In our last post we have discussed on important factor of decision making and that is involvement. Involvement is always reflected in production or productivity. We can take example for an instant life insurance rates company who is providing life insurance quotes online, if their agents more involve in the businesses they can have more business. More involvement reflected in more productivity. Today we are going to discuss one another important factor Differentiation.
Differentiation: When the consumer perceives that the various alternatives which are available are very different from one another in terms of their features and benefits offered, he is likely to spend more time in gathering information about and evaluating these different features. On the other hand, in case of products which are not very different from one another either in terms of their features or benefits offered, the consumer is bound to perceive them as being almost the same and buy the first available product/brand which satisfies his minimum expectation. He will not like to spend much time in evaluating the various alternatives. The various brands of washing powder available in the market today are an excellent example of low level of differentiation with the consumer perceiving the different brands to be offering almost identical benefits. All the brands, such as Nirma, Vimal, Vijay, etc. look similar with identical packing and carry almost the same price tag.
Showing posts with label term life insurance. Show all posts
Showing posts with label term life insurance. Show all posts
Tuesday, February 3, 2009
Thursday, January 15, 2009
MODELS OF CONSUMER BEHAVIOUR
We shall examine how a consumer actually arrives at the decision to purchase a specific product or brand out of the so many available in the market. Or, in other words, we shall study the process of consumer decision-making.
In the precious init we had discussed a simple model of consumer decision-making, comprising an input, process and an output. A consumer receives stimuli from the environment and the specifics of the marketing strategies of different products and services, and responds o these stimuli in terms of either buying or not buying the product. In between the stage of receiving the stimuli and responding to it, the consumer goes through the process of making his decision. For example, home décor products blinds are there in the market. Consumer behavior is directly affected by environment. Ruler areas people love to have curtains as window treatment while city consumer love to have vertical blinds or roman shades or faux wood blinds as their window treatment.
WHAT IS A DECISION?A decision is the selection of an alternative out of the several numbers of alternatives available. It is only when there are two or more alternatives available that there is the need to make a choice. There are many companies who are providing instant life insurance rates or life insurance quotes online. Consumer need to take decision from different options available online. We can take the example of Motels in California or California motels, there are many options and alterative available for California motels, consumer needs to take decision which they want to use or stay. In the field of consumer behavior, we are only concerned with situation in which the consumer has to take a purchase decision where there is a choice available.
In the precious init we had discussed a simple model of consumer decision-making, comprising an input, process and an output. A consumer receives stimuli from the environment and the specifics of the marketing strategies of different products and services, and responds o these stimuli in terms of either buying or not buying the product. In between the stage of receiving the stimuli and responding to it, the consumer goes through the process of making his decision. For example, home décor products blinds are there in the market. Consumer behavior is directly affected by environment. Ruler areas people love to have curtains as window treatment while city consumer love to have vertical blinds or roman shades or faux wood blinds as their window treatment.
WHAT IS A DECISION?A decision is the selection of an alternative out of the several numbers of alternatives available. It is only when there are two or more alternatives available that there is the need to make a choice. There are many companies who are providing instant life insurance rates or life insurance quotes online. Consumer need to take decision from different options available online. We can take the example of Motels in California or California motels, there are many options and alterative available for California motels, consumer needs to take decision which they want to use or stay. In the field of consumer behavior, we are only concerned with situation in which the consumer has to take a purchase decision where there is a choice available.
Friday, January 9, 2009
Understanding Consumer Behavior
A consumer’s decision to purchase a product influenced by a number of variables which can be classified into four categories, namely psychological, personal, social, and cultural. Consumer Behavior effect demand of product with the area also. For example consumer in city area preferred to use vertical blinds, roller shades or faux wood blinds. Which villages or rural area consumer preferred to buy curtains.
Man is a many faceted, complex psychological being. His consumer behavior is influenced by his motives, perceptions, attitudes and learning. Each of these psychological factors provides a unique mental framework for each consumer within which he makes his purchase decisions. For the marketer it is essential to associate his product with the motives and positive perceptions of his consumers. Also he must ensure that the product concept fits in with the consumer’s existing attitudes and beliefs. Owner of lifequotecenter.com says that they are provider of instant life insurance rates and life insurance quotes online, it is easy for them to sell their Term life insurance products to educated and literate consumer rather than uneducated and illiterates. Perceptions, attitudes and learning are most important of consumer behavior.
Consumers differ from one another in terms of their sex, age, education, income, family life-cycle stage, personality and life style, and other personal characteristics which influence their buying behavior. The needs of elderly consumers are different from those of young consumers. Newly married couple has needs which are totally different from older retired married couples. To successfully market to consumers with differing personal characteristics, the marketer must accordingly modify his marketing strategies.
Man is a many faceted, complex psychological being. His consumer behavior is influenced by his motives, perceptions, attitudes and learning. Each of these psychological factors provides a unique mental framework for each consumer within which he makes his purchase decisions. For the marketer it is essential to associate his product with the motives and positive perceptions of his consumers. Also he must ensure that the product concept fits in with the consumer’s existing attitudes and beliefs. Owner of lifequotecenter.com says that they are provider of instant life insurance rates and life insurance quotes online, it is easy for them to sell their Term life insurance products to educated and literate consumer rather than uneducated and illiterates. Perceptions, attitudes and learning are most important of consumer behavior.
Consumers differ from one another in terms of their sex, age, education, income, family life-cycle stage, personality and life style, and other personal characteristics which influence their buying behavior. The needs of elderly consumers are different from those of young consumers. Newly married couple has needs which are totally different from older retired married couples. To successfully market to consumers with differing personal characteristics, the marketer must accordingly modify his marketing strategies.
Friday, January 2, 2009
Social Class
In every society there is inequality in social status amongst different people and the people are categorized into different social classes. Social classes can be defined as relatively permanent and homogeneous divisions in a society in which individuals or families sharing similar value, life-styles, interests and behavior can be categorized.
Social class is a concept based on distribution of status and the categories are usually ranked in a hierarchical order ranging from low status to high status. People belonging to a particular class tend to restrict their interaction to people belonging to the same class, unless it is for a very specialized purpose. Within a social class there are shared values, attitudes and behavioral patterns of consumption of certain products and services. But if we compare different social classes, we would find differences in values, attitudes and behavior between each class, as also a pattern of consumption behavior unique to each class. For example, upper classes use vertical blinds and roman shades as window treatment, while lower class of society use curtains. So, when someone talked about blinds it’s having a label that it’s for upper class.
Social class is an ideal basis for segmenting the market, as different social classes exhibit distinct product and brand preferences. Within the same social class, there is sharing of information on different products and brands, while between the different social classes there is little communication. For example, social classes helps term life insurance companies to have their term life insurance policies as per the social class.
Social class is a concept based on distribution of status and the categories are usually ranked in a hierarchical order ranging from low status to high status. People belonging to a particular class tend to restrict their interaction to people belonging to the same class, unless it is for a very specialized purpose. Within a social class there are shared values, attitudes and behavioral patterns of consumption of certain products and services. But if we compare different social classes, we would find differences in values, attitudes and behavior between each class, as also a pattern of consumption behavior unique to each class. For example, upper classes use vertical blinds and roman shades as window treatment, while lower class of society use curtains. So, when someone talked about blinds it’s having a label that it’s for upper class.
Social class is an ideal basis for segmenting the market, as different social classes exhibit distinct product and brand preferences. Within the same social class, there is sharing of information on different products and brands, while between the different social classes there is little communication. For example, social classes helps term life insurance companies to have their term life insurance policies as per the social class.
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