Tiffany and Co. Consumer Behaviour
Consumer behaviour | Tiffany and Co. | Case Preparation | |
09/26/2012 |
Quality Perceptual Map
Exclusivity Perceptual Map
The Fine Jewelry Market Defined
“The consumers in the fine jewellery market segment are quality conscious individuals who appreciate and understand the prestige and pride of ownership when purchases are made in such companies and markets.”
Product Category Tiffany and Co. is a fine jewelry company that was established in 1837 in New York City (Tiffany and Co., 2012). In 1886, Tiffany and Co. created their first engagement ring, which has since become one of their most successful product lines (Tiffany and Co., 2012). Since then Tiffany and Co. has expanded their product lines to include jewelry, sunglasses, handbags, leather goods and house wears. They have established themselves to be an iconic luxury brand that competes in the fine jewelry category, as well as the category of engagement rings.
Category Engagement There are numerous reasons for a consumer to be driven to purchase an item at Tiffany’s. Drive is defined as the desire to satisfy a biological need to reduce physiological desire (Solomon, Zaichkowsky, & Polegato, 2011). However, expectancy theory explains that cognitive factors can drive behaviour as well, and consumers are driven to purchase items because of what they expect to gain. People who purchase Tiffany’s do it for cognitive reasons; either because they feel like owning a fine piece of jewelry from a prestigious brand like Tiffany’s as a status symbol, or for the purchase of engagement rings, to symbolize their love and commitment.
Tiffany & Co. Direct Competitors * Birks * Blue Nile * Cartier * Harry Winston * De Beers
Tiffany & Co. Indirect Competitors * Wal-Mart * Spence * Zales * The Bay * Sears * Peoples * Mappins
Industry Customers
Fine Jewelry customers are those with a higher disposable income than average who
09/26/2012 |
Quality Perceptual Map
Exclusivity Perceptual Map
The Fine Jewelry Market Defined
“The consumers in the fine jewellery market segment are quality conscious individuals who appreciate and understand the prestige and pride of ownership when purchases are made in such companies and markets.”
Product Category Tiffany and Co. is a fine jewelry company that was established in 1837 in New York City (Tiffany and Co., 2012). In 1886, Tiffany and Co. created their first engagement ring, which has since become one of their most successful product lines (Tiffany and Co., 2012). Since then Tiffany and Co. has expanded their product lines to include jewelry, sunglasses, handbags, leather goods and house wears. They have established themselves to be an iconic luxury brand that competes in the fine jewelry category, as well as the category of engagement rings.
Category Engagement There are numerous reasons for a consumer to be driven to purchase an item at Tiffany’s. Drive is defined as the desire to satisfy a biological need to reduce physiological desire (Solomon, Zaichkowsky, & Polegato, 2011). However, expectancy theory explains that cognitive factors can drive behaviour as well, and consumers are driven to purchase items because of what they expect to gain. People who purchase Tiffany’s do it for cognitive reasons; either because they feel like owning a fine piece of jewelry from a prestigious brand like Tiffany’s as a status symbol, or for the purchase of engagement rings, to symbolize their love and commitment.
Tiffany & Co. Direct Competitors * Birks * Blue Nile * Cartier * Harry Winston * De Beers
Tiffany & Co. Indirect Competitors * Wal-Mart * Spence * Zales * The Bay * Sears * Peoples * Mappins
Industry Customers
Fine Jewelry customers are those with a higher disposable income than average who
References: Solomon, M. R., Zaichkowsky, J., & Polegato, R. (2011). Consumer Behaviour. Toronto: Pearson Canada. Tiffany and Co. (2012). The Tiffany Story. Retrieved September 22, 2012, from Tiffany and Co.: http://www.tiffany.ca/About/TheTiffanyStory/default.aspx#p+1-n+6-cg+-c+-s+-r+-t+-ri+-ni+1-x+-pu+-f+/5/0/13 "Retail Jewelry Market Analysis." AIJV Science, Narrative. "Forbes Earnings Preview: Tiffany & Co." Forbes. Forbes Magazine, 15 Mar. 2012. Web. 20 Sept. 2012. <http://www.forbes.com/sites/narrativescience/2012/03/15/forbes-earnings-preview-tiffany-co/%20>. "Tiffany & Co." TIF: Top Competitors and Peers. Morning Star, n.d. Web. 20 Sept. 2012. <http://financials.morningstar.com/competitors/industry-peer.action?t=TIF>. "Tiffany & Co.: Profits Wrapped in a Blue Box." Tiffany & Co. Seeking Alpha, n.d. Web. 20 Sept. 2012. <http://seekingalpha.com/article/45007-tiffany-co-profits-wrapped-in-a-blue-box>. "Engagement Rings, Diamonds, Wedding Rings and Fine Jewelry at Blue Nile." Blue Nile, n.d. Web. 20 Sept. 2012. <http://www.bluenile.com/>. "Cartier." CARTIER. N.p., n.d. Web. 20 Sept. 2012. <http://www.cartier.com/>. "Harry Winston." Harry Winston N.p., n.d. Web. 20 Sept. 2012. <http://www.harrywinston.com/>. "De Beers." De Beers. N.p., n.d. Web. 20 Sept. 2012. <http://www.debeers.com/>. "Birks." Birks. N.p., n.d. Web. 20 Sept. 2012. <http://www.birks.com/>.