U.S Consumer Purchasing Decisions and Demand for Apparel

Abstract

Purpose - The purpose of this is study is to identify sources of demand growth for apparel in the US based on consumer demographic profiles, regions, and product characteristics. Design/methodology/approach - A two-step procedure was utilized to model, estimate, and analyze purchasing decision and consumer demand for nine apparel products (male shirts, shorts, jeans and slacks and female slacks, skirts, shorts, dresses and jeans). This study is based on a survey conducted by the American shoppers' panel, which collects consumption data of various garments, socioeconomic profiles, and product characteristics. Findings - The results indicate that purchase decisions are determined by garments' own prices, age, female employment, gender, regions, and the presence of children. The study also shows evidence that the effect of product-specific pricing strategies would be limited to the targeted products and the origin of the product has minimal effect on consumer expenditures on apparel. Originality/value - This study is one of the few that have used disaggregated apparel products and detailed demographic factors, thus has clear marketing implications and can be useful to the apparel industry.