Chapter 1: Consumer Behavior Meeting Changes and Challenges
In today’s competitive world products are designed in away to appeal to customers, encouraging them to buy these products. As a result marketers and researchers spend a lot of time understanding and focusing on the product attributes. However it is not only the product attributes that influence buying behavior but is the customer too. Thus in order to design appealing products a marketer needs to understand the customer’s psychology, lifestyle, demographics, sociology and changing trends. Understanding consumer behavior becomes vital if a company wants its products to satisfy a customer’s unmet and unrealized needs. Though each person is different so are his/her needs and wants. A marketer must understand the needs of different set of individuals and target them rightly to gain success. Some companies have abundant funds whereas some don’t to support the product, but a right understanding of customer behavior helps companies to target the right segment at the right time with the right marketing mix. Companies today witness a very competitive marketplace where they have to sell not just the product but an experience to their consumers. With the shortening lifecycle of customers marketers have to create a value, satisfaction to build a relationship with the customers. The Apple Iphone is just an ordinary cell phone used to make calls unless you add applications to it. Adding applications open an whole new arena of integrating, sharing, personalizing information that make the Iphone a more compelling and different product. From the ease of purchasing an Iphone, to using it, to the post purchase services is a value proposition that Apple is creating for its customers. As important as value is so is satisfying the customer and building trust. Iphone has to make sure it’s satisfying most of it customers to gain their trust and benefit their loyalty. Not all customers get satisfied as they have different perceptions and expectations and studying customer behavior helps companies to mitigate some risk of having unsatisfied customers who would switch to other products. Customer satisfaction leads to building a relation of trust, which the companies have to maintain for gaining maximum customer loyalty and positive word-of-mouth communication. The internet and social media have changed the landscape of sharing information. Customers can now speak their experiences online exposing it to millions of users each day. Thus a strong customer company relationship will help companies to leverage their customer experiences and attract new customers. For example Iphone has about 1.5 million fans on facebook that share their positive experiences about the Iphone convincing others to buy one.
Ch.2 Market Research:
So how do companies understand their customer needs and habits? How does a company figure out if a new product has a potential in the market or not or what are the unmet and unrecognized needs that can be catered to? Market research helps companies to get answers to all these questions. There are different types of research and techniques in both quantities and qualitative methods of research. Qualitative Research:
Qualitative research techniques are a function of the psychology of the customer. It helps find out the hidden and unrealized need and wants of an individual. The questions used in this method are mostly open ended and are designed to probe the respondent to express freely which help understand what an individual thinks about a brand or product. It helps marketers to understand how the world views its products. Some techniques that facilitate this research are focus groups, interviews, projective techniques, etc. Quantities Research:
Quantitative research often helps marketers understand the reaction of customers towards the product/brand or reaction towards different marketing activities. With this information marketers can...