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Case Study of Victoria’s Secret
From a Male Customer’s Standpoint
FIRST THING I NOTICE ABOUT THE STORE
FIRST THING I NOTICE ABOUT THE STORE
 Decoration:
Unlike most of the Victoria’s Secret around the
States, the one I went to in my local mall is rather
small and under-decorated.
             Decorated                   Under-decorated
FIRST THING I NOTICE ABOUT THE STORE
   I see that given limited budget, the store chooses
    posters over mannequins with actual products.

   Possible reasoning:

Victoria’s Secret (VS) sells a DREAM that the
company depicts for the customers. As a result, it is
easier for VS to convey the message through well
designed posters than mannequins with products.
FIRST THING I NOTICE ABOUT THE STORE
  However…
If a given store has enough budgets for store display,
mannequins are used for customers to visualize how
a product would look on an actual human body.
FIRST THING I NOTICE ABOUT THE STORE
   This discovery brings me to the next point…

                Decision Making Process
FIRST THING I NOTICE ABOUT THE STORE
   According to the Decision Making Process chart,
    “Need Recognition” is the starting point of a
    purchase cycle – In this case, VS creates a “dream”
    and customers who buy the story feel they “need”
    the product to fulfill the “dream”

   Then customers will move to the second stage –
    “Information Search”, which includes how the
    products would look on real people

   As a result, I believe the posters boosts “Need
    Recognition” and mannequins facilitate “Information
    Search”
BIGGEST SURPRISE!




Where’s the price tag?
BIGGEST SURPRISE!

           Where’s the price tag?

From the standpoint of information distribution
efficiency, it is better to reduce the hurdles for
customers to find out the pricing information, so
customers can gather product information as quickly
as possible.

As a result, at first I thought VS was wrong for NOT
showing prices clearly in the store.
BIGGEST SURPRISE!



However…


Instead of making the prices easily visible, VS hides
the price tags under products, so customers would
need to actually touch the products to find out about
the prices!
BIGGEST SURPRISE!
Possible implications…
By hiding the price tags:
1) VS encourages customers to touch and feel the
   products, which forms stronger connection
   between customers and products
2) Potentially increases the perceived value of the
   products due to the quality fabrics that customers
   can feel in their hands
3) Creating an opportunity for salespeople to
   approach potential buyers and further sell the
   products
CONCLUSION…
VICTORIA IS SMART!
DISCUSSION
   What are the pros and cons of hiding prices?

   What sectors of retail industry utilizes similar price-
    displaying strategy? Think: Luxury vs. Discount
    Stores

   What are other strategies VS uses to strengthen
    Decision Making Process?
THANKS FOR WATCHING 
Assignment 2

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Assignment 2

  • 1. Case Study of Victoria’s Secret From a Male Customer’s Standpoint
  • 2. FIRST THING I NOTICE ABOUT THE STORE
  • 3. FIRST THING I NOTICE ABOUT THE STORE  Decoration: Unlike most of the Victoria’s Secret around the States, the one I went to in my local mall is rather small and under-decorated. Decorated Under-decorated
  • 4. FIRST THING I NOTICE ABOUT THE STORE  I see that given limited budget, the store chooses posters over mannequins with actual products.  Possible reasoning: Victoria’s Secret (VS) sells a DREAM that the company depicts for the customers. As a result, it is easier for VS to convey the message through well designed posters than mannequins with products.
  • 5. FIRST THING I NOTICE ABOUT THE STORE  However… If a given store has enough budgets for store display, mannequins are used for customers to visualize how a product would look on an actual human body.
  • 6. FIRST THING I NOTICE ABOUT THE STORE  This discovery brings me to the next point… Decision Making Process
  • 7. FIRST THING I NOTICE ABOUT THE STORE  According to the Decision Making Process chart, “Need Recognition” is the starting point of a purchase cycle – In this case, VS creates a “dream” and customers who buy the story feel they “need” the product to fulfill the “dream”  Then customers will move to the second stage – “Information Search”, which includes how the products would look on real people  As a result, I believe the posters boosts “Need Recognition” and mannequins facilitate “Information Search”
  • 9. BIGGEST SURPRISE! Where’s the price tag? From the standpoint of information distribution efficiency, it is better to reduce the hurdles for customers to find out the pricing information, so customers can gather product information as quickly as possible. As a result, at first I thought VS was wrong for NOT showing prices clearly in the store.
  • 10. BIGGEST SURPRISE! However… Instead of making the prices easily visible, VS hides the price tags under products, so customers would need to actually touch the products to find out about the prices!
  • 11. BIGGEST SURPRISE! Possible implications… By hiding the price tags: 1) VS encourages customers to touch and feel the products, which forms stronger connection between customers and products 2) Potentially increases the perceived value of the products due to the quality fabrics that customers can feel in their hands 3) Creating an opportunity for salespeople to approach potential buyers and further sell the products
  • 14. DISCUSSION  What are the pros and cons of hiding prices?  What sectors of retail industry utilizes similar price- displaying strategy? Think: Luxury vs. Discount Stores  What are other strategies VS uses to strengthen Decision Making Process?