Consumer Behavior andMarket Segmentation - Essay Example

The conditional values, in the opinion of the customers, were price, variety, and location. Finally, in the group of epistemic values, the customers were ambivalent. The demographic profile of the customers consisted of 21 years of age, higher education, and >35 years and <80 years. The lifestyle profile was individuals. In the framework, the segments were; health, family, atmosphere, and competitive pricing. The market was sizeable, identifiable, and reachable (Schiffman & Kanuk 92).

In the category of product/positioning, the product attributes were; high quality, superior values, personal services, and a homey atmosphere.  The competition included “chilis”, “Olive Gordon”, “Red Robin Fast Food” and “Apple”.

The third category was seller/marketing strategy, and in the framework, firstly, the product should be innovative. Secondly, promotion should be through coupons and TV. Thirdly, pricing should be through penetration. Lastly, the place should be selective.     

Question # 2

The online research design will start by formulating the objectives of the web-based business. After developing the objectives or research hypothesis of the web-based business, which define the purpose of the business, then it will be appropriate to decide if the market research will either be quantitative or qualitative. However, the application of both quantitative and qualitative methods would result in great market research. The sample population to be included in the research will be generated from social networks and blogs. The process of gathering information will start by formulating a data-collecting tool; designing a questionnaire. The questionnaire should contain questions that are not leading or unbiased. The following step will entail conducting the survey, which means taking data from the sample population. The above will be followed by data analysis, and here t-tests and crosstabs will be used to link the relationship between different research variables. Conclusions to affirm or disapprove of the hypothesis will come after analysis (Schiffman & Kanuk 67). 

Question # 3

Motivation is an important aspect when it comes to internal influence. Motivation will instill desire in a customer, which will make the customer want to buy an identified product. The motivation, which will make an individual make a purchasing decision, is interlinked with time constraints, the product’s value, and the product’s risk (Schiffman & Kanuk 32).

Perception is also a tremendous internal influence. Customers perceive various products in different ways. The positive or negative impression of a product will aid a customer in deciding on a product. Perception is better understood through the concept of “perception filter”, in that a customer is likely to be acquainted with a product through filter stimuli, for example, an advertisement (Schiffman & Kanuk 91).

Learning entails how a customer gets acquainted with new information regarding a product. The new information contributes to the individual’s internal influence. The newly learned information can generate an individual’s interest in a product (Schiffman & Kanuk 97).

The last concept is personality, which in essence, is individuality or self-concept. A personality can be defined by the customer’s superiority complex, age, overconfidence, income, and occupation. The above aspects make customers purchase products, which fulfill their individualities or self-concept (Schiffman & Kanuk 100).

Question # 4

Market segmentation entails subdividing a defined market of interest by some similarities. The segments can be in terms of age, sex, location, or occupation. Cross-tabulation is used to analyze the different segments in the market to derive a practical inference. The strategic use of a crosstab and t-test will aid in identifying the different products that customers in the different segments prefer. For example, through a t-test and crosstab analysis, the largest segment is likely to be identified. In essence, this will reveal the preference and priorities of most customers. Marketers will develop brand positions according to the market segment and introduce new products targeting the largest market segment (Schiffman & Kanuk 102).