into consideration when studying our consumer are: who is important, how do consumers buy, what are their choice criteria, where do they buy and when do they buy (Jobber, 60). We are going to find answers to these questions through a survey, which is the most appropriate in this case, because there is not so much information about face-to-face and on-line personal training in Finland. Target Group Our consumers are people who buy personal training services and sports supplements as a tangible product for personal using. Target group consists of senior citizens (the biggest population group in Finland), young people, wealthy professional individuals, corporations, and average class people.
  4. 4. HAAGA-HELIA Customer Behavior Study 4/34 Team F Hezha Muhammad 15.5.2008 Yulia Volkova Annika Austin Joni Lehto According to Jobber (2001, 61) most of consumer purchases are individual, which means that a buyer makes decision to buy a product independently. Although decision-making can be done by certain group, where all members relate and influence each other. For instance, Engel, Blackwell and Miniard (2000) offer five roles, which can be taken by family members, work colleagues or other members of the buying center. 1. Initiator: the person who starts to think about purchase and gather information about personal training to help decision-making process. 2. Influencer: the person who is willing to make an effect on the outcome of decision-making. Also they present choice criteria. 3. Decider: the person who is in charge of making final decision about purchase of the product (most often it’s a customer who chooses needed fitness program , pays and uses it) 4. Buyer: the person who pays and influences delivery of the product (chooses the type of payment and as we have on-line service our customer doesn’t need to care about delivery, because he or she will just use the service through the internet). 5. User: the actual consumer who uses the product. However one person can take at the same time different roles. For example, he or she wants to look better by summer time and it motivates an individual to search for some options how to achieve this goal. After analyzing received information consumer chooses one of the programs we have, then makes a payment and finally uses it. So in this example consumer was initiator, decider, buyer and user at the same time. Decision-making process shows how consumer buys a product. According to Michael Solomon, Gary Bamossy and Soren Askegaard (2002) in this multipart process people first combine as much information as possible from what they already know about product, then analyze advantages and disadvantages of each alternative, and finally come up with a satisfactory decision. However Jobber (2001, 63) highlights that there is also final step of post-purchase evaluation of already made decision. But for the first step he offers to admit that there is a problem. For example, a person admits that he or she isn’t satisfied with condition of their body and that there is a need to start doing fitness. In addition, Blackwell, Miniard and Engel identify five steps which consumer can come through before purchase. These steps form consumer decision-making process.
  5. 5. HAAGA-HELIA Customer Behavior Study 5/34 Team F Hezha Muhammad 15.5.2008 Yulia Volkova Annika Austin Joni Lehto Need recognition/ problem awareness Information search Evaluation of alternatives Purchase Post-purchase evaluation of decision Figure 1. , The consumer decision-making process Blackwell R.D, Miniard P.W, Engel J.F (2000) However Jobber (2001, 63) points that need recognition can be influenced by two issues: the size of difference between present and desired situation and importance of a problem. That means, for example, an individual has an obesity problem, he or she looks at attractive bodies in adverts and surely starts to want to have the same one, but the significance of the problem can be very low in comparison with other purchase needs (holidays or studying). Therefore even when the difference is big, person may not step up on information search, because the importance of a problem is small. Although, it can be the other way round, when the discrepancy between current and most wanted situation is small (consumer doesn’t have any problems with overweight, for instance) then he or she isn’t much motivated to use our on-line personal training service. If need recognition is strong enough, consumer starts to look for alternative ways of problem solution (Jobber, 2001; Kotler, 2003). As Jobber (2001) and Kotler (2003) suggest the search can be internal and external.
  6. 6. HAAGA-HELIA Customer Behavior Study 6/34 Team F Hezha Muhammad 15.5.2008 Yulia Volkova Annika Austin Joni Lehto Firstly, consumer takes information from memory, in other words, appeals to internal source. Then, if there is still not enough information, external search begins. It falls into personal resources, such as family, friends, colleagues and commercial sources, for example advertisements. Information search There are two types of information search: Pre-purchase search, which a consumer may recognize a need and then search the market place for specific information and Ongoing search, which consumers enjoy to browse just for fun, or because they like to stay up-to-date on last news in the market place (Solomon, 2004). As Jobber (2001, 64) points out, the main purpose of information search is to build the awareness set. It means to make a list of possible options that may solve your problem. For example, it can look like this Face-to-face training On-line training Partner/group training In order to choose one option consumer should evaluate and compare alternatives, in other words step up the next stage of decision-making process. In this part consumer establishes criteria for evaluation, features the buyer wants or not. Also he/she ranks or weights alternatives or resumes the search. For instance person may decide to exercise with a wife/husband, so Partner/group training gets higher rank. Jobber (2001, 65) emphasizes that the first step in evaluation is to reduce the awareness set to a smaller list of options which deserves more serious consideration. The awareness set goes through different choice criteria to create an evoked set: short list of alternatives for careful evaluation. While assessing alternatives customer can use different choice criteria, such as price, reliability, popularity. In addition, Schiffman and Kanuk (2004, 559) state that customers while evaluating alternatives use two types of information: a “list” of brands (models) from which they make their selection (the evoked set) and the criteria they use to asses each brand or model. For example, a person, who aims to do some exercises for keeping fit and healthy, doesn’t know much about fitness programs, but he/she has 2-3 options, such as to go to gym, buy DVD to exercise at home and to take on-line course.
  7. 7. HAAGA-HELIA Customer Behavior Study 7/34 Team F Hezha Muhammad 15.5.2008 Yulia Volkova Annika Austin Joni Lehto Let’s suppose that of these, two were acceptable possibilities and one wasn’t. Solomon, Bamossy and Askegaard (2002) name alternatives that are under consideration but not to be bought as inept set, whereas the ones that are not under consideration at all involve inert set. The criteria consumers use to evaluate the alternative products in their evoked set usually depends on important product attributes (Schiffman 2004). Instances can be price, trustworthiness, availability, health issues and diversity of choices. However, the research described by Schiffman and Kanuk (2004) shows that most often consumers looking for one option that performs “right” and feels good, don’t pay most attention to price and brand popularity, vise versa their final choice reflects their personality characteristics or childhood experiences; and it’s often “love at first sight”. However, a key determinant of the extent to which consumers estimate a product is their level of involvement. According to Jobber (2001; 65) involvement is a level of personal importance and significance that goes with the product choice. Thus when a purchase is very involving, the customer is going to carry out very extensive evaluation. High involving purchases include those ones which are expensive, important and have some degree of risk. On the contrary, low involvement purchases consist of simple evaluations and fast decision making. For example, when customer has a need to have cardio work out, he/she will have a pretty long evaluation trial, as this is a serious health issue and needs to be assessed thoroughly. When the customer eventually should make a product choice from among of alternatives, a number of decision rules may be used. For instance, Solomon, Bamossy and Askegaard (2002; 262) point out that there are non-compensatory and compensatory rules. Non-compensatory rules eradicate alternatives that aren’t efficient on criteria the consumer has chosen to use, whereas compensatory rules, which usually are applied in high involvement situations, let decision-maker consider each alternative’s pluses and minuses to achieve the best choice. Purchase Schiffman and Kanuk (2004; 569) also add that there are three types of purchases: trial purchases, repeat purchases, long-term commitment purchases. In details, when a person buys a product for the first time and buys it in small quantity, this purchase is considered to be a trial. For example, in our on-line personal training web site we are going to have trial courses for just familiarizing customers with different programs.
  8. 8. HAAGA-HELIA Customer Behavior Study 8/34 Team F Hezha Muhammad 15.5.2008 Yulia Volkova Annika Austin Joni Lehto We think it’s a really effective way to conquer customer’s attention and loyalty. When a new type of product is found by trial to be better than other products, costumers are likely to repeat the purchase. Typically the repeat purchase confirms that the product has met costumer’s approval. In our case, it’s possible to buy different programs for different periods of time. If people like them, they will wait for new courses and use our service more and more that stimulates customer’s loyalty. In addition, long- term commitment purchases don’t fit our company because we don’t provide durable goods like refrigerators, cars or electric ranges. As our business operates on-line, we should research also how usage of the Internet affects consumer’s decision-making. According to Schiffman and Kanuk (2004; 565) it is often suggested that because consumers have limited information-processing capacity, they must develop a choice strategy based both on individual factors, such as knowledge, personality traits and contextual factors, like characteristics of the decision tasks. Also they stated that there are three contextual factors: task complexity, information organization and time constraint. That means in on-line environment the information is more available, there are more alternatives and more information regarding each alternative. Besides, information giving is more flexible and time is saved by using computers to apply decision rules. Finally there is post purchase evaluation of decision. It’s common for customers to feel not confident about their purchase; they doubt whether it was right to buy our service or whether they chose the best type of work out for them. This goes from the concept named “cognitive dissonance”. A customer having bought the product can feel that the other alternative would be better. In this case a customer won’t repurchase, but may change the kind of product or company at all next time. To make consumers feel right about their purchase is the target of marketers, who should make potential buyers think that the product will meet their expectations. After having done the purchase, customer should be also persuaded that he/she has done the right decision. For instance, it’s easy to do for on-line personal training company, where we can post in the web site pictures of people who already have used our service and achieved considerable results. This will encourage our customers to use the program they chose at most and with pleasure.
  9. 9. HAAGA-HELIA Customer Behavior Study 9/34 Team F Hezha Muhammad 15.5.2008 Yulia Volkova Annika Austin Joni Lehto Influencing factors Influencing factors in the consumer decision-making process and its outcome can be classified under three headings (Jobber and Lancaster 2003):  the buying situation  personal influences  social influences The buying situation Different kinds of buying situations are identified to be of three major types (Howard and Sheth 1969):  extensive problem-solving  limited problem-solving  automatic response Extensive problem-solving When customers are faced with a need that is new to them, requires expensive means to be satisfied or otherwise raises high uncertainty in the consumer's mind, the consumer is likely to use extensive problem- solving. Extensive problem-solving involves a high degree of information search and close examination of alternative solutions (Jobber and Lancaster 2003), exactly like finding the best price-quality service in the current fragmented field of health clubs (see Hill 2004). With buyers that are in dire need of information, for example about exercising and alternative personal trainers, the salesperson can create immense goodwill by providing information and assessing alternatives from the product range in terms of how well their benefits conform to the buyer's needs. The goodwill generated in such a situation may be rewarded by a repeat purchase when the buying situation changes to limited problem-solving. (See Jobber and Lancaster 2003.) Put in practical terms, being the first to be very helpful to a customer seeking information about the possibilities of personal training can attract highly loyal customers.
  10. 10. HAAGA-HELIA Customer Behavior Study 10/34 Team F Hezha Muhammad 15.5.2008 Yulia Volkova Annika Austin Joni Lehto Limited problem-solving Limited problem-solving occurs when the consumer has some experience with the product in question and may be inclined to stay loyal to the brand previously purchased. However, a certain amount of information search and evaluation of a few alternatives occurs as a rudimentary check that the right decision is being made. This provides a limited opportunity for salespeople of competing products to persuade consumers that they should switch service provider by providing relevant comparative information and for example by providing risk- reducing guarantees. (Ibid.) Automatic response Automatic response purchases happen when the customer feels certain that there is no pressing reason to conduct any information search before buying (Jobber and Lancaster 2003). In terms of personal training service this could mean a customer that has possibly tried out many of the alternative providers, but even if not, has his or her personal reasons to stay with a certain provider. For an internet personal training service, this means people who are limited on time, money or capabilities to travel to cities where competitors would be located, and feel that the level of service provided is both sufficient to their personal needs and is better or close enough to the level provided by competitors. The situation is of course changed when competitors would start entering the personal training cyberspace; from that point onwards being the first isn't enough and methods like advertising should be used to keep the brand in the forefront of the consumer's mind and reinforce favourable attitudes towards the company. Personal influences Personal influences concern the psychology of the individual consumers. Relevant concepts include personality, motivation, perception and learning. Although personality may explain differences consumer purchasing, reliable personality measurement has proved difficult, even for qualified psychologists. (Ibid.) Brand personality is the characterisation of brands as perceived by consumers.
  11. 11. HAAGA-HELIA Customer Behavior Study 11/34 Team F Hezha Muhammad 15.5.2008 Yulia Volkova Annika Austin Joni Lehto Brands may be characterised for example as 'for young people' (Levis) or 'intelligent' (Guinness). By creating a brand personality, a marketer may create appeal to people who value that characterisation. Research into brand personalities of beers showed that most consumers preferred the brand of beer that matched their own personality (Ackoff and Emsott 1975). Buzzotta et al. (1982) proposed a two-dimensional approach to understanding buyer psychology. They suggest that everyone tends to be warm or hostile and dominant or submissive, and salespeople benefit from adjusting their behaviour accordingly. Also as buyer motivations can vary, different kinds of sales or marketing efforts succeed in attracting different kind of customers. The real motives for purchase may be obscure, but when found, they can be used to increase buyer motivation by stimulating need recognition, by showing the ways in which needs can be fulfilled. These may be functional, for example, time saved by not having to travel to meet the personal trainer, or psychological, e.g. the status imparted by having a great-looking body. (See Jobber and Lancaster, 2003.) As consumers have different motivations to buy the same service, one consumer may perceive the same marketing efforts as being honest and appealing while another may not. In general, people tend to forget more quickly and to distort and to distort or avoid messages that substantially differ from their existing attitudes. Learning is also important in consumer decision-making. Learning refers to the changes in a person's behaviour as a result of his or her experiences. A consumer will learn which brand names imply quality and which salespeople to trust. Lifestyle Lifestyle refers to the patterns of living as expressed in a person's activities, interests and opinions. Lifestyle analysis, or psychographics, groups people according to their beliefs, activities, values and demographic characteristics such as education and income. There is a multitude of different psychographics for different purposes. For example, Research Bureau Ltd, a UK marketing research agency, investigated lifestyle patterns among housewives and found eight distinct groups.
  12. 12. HAAGA-HELIA Customer Behavior Study 12/34 Team F Hezha Muhammad 15.5.2008 Yulia Volkova Annika Austin Joni Lehto Lifestyle analysis has implications for marketing since lifestyles have been found to correlate with purchasing behaviour (Jobber and Lancaster 2003). A company may choose to target a particular lifestyle group with a product offering, and use advertising which is in line with the values and beliefs of this group. As information on readership/viewing habits of lifestyle groups becomes more widely known it affects the media selection used in conjunction with lifestyle research. Social influences According to Kotler and Armstrong (2006) and Jobber and Armstrong (2003) major social influences on consumer decision-making include social class, reference groups, culture and the family. Social class has been regarded as an important determinant of consumer behaviour for many years, but doesn't play such a role in Nordic countries like Finland, where the income levels are more evenly spread. The term 'reference group' is used to indicate a group of people that influences a person's attitude or behaviour. Where a product is conspicuous, for example, clothing or cars, the brand or model chosen may have been strongly influenced by what the buyer perceives as acceptable to his or her reference group (e.g. a group of friends, the family, or work colleagues). Reference group acceptability should not be confused with popularity. As personal training is a fragmented and not brand-oriented industry (see Hill and Jones 2004), acceptability by reference group carries a smaller influence there. However, it could still influence the decision whether to use a personal trainer in the first place. Culture refers to the traditions, taboos, values and basic attitudes of the whole society within which an individual lives (Jobber and Lancaster 2003). When marketing to a cultural group that matches one's own, the cultural aspects tend to be taken into accord automatically. When marketing to a group of different cultural background, more emphasis has to be put on the proper conduct of business. In Arab countries, for example, salespersons may find themselves conducting a sales presentation in the presence of a competitor's salesperson. In France chocolate is sometimes eaten between slices of bread. Family members can strongly influence buyer behaviour. The family is the most important consumer buying organization in society, and it has been researched extensively. (Kotler and Armstrong 2006.)
  13. 13. HAAGA-HELIA Customer Behavior Study 13/34 Team F Hezha Muhammad 15.5.2008 Yulia Volkova Annika Austin Joni Lehto The decision as to which product or brand to purchase my be a group decision, with each family member playing a distinct part: for example husband might choose the model for the new car, wife would choose the colour and children might have a strong say in what cereals to buy. When a purchase is a group decision, a salesperson will be wise to view the benefits of his or her service in terms of each of the decision-makers or influencers. (Ibid.) When advertising for a personal training service which aims to improve the overall health of all participants and even whole families, the advertisements should vary according to the media they are presented with: in Finland the TV channel Jim displays a lot of programs for fathers about for example home renovation, whereas many home and family magazines find their ways to the hands of mothers across the country. Survey A survey was needed in our group, because there is not a lot of previous/secondary information about personal training either from face- to-face or via internet personal training. Our survey consists of quantitative questions and close-ended questions. The advantage of using a survey is its flexibility and it yields a wide range of data (Jewell, pp. 207). Quantitative research is a scientific way of research, since the results may be mathematically calculated. The process of measurement is central to the quantitative research (Wikipedia, 2008). Close-ended questions are closely related to the quantitative questions, since they are easier to be measured scientifically. A closed-ended question is a question, which can be answered with a simple “yes or “no” dichotomous question (Jewell, pp. 209). The closed- ended question is a specific, simple piece of information. Example of quantitative/close-ended question: Is exercising a waste of time? -- Yes The survey will be available to be filled out and answered by any one within the Haaga-Helia building. Because of this we are using the non- probability sampling which means that individuals are selected on one or more criteria determined by the research (Jewell, pp. 210).
  14. 14. HAAGA-HELIA Customer Behavior Study 14/34 Team F Hezha Muhammad 15.5.2008 Yulia Volkova Annika Austin Joni Lehto Our criterion is the location where the survey will be filled out. In non- probability sampling it is not possible to state a sampling error (Ibid). Non-response bias needs to be taken into consideration as well. Not all of the people that we ask to answer our survey will have the interest or time to fill it out. If the people that refuse to answer our survey have the same characteristics as the people that do answer, the final results will be unbiased (Wikipedia, 2008). However, if the people have different opinions and lifestyle, there will be bias in the results. This will be needed to take ito consideration when analysing the results of the survey. Response bias is something that also affects our survey results and the analysis of them. The survey results may be distorted due to the fact that some answers given by respondents do not reflect their true beliefs and lifestyle (Wikipedia, 2008). Since our survey is about exercise and nutrition respondents may answer in an untruthful way. This may happen, because our respondents may want to exercise four times a week, but exercise only once a week and they answer accordingly to their desires instead of the truth. Therefore the respondents may answer the questions according to the lifestyle they would like to have, instead of answering what is fact. This needs to be taken into consideration when making conclusions of the survey results. Also we will try to have as many participants as possible, in order to have as reliable information as possible and this way there will be less room for misleading outcome. Ethical issues need to be taken into consideration when making a survey and having respondents answering the questions. First of all, no one will be forced to answer any of the questions. The respondents need to have the opportunity to answer anonymously and answers need to be confidential. Also the questions need to be simple and worded clearly, in order for the respondent to fully understand the questions. Most importantly the participants need to know why the survey is taking place and what the information they provide for us will be used for. This way they may refuse if they do not want to take part in our survey. Survey distribution and collection Survey was conducted mainly in the Haaga-Helia and SLK building and also using a online based survey (created by ourselves). We succeeded into getting 155 respond by paper and 18 respond through the online survey, so all together 173 responds.
  15. 15. HAAGA-HELIA Customer Behavior Study 15/34 Team F Hezha Muhammad 15.5.2008 Yulia Volkova Annika Austin Joni Lehto We feel that that this is enough to give us some kind of a direction concerning the needs of the target customers, since the business would concentrate first to provide the personal training services to Haaga-Helia and SLK student and staff. Survey questions and analysis Respondents satisfaction about their body This question was to indentify the satisfaction of the respondents about their own body. 53 % of the respondents said that they are very satisfied with their current physique, however almost a quarter (23 %) said they were not satisfied fully with their body. Combining this info along with results from question 4, we can see that 82 % of the respondents pay attention to their looks and only 4 % don’t pay attention to it, so this means that there are plenty of people who want to improve their looks but aren’t satisfied yet, which in turn gives us an opportunity to serve their needs. I’m totally satisfied w ith m y body Strongly Strongly disagree agree 3% 7% Disagree 20 % Agree 46 % Neutral 24 % Question 1
  16. 16. HAAGA-HELIA Customer Behavior Study 16/34 Team F Hezha Muhammad 15.5.2008 Yulia Volkova Annika Austin Joni Lehto Do respondents read sports/health magazines Question 2 was about knowing whether our respondents, who are also our target customers reading sport or health related magazines, we wanted to know this, because we would use that information for marketing of our services, but since the results showed that only 24 % agreed with reading sports or health related magazines, we can’t concentrate our marketing effort and budget for advertising through this marketing channel, since it wouldn’t be used effectively to reach our target customers. The fact that 76 % were either neutral or not reading these magazines, means that they are way too busy to consume their time in doing that. I read sports/health related m agazines Strongly Strongly agree disagree 8% 23 % Agree 16 % Disagree 25 % Neutral 28 % Question 2 Eating healthy Knowing whether or not our respondents pay attention to their eating habits and what they consume and it seems that they are very aware of healthy eating, because 70% of respondents answered that they try to eat healthy which totally correlates with results received from question 1 and 4.
  17. 17. HAAGA-HELIA Customer Behavior Study 17/34 Team F Hezha Muhammad 15.5.2008 Yulia Volkova Annika Austin Joni Lehto I try to eat healthy Strongly disagree 2% Strongly Disagree agree 6% 22 % Neutral 22 % Agree 48 % Question 3 Paying attention to looks As mentioned in relation with question 1, question 4 was about the amount of respondents who pay attention to their looks and majority pay a lot of attention to their looks, proven by 82 % of the respondents claiming so in the survey.
  18. 18. HAAGA-HELIA Customer Behavior Study 18/34 Team F Hezha Muhammad 15.5.2008 Yulia Volkova Annika Austin Joni Lehto I pay attention to m y looks Strongly disagree 2% Disagree Strongly 2% agree Neutral 18 % 14 % Agree 64 % Question 4 Do our respondents like exercising Our survey respondents say they like exercising, 72 % claims to like exercising which is a positive, because there is willingness to exercise due to the reasons identified in the previous questions, only 11 % said they don’t like exercising at all.
  19. 19. HAAGA-HELIA Customer Behavior Study 19/34 Team F Hezha Muhammad 15.5.2008 Yulia Volkova Annika Austin Joni Lehto I like exercising Strongly disagree 2% Disagree 9% Strongly agree Neutral 31 % 17 % Agree 41 % Question 5 Receiving exercising information through the internet It seems that our respondents are open to receiving their exercising information through the internet, since 33 % of the respondents said they currently get their exercising information primary from the internet and also it’s possible that the 26 % who were neutral about the question, would be open to persuasion. This is encouraging because the web-based health services and personal training services are almost non-existent in Finland, so this gives hope for possible importation of the service model to the Finnish society.
  20. 20. HAAGA-HELIA Customer Behavior Study 20/34 Team F Hezha Muhammad 15.5.2008 Yulia Volkova Annika Austin Joni Lehto I use the internet as m y prim ary source for exercising inform ation Strongly Strongly disagree agree 10 % 10 % Agree 23 % Disagree 31 % Neutral 26 % Question 6 Usage of sports supplements This is a valuable piece of information retrieved from this question in the survey, since it clearly tells us that the target customers of ours are not using sports supplements (74%) strongly disagreed or disagreed when asked whether using sports supplements or not, so this tell us that the willingness to give sports supplements a try is limited, hence we might even opt to eliminating sports supplements from our offering even before starting the business, since only 11 % are using sports supplements currently.
  21. 21. HAAGA-HELIA Customer Behavior Study 21/34 Team F Hezha Muhammad 15.5.2008 Yulia Volkova Annika Austin Joni Lehto I use sports supplem ents (vitam ins, protein, fat burner etc.) Strongly agree 1% Agree 10 % Neutral Strongly 15 % disagree 44 % Disagree 30 % Question 7 Usefulness & awareness concerning personal trainers A personal trainer is very useful and helpful in achieving one’s physical goals? Strongly disagree 5% Strongly agree Disagree 17 % 5% Neutral 30 % Agree 43 % Question 8
  22. 22. HAAGA-HELIA Customer Behavior Study 22/34 Team F Hezha Muhammad 15.5.2008 Yulia Volkova Annika Austin Joni Lehto These two questions were to indentify the perception of consumers towards personal trainer’s and how much they know about the duties of a personal trainer, it was encouraging to see that 60% of the respondents thought that a personal trainer was very useful and only 10% deemed personal trainer not useful, while 30% being neutral, which explains also from the next question that 32% felt neutral about the knowledge about personal trainers, we feel this 30-32 % is untapped, which are open to new suggestions as long as they are aware of the personal trainer’s duties and benefits. Almost half (46%) of the respondents felt that they are well aware of the job descriptions of a personal trainer and looking further into our survey, we found that those who saw personal trainer’s useful, they also said that they were aware of the duties of personal trainer, so increasing awareness is very important for a profitable and growing business. I’m w ell aw are of the job description of Personal trainers Strongly Strongly disagree agree 4% 10 % Disagree 18 % Agree 36 % Neutral 32 % Question 9
  23. 23. HAAGA-HELIA Customer Behavior Study 23/34 Team F Hezha Muhammad 15.5.2008 Yulia Volkova Annika Austin Joni Lehto Exercise frequency and challenges in meeting physical goals We wanted to know the frequency in respondents training and it became clear that 59% of the respondents workout at least 2 times a week, actually 17% even works out 3 or more times per week, which is encouraging since that means that our target customers do exercise and going back to question 5, they also like exercising. 27% said they exercise occasionally or rarely, so this group of people we need to encourage more by increasing their awareness about health benefits and improved working ability with a health body. How often do you exercise w eekly Rarely or never More than 3 6% times 17 % Occasionall y 21 % Once a w eek 14 % 2-3 times 42 % Question 9 As you can see from the next question that we wanted to know what are the biggest challenges in achieving their physical goals were lack of motivation and lack of time for exercising, this is excellent for our company because we can separate ourselves from other personal trainer’s by providing the fastest and energetic workouts possible and this is made possible by the respondents telling us that limited knowledge was the smallest of the challenges.
  24. 24. HAAGA-HELIA Customer Behavior Study 24/34 Team F Hezha Muhammad 15.5.2008 Yulia Volkova Annika Austin Joni Lehto Meaning our target customers know about training basics and don’t need constant hand holding, so we can provide this to them through our interactive personal training website. Biggest challenges for achieving physical goals 258 244 217 Lack of motivation Rating scale Limited know ledge 127 Lack of patience for results Lack of time for exercising Question 12 Reasons for exercising In here we wanted to know the reasons for them exercising and we found that 21% did it to lose excess fat, 41% did it for improving their overall health, 22% did it for a more attractive body and only 12% did it for pure muscle gain. We can see that these are not a group of people that want excess muscle mass; they want to look lean, attractive and be healthy. This is important for example in the case of website design; we shouldn’t design the website to be too competitive looking, filled with muscles and huge bodybuilders. We should concentrate on convening the message of health, beauty and energy with their corresponding colours and themes.
  25. 25. HAAGA-HELIA Customer Behavior Study 25/34 Team F Hezha Muhammad 15.5.2008 Yulia Volkova Annika Austin Joni Lehto Reasons for exercising Other Muscle gain More 4% 12 % attractive body 22 % Fat loss 21 % Improving overall 41 % Question 10 Most important things in training This question didn’t really help us, since the only thing that stood out from this is that the most important thing for the respondents was that the exercise that they do is effective. Other answering options got pretty much the same amount of points.
  26. 26. HAAGA-HELIA Customer Behavior Study 26/34 Team F Hezha Muhammad 15.5.2008 Yulia Volkova Annika Austin Joni Lehto Which things are the m ost im portant to you in training 254 Time saving 168 Rating scale 160 161 157 Effective Individualized program Healthy nutrition Affordability Question 13 Exercising preferences; how, with whom and where These three question responses had to be put together since, they are connected, more so than the other questions. First it was surprising to find out that only 26% wanted to exercise alone and 70% wanted to workout either with a partner or in a group. Also their preferred ways of exercising was 34% running/jogging and 36% had other things preferred, such as team sports, group weight lifting etc. Only 16% chose strictly weight lifting.
  27. 27. HAAGA-HELIA Customer Behavior Study 27/34 Team F Hezha Muhammad 15.5.2008 Yulia Volkova Annika Austin Joni Lehto Which do you prefer m ore? To not exercise at all ; 4 % Exercising alone; 26 % Training in a group ; 34 % Training w ith a partner ; 36 % Question 14 Also 55 % wanted to workout outdoors and 28% indoors or in a health club/gym. There were some people who wanted to workout at home (15%). So to the majority of the respondents we need to come up with a service that is able to combine their need to be with others while training and have something other than just weight lifting also. For this we need to be present ourselves while conducting the classes or sessions, but then again we simply charge more for those services, without eliminating a possible target group.
  28. 28. HAAGA-HELIA Customer Behavior Study 28/34 Team F Hezha Muhammad 15.5.2008 Yulia Volkova Annika Austin Joni Lehto If you could decide, w here w ould you exercise? Other Health Home 2% center(indo 15 % or) 28 % Outdoors 55 % Question 16 Preferred w ays of exercising Weight lifting 16 % Other 36 % Aerobics 14 % Running/Jo gging 34 % Question 17
  29. 29. HAAGA-HELIA Customer Behavior Study 29/34 Team F Hezha Muhammad 15.5.2008 Yulia Volkova Annika Austin Joni Lehto How much willing to pay for such personal training services Last but not least, was to find out how much are our respondents willing to pay for our services through the internet. 45% weren’t willing to pay for personal training services through the internet 36% were willing to pay less than 100 €/month for such services 2% were willing to pay 100-200 €/month 6% said price not an issue, if quality is good 11% said other, such as 10€, 20€, 40€, 80€ a month How m uch are you w illing to pay for the services of a personal trainer through the internet Other 11 % Price not an issue, quality is w hat matters 6% 100-200€ Not w illing 2% to pay 45 % Less than 100€ 36 % The response was not great, but good since there are people willing to try such services although it’s almost non-existent in Finland, specially the internet based service. So again increasing personal training services and job description awareness is going to benefit us in the future and keep bringing us people, that might have been unaware or prejudice about our services.
  30. 30. HAAGA-HELIA Customer Behavior Study 30/34 Team F Hezha Muhammad 15.5.2008 Yulia Volkova Annika Austin Joni Lehto Conclusion We found this study very useful, since at least some of our group members will be making an actual business based on these findings. The survey gave us a lot of insight about our target customer training preference, frequency and willingness to use personal training services. The survey was so useful, that without that some mistakes would have been made in the business that now will not be done, thanks to the survey results. Consumer behaviour is very important to know, no matter which line of business you are in or entering into. Customer knows best and we have to cater to their needs and demands. Survey conclusion is that our target customers: Majority workout 2 or more times per week > active people Students > so they don’t have much time, workouts need to be effective, fun and short Students have low income levels, hence they are not able to pay high amount for personal training services, but more than half are willing to pay as long as it’s less than 100€ per month They want group and pair workout sessions, so we have to design such service products for those people They are not looking to be a bodybuilder. They are mainly concentrating on being fit, healthy and having fun while training. Overall the customer behaviour report along with the theory and survey results will give a much better ground for success if one chooses to enter the personal training market and an interactive web-based one with using the information retrieved in this study.
  31. 31. HAAGA-HELIA Customer Behavior Study 31(34) Team F Annika Austin 23.5.2009 Joni Lehto Hezha Muhammad Yulia Volkova Sources Constantinides, Efthymios (2004), “Influencing the online consumer’s behavior: the Web experience”, vol.14 No 2, pp. 111- 126 Jewell, Bruce R. 2000. An Integrated Approach to Business Studies. Fourth Edition. Harlow: Addison Wesley Longman Limited. Jobber, David 2001. Principles and Practice of Marketing. Third edition. London: McGraw-Hill. Kotler, P. (2003), Marketing Management, 11th ed., Prentice-Hall International editions, Englewood Cliffs, NJ. Leon Schiffman G., Lazar Kanuk L. (2004), Consumer Behavior: International Edition (8th Ed.), Pearson Prentice Hall. Media College. Open-ended Questions. http://www.mediacollege.com/journalism/interviews/open-ended- questions.html. Visited 18.04.2008. Solomon, M. (2004). Consumer Behavior: Buying, Having and, Being (6 th Ed.), FT Prentice-Hall Upper Saddle River, NJ Solomon, M., Bamossy G., Askegaard S. (2002). Consumer Behavior: A European Perspective (2nd Ed.), FT Prentice-Hall Upper Saddle River. Wikipedia 2008. Opinion-poll. http://en.wikipedia.org/wiki/Opinion_poll. Visited 18.04.2008. Wikipedia 2008. Qualitative Methods. http://en.wikipedia.org/wiki/Qualitative_methods. Visited 18.04.2008 Wikipedia 2008. Quantitative Methods. http://en.wikipedia.org/wiki/Quantitative_research. Visited 18.04.2008 www.udel.edu/alex/chapt6.html, visited 21.04.08 http://tutor2u.net/business/marketing/buying_decision_process.asp, visited 09.05.08
  32. 32. HAAGA-HELIA Customer Behavior Study 32(34) Team F Annika Austin 23.5.2009 Joni Lehto Hezha Muhammad Yulia Volkova Appendices Survey We are conducting this survey to find out your exercise habits and preferences in order to create a new innovative, effective and affordable training method for everyone, especially students. Please take the time to fill out the questions below and remember to put your name and e-mail in the end to participate in our wonderful FREE PERSONAL TRAINING PACKAGE-RAFFLE. Strongly Agree Neutral Disagree Strongly agree disagree I’m totally satisfied with my body I read sports/health related magazines I try to eat healthy I pay attention to my looks I like exercising I use the internet as my primary source for exercising information I use sports supplements (vitamins, protein, fat burner etc.) A personal trainer is very useful and helpful in achieving one’s physical goals? I’m well aware of the job description of Personal trainers How often do you exercise? More than 3 times/week 2-3 times/week Once a week Occasionally Rarely or never What are your preferred ways of exercising? Weight lifting
  33. 33. HAAGA-HELIA Customer Behavior Study 33(34) Team F Annika Austin 23.5.2009 Joni Lehto Hezha Muhammad Yulia Volkova (can choose more than one option) Aerobics Running/Jogging Other, specify If you could decide, where would you exercise? Health center (indoor) Outdoors Home Other, specify Your goals for exercising? Muscle gain (choose 1-2 most important ones) Fat loss Improving overall health More attractive body Other, specify What are the biggest challenges for reaching Lack of motivation your physical goals? Limited knowledge (Rate the most important as 1 and the least Lack of patience for results important as 4) Lack of time for exercising Other, specify What things are the most important to you in Time saving training? Effective (Rate the most important as 1 and the least Individualized program important as 5) Healthy nutrition Affordability Most preferred ways of communication with a Internet (website, e-mail, chat) personal trainer? Face-to-face Other, specify Which do you prefer more? Exercising alone Training with a partner Training in a group Don’t exercise at all
  34. 34. HAAGA-HELIA Customer Behavior Study 34(34) Team F Annika Austin 23.5.2009 Joni Lehto Hezha Muhammad Yulia Volkova How much are you willing to pay for the services Not willing to pay for such services of a personal trainer through the internet? Less than 100 €/month 100 – 200 €/month Price is not an issue, only quality of the service matters Other, specify If you would like to participate in a raffle with the possibility of winning a 4 week training package with a personal trainer for free, please take the time to fill out the following: Name: Age: E-mail:

×