CX-Research 1: Expectation: Satisfaction & Loyalty

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CMHT 3950 Assignment 1

Micro-Study on Consumer Expectations, Satisfaction and Loyalty

Milagros Mollar

February 27, 2021

Step 1: Research Concepts

The research concepts being introduced and researched are the expectations, satisfaction, and loyalty of the brand Free People’s denim line. The research is being conducted to determine the level of excellence expected, the level of excellence received, if the customer was satisfied with the outcome, if they would repurchase, and their recommendations of the product and brand as a result of everything.

Step 2: Purpose Statement

The purpose of this study is to determine if consumer expectation(s) with Free People’s denim are aligned with the overall level of consumer satisfaction and likelihood of consumer loyalty to Free People and why.

Step 3: Objective of Study

The objective of this study is to determine if a consumers' overall expectations for Free People’s denim are aligned with the consumer's level of satisfaction with the purchase of Free People’s denim and the consumer's likelihood to recommend Free People’s denim to a friend or colleague.

Step 4: Description of Sample

N = 5

There is a total of 5 females who are students at the University of North Texas.

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Step 5: Interview Part 1: Qualitative Data (Raw Data)

1. Reflecting upon your expectations when you made the decision to purchase Free People denim, what strengths did you associate with the brand and product?

RECORD CONSUMER'S STATEMENTS AFTER QUESTION.

Consumer 1: “I loved the way that they fit me! Their jeans really flatter my figure and I found them to be really high quality. I think they’re definitely worth every penny.”

Consumer 2: “I really like how many variations of jeans there are. If I want a good pair of skinny jeans, I know I’m going to find them at FP. If I want something special, like a flared pair, I know there are several kinds at FP. It’s easy for everyone to find something they like.”

Consumer 3: “I like how trendy all of the clothing is, specifically the jeans. It makes it easy to find something that my friends and I can all wear.

Consumer 4: “ As a former employee, I spent a lot of money at FP. Although I don’t have my discount anymore, the one product I never mind paying full price for is their jeans. I have never found a better selection of jeans ever. Both their stretchy and rigid jeans look and feel great.”

Consumer 5: “Finding jeans that fit has never been the easiest for me, as I am curvier than the typical target market. FP’s CRVY line provided me with jeans that fit both my thighs and waist and save me a trip to the tailors.”

2. Reflecting upon your expectations when you made the decision to purchase Free People Denim, what weaknesses did you associate with the brand and product?

RECORD CONSUMER STATEMENTS AFTER QUESTION.

Consumer 1: “I am a pretty petite girl. Normally my pant size is a 24, but there are times when I have had to go up to a 26 because of how small and inconsistent the brand is with their sizing. It just creates an unnecessary hassle because I can’t figure out what I should be buying half of the time.”

Consumer 2: These jeans do run on the pricier side. The basic models are all about $78.00 and the more unique pants run at about $98.00. They aren’t completely unreasonable prices, but they aren’t exactly affordable.

Consumer 3: “I don’t know if it’s just my local FP retailer, but they have such a small selection of denim available. I wish I didn’t always have to order online and play a guessing game instead of just trying it on in person.”

Consumer 4: “Free People is a more expensive version of a fast fashion retailer. Instead of coming out with new products every week, they should look into producing less waste, and conserving water by making more of their products environmentally conscious, ESPECIALLY their denim.”

Consumer 5: “I have a love-hate relationship with Free People’s jeans. There are times when I have bought a pair of jeans using a different brand as a sizing guide, and it has been completely

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different than FP’s sizing. There have also been times when I have bought one style of denim in one size, and then rebought the same style in the same size and they have not fit the same.”

3. Reflecting upon your expectations when you made the decision to purchase Free People Denim, what opportunities did you associate with the brand and product/service?

RECORD CONSUMER STATEMENTS AFTER QUESTION.

Consumer 1: “I wish they had images of models of every size with the jeans! That way, people could compare their own body to the models’ and then compare which size appears to fit them the best. Another option would be to provide a size guesser, where customers can look up other brands that fit them well and then tells them what would fit them best in FP sizing.”

Consumer 2: “As a student, I don’t have hundreds of dollars to spend on clothing every month, but I still have to look presentable for school and my job. I think that FP should reduce their prices for standard denim, and then keep the prices higher for more exclusive pieces. That way, they would be able to reach a broader market and make more profit.”

Consumer 3: “Instead of having one big store in all of one city, FP should look into opening additional, smaller boutiques around the US!”

Consumer 4: “Again, to reiterate the fast fashion point; Free People should really invest in looking to expand and broaden their environmentally conscious line of clothing. Greenwashing is a true crime in fashion today, and Free People should start making changes, in order to educate their customers, and overall reduce their waste.”

Consumer 5: If it were up to me, one of the most pressing issues that FP has to work on, it’s their sizing. While I understand the “oversized” boho look, there is no reason why a size 28 should fit a person with a 25-inch waist, and why an XS shirt should fit someone who is typically an L. If they readjusted their sizing, I am sure they would have much less returns and complaints.”

4. Reflecting upon your expectations when you made the decision to purchase Free People Denim, what threats did you associate with the brand and product?

RECORD CONSUMER STATEMENTS AFTER QUESTION.

Consumer 1: “Aritzia does not have their own denim line, but they do sell lesser-known brands for about the same price, therefore, making it so not everyone has the same clothing. Their sizing is also a lot more standard than FP.”

Consumer 2: “Zara has provided their customers with 300+ styles of denim, with prices starting at $35.50. This allows for their products to be more accessible to the public, while still having quality pieces.”

Consumer 3: “American Eagle has provided exceptional denim for as long as I can remember. Their denim is life long and they have both classic styles such as ripped skinny jeans, as well as trendier models. They also have better sales every season and there are various chances to get a good deal on their jeans.”

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Consumer 4: “Reformation is a great example of an environmentally conscious brand that provides their customers with high quality, green-friendly, and trendy products. They have many different styles of denim while still remaining environmentally conscious.”

Consumer 5: “The Gap has their own line of denim (GAP 1969) that comes in all sorts of shapes, sizes, washes, and styles. They are roughly around the same prices as FP’s denim, but they have more inclusive sizing, including petite and tall.”

Step 6: Interview Part 2: Summary of Quantitative Data – CSAT and NPS

The overall CSTAT score for Free People denim is 40%.

The NPS score was 10%, as 20% were promoters, and 10% were detractors.

Step 7: SWOT Analysis

SWOT Analysis of Free People denim Consumer Sample (N = 5)

There is a total of 5 females who are students at the University of North Texas.

Strengths

• They have several trendy styles, as well as classic styles.

• Many different colors and washes • Moderate price point ($70+) • Various fabric characteristics (stretchy,

slim, ripped, rigid, etc.) • Size inclusivity with CRVY line.

Weaknesses

• Size guide is inconsistent and off • Lack of availability in store • Lack of environmentally friendly options • Overall, very small sizing • Not affordable

Opportunities

• Free People could come up with a more

affordable line of denim • They could also come up with an

environmentally friendly line of jeans instead of only carrying other brand’s

• They could open smaller, more focused boutiques throughout high populated cities so product does not run out as quickly.

• FP should look into more inclusivity when posting the images of the clothing, in this case, the denim.

Threats

• Zara has 300+ denim styles, with prices

starting at $35.50 • Reformation has made many different

styles while still remaining environmentally conscious.

• American Eagle provides lifelong quality and an economic benefit.

• Aritzia comes through with a more unique value and a standard sizing chart.

• The Gap has also provided lifelong quality, and has adapted to the American model of body positivity and inclusion.

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• Lastly, a big issue that should be tackled is the sizing. Free People needs to go through and remake their sizing chart and designs.

Step 8: Strategies to Improve CSAT and NPS

Two strategies for improving consumer satisfaction (CSAT) with Free People’s denim.

1. Taking the time to read through customer complaints and reviews. Making sure you are taking their suggestions and listening to the people who have built up and loved the brand.

2. Interview and communicate with customers at different stores and see what they have to say within the brick-and-mortar environment about the products. Ask them to rate using the same scale.

Two strategies for improving consumer loyalty (NPS) with Free People’s denim.

1. Give the consumer more discounts and offers. If they are able to save money and accumulate more product, they will share that good news.

2. Create a loyalty program. Separate from a credit card, having a point system that accumulates with each point will motivate customers to spend more and will remain loyal to the brand, instead of going elsewhere and starting over. Give extra perks when buying denim.