The segment that I interviewed last time and will interview again is college students at the University of Florida.
Two out of three of my interviewees stated that when choosing alternatives, price is the first thing that they look at. Usually if they are going to choose between two products that are very comparable to another and when brand loyalty isn't a factor, they almost always choose the cheaper product over the more expensive one. My other interviewee has a strong sense of brand loyalty when buying products. So for this customer, he values quality higher than price and has had success with a specific brand of products so he is willing to pay a premium for the brand name product.
All of my interviewees state that it depends on the product for whether or not they buy it online. Products that they have to consistently buy, such as household products like toiletries, kitchen products, and groceries, they will buy in person. However clothes and technology they prefer to buy online. They all state that they rarely use cash to make a purchase. One of my interviewees, who is a graduate student that lives in a house off campus, said that they use cash when making large purchases such as furniture because when they walk into a furniture with a wad of cash, the company is more inclined to give them a better deal because the money is much more tangible and the company doesn't have to pay credit card charges.
My interviewees state that they always have expectations of the products that they purchase before they actually make the purchase. The way that they evaluate whether or not the purchase was worth it is if those expectations are met or not. They all state that when the expectation is matched with reality, they are neutral on the purchase and may or may not make the purchase again in the future. When their expectations are exceeded, they are satisfied and very likely to make the purchase again in the future. When their expectations are not met, they will never make the purchase again in the future unless there are no alternatives. They also claim that they make sure to tell their friends how bad the product was. This is why it is so important to exceed expectations to bring back repeat customers. Meeting expectations won't get it done and not meeting expectations can be detrimental to your customer base.
I would evaluate my segment as having high product diversity in that they are not loyal to a specific product and care most about price. Their choice of whether or not they should buy online depends on the product they purchase and their post purchase behavior depends on if their expectations are met.
Patrick,
ReplyDeleteThe fact that you stated that your interviewees pay with cash for more expensive items because they are more likely to get a deal is interesting. In my mind, I would think that individuals usually only pay for lower priced items with cash because it is easier to afford right then. Also, considering your buyers behavior would you sell online or only in person? Which do you think would work the best?