24 Questions
What is the primary goal of studying customer behaviour?
To create more-enticing products and service offers
What is the most correct definition of customer behaviour?
How customers shop in stores, including their frequency and preferences
What are the five main factors that influence consumer behaviour?
Psychological, Social, Cultural, Personal, and Economic
What is Maslow's theory of hierarchy of needs?
A model that ranks customer needs from basic to self-actualization
What is the role of motivation in consumer behaviour?
A key driver of consumer purchasing decisions
What is the importance of understanding consumer perception?
It allows businesses to analyze customer needs and preferences
What is the primary goal of understanding psychological factors in consumer behaviour?
To understand customer motivations and needs
What is the significance of understanding consumer behaviour in business?
To communicate with customers in a productive and delightful way
What is the primary purpose of Kotler's Five Product Level model?
To analyze product and customer profitability
What is the initial stage of the new product development process?
Idea generation
What is the primary goal of market research in the new product development process?
To determine the demand for a product
What is the benefit of grouping products into product families that align with customer segments?
Better modeling of sales and production planning
What is the primary focus of the production concept?
Production efficiency and cost reduction
What is the primary goal of competitor analysis in the new product development process?
To identify areas for product differentiation
What is the primary focus of the selling concept?
Sales and marketing strategies
What is the benefit of having a robust understanding of the target market during the idea generation stage?
Understanding customer needs and pain points
What is the primary goal of Single Segment Concentration?
To focus on a single market sector with minimal resources
What is the basis of doing segmentation according to the VALS Framework?
Psychographic segmentation
Which of the following companies is an example of Single Segment Concentration?
All of the above
What is the primary advantage of Selective Specialization?
Reducing risks by targeting multiple segments
What is the primary goal of Customer Driven Marketing Strategy?
To create a product that meets the needs of a specific customer segment
What is the primary characteristic of a business that uses Single Segment Concentration?
Having a powerful market position
What is the primary goal of Market Segmentation?
To divide a market into segments based on specific characteristics
What is the primary advantage of understanding customer needs in the Consumer Decision Making Process?
It allows businesses to create a product that meets the needs of a specific customer segment
Study Notes
Understanding Customer Behavior
- Businesses study customer behavior to understand their target audience and create more enticing products and service offers.
- Customer behavior involves understanding how customers shop, including factors like shopping frequency, product preferences, and how marketing, sales, and service offers are perceived.
Factors Influencing Consumer Behavior
- There are five main factors that determine consumer behavior: Psychological, Social, Cultural, Personal, and Economic factors.
Psychological Factors
- Motivation is a key factor influencing consumer behavior, with Maslow's theory of hierarchy of needs providing a framework for understanding different levels of human needs.
- Perception is shaped by gathering information about a product and generating a relevant image.
- Kotler's Five Product Level model provides a method for structuring product portfolios to target various customer segments.
Product Development Process
- The new product development process begins with idea generation, where businesses brainstorm ideas to solve existing customer problems.
- Research is conducted to flesh out ideas, including market research and competitor analysis.
Consumer Decision Making Process
- Understanding consumer behavior helps businesses communicate with customers in a productive and delightful way.
- Consumer decision making involves understanding the needs and pain points of the target market.
Market Segmentation
- Single Segment Concentration involves focusing on a single market sector, such as Ginger Hotels catering to customers on a tight budget.
- Selective specialization involves concentrating on several commercial sectors, reducing risk and allowing companies to shift focus to more lucrative areas.
Learn about customer behaviour, including shopping frequency, product preferences, and marketing perceptions, to create more appealing products and services.
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