Maurice Kuwite

Case study: New Balance, Out of Step

1. Explain the consumer decision-making process when purchasing a new pair of sneakers.

Consumers face various decisions in regard of purchase of goods and materials. The consumer

decision process when purchasing a new pair of sneakers begins with need recognition.

Consumers realize that there is a need of a new pair of shoes that might be used on occasions

such as outdoor activities. After recognizing that there is a need. The consumer then begins

search for information regarding the sneaker. Most consumers will research various brands and

styles possible that suits their needs as they either browse the internet, talk to friends, or look at

various ads. After gathering required information, consumers will mark out few alternatives of

sneakers and make comparisons as they evaluate their alternatives. The fourth step is choice as

the consumers chooses between available alternatives and selects the choice that bests suits

him/her. After making the choice, lastly there is post choice evaluation in which the consumer

decided where he made a good decision, and generally evaluates his overall decision of buying

the particular sneaker.

2. What is the consumer’s motivation for wanting to have the customized pair of 875 New

Balance shoes? Explain.

The decision made by the consumer of wanting to have the customized pair of 875 new balance

shoes is mainly based on rational decision making, behavioral influence decision making, and

experiential decision making. Consumers usually gather information regarding a product before

purchasing, thus in rational decision making, the consumers considers views of friends and

compares the product before making the decision to buy it. Consumers are influenced by the

external environment in behavioral decision making as for example if it’s trending at that certain
 Maurice Kuwite

time and most people are purchasing it, then some consumers will be pushed to purchase the

product so they can fit in their environments. Experiential decision making is when consumers

make decisions based on the experiences or feeling between the consumer and the product. In

this case the 875 new balance sneakers were customized and assembled by a shoemakers in front

of the customers. They were assembled in glass booths and had a assembled in New York tagline

attached to the shoes. This brought unique shopping experience as the shoes customers

purchased were assembled in front of them.

3. Should New Balance consider a specialty sneaker for the Boston market? If so, what do

you envision?

According to the case study, it shows that people in the region of Boston would be less involved

in physical and outdoor activities as the median age is 39 years. New balance specializes in

products used in outdoor activities and sports activities, hence less demand for products provided

by the company. The average income per household is also higher compared to national average,

thus suggesting that people have the ability to buy luxury products and would be more interested

in buying products satisfying their behavioral needs. Considering factors of age, average income

per household, and households with families, the company should come up with a product that

would fit the needs of the age group, satisfy behaviors of the people and also target at people

living in families in order to increase their regional sales. I envision a product that can be used by

the age group, and also higher priced creating a niche for itself.

4. What is the effect of the New Balance brand on the consumers’ judgment to buy or not to

buy?
 Maurice Kuwite

Decision making process comprises of various different stages in which the first stage is the need

of a particular product is identified. After the need is identified various brands are also

considered and the selected alternatives are evaluated in various factors. A consumer is in search

for attributed that carters to his/her needs. New balance promotes itself as a company that

provides substance over style. The company also does not promote the product through any

endorsement by celebrities, which in turn believes in promoting the product for its qualities. One

of the company’s main focus is using technology and innovation in making the product, thus to a

consumer the company’s attributes given and specification of the product may seem relevant

making consumers purchase new balance products.

5. Discuss the atmospherics of the two shopping areas, Legacy Place in Dedham, MA, and

the Flatiron district in New York City.

New balance has three corporate stores located in Dedham, MA. The median age of people at

Dedham is 39 years and the largest group is of 39-44 years of age. 56% of household comprises

of families and the average household income in the region is $80,000 which is higher than the

national average of $51,914. Dedham, MA indicates an area with less outdoor activities due to

the age ranges, and their also facing decline in sales in this region as there is less demand for the

products. 56% of households are families symbolizing more dependent people leading to less

involvement in experiencing new things. Parallel, the opening of experience stores in Flatiron

district, NY shows that the population of the region is more outgoing and willing to experience

new things. As seen in the case study that the 875 sneaker of the company was a sellout meaning

that the idea was liked by consumers and also the willingness of consumers to experience new

things, and also indicating the crowd of the region as relatively young and independent.