Customer Behavior Portfolio unit 2 PDF

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Customer retention strategy for Automobile Company:
What actions are involved before the final decision to buy or consume a product and services?...

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BUS 5112- Marketing Management Instructor: Dr. Eric Asante Unit 2: Portfolio Activity: Understanding Customer Behavior

Answer to Ques No. 1: Gaining new customers is not the only focus of building a successful business. It is essential to retain the customers and build a long term relationship by creating brand loyalty. The more loyal customers a business can have, the faster it will be to achieve business goals. “Companies that increase customer retention rates by as low as 5% get an increase in their profits by 25-95%.” ( Jackson. A, 2021). Companies should plan a long term plan of action for customer retention keeping the competitive, economic, social and psychological environment in mind Customer retention strategy for Automobile Company: For an automobile company to retain its customers, the company strategy could include: Membership card and customer programs: Becoming members can help save money, and the customer will get benefits as a member in their future purchases. They will get gift hampers and other benefits on different holidays and occasions arranged by the company. E.g., members get free tickets or discounted prices for the yearly automobile show or car racing event. Long term maintenance plan: A long term effective maintenance plan and discounted services can go a long way to retain customers and create customer loyalty to encourage repeat business. Automobiles will need servicing and maintenance. They could offer a yearly service for the customer for a while. Free car wash opportunities or donation programs are ideal and easy to conduct. Trustworthy relationship: If the customers are happy with the services and products provided, they get points and rewards for recommending to their neighbor, friends, and family purchases. Information search and call centre service: The automobile company can easily create a database of the latest automobile features, blogs, vlogs, magazines relevant to their products and resource links through engaging through social media, newsletters and emails. A call centre service should be available for customers to call to get information and meet their queries. Also, services like tow-away car service or mobile servicing can be made available on a 24-hour service through call could be a game-changer.

What actions are involved before the final decision to buy or consume a product and services? Buying a car involves high-level involvement in the decision making, and this process goes through a few steps to reach the final decision. The steps are: Need recognition: The customer will try to meet their requirements from the product. Search for information: They will try to gather information about the product from varied sources, e.g., social media, google search, customer reviews etc. and will Product evaluation: The customer will try to evaluate the product and compare and compare the product with other brands. The 4 Ps will play a vital role in this regard. Product choice and purchase: The customer will consider family and friends choices and product evaluation before finalizing a purchase.

Post-purchase service and evaluation: This stage is when a buyer has made a decision and is satisfied or dissatisfied with their decision to purchase a product. Product performance plays a significant role. Disposal of product: Many times, a customer will actually think about the resale value or disposal of the product

Answer to Ques No 2: Before making a major purchase, what types of data do you gather? Before making a major purchase, I try to go with a well-known brand with a good reputation and reviews in the market. I emphasize the service warranty and product return options, compare prices and keep an eye on discounts and sales. Reviews and feedbacks from other users play a significant role in my decision-making process. What types of data are most compelling to you? Do you buy impulsively? I try to look for products with reasonable pricing and an extended warranty period most of the time. There are a few times I shop impulsively. If so, what type of products do you buy impulsively? My impulsive buying is limited to fashion items, makeup accessories and food items. Are there ways in which you want to improve your own consumer behavior? I am an average shopper as I tend to compare prices, durability and usually evaluate the pros and cons. However, there are a lot of times, I buy unnecessary things, and many online shopping products end up in the trash or behind the back of my drawers. I definitely would need to keep a tab on my shopping spree and refrain from buying these sort of products.

Answer to Ques No. 3: Formulate at least one question that arose while you were reading the material and completing the assignments. Reading through the Unit, we find many customer behavior factors and then again, businesses try to evaluate their customer behavior and consider the 4 P’s when marketing their product. Why do so many companies fail to succeed and shut down even after taking so many precautions and strategies? I would also like to know how a business can stay up to date and keep updating its marketing strategy in this fast-changing global environment? Was there anything in this Unit that surprised you or caught your attention? Explain. I already was aware of evaluating demographics from studying a bit of social media marketing previously; however, I didn’t understand its true impact as each factor made a lot of sense. Before reading this Unit and doing the assignments, I never tried to put my personality in the shoes of a customer. I was pretty surprised to see resemblances to what I read about customer behavior. The five personality traits of a customer was an interesting read.

References Jackson, A. (2021, February 23). Customer Retention: 6 Strategies To Grow Your Business With Existing Customers. Bluehostblog. https://www.bluehost.com/blog/customer-retention-6-strategies-to-growyour-business-with-existing-customers/? utm_source=google&utm_medium=genericsearch&gclid=Cj0KCQiAhf2MBhDNARIsAKXU5GSGy5YGD28yL x4MH9wHfzvcd-kQ0CHBpJTw9oTIvk4TEA5u9nGbHuwaAn7NEALw_wcB&gclsrc=aw.ds The University of Minnesota. (2010). Principles of marketing. Licensed under Creative Commons Attribution-Non-commercial-Share Alike 4.0. Retrieved from https://open.lib.umn.edu/principlesmarketing/front-matter/publisher-information/

2. Using what you have learned from the course materials and other sources in Unit 1 and in Unit 2, consider your own behavior as a buyer. Think about the kinds of things that move you to make purchases, both large and small, and then answer the following:

Before making a major purchase, what types of data do you gather? What types of data are most compelling to you? Do you buy impulsively? If so, what type of products do you buy impulsively? Are there ways in which you want to improve your own consumer behavior? 3. Take a moment and reflect on the topics introduced in this Unit.

Formulate at least one question that arose while you were reading the material and completing the assignments. Was there anything in this Unit that surprised you or caught your attention? Explain....