From our initial exploratory research, we found that majority of our focus group respondents are still using SK-II products despite the perceived high price levels. The respondents mentioned that effectiveness of the product is the key to their repeated purchasing behaviour. Therefore, the team is interested to find out how willing are SK-II users to continue using the product and subsequently recommending the product to their friends despite the perceived high price.
BRAND RESONANCE
ANALYSIS
Hypothesis 5: SK-II users are willing to continue to use or recommend the product.
INTENTION TO CONTINUE USING SK-II
LIKELIHOOD TO RECOMMMEND
As mentioned earlier in hypothesis 4, users’ willingness to continue paying for SK-II products at current prices is fairly low. Out of the maximum score of 10, the average willingness to pay is 6.97. However, despite this relatively low willingness to pay at current prices, majority of users have expressed a positive intention to continue using SK-II products. From our survey, 72% are willing to continue using SK-II products.
Further analysis is made based on our segments:
Madam
We inferred that 78% of them will continue using SK-II. Most of them have cited product effectiveness as the main incentive to the repeated usage of SK-II products.
Missus
From our survey, it is shown that 50% of them will continue using SK-II. Price was the main concern why they choose not to use SK-II. This brings up the issue as to what extent does price influence purchase decision and how much. Nonetheless, these results are congruent to the findings from our focus group study - although pointing out that SK-II price levels are rather high, majority of users do express their willingness to continue purchasing SK-II products. This can be mainly credited that SK-II is a good product. We can then infer that for SK-II, behavioural loyalty is closely related to product performance.
RESONANCE
FEELINGS
IMAGERY
SALIENCE
PERFORMANCE
JUDGMENTS
From our survey, it has been proven that users are fairly willing to recommend SK-II products to their friends. Out of the maximum value of 10, the mean score for likelihood to recommend is 7.21. This measure is notably useful in the skincare market where there is a greater inclination for consumers’ usage and purchase decisions to be influenced by friends and family. From this result, we can deduce that majority of SK-II users have a rather high product satisfaction. They are also relatively inclined to make repeat purchases and referrals. Also, even though two of the users have ceased to use their SK-II products, as it is not suitable with their skin, but are still willing to promote it as they have witnessed how effective it is on other people.
Madam vs Missus
The mean score of 7.69 for Madam is much higher as compared to a mean score of 5.30 for Missus. There is an obvious lack of passion for the brand among younger women. They generally do not quite feel that the brand is essential in their life and can be easily replaced.
ANALYSIS
IMPLICATIONS FOR SK-II:
Majority of SK-II users have a relatively high behavioural loyalty, which is closely tied to high product performance. Product effectiveness is the major perceived point of difference that propels users to continue purchasing and using SK-II products despite high perceived price levels.
SK-II has somewhat achieved brand resonance with their current users. This is as most of their current users from our research are willing to continue using their products due to their effectiveness. Furthermore, majority of the users from our survey are willing to recommend SK-II products to their peers.
Having said so, there is still much more room for improvement as SK-II seeks to build a loyal fan base of consumers and also to widen their market to get non-users to join the SK-II brand family. This is especially so just SK-II are tapping into the younger women market, which is vital to the future success of SK-II. On way of doing so, is to influence various reference groups to start word-of-mouth marketing and reaffirm that SK-II is a great product, perhaps even persuade non-users to start trying and using SK-II.
We are unable to have a conclusion on the men category due to the lack of research findings and the fact that SK-II men is still a fairly new market line extension launch in Singapore.