15A- Figuring Out Buyer Behavior No.2

Begin with alternative evaluation. In the last case exercise, you determined how customers sought information related to solving their need. The outcome of this step is to produce a set of alternatives. Customers pick from among this set of alternatives. In this step, your job is to figure out how they do their picking. Does price matter the most? Does quality? Does style? Is there more than one factor that is important to your customer segment?

I interviewed a business major who cooks often, and is the only one in his apartment to do so. For him, the price matters most. This catches his attention and allows him to either continue looking at the product, or move on if too expensive. He also considers quality to be important, as a cheap looking or bad quality product would be displayed and frequently annoy him. Quality, however, remains at a lower importance along with the style when compared to the price. The style is what may originally catch his eye, but the price makes the final decision and is the ultimate deciding factor.

Another interviewee was a public relations major who enjoys cooking and does her own grocery shopping, yet does not do either regularly or often. She goes to a restaurant every to every other day. For her, the style is the most important factor. If the product is inefficient or ugly, it won’t get a second look or consideration. Oppositely, a style she likes would get her attention and more searching about it. The importance placed on price would follow second, and this determines how much she cares about the quality. A higher price on a style she likes or thinks useful would require a higher quality that, if met, she would consider. A lower price rationalizes a lower price, although the expectation of low quality does have its limits. She would not purchase something knowing it is a horrible quality simply because its cheap, but rather states that a cheap price would change her expectations.

The last interview was with a nursing student that is beginning to learn how to cook, and does her own grocery shopping online to then pick it up at the store. The quality for her is her main focus. If something is low quality, she will not consider it. It dictates what price she will pay for and think acceptable. The style is secondary, but still important. If she does not like the style, the quality fails to change her mind. Quality provides her first impression, and if negative, the final decision.

How/where do they buy? Elements of the actual transaction can help characterize your segment. Is your segment more likely to buy online or in a store? Are they more likely to use cash or will they finance the purchase? Etc. If this is a B2B purchase, who's involved in the purchase decision? 

My segment is more likely to buy online. As college students, they may not have the transportation to go to a store. Similarly, those that rely on public transportation or scooters may not want to use these methods regularly, and therefore limit the amount of times they use it or the length of time. They also shop online regularly, and search the product reviews or uses online before buying. The purchase won’t be financed, as it is a small purchase and college students typically don’t have large credit limits anyways.

Post-purchase evaluation. What matters most to your customers when they think back on the 'rightness' of the purchase? What helps them determine the purchase was a good idea? What sorts of things make them think a purchase was a bad idea? 

When the customers thought back on the purchase, they all reported the price to determine whether it was a good idea or not. They stated that many times, they had bought other products which they liked and wanted, but later regretted as it was too expensive and was not used as frequently as they thought. A low price makes the purchase seem better later on. This is the same for a higher quality.  

Draw conclusions. Based on what you know about this segment and what you learned in your interviews, how would you succinctly describe this segment in terms of alternative evaluation, purchase decision, and post-purchase evaluation? 

This segment considers price to be incredibly important, along with the style to catch their attention, and quality to make them consider buying the product or decide it’s simply not worth it no matter how it functions or the cheap price. Their decision to buy depends on all three of these factors, although their importance level varied between interview. This segment also typically buys online rather than in person, and uses cash or a credit card. However, the credit card limits are low, and as such it does not work as a significant financing option. The price also influences how they think of a product later on, as a purchase made on a favorite item that is expensive is often later regretted as many thought it was not worth it, or they could have bought other things.