Answer To: Consumer Behavior Midterm Paper The midterm paper will cover the following chapters in your...
Sayani answered on Oct 10 2021
Running Head: Consumer Behaviour Midterm Paper 1
Consumer Behaviour Midterm Paper 5
Consumer Behaviour Midterm Paper
Table of Contents
Answer 1: Consumer Choice Model 3
Answer 2: Model of Consumer Decision-making 4
Answer 3: External Influences 6
Answer 4: Market Segmentation and Market Targeting 7
References 10
Answer 1: Consumer Choice Model
Business always has to deal with the customers as well as with their behaviours. It is a true fact that a happy customer would always try to build a positive relationship with the business any time. Business should always follow the quote that customer’s perspectives towards their agenda and goal is the future reality of the business. It has to remembered by every business holder that strong customer relationship drives sales, sustainability as well as growth. As stated, and mentioned in chapter one that customer behaviour is the study and following customers reactions while they search, they purchase, use, evaluate as well as dispose the product and service they expect that would satisfy their need.
Customer value is the ration between customers perceived benefits such as economic benefits, psychological benefits, functional, mental and many more as well as the resource which on the other includes monetary, time, efforts, employee hard work, dedication, that are used to obtain those benefits. Each and every business if targets to achieve the success and improve the supply and profit rate they should understand the consumer behaviours rate and value their concern and requirements. The consumer choice model denotes about the model of demand as well as supply that are used to examine the market equilibrium. Therefore, customer choice model underlines the fact that while dealing with any kind of customer, business owners should understand what the customers are expecting, how much they are wanting, which quality they are preferring, which product they are preferring, which offers they are expecting and many more. Understanding the inner sense and feelings of the customers in depth is the art of achieving the success in the business.
The five main values of customer that underlines the purchasing concept and makes easier for the business owners to understand their needs and expectations are firstly, the functional value where the customers rethink about the product to purchase by understanding and realising the functional characteristics and features if the product. If they found that the products durability, validity, reliability as well as the price section is matching their thinking procedures then they would definitely go with the product. Secondly, the social value underlines the cultural, ethnic, demographic, and socio-economic condition of the customers through which their choice preferences can be identified. Thirdly, emotional value depicts the feelings of the customers with the alternatives. Fourthly, epistemic value releases the customers curiosity, novelty, and satisfaction towards the product. Fifthly, the conditional value where customers value gets conditioned with the stimuli.
Tesla is car brand which has the most loyal customers with an overall satisfaction rating of near about 90%. As per the customer’s choice model, the function and the new criteria of Tesla impresses the customer and created an interest of purchase within them. The involvement of the technological aspects within the brand attracts the customers. Tesla also meet the customers emotional as well as social values by providing and meeting up each aspect. Tesla increases their epistemic value and improves their curiosity power and finally it had conditioned and owe the heart of the customers towards their brand.
Answer 2: Model of Consumer Decision-making
Consumer’s behaviour can be understood and perceived through four disciplines. Firstly, the psychological study of the human mind as well as the factors that affect their behavioural aspects that is their personality, their traits, their concern, perception, experiences and many more. Secondly, the sociological factor that study the development, structure, function, and...