It is in Bose's best interest to pursue geographical areas such as suburbs and big cities. Customers in rural areas wouldn't have the access to go to a Bose store, but could still order the products online if they are interested in purchasing. Since the emergence of e-commerce, it is possible to reach all areas of the globe via web-interface. It is possible to not only reach a broader market, but to do so at a relatively low cost. The overhead costs from distribution are greatly reduced due to direct shipping from online sales.
Demographic segmentation variables are among the most popular bases for segmenting customer groups. Bose needs to be careful not to limit its evaluations to just age and race but also to take social class and income into account. It is a primary initiative to capture the market segments with an average to higher income level since Bose represents more of a prestige product. Bose exceeds its competitors in innovation, durability, and higher sound quality, and is therefore priced higher than the competition.
Typically, Generation X and the Baby Boomers have a higher amount of discretionary income and more experience in purchasing products for their homes such as home theater systems. Included in these age groups are owners and General Managers that would be purchasing commercial products for stores and office buildings. It is safe to say that customers that are satisfied with their home audio systems, when given an opportunity to purchase an audio solution for corporate application that they are more likely to use Bose as their solution. Bose customers tend to be older single males, families that have older children, or empty-nesters. The stage in the family lifecycle cycle is most often mature adults with steady and stable incomes that are usually higher than the average family. These customers can both afford and appreciate the quality offered by Bose products. Income levels are important to Bose marketers because of the high priced that the Bose quality demands. Advertisements are geared toward customers that have the high liquid income to support Bose craftsmanship.
The Values and Lifestyle Segmentation system, or VALS™, offered by the Strategic Business Insights Corporation divides consumers into eight separate groups based on "a specific set of psychological traits and key demographics that drive consumer behavior." Through basic research we can positively conclude our consumers will express VALS characteristics of thinkers, innovators, and experiencers. They will have experience in not only purchasing audio equipment but more will also have some sort of musical aptitude, whether as a passionate listener or a musician. They are thinkers because they tend to be mature, comfortable, and reflective people who value knowledge and Bose's products help to achieve a greater knowledge in the art of music. Bose needs to capture the innovators because they tend to be sophisticated, successful, take-charge people with high self-esteem. Because they have such abundant resources, they are more likely to be receptive to new technology and have purchasing power.
Bose customers are proud of their Bose audio systems, and allow the Bose quality to define their love of music. Customer's user status ranges from first time users, regular users, or non-users. The majority of the customers are regular or first time users. Regular users have experienced Bose quality in one product, and have expanded their use to multiple sound solutions throughout their homes and businesses. Non-users have remained so because of the high price of the Bose products and their reluctance to spend a large amount of money on speakers when so many of the other sound solutions remain at an attainable price range for the average consumer. Bose customers remain loyal to the brand because of the incredible quality difference and sound quality offered by their superior products....
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