Consumer Behaviour and Segmentation Essay Example | Topics and Well Written Essays - 2750 words

Consumer Behaviour and Segmentation - Essay ExampleThe researcher states that the goal of grocery segmentation is to identify distinct consumer groups that have homogeneous needs. Tailoring the marketing mix for particular segments leads to improve planning and more effective use of marketing resources. Coles and Culley, for example, illustrate how DuPont segmented its market for Kevlar, an aramid fiber that is illumination yet stronger than steel. The company focused the unique needs of consumers in three different segments.Potential sportfishing boat owners Kevlars lightness promised fuel savings, increased speed, and the ability to carry more fish weight.Aircraft designers Kevlar has a high-pitched strength-to-weight ratio.Industrial plant managers Kevlar could replace the asbestos used for packing pumps.The market segmentation design, based on reaping benefits, is widely recognized as the state of the art and superior to traditional segmentation schemes based on industry typ e or consumer size, sustaining a segmentation strategy based on benefits alone is much difficult for the product market. Eventually, in a competitive market, competitors atomic number 18 able to offer equivalent products and the deviate profits start to deteriorate. This situation is especially prevalent for industrial raw materials and supplies that are difficult to discern by functions and features alone. As the product market turns a commodity, price and service become important buy criteria for some consumers.... In this paper the consumer buying behaviour model has been generally applied to segment consumers which bathroom be used by many large industrial companies. In addition, it will be apprehended how segmentation analysis can be used proactively to influence consumers movements to segments that are mutually beneficial to the vender and buyer. In contrast, previous application work (Moriarty and Reibstein 1986) attempted to uncover existing segments as a expression to position products strategically. Consumer Buying Behaviour Model & Market SegmentationThe consumer buying behaviour model is derived generally from economic theory of consumer demand and the normative concepts of economic man and thinking(prenominal) behaviour. The assumptions of consumer demand specify that buyers, at the point of purchase, possess perfect knowledge about products and prices, are certain of their own stable tastes and preferences, are capable of perfectly turning information, and can express preferences between goods and bundles of goods without cost (Schwartz 1986). The model for the consumer decision process is based on assumptions about the behaviour of economic man who chooses a good for its primary function. The rational decision maker adheres to the tenets of Herbert Simons three-step model in which one (1) identifies the problem, (2) gathers information, and (3) makes a choice based on the information (Simon 1957). In spite of contemporary consumer b ehaviour texts resting heavily on the tenets of psychology and sociology to explain attitudes, motivations, and behaviour, the discipline holds dissolute to economic theory.Research on market segmentation offers several bases for segmenting consumers (Frank, Massy, and Wind 1972), including demographic descriptors such