Market Segmentation of Lounge Suites in Malaysia Sample Essay

This study is aimed at developing a market cleavage that profiles different groups of consumers for sofa suites which are normally known as couch in Malaysia. Sofas come in a assortment of manners and can be made of cloth or leather. Furthermore. there are legion types of cloths and forms that lounge suites can be designed in. Some sofa suites can besides be multi-purpose and dual as a bed. This essay will be covering the profiling of market sections. designation of a primary mark audience and influences on consumer determination devising.

Consumer Analysis
A sofa suite could carry through the demand of finishing one’s place as an object to sit on in the life infinite and so is classified as an acquired demand and can travel on to carry through one’s societal. self-importance and self-actualisation demands ( Maslow. 1943 ) . There are certain influences that determine a consumer’s determination to buy. These influences include internal influences like income and their degree of engagement. and external influences like household. societal category every bit good as civilization and subculture ( Shiffman. et Al. . 2011 ; Wind. 1978 ) .

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Demographics – Income

Cicarelli ( 1974 ) found that people’s ingestion increased with their income. The sum of money consumers are willing to pay for a peculiar merchandise depends mostly on their household income. The more flush would be able to purchase couchs that satisfy their caprices and fancy whereas a lower-income individual will hold to take a couch that does non transcend his or her budget. However. it was found that the lower income group did non mind paying for an expensive point every bit long as they can pay in episodes ( Liebermann and Silber. 1993 ) . Many furniture retail merchants pattern this maneuver in order to let lower income groups to buy expensive furniture. The smaller sum that they are required to pay each month allows them to buy points that they otherwise will non be able to afford. Although these episodes would add up to a monetary value beyond their agencies. philistinism blinds them and lures them to buy ( Ponchio and Aranha. 2008 ) .

The procurance of a sofa suite would necessitate high engagement from the consumer due to the cost and self-importance demands involved. Lounge suites are one of the most of import investings made when buying home furniture because this is where household and friends gather to bask each other’s company. Furthermore. the proprietor of the sofa suite is judged based on his or her pick of sofa suite. The cloth and manner of the sofa suite indicates the owner’s gustatory sensation. individualism and even wealth ( Eger. 2006 ) .

Family life-cycle
Harmonizing to Corfman ( 1991 ) . many determinations made by a household are the contemplation of the influence of more than one member of the household. Families act as the most of import mention group consumers look up to. Schiffman. O’Cass. Paladino. D’Alessandro. and Bednall ( 2011 ) . a mention group is a individual or group that is used as the point of mention in organizing the values. attitudes or behavior of an person. An person is able to better place with household members than foreigners. hence act uponing an individuaal’s ingestion behavior ( Childers and Rao. 1992 ) . Besides that. the household life rhythm besides greatly influences a consumer’s purchase of a couch set. Harmonizing to Beatty and Talpade ( 1994 ) adolescents have really small influence on the determination to buy sofa suites because of their sensed deficiency of cognition of furniture unlike electronic equipment where they become really influential. On the other manus. individual working grownups are less influenced by their household because they are financially independent. Furthermore they normally require a sofa suite for their ain abode and might happen the picks of their older household members to be antique.

Social Class
Social category is defined as the division of members of a society into a hierarchy of different categories where members of each category have either higher or lower position than the other members of different categories ( Schiffman and Kanuk. 2007 ) . In 1970. Slocum and Mathews measured societal category as a combination of income. instruction. business and wealth. Miric and Culine ( 2006 ) explained that societal category better explained buying wonts and behavior with merchandises related to life styles like life room furniture. imported spirits and fittingness preparation or gym rank. when compared to income. Income and societal category are frequently interrelated because one of the variables that determines societal category is income ( Calder. Phillips. and Tybout. 1981 ) . .

Culture and Subculture
Harmonizing to Schiffman ( 2011 ) . civilization comprises of the erudite beliefs. values and imposts that regulate the consumer behavior of a society. Malaysians are frequently thought to hold low ethnocentrism but Hashim and Razak found that 80 % of Malaysians really displayed high ethnocentrism. but this does non halt the imported furniture market from booming. Malaysia being a multi-cultural state has four chief subcultures viz. . the Malays. Chinese. Indians and Orang Asli. Most races would buy new sofa suites merely before a gay season. This is one ground why. even furniture is on sale during gay seasons like Hari Raya Puasa and Chinese New Year.

Furthermore. Malaysia as many other states is divided by the ‘youth culture’ and the ‘older culture’ . The ‘youth culture’ have rather distinguishable values and buying features from the older coevals. The younger civilization is more unfastened to new thoughts and constructs whereas the older coevals is extremely dogmatic ( Schiffman. et. Al. 2011 ) .

Market Cleavage

The market for sofa suites were divided into four groups i. e. Single & A ; Available. Just Married. Happy Family and Oldies. The followers is the features of each group.

Table 1: Market Cleavage for the purchase of sofa suites | Single & A ; Available | Just Married| Happy Family| Oldies | Demographic/ psychographicFamily life rhythm Lifestyle | Young singleVisible achievement| Young married twosome without childrenSomething better| Married twosome with childrenBasic demands. conventional household life| Empty squatter ( s ) Fairer deal| Geodemographics IncomeAgeOccupationLocation Residence | Below RM400021-27Young /junior executiveCityRented / ain flat | RM4000- 600028-32Senior executiveCityApartment/ house| Above RM600033-55Professionals/ higher managerial positionSuburban country. non excessively far from workSpacious house for kids to run around | Nil/ Pension / Not constant56-70Retired / freelancer consultantSuburban / countrysideComfortable little house| Benefits soughtUsage rate| Social credence. looks smart and voguish Light | Prestige. economic system. sofa suite that accommodates at least 4-5 friends/relativesMedium| Long-lasting. child-proof. easy to cleanHeavy | Value for money. long-lasting. comfortableHeavy | PsychologicalPersonalityInvolvement| Open to new ideasModerate | Go-getter. enjoys finer things in lifeModerate | Want the best for childrenHigh | Dogmatic. prefers everyday life Moderate | SocioculturalCultureSubcultureSocial class| MalaysianMalay. Chinese. IndianLower. center. upper| | | |

Single and Available
The Single and Availables ( S & A ; A ) are immature individual consumers between the ages of 21 and 27 and unrecorded in the metropolis. They have merely joined the work force and wish they were still in college or school. The S & A ; A is a junior executive and earns under RM4000. They are high winners. are impatient and expression for societal credence. They might hold bought or are leasing an flat. If they have bought the flat they are populating in. this is most likely their first belongings. They want everything they buy to reflect their personality and societal standing. and this would include the furniture in their flat. They want a sofa suite that looks smart. alone and voguish.

Contrary to popular belief that Malaysians exhibit low ethnocentrism. Hashim and Razak ( 2004 ) researched the impact of globalization on the hereafter of domestic merchandises and found that 80 % of Malaysians display high ethnocentrism. And so the S & A ; A people are portion of the 20 % of Malaysians who display a low sense of ethnocentrism. However. their wage does non let them to buy expensive and imported sofa suites. They are considered to be light users with moderate engagement and are unfastened to new things.

Merely Married
The Just Married people are honeymooners without kids. This group of people are either traveling in to the same abode for the first clip or are already populating together and might necessitate new furniture. Furthermore. if one partner is traveling in to the other’s abode. the one moving in would decidedly desire to do some alterations to their house. particularly if it is the married woman who is traveling in to her husband’s house ( . The Just marrieds are between the ages of 28-32 and earn about RM4000- RM6000. They hold the place of senior executives in their administrations and live in either an flat or house in the metropolis. They are whizz-kids and bask finer things in life because their income allows them to make so as they do non hold heavy fiscal duties. Now that they are married. they can anticipate relations and friends from both sides to see and so necessitate a sofa suite that is comfy and broad plenty to suit at least four or five friends or relations at any one clip. However. their usage rate is medium because they will be busy working during weekdays and visitants are normally expected on some weekends.

Happy Family

The Happy Family are married twosomes with kids. Their age ranges from 33 right up to 55. Both hubby and married woman may be working or merely the hubby works and the married woman is a place shaper. The husband’s salary alone would be at least RM6000 and he is a professional or holds a higher managerial place. They live in a suburban country. non excessively far from the husband’s workplace. Their house is broad plenty for the kids to run about and play. The Happy Family needs a sofa suite that is comfy and child-proof because they may hold small kids. They are heavy users of sofa suites because this is where the household spends a batch of clip together. They may be watching telecasting or playing games.

They need a couch set that is lasting and lasts long. The sofa suite must sooner be easy to clean because kids from yearlings to adolescents are capable of spills and musss. Now that they have kids. they need to salvage for the hereafter of the kids and want to give their chidren the best of everything. The Happy Family would most likely use their couch set for at least 4 old ages. but normally they keep the same sofa suite for a much longer period of clip ( Lihra and Garf. 2007 ) .


Oldies are empty squatters in the aureate age of 56 to seventy old ages of age. They are either retired or are freelance advisers. Their beginning of income is non what it used to be. They could be having a pension or their income is non changeless or they could hold no beginning of income at all. Some of these Oldies might be depending on their kids to give them some money each month. They live in a suburban country or the countryside. They live in a comfy house that is non excessively large. They do non necessitate a immense house at this age because their kids have all moved out and visit sometimes.

Oldies are average users of sofa suites because they do non hold much to make around the house or may non be able to travel about much. They may watch the telecasting or read on their couch. They need a sofa suite that is value for money. long lasting and comfy. They will most likely use their old couch or purchase a smaller comfy 1 that is able to back up their back decently. Oldies are dogmatic and non open to new thoughts and alteration. They prefer their everyday life that keeps them at easiness.

Primary Target Market
The mark market chosen is the Happy Family because this group of people have the highest use of a sofa suite. They will most likely buy at least two or three sofa sets from the clip they have their first kid until their kids leave the nest ( Norum. Lee and Sharpe. 2002 ) . They are easy assessable because Happy Families normally spend a batch of clip together ; they travel. have repasts. watch telecasting and play athleticss together.

This mark market is improbable to shrivel any clip because future coevalss will ever go on to hold households of their ain. The happy Family merely might be the most profitable group of the four.

Appendix 1 shows a Kramfors couch set from an Ikea catalogue. This page features the couch. the monetary value every bit good as the dimensions of the couch set. This advertizement would greatly appeal to Happy Families low in ethnocentrism because Ikea is a Swedish company. Ikea frequently distributes catalogues in residential countries where happy Families live. The advertizement itself has two kids playing merrily in a life room and gives the feeling of a child-proof couch. . Appendix 2 shows a Courts mammoth page that offers consumers a assortment of merchandises and publicities. Courts offers Flexi Credit. a trueness card called ‘homeclub’ . extended guarantee. cleansing services and they guarantee the lowest monetary value. Payments that are in episodes are involvement free every bit good and so will non be a heavy load to the remunerator.

This would appeal to Happy Families with many kids where the after gross revenues services like cleansing services and drawn-out guarantee is a fillip. Fella design is another company offering assortments of couch from countrified to leather couch. They have five salesrooms in the Klang Valley entirely and offer transportation. attention and care services of their merchandises. The Happy Family with older kids might see a alteration of fabric sofa suites. Home24 is a web site that is user friendly and allows clients to customize their sofa suites. They offer free-shipping and over 50 trade names of couch to take from. They offer launch publicities for new merchandises and expose the monetary value decreases clearly.


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