• Title/Summary/Keyword: Consumers Preferences

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The Impact of Price Discount on Perceived Value, Willingness to Buy, and Search Intentions according to the Level of Consumers' Involvement (구매자의 관여도 수준에 따라 가격할인이 지각가치, 구매의향, 탐색의도에 미치는 영향)

  • Yoon, Nam-Soo;Kim, Jae-Yeong;Park, Young-Kyun
    • Journal of Distribution Science
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    • v.9 no.1
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    • pp.39-48
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    • 2011
  • One of the major reasons for fierce competition among firms is that they strive to increase their own market shares in the same market with similar and apparently undifferentiated products in terms of quality and perceived benefit. Due to such changes in the marketing environment, differentiated after-sales service and diversified promotion strategies have become more important in the race to gain a competitive advantage. Price discount is one of the popular promotion strategies that most retailers use, especially to increase sales, but offering a price discount does not always lead to the expected result. If marketers apply an identical price-promotion strategy without considering the characteristic differences in products and consumer preferences, the discounted price itself may make people skeptical about the quality of the product. Moreover, the changes in perceived value may appear differently depending on factors such as consumer involvement. This implies that variables such as the level of consumer involvement, brand loyalty, and external reference prices, in reality, would have different effects on how consumers perceive the value of price discounts. The variables that affect consumers' perceived values and buying decisions are diverse and complicated. Several studies have examined the effects of such variables as external reference price, selling price, and brand on consumers' perceived value of products. Results have not shown consistent patterns. Therefore, we must note that the factors affecting consumers' value perceptions and buying behaviors are diverse and that the results of studies on the same dependent variable come out differently depending on what that variable is. This study focused on the level of consumer involvement as a salient variable that supposedly affects the perceived value of a product, willingness to buy, and search intentions. We tried to examine whether a price discount affects the perceived value-such as perceived acquisition value and perceived transaction value-in different ways depending on the level of consumer involvement. In addition, we proposed managerial implications that marketers need to consider as a whole, for instance, product attributes, brand loyalty, and involvement and then established a differentiated pricing strategy, case by case, in order to effectively enhance consumers' perceived values. As a result, we found that perceived transaction value positively affects perceived acquisition value and when discounting the price of a high-involvement product enhances the consumer's willingness to buy, but perceived acquisition value does not affect the search intentions significantly. In the case of discounting prices of low-involvement products, on the other hand, the perceived transaction value has a positive effect on the willingness to buy, but the negative effect of perceived acquisition value on the search intentions was not significant. We suppose that people doubt a product's quality because of a declined perceived quality derived from a price discount. Even though the price discount enhanced the transaction value, people eventually increased their level of searching for additional product information. From the results of this study, we suggest that marketers ought to establish an appropriate value-enhancing strategy based on the understanding of which perceived value consumers rely on more when they conduct purchasing behavior because consumers perceive the degree of importance of acquisition value or transaction value differently, depending on their level of involvement.

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Effects of Reward Programs on Brand Loyalty in Online Shopping Contexts (인터넷쇼핑 상황에서 보상프로그램이 브랜드충성도에 미치는 영향에 관한 연구)

  • Kim, Ji-Hern;Kang, Hyunmo;Munkhbazar, M.
    • Asia Marketing Journal
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    • v.14 no.2
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    • pp.39-63
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    • 2012
  • Previous studies of reward programs have generally focused on designing the best programs for consumers and suggested that consumers' perception of the value of reward programs can vary according to the type of reward program (e.g., hedonic vs. utilitarian and direct vs. indirect) and its timing (e.g., immediate vs. delayed). These studies have typically assumed that consumers' preference for reward programs has a positive effect on brand loyalty. However, Dowling and Uncles (1997) pointed out that this preference does not necessarily foster brand loyalty. In this regard, the present study verifies this assumption by examining the effects of consumers' perception of the value of reward programs on their brand loyalty. Although reward programs are widely used by online shopping malls, most studies have examined the conditions under which consumers are most likely to value loyalty programs in the context of offline shopping. In the context of online shopping, however, consumers' preferences may have little effect on their brand loyalty because they have more opportunities for comparing diverse reward programs offered by many online shopping malls. That is, in online shopping, finding attractive reward programs may require little effort on the part of consumers, who are likely to switch to other online shopping malls. Accordingly, this study empirically examines whether consumers' perception of the value of reward programs influences their brand loyalty in the context of online shopping. Meanwhile, consumers seek utilitarian and/or hedonic value from their online shopping activity(Jones et al., 2006; Barbin et al., 1994). They visit online shopping malls to buy something necessary (utilitarian value) and/or enjoy the process of shopping itself (hedonic value). In this sense, reward programs may reinforce utilitarian as well as hedonic value, and their effect may vary according to the type of reward (utilitarian vs. hedonic). According to Chaudhuri and Holbrook (2001), consumers' perception of the value of a brand can influence their brand loyalty through brand trust and affect. Utilitarian value influences brand loyalty through brand trust, whereas hedonic value influences it through brand affect. This indicates that the effect of this perception on brand trust or affect may be moderated by the type of reward program. Specifically, this perception may have a greater effect on brand trust for utilitarian reward programs than for hedonic ones, whereas the opposite may be true for brand affect. Given the above discussion, the present study is conducted with three objectives in order to provide practical implications for online shopping malls to strategically use reward program for establishing profitable relationship with customers. First, the present study examines whether reward programs can be an effective marketing tool for increasing brand loyalty in the context of online shopping. Second, it investigates the paths through which consumers' perception of the value of reward programs influences their brand loyalty. Third, it analyzes the effects of this perception on brand trust and affect by considering the type of reward program as a moderator. This study suggests and empirically analyzes a new research model for examining how consumers' perception of the value of reward programs influences their brand loyalty in the context of online shopping. The model postulates the following 10 hypotheses about the structural relationships between five constructs: (H1) Consumers' perception of the value of reward programs has a positive effect on their program loyalty; (H2) Program loyalty has a positive effect on brand loyalty; (H3) Consumers' perception of the value of reward programs has a positive effect on their brand trust; (H4) Consumers' perception of the value of reward programs has a positive effect on their brand affect; (H5) Brand trust has a positive effect on program loyalty; (H6) Brand affect has a positive effect on program loyalty; (H7) Brand trust has a positive effect on brand loyalty; (H8) Brand affect has a positive effect on brand loyalty; (H9) Consumers' perception of the value of reward programs is more likely to influence their brand trust for utilitarian reward programs than for hedonic ones; and (H10) Consumers' perception of the value of reward programs is more likely to influence their brand affect for hedonic reward programs than for utilitarian ones. To test the hypotheses, we considered a sample of 220 undergraduate students in Korea (male:113). We randomly assigned these participants to one of two groups based on the type of reward program (utilitarian: transportation card, hedonic: movie ticket). We instructed the participants to imagine that they were offered these reward programs while visiting an online shopping mall. We then asked them to answer some questions about their perception of the value of the reward programs, program loyalty, brand loyalty, brand trust, and brand affect, in that order. We also asked some questions about their demographic backgrounds and then debriefed them. We employed the structural equation modeling (SEM) method with AMOS 18.0. The results provide support for some hypotheses (H1, H3, H4, H7, H8, and H9) while providing no support for others (H2, H5, H6, H10) (see Figure 1). Noteworthy is that the path proposed by previous studies, "value perception → program loyalty → brand loyalty," was not significant in the context of online shopping, whereas this study's proposed path, "value perception → brand trust/brand affect → brand loyalty," was significant. In addition, the results indicate that the type of reward program moderated the relationship between consumers' value perception and brand trust but not the relationship between their value perception and brand affect. These results have some important implications. First, this study is one of the first to examine how consumers' perception of the value of reward programs influences their brand loyalty in the context of online shopping. In particular, the results indicate that the proposed path, "value perception → brand trust/brand affect → brand loyalty," can better explain the effects of reward programs on brand loyalty than existing paths. Furthermore, these results suggest that online shopping malls should place greater emphasis on the type of reward program when devising reward programs. To foster brand loyalty, they should reinforce the type of shopping value that consumers emphasize by providing them with appropriate reward programs. If consumers prefer utilitarian value to hedonic value, then online shopping malls should offer utilitarian reward programs and vice versa.

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If This Brand Were a Person, or Anthropomorphism of Brands Through Packaging Stories (가설품패시인(假设品牌是人), 혹통과고사포장장품패의인화(或通过故事包装将品牌拟人化))

  • Kniazeva, Maria;Belk, Russell W.
    • Journal of Global Scholars of Marketing Science
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    • v.20 no.3
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    • pp.231-238
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    • 2010
  • The anthropomorphism of brands, defined as seeing human beings in brands (Puzakova, Kwak, and Rosereto, 2008) is the focus of this study. Specifically, the research objective is to understand the ways in which brands are rendered humanlike. By analyzing consumer readings of stories found on food product packages we intend to show how marketers and consumers humanize a spectrum of brands and create meanings. Our research question considers the possibility that a single brand may host multiple or single meanings, associations, and personalities for different consumers. We start by highlighting the theoretical and practical significance of our research, explain why we turn our attention to packages as vehicles of brand meaning transfer, then describe our qualitative methodology, discuss findings, and conclude with a discussion of managerial implications and directions for future studies. The study was designed to directly expose consumers to potential vehicles of brand meaning transfer and then engage these consumers in free verbal reflections on their perceived meanings. Specifically, we asked participants to read non-nutritional stories on selected branded food packages, in order to elicit data about received meanings. Packaging has yet to receive due attention in consumer research (Hine, 1995). Until now, attention has focused solely on its utilitarian function and has generated a body of research that has explored the impact of nutritional information and claims on consumer perceptions of products (e.g., Loureiro, McCluskey and Mittelhammer, 2002; Mazis and Raymond, 1997; Nayga, Lipinski and Savur, 1998; Wansik, 2003). An exception is a recent study that turns its attention to non-nutritional packaging narratives and treats them as cultural productions and vehicles for mythologizing the brand (Kniazeva and Belk, 2007). The next step in this stream of research is to explore how such mythologizing activity affects brand personality perception and how these perceptions relate to consumers. These are the questions that our study aimed to address. We used in-depth interviews to help overcome the limitations of quantitative studies. Our convenience sample was formed with the objective of providing demographic and psychographic diversity in order to elicit variations in consumer reflections to food packaging stories. Our informants represent middle-class residents of the US and do not exhibit extreme alternative lifestyles described by Thompson as "cultural creatives" (2004). Nine people were individually interviewed on their food consumption preferences and behavior. Participants were asked to have a look at the twelve displayed food product packages and read all the textual information on the package, after which we continued with questions that focused on the consumer interpretations of the reading material (Scott and Batra, 2003). On average, each participant reflected on 4-5 packages. Our in-depth interviews lasted one to one and a half hours each. The interviews were tape recorded and transcribed, providing 140 pages of text. The products came from local grocery stores on the West Coast of the US and represented a basic range of food product categories, including snacks, canned foods, cereals, baby foods, and tea. The data were analyzed using procedures for developing grounded theory delineated by Strauss and Corbin (1998). As a result, our study does not support the notion of one brand/one personality as assumed by prior work. Thus, we reveal multiple brand personalities peacefully cohabiting in the same brand as seen by different consumers, despite marketer attempts to create more singular brand personalities. We extend Fournier's (1998) proposition, that one's life projects shape the intensity and nature of brand relationships. We find that these life projects also affect perceived brand personifications and meanings. While Fournier provides a conceptual framework that links together consumers’ life themes (Mick and Buhl, 1992) and relational roles assigned to anthropomorphized brands, we find that consumer life projects mold both the ways in which brands are rendered humanlike and the ways in which brands connect to consumers' existential concerns. We find two modes through which brands are anthropomorphized by our participants. First, brand personalities are created by seeing them through perceived demographic, psychographic, and social characteristics that are to some degree shared by consumers. Second, brands in our study further relate to consumers' existential concerns by either being blended with consumer personalities in order to connect to them (the brand as a friend, a family member, a next door neighbor) or by distancing themselves from the brand personalities and estranging them (the brand as a used car salesman, a "bunch of executives.") By focusing on food product packages, we illuminate a very specific, widely-used, but little-researched vehicle of marketing communication: brand storytelling. Recent work that has approached packages as mythmakers, finds it increasingly challenging for marketers to produce textual stories that link the personalities of products to the personalities of those consuming them, and suggests that "a multiplicity of building material for creating desired consumer myths is what a postmodern consumer arguably needs" (Kniazeva and Belk, 2007). Used as vehicles for storytelling, food packages can exploit both rational and emotional approaches, offering consumers either a "lecture" or "drama" (Randazzo, 2006), myths (Kniazeva and Belk, 2007; Holt, 2004; Thompson, 2004), or meanings (McCracken, 2005) as necessary building blocks for anthropomorphizing their brands. The craft of giving birth to brand personalities is in the hands of writers/marketers and in the minds of readers/consumers who individually and sometimes idiosyncratically put a meaningful human face on a brand.

Preference of Consumers After Late 40's for Developing Future Home Network Services (고령친화 홈네트워크 서비스개발을 위한 중장년층 소비자 선호에 관한 연구)

  • Kim, Min Soo;Lee, Yeun Sook
    • KIEAE Journal
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    • v.7 no.2
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    • pp.47-55
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    • 2007
  • Development of digital technology has become closely connected with housing environment. Especially for the matured population, it is very important because they need substantial support in their daily lives. Therefore, the purpose of this paper is to identify needs of digital network services for future housing development. Previous researches were limited to digital technology of network systems and its usages. On the other hand, this study focuses on not only the technology but services. This study consists of literatures review and empirical survey. The subjects were the mid-age and pre-elderly between 45 to 65. The analysis of this study results outlined as follows: First, the pre-elderly appeared to have, in general, positive perceptions about digital services of the housing environment. The results of needs for each space's, showed strongly in basic safety and aiding system for memories. Second, there are differences in needs according to respondent's characteristics such as sex, income, job, house type, experience in digital system. Third, there are differences between what they think and what they really responded in both spaces and services. It menas that present planning elements may not attractive and suitable to residents. Therefore it is necessary to redesign the services. In the future, the most important thing is, making comfortable space not convenient space. That is, excluding unnecessary elements and pick up the right ones for resident's real demands.

Inter-category Map: Building Cognition Network of General Customers through Big Data Mining

  • Song, Gil-Young;Cheon, Youngjoon;Lee, Kihwang;Park, Kyung Min;Rim, Hae-Chang
    • KSII Transactions on Internet and Information Systems (TIIS)
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    • v.8 no.2
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    • pp.583-600
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    • 2014
  • Social media is considered a valuable platform for gathering and analyzing the collective and subconscious opinions of people in Internet and mobile environments, where they express, explicitly and implicitly, their daily preferences for brands and products. Extracting and tracking the various attitudes and concerns that people express through social media could enable us to categorize brands and decipher individuals' cognitive decision-making structure in their choice of brands. We investigate the cognitive network structure of consumers by building an inter-category map through the mining of big data. In so doing, we create an improved online recommendation model. Building on economic sociology theory, we suggest a framework for revealing collective preference by analyzing the patterns of brand names that users frequently mention in the online public sphere. We expect that our study will be useful for those conducting theoretical research on digital marketing strategies and doing practical work on branding strategies.

The effect of brand equity of CVS PB Products on Repurchase Intention

  • Kim, Soon-Hong;Yoo, Byong-Kook
    • Journal of Distribution Science
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    • v.16 no.12
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    • pp.23-31
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    • 2018
  • Purpose - The purpose of this study was to set brand awareness and brand image as independent variables from Keller's (1993) definition of brand equity and to analyze whether those variables have an influence on customer satisfaction and customer loyalty with perceived quality and value as mediator variables. Research design, data, and methodology - Data is collected through questionnaires from 200 of responders. Survey respondents were young people who use convenience stores. Questionnaires were tested in October 2017. SPSS and AMOS were used for structural equation as an analysis method. Results - The analysis results specified above can be summarized as follows: 1) Brand awareness had statistically significant influence on perceived quality and perceived value; 2) Brand image had a positive (+) influence on perceived quality and had no significant influence on perceived value; 3) Perceived quality and perceived value had a significant influence on customer satisfaction, and customer satisfaction had a statistically significant influence on customers' repurchase intention. Conclusions - Brand awareness and brand image had an influence on young consumers' decision-making process for purchasing PB food products. Convenience stores have to focus on developing food products with brand awareness and brand image more suitable for satisfying consumer preferences.

Mechanical Properties and Sensibility Evaluation of Jacquard Fabric with Optical Fiber (광섬유 자카드 직물의 역학적 특성 및 감성평가)

  • Roh, Eui Kyung;Song, Byung Kab;Kim, Min Su
    • Fashion & Textile Research Journal
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    • v.19 no.2
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    • pp.240-248
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    • 2017
  • This study compares general jacquard fabrics and jacquard fabrics with optical fiber on mechanical properties, sensibility and preference evaluation of fabric for the blind. The analysis also assesses the effect of optical fiber in the evaluation and identifies those best suited for consumers. The mechanical properties of jacquard fabrics were measured by the KES-FB system. Sensibility and the preference of the jacquard fabric for the blind were rated on tactile sensation by women experts in their 20's and 30's. It was found that the optical fiber in jacquard fabric affected the change of mechanical properties as well as sensibility and preference. Jacquard fabric with optical fiber were softer and more transformable, while the fabrics had lower recover property by shear force and compression as well as more violent unevenness. Jacquard fabrics were also classified into three hand factors of surface property, resilience and weightiness. There were significant differences on surface property perceptions and weightiness, hand and blind preferences by optical fiber. Jacquard fabrics that contained optical fiber were not preferred by the blind because they were perceived to be uneven and heavy. Those, that were smooth and light, were preferred for jacquard fabric; in addition, fabrics preferred by the blind had good compression.

Comparative Research on Color Preference of Fashion Specialists between Korea and Italy (한국과 이태리 패션전문가의 색채기호 비교연구)

  • Kim, Mun-Young;Cho, Woo-Hyun
    • Journal of the Korean Society of Costume
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    • v.56 no.2 s.101
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    • pp.112-124
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    • 2006
  • Globally, several ethnic groups have expressed their spirit cultures based on their ethnic identity in diverse ways. Clothing has been one of the convenient objects to express ethnic identities. Therefore, patterns and colors used in traditional costumes have worked as a means to help understanding spirit cultures of ethnic groups. Since colors help strengthening solidarity of social members based on ethnic preference and community consensus, colors have performed a crucial role as a strategic tool in the fashion business closely related to consumers' individual characteristics. In survey results, color preferences of Korean and Italian specialists showed significant differences in signboard colors and disliked colors. Many Korean fashion specialists selected pink as a preferred color, black as a clothing color, red and white as a color with high visibility, and orange as a disliked color. In case of Italy, many specialists selected red and black as highly visible colors for a signboard, and green as a disliked color. In results comparing color preference for colors between Korean and Italian fashion design specialists, there were differences in color sensibility. Since this research used data from survey conducted using a very limited and much manipulated stimuli among a wide range of color schema and patterns, the study result may not be fully generalized. In future studies, more research using diversely segmented stimuli would be needed.

A Study on Consumer′s Preference and Use Patterns of Salad Dressing (샐러드 드레싱에 대한 소비자의 기호도와 이용 실태 조사 연구 - 대구지역을 중심으로 -)

  • 김미향;이수진;김향희
    • Journal of the East Asian Society of Dietary Life
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    • v.11 no.5
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    • pp.345-355
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    • 2001
  • This study was conducted to evaluate the consumers' preferences and perceptions on the salad and its dressings, via a total of 401 subjects in the Taegu area on the basis of 5-point Likert scale. Anthropometric data included the total subjects consisted of 66 females and 335 males: categorized by age, 20's (103), 30's (135). 40's (83), over 50's (80), The average size of family was 4.2 persons. According to BMI, 64.8% of the subjects belonged to the normal group. The age group that liked salad most was the 20's group, which was also the group that ate salad most frequently. The salad was perceived as food item which is convenient to eat(3.83), healthy(3.63), easy to prepare(3.73) and delicious(3.61) but rarely as a expensive item(2.44). The ingredients, used for salad preparation included fruits and vegetables(3.19) such as tomato and cucumber. Among the salad dressings, the fruit dressing was preferred the most(4.59), while the mayonnaise the least(3.59). The mayonnaise was perceived as an item with highest calories(4.1), and hardly perceived as a luxury item(2.78). The preference for the fruits dressing was highly correlated with the degree of education(p<0.05), age(p<0.001) and BMI(p<0.001). The higher the degree of education, the lower the level of age group, and the lower the BMI, the higher preference for the fruit salad dressing was demonstrated.

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Characteristics of Colors and Color Communication tools applied in the Korean Fashion Industry (국내 패션의류업계의 활용 색채전달도구 개발을 위한 색채 연구)

  • 김영인;조민정
    • Journal of the Korean Society of Costume
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    • v.50 no.4
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    • pp.53-61
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    • 2000
  • The purpose of this study is to classify the characteristics of color communication tools and the color range applied in the Korean fashion industry. To collect the color sample and related references, a questionnaire was distributed during the time period, December, 1995 to June, 1996. From the responses, 2641 color samples used by 109 domestic brands, from 1993 spring/summer to 1996 spring/summer, were collected and analyzed. The data was measured by L*a*b*, and the H V/C formula found in the Munsell notation was used to calculate the data. To classify the color range served for the fashion industry, the distribution of colors are analyzed by difference of season and fabric. The results of this study are as follows : 1. Dominant colors in the Korean fashion industry are Red, Yellow-red, Yellow, purple-blue and low chromatic range colors. 2. While high value colors, such as pale, light greyish, light, dull, dark and vivid tone colors, are dominant in the spring/summer season, low value colors, such as greyish, dark greyish. and deep tone colors and warm colors such as Red, Yellow-red, are prevalent in the fall/winter season. 3. The number of colors commonly used for color planning is less than 20 colors, and both hue and tone are considered important when making color selections. 4. All brands take consumers' color preferences into consideration for color planning, and most of them also take color trends into account. 5. Hue and tone color characteristics analyzed by types of fabrics show more seasonal influence than the fabric itself.

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