Variables for Expansion Considerations
An informed business decision is one that has its basis on data collected on a range of variables, each thoroughly vetted and its impact on the expected outcome established. When the management of a business arrives at a strategic plan this way, it ensures the organization’s best chances of success. Thus, the judgment on whether or not the sporting goods company should be made in this manner.
Income directly impacts clients’ consumer habits by influencing their purchasing power and affecting individual preferences. Individuals’ income is a significant factor in determining the type of goods they will buy (Nicholls, 2007). Hence, the client must determine who the primary target market for the sporting equipment will be. Marketing strategies that the client will employ should be formulated for maximum effectiveness, enabled by understanding the differences in purchasing habits. For instance, consumers with more income are more likely to conduct their purchases online (Kim, 2000). Therefore, advertisements should be designed differently for each target audience for optimum effectiveness.
When formulating a comprehensive plan, it is important to consider the target markets’ age and gender since these also affect consumer inclinations. Differences in gender and age also manifest in clients’ choices since consumers of different ages and gender have different product preferences (Nicholls, 2007). Thus, while designing sporting equipment, it will be vital that the client consider the different qualities that different genders look for when making purchasing decisions. Most males prefer adrenalin-fueled sports such as football and basketball, while ladies incline towards choreographic games such as skating and dancing (Špehar, 2008). Hence, for example, gender-specific shoes should be designed to conform to the games played by the specific gender to maximize sales.
Following a comprehensive collection of data on the various variables that are likely to affect the sporting goods client’s business, the company boasts a good understanding of market forces. Hence, the client should expand and utilize the knowledge accumulated about the market to gain an advantage and make strategic decisions. Big data analysis provides businesses with dynamic capabilities, and the information acquired through data collection improves the flexibility of a business, thus gaining it a competitive advantage (Shan et al., 2018). The information accumulated by Big Data on the variables that affect consumer preferences can be utilized in formulating a business strategy that has the maximum chances of success. Therefore, the sporting goods company should expand and enjoy the benefits of having adequate information on the market.
A careful analysis of the prevailing market conditions that determine consumer preferences provides the best way of developing informed business strategies. Variables such as income, age, and gender play an important role in affecting consumer choices. Hence, before expanding into new markets, it is crucial to establish the relationship between these variables and the client’s success.
References
Kim, D., Rao, R., & Cho, B. (2000). Effects of consumer lifestyles on purchasing behavior on the internet: a conceptual framework and empirical validation. ICIS 2000 Proceedings, 76.
Nicholls, D., & Bumgardner, M. (2007). Evaluating selected demographic factors related to consumer preferences for furniture from commercial and from underutilized species. Forest products journal, 57, 79
Shan, S., Luo, Y., Zhou, Y., & Wei, Y. (2018). Big data analysis adaptation and enterprises’ competitive advantages: the perspective of dynamic capability and resource-based theories. Technology Analysis & Strategic Management, 31(4), 406-420. https://doi.org/10.1080/09537325.2018.1516866
Špehar, N., Gošnik, J., & Reichel, K. F. (2008, January). The preferences toward sports of students in institutions of higher education. In International Scientific Conference on Kinesiology (5; 2008).