Faucet Fashions

Retailer and Distributor

Melly Kalikimaka owns and manages a series of 12 retail stores dedicated to kitchen and bathroom faucets - Faucet Fashions. The stores are all located in cities along the 401 in Ontario (Windsor, Chatham, London, Woodstock, Kitchener-Waterloo, Milton, Mississsauga, Belleville, Kingston, Brockville and Cornwall).

Faucet Fashions was launched in 1989, and has weathered difficult times rather well. Melly actually bought the business only last year, having inherited a significant amount of money from a rarely discussed uncle. Melly's business experience was minimal. The store attracts a broad range of customers - though they are typically female, between the ages of 30-55. Because the faucets purchased at Faucet Fashions are usually used in renovating a house, having a wide variety of faucets is important. People typically are not very price-sensitive - buying the right look is more important than saving a few dollars.

One of the more popular services offered by Faucet Fashions is a take-home program. Customers can select 2 or 3 models of faucets and "sign them out" - allowing them to see if the colours and designs "fit" with their dcor/lighting, etc.

In addition to selling established brands, Melly was also able to obtain the exclusive North American rights for a new line of bathroom faucets manufactured in Chile.

The Chilean line, Tempa, is a mid-priced, high-quality decorative faucet. The faucets are produced using various metal and ceramic materials, and are available in two broad styles: the Urban line and the Villa line. The Urban line uses more steel than ceramic. It is simple in design and features more flowing lines and curves. In contrast, the Villa line is more ornate, and makes use of colourful ceramics. The faucets typically feature real or abstract "paintings".

Because Melly has the North American rights to the Tempa line, there is the possibility of distributing the line to other retailers. These retailers could be stores like Faucet Fashions or large home improvement stores like Home Hardware. To date, Melly has only contacted three stores in Northern Ontario about the Tempa line. One store was not interested because they had little space available for new products. Another purchased $2000 worth of faucets as an initial stocking order (2 months ago). They have since re-ordered $3000 worth of product. The third store brought in 10 high-end Villa faucets and plans on custom ordering rather than sticking faucets. They have ordered a faucet a week for the last 12 weeks.

QUESTIONS

1-Briefly explain the Consumer Decision Making Process. Based on your understanding of the Consumer Decision Making Process, which stage of the process will be the most important for the company? (40%)

2-Briefly explain the Product variable. Based on your understanding of the Product variable, explain the company's product offering. (30%)

3-Briefly explain Attitudes. Based on your understanding of the Attitude variable, explain how new customers could be convinced to buy from the company. (30%)