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Repeat Purchases, High and Low Involvement, Organizational Purchasing and Consumer Satisfaction. - Assignment Example
Author : cathyjones
Pages 5 (1255 words)
It is crucial for marketers to ensure repeat purchases for profitability reasons and for ensuring long-term loyalty to a particular brand. As it is related to profitability, when a consumer is willing to repurchase a product, it ensures that there will be stable revenues. …
Under business theory, there is always the threat of substitutes in a market, which means that other competing companies will often develop innovations that are similar to an existing product. One can take into consideration a technology brand such as a CD player. Substitute products in the market for this product include mobile smart phones that can sustain music selections or even Apple iPod. If the marketer is unable to get repeat purchases, then there is always the risk of defection to competing substitute products that will, over time, erode profitability. Additionally, establishment of brand loyalty is very important not only to ensure revenues from customer sales but also to outperform competition with similar product offerings and ensure that the life cycle of the product can be sustained. Under the product life cycle model, products move through an introductory stage, a growth stage, a maturity stage and a decline stage depending on how long the marketer can sustain demand for this product. When a product reaches the decline stage, as consumers no longer demand the product in high volumes, cash management and inventory control become a major strategic problem (Dooley, 2005). ...